8-K
YHN Acquisition I Ltd (YHNA)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
September17, 2024
Date
of Report (Date of earliest event reported)
YHNAcquisition I Limited
(Exact Name of Registrant as Specified in its Charter)
| British Virgin Islands | 001-42251 | n/a |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission File<br> Number) | (I.R.S. Employer<br><br> <br>Identification No.) |
| 2/F, Hang Seng Building<br><br> <br>200 Hennessy Road, Wanchai<br><br> <br>Hong Kong | n/a | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code:
+852 5499 8101
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written<br> communications pursuant to Rule 425 under the Securities Act |
|---|---|
| ☐ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act |
| ☐ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act |
| ☐ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Units,<br> each consisting of one Ordinary Share, no par value, and one Right entitling the holder to receive one-tenth of an Ordinary Share | YHNAU | The<br> Nasdaq Stock Market LLC |
| Ordinary<br> Share | YHNA | The<br> Nasdaq Stock Market LLC |
| Rights | YHNAR | The<br> Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. Entry intoa Material Definitive Agreement.
On September 17, 2024, the Post-Effective Amendment No. 2 to Registration Statement (File No. 333-279308) (the “Registration Statement”) relating to the initial public offering (“IPO”) of YHN Acquisition I Limited (the “Company”) was declared effective by the Securities and Exchange Commission. In connection therewith, on September 17, 2024, the Company entered into the following agreements previously filed as exhibits to the Registration Statement:
| ● | An<br> Underwriting Agreement, dated September 17, 2024, by and between the Company and Lucid Capital Markets, LLC, as representative of<br> the underwriters; |
|---|---|
| ● | A<br> Rights Agreement, dated September 17, 2024 by and between the Company and Continental Stock Transfer & Trust Company; |
| ● | A<br> Letter Agreement, dated September 17, 2024, by and between the Company and each of the officers and directors of the Company; |
| ● | A<br> Letter Agreement, dated September 17, 2024, by and between the Company and YHN Partners I Limited (the “Sponsor”); |
| ● | An<br> Investment Management Trust Agreement, dated September 17, 2024, by and between the Company and Continental Stock Transfer &<br> Trust Company; |
| ● | A<br> Stock Escrow Agreement, dated September 17, 2024, by and among the Company, Continental Stock Transfer & Trust Company and each<br> of the initial shareholders of the Company; |
| ● | A<br> Registration Rights Agreement, dated September 17, 2024, by and among the Company and the initial shareholders of the Company; |
| ● | A<br> Subscription Agreement, dated September 17, 2024, in relation to private units by and between the Company and the Sponsor; and |
| ● | Indemnification<br> Agreements, dated September 17, 2024, by and among the Company and each of the officers and directors of the Company. |
On September 19, 2024, the Company consummated the IPO of 6,000,000 units (the “Units). Each Unit consists of one ordinary share (“Ordinary Share”) and one right to receive one-tenth (1/10) of one Ordinary Share upon the consummation of an initial business combination. The Units were sold at an offering price of $10.00 per Unit, generating gross proceeds of $60,000,000. The underwriters were granted a 45-day option to purchase up to an additional 900,000 Units to cover over-allotments, if any.
As of September 19, 2024, a total of $60,300,000 of the net proceeds from the IPO and the Private Placement (as defined below) were deposited in a trust account established for the benefit of the Company’s public shareholders. The underwriters had not exercised the over-allotment option. An audited balance sheet as of September 19, 2024 reflecting receipt of the proceeds upon consummation of the IPO and the Private Placement will be filed within 4 business days of the consummation of the IPO.
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Item 3.02. UnregisteredSales of Equity Securities.
Simultaneously with the closing of the IPO, the Company consummated the private placement (“Private Placement”) with its sponsor of 250,000 units (the “Private Units”) at a price of $10.00 per Private Unit, generating total proceeds of $2,500,000.
The Private Units are identical to the Units (as defined above) sold in the IPO except with respect to certain registration rights and transfer restrictions. Additionally, the holders of the Private Units have agreed to certain restrictions on the Private Units, as described in the Registration Statement. Additionally, such holders agreed not to transfer, assign or sell any of the Private Units or underlying securities (except in limited circumstances, as described in the Registration Statement) until 180 days after the completion of the Company’s initial business combination. The holders were granted certain demand and piggyback registration rights in connection with the Private Units.
The Private Units were issued pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, as the transaction did not involve a public offering.
Item 5.03. Amendmentsto Certificate of Incorporation or Bylaws; Change in Fiscal Year.
On September 16, 2024, in connection with the IPO, the Company filed its Third Amended and Restated Memorandum and Articles of Association with the Registrar of Corporate Affairs in the British Virgin Islands. The terms of the Third Amended and Restated Memorandum and Articles of Association are set forth in the Registration Statement and are incorporated herein by reference. A copy of the Company’s Third Amended and Restated Memorandum and Articles of Association are attached as Exhibits 3.1 hereto and are incorporated by reference herein.
Item 8.01. Other Events.
On September 17, 2024, the Company issued a press release announcing the pricing of the IPO, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K.
On September 19, 2024, the Company issued a press release announcing the closing of the IPO, a copy of which is attached as Exhibit 99.2 to this Current Report on Form 8-K.
Item 9.01. FinancialStatements and Exhibits.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: September 19, 2024 | |
|---|---|
| YHN ACQUISITION I LIMITED | |
| By: | /s/ Satoshi Tominaga |
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
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Exhibit 1.1
6,000,000 Units
YHN Acquisition I Limited
UNDERWRITING AGREEMENT
September 17, 2024
Lucid Capital Markets, LLC
570 Lexington Avenue, 40th Floor
New York, NY 10022
As Representative of the Underwriters named on Schedule A hereto
Ladies and Gentlemen:
The undersigned, YHN Acquisition I Limited, a British Virgin Islands business company (“Company”), hereby confirms its agreement with Lucid Capital Markets, LLC (hereinafter referred to as “you”, “Lucid”, or as the “Representative”) and with the other underwriters named on Schedule A hereto for which you are acting as representative (the Representative and the other Underwriters being collectively referred to herein as the “Underwriters” or, individually, an “Underwriter”), as follows:
Purchase and Sale of Securities.
1.1. Firm Securities.
| 1.1.1. | Purchase of Firm Units. On the basis of the representations and warranties herein contained, but<br>subject to the terms and conditions herein set forth, the Company agrees to issue and sell, severally and not jointly, to the several<br>Underwriters, an aggregate of 6,000,000 units (the “Firm Units”) of the Company at a purchase price (net of discounts and<br>commissions) of $9.59 per Firm Unit. The Underwriters, severally and not jointly, agree to purchase from the Company the number of Firm<br>Units set forth opposite their respective names on Schedule A, attached hereto and made a part hereof at a purchase price (net<br>of discounts and commissions) of $9.59 per Firm Unit. The Firm Units (and the Option Units (as hereinafter defined), if any) are to be<br>offered initially to the public (the “Offering”) at the offering price of $10.00 per Firm Unit. Each Firm Unit consists of<br>one (1) ordinary share, no par value, of the Company (“Ordinary Share(s)”), and one right to receive one-tenth (1/10) of one<br>Ordinary Share upon the consummation of an initial business combination (the “Right(s)”). Each ten Rights entitle the holder<br>thereof to receive one Ordinary Share automatically upon the consummation of an initial business combination of the Company. The Ordinary<br>Shares and the Rights included in the Firm Units will not trade separately or be separately transferable until the earlier of the 52nd<br>day after the date that the Registration Statement (as defined below) becomes effective (the “Effective Date”) or the announcement<br>by the Company of the Representative’s decision to allow earlier trading, subject, however, to the Company filing a Current Report<br>on Form 8-K (“Form 8-K”) with the Commission (as defined below) containing an audited balanced sheet reflecting the Company’s<br>receipt of the gross proceeds of the Offering and issuing a press release announcing when such separate trading will begin. In no event<br>will the Company allow separate trading until (i) the preparation of an audited balance sheet of the Company reflecting receipt by the<br>Company of the proceeds of the Offering and the filing of such audited balance sheet with the Commission (as herein defined) on a Form<br>8-K or similar form by the Company which includes such balance sheet and (ii) the issuance of a press release announcing when such separate<br>trading shall begin. As used herein, the term “Business Day” means any day other than Saturday, Sunday or other day on which<br>commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial<br>banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”,<br>“non-essential employee” or any other similar orders or restrictions or the closure of any physical branch locations at the<br>direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial<br>banks in The City of New York are generally are open for use by customers on such day. |
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| 1.1.2. | Payment and Delivery. Delivery and payment for the Firm Units shall be made at 10:00 A.M., New<br>York time, on the first (1^st^) Business Day following the Effective Date of the Registration Statement (or the second (2^nd^)<br>Business Day following the Effective Date, if the Registration Statement is declared effective on or after 4:00 p.m.) or at such earlier<br>time as shall be agreed upon by the Representative and the Company at the offices of the Representative or at such other place as shall<br>be agreed upon by the Representative and the Company. The closing of the public offering contemplated by this Agreement is referred to<br>herein as the “Closing” and the hour and date of delivery and payment for the Firm Units is referred to herein as the “Closing<br>Date.” Payment for the Firm Units shall be made on the Closing Date at the Representative’s election by wire transfer in Federal<br>(same day) funds or by certified or bank cashier’s check(s) in New York Clearing House funds. $60,300,000 ($69,345,000 if the Over-allotment<br>Option (as defined in Section 1.2) is exercised in full), or $10.05 per Unit, of the proceeds received by the Company for the Firm<br>Units and from the Private Placement (as defined in Section 1.3) shall be deposited in the trust account established by the Company<br>for the benefit of the public shareholders as described in the Registration Statement (the “Trust Account”) pursuant to the<br>terms of an Investment Management Trust Agreement (the “Trust Agreement”) by and between the Company and Continental Stock<br>Transfer & Trust Company (“CST”). The funds deposited in the Trust Account shall include an aggregate of $0.25 per Unit<br>($1,500,000 or $1,725,000 if the Over-Allotment Option is exercised in full) payable to the Representative as Deferred Underwriting Commission<br>in accordance with Section 1.4 hereof. The remaining proceeds (less commissions and actual expense payments or other fees payable<br>pursuant to this Agreement and payment of the Deferred Underwriting Commission) shall be paid to the order of the Company upon delivery<br>to the Representative of certificates (in form and substance satisfactory to the Underwriters) representing the Firm Units (or through<br>the facilities of the Depository Trust Company (“DTC”)) for the account of the Underwriters. The Firm Units shall be registered<br>in such name or names and in such authorized denominations as the Representative may request in writing at least one (1) Business Day<br>prior to the Closing Date. The Company will permit the Representative to examine and package the Firm Units for delivery, at least one<br>(1) full Business Day prior to the Closing Date. The Company shall not be obligated to sell or deliver the Firm Units, except upon tender<br>of payment by the Representative for all the Firm Units. |
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1.2. Over-Allotment Option.
| 1.2.1. | Option Units. For the purpose of covering any over-allotments in connection with the distribution<br>and sale of the Firm Units, the Underwriters are hereby granted, severally and not jointly, an option to purchase up to an additional<br>900,000 units of the Company (the “Over-allotment Option”). Such additional 900,000 units shall be identical in all respects<br>to the Firm Units and are hereinafter referred to as “Option Units.” The Firm Units and the Option Units are hereinafter collectively<br>referred to as the “Units,” and the Units, the Ordinary Shares and the Rights included in the Units and the Ordinary Shares<br>issuable upon exercise of the Rights are hereinafter referred to collectively as the “Public Securities.” The purchase price<br>to be paid for the Option Units (net of discounts and commissions) will be $9.59 per Option Unit (of which the Deferred Underwriting Commission<br>will be deposited into the Trust Account and payable to the Representative as Deferred Underwriting Commission in accordance with Section<br>1.4 hereof). The Option Units are to be offered initially to the public at the offering price of $10.00 per Option Unit. |
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| 1.2.2. | Exercise of Option. The Over-allotment Option granted pursuant to Section 1.2.1 hereof may<br>be exercised by the Representative as to all (at any time) or any part (from time to time) of the Option Units within forty-five (45)<br>days after the Effective Date. The Underwriters will not be under any obligation to purchase any Option Units prior to the exercise of<br>the Over-allotment Option. The Over-allotment Option granted hereby may be exercised by the giving of oral notice to the Company from<br>the Representative, which must be confirmed in writing by overnight mail, facsimile transmission or e-mail transmission setting forth<br>the number of Option Units to be purchased and the date and time for delivery of and payment for the Option Units, which will not be later<br>than two (2) Business Days after the date of the notice or such other time as shall be agreed upon by the Company and the Representative,<br>at the offices of the Representative or at such other place or in such other manner as shall be agreed upon by the Company and the Representative.<br>If such delivery and payment for the Option Units does not occur on the Closing Date, the date and time of the closing for such Option<br>Units will be as set forth in the notice (hereinafter the “Option Closing Date”). Upon exercise of the Over-allotment Option,<br>the Company will become obligated to convey to the Underwriters, and, subject to the terms and conditions set forth herein, the Underwriters<br>will become obligated to purchase, the number of Option Units specified in such notice. |
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| 1.2.3. | Payment and Delivery. Delivery and payment for the Option Units shall be made at 10:00 AM, New<br>York time, on the Option Closing Date or at such earlier time as shall be agreed upon by the Representative and the Company at the offices<br>of the Representative or at such other place as shall be agreed upon by the Representative and the Company. Payment for the Option Units<br>shall be made at the Representative’s election by wire transfer in Federal (same day) funds or by certified or bank cashier’s<br>check(s) in New York Clearing House funds, by deposit of the sum of $9.84 per Option Unit in the Trust Account pursuant to the Trust Agreement<br>upon delivery to the Representative of certificates (in form and substance satisfactory to the Underwriters) representing the Option Units<br>(or through the facilities of DTC) for the account of the Underwriters. The Option Units shall be registered in such name or names and<br>in such authorized denominations as the Representative may request not less than one (1) Business Day prior to the Closing Date or the<br>Option Closing Date, as the case may be, and will be made available to the Representative for inspection, checking and packaging at the<br>aforesaid office of the Company’s transfer agent or correspondent not less than one (1) full Business Day prior to such Closing<br>Date or Option Closing Date. The amount to be deposited in the Trust Account will include $0.25 per Unit ($1,500,000 or $1,725,000 if<br>the Over-allotment Option is exercised in full) payable to the Representative as Deferred Underwriting Commission in accordance with Section<br>1.4 hereof. |
| --- | --- |
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1.3. Private Placement. Simultaneously with the Closing, the Sponsor (as defined in Section 2.24.2 hereof) shall purchase from the Company, pursuant to the Subscription Agreement (as defined in Section 2.24.2 hereof) an aggregate of 250,000 units (the “Placement Units”), or 268,900 Placement Units if the Over-allotment Option is exercised in full, at a purchase price of $10.00 per Placement Unit in a private placement (the “Private Placement”). The Placement Units, the Ordinary Shares, included in the Placement Units, the Rights included in the Placement Units (the “Placement Rights”), and the Ordinary Shares underlying the Placement Rights are hereinafter referred to collectively as the “Placement Securities.” Each Placement Unit shall be identical to the Units sold in the Offering, except as set forth in the Registration Statement and the Prospectus (each as defined below). There will be no placement agent in the Private Placement and no party shall be entitled to a placement fee or expense allowance from the sale of the Placement Securities.
1.4. Deferred Underwriting Commission. The Underwriters agree that 2.5% of the gross proceeds from the sale of the Units ($1,725,000 if the Over-allotment Option is exercised in full), (collectively, the “Deferred Underwriting Commission”), will be deposited and held in the Trust Account and payable directly from the Trust Account, without accrued interest, to the Representative upon consummation of the Company's initial Business Combination; provided that such payment shall be reduced by $0.25 per share redeemed in connection with the consummation of the Company’s initial Business Combination (subject to a minimum payment of $500,000). In the event that the Company is unable to consummate a Business Combination and CST, as the trustee of the Trust Account (in this context, the “Trustee”), commences liquidation of the Trust Account as provided in the Trust Agreement, the Representative agrees that: (i) all rights or claims to the Deferred Underwriting Commission shall be forfeited; and (ii) the Deferred Underwriting Commission, together with all other amounts on deposit in the Trust Account, shall be distributed on a pro-rata basis among the Public Shareholders.
1.5. Working Capital. Upon consummation of the Offering, approximately $750,000 of the net proceeds from the sale of Units and Placement Units will be released to the Company and held outside of the Trust Account to fund the working capital requirements of the Company.
1.6. Interest Income. Prior to the Company’s consummation of a Business Combination or the Company’s liquidation, the interest earned on the Trust Account may be released to the Company from the Trust Account in accordance with the terms of the Trust Agreement to pay any taxes obligations of the Company.
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- Representations and Warranties of the Company. The Company represents and warrants to the Underwriters as follows:
2.1. Filing of Registration Statement.
| 2.1.1. | Pursuant to the Act. The Company has filed with the U.S. Securities and Exchange Commission (the<br>“Commission”) a registration statement and an amendment or amendments thereto, on Form S-1 (File No. 333-279308), including<br>any related preliminary prospectus (the “Preliminary Prospectus”, including any prospectus that is included in the Registration<br>Statement immediately prior to the effectiveness of the Registration Statement), for the registration of the Public Securities under the<br>Securities Act of 1933, as amended (the “Act”), which registration statement and amendment or amendments have been prepared<br>by the Company in conformity in all material respects with the requirements of the Act, and the rules and regulations (the “Regulations”)<br>of the Commission under the Act. The conditions for use of Form S-1 to register the Offering under the Act, as set forth in the General<br>Instructions to such Form, have been satisfied in all material respects. Except as the context may otherwise require, such registration<br>statement, as amended, on file with the Commission at the time post-effective amendment No. 2 to the registration statement became effective<br>(including the prospectus, financial statements, schedules, exhibits and all other documents filed as a part thereof or incorporated therein<br>and all information deemed to be a part thereof as of such time pursuant to Rule 430A of the Regulations), is hereinafter called the “Registration<br>Statement,” and the form of the final prospectus dated the Effective Date included in the Registration Statement (or, if applicable,<br>the form of final prospectus containing information permitted to be omitted at the time of effectiveness by Rule 430A of the Regulations<br>filed with the Commission pursuant to Rule 424 of the Regulations), is hereinafter called the “Prospectus.” For purposes of<br>this Agreement, “Time of Sale”, as used in the Act, means 5:00 p.m., New York City time, on the date of this Agreement. If<br>the Company has filed, or is required pursuant to the terms hereof to file, a registration statement pursuant to Rule 462(b) under the<br>Securities Act registering the Securities (a “Rule 462(b) Registration Statement”), then, unless otherwise specified, any<br>reference herein to the term “Registration Statement” shall be deemed to include such Rule 462(b) Registration Statement.<br>Other than a Rule 462(b) Registration Statement, which, if filed, becomes effective upon filing, no other document with respect to the<br>Registration Statement has heretofore been filed with the Commission. All of the Public Securities have been registered under the Act<br>pursuant to the Registration Statement or, if any Rule 462(b) Registration Statement is filed, will be duly registered under the Securities<br>Act with the filing of such Rule 462(b) Registration Statement. The Registration Statement has been declared effective by the Commission<br>on the date hereof. If, subsequent to the date of this Agreement, the Company or the Representative has determined that at the Time of<br>Sale the Prospectus included an untrue statement of a material fact or omitted a statement of material fact necessary to make the statements<br>therein, in light of the circumstances under which they were made, not misleading, and have agreed to provide an opportunity to purchasers<br>of the Units to terminate their old purchase contracts and enter into new purchase contracts, the Prospectus will be deemed to include<br>any additional information available to purchasers at the time of entry into the first such new purchase contract. |
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| 2.1.2. | Pursuant to the Exchange Act. The Company has filed with the Commission a Form 8-A (File Number<br>001-42251) providing for the registration under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of the<br>Units, Ordinary Shares and the Rights. The registration of the Units, Ordinary Shares and Rights under the Exchange Act will be declared<br>effective by the Commission on or prior to the Effective Date. |
| --- | --- |
2.2. No Stop Orders, Etc. Neither the Commission nor, to the best of the Company’s knowledge, any state regulatory authority has issued any order or threatened to issue any order preventing or suspending the use of any Preliminary Prospectus or has instituted or, to the best of the Company’s knowledge, threatened to institute any proceedings with respect to such an order.
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2.3. Disclosures in Registration Statement.
| 2.3.1. | 10b-5Representation. At the time the Registration Statement became effective, upon the filing or<br>first use (within the meaning of the Regulations) of the Prospectus and at the Closing Date and the Option Closing Date, if any, the Registration<br>Statement and the Prospectus contained or will contain all material statements that are required to be stated therein in accordance with<br>the Act and the Regulations, and did or will in all material respects conform to the requirements of the Act and the Regulations. Neither<br>the Registration Statement nor any Preliminary Prospectus or the Prospectus, nor any amendment or supplement thereto, on their respective<br>dates, did or will contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or<br>necessary to make the statements therein (in the case of the Preliminary Prospectus and the Prospectus, in light of the circumstances<br>under which they were made), not misleading. When any Preliminary Prospectus was first filed with the Commission (whether filed as part<br>of the Registration Statement for the registration of the Securities or any amendment thereto or pursuant to Rule 424(a) of the Regulations)<br>or first used (within the meaning of the Regulations) and when any amendment thereof or supplement thereto was first filed with the Commission<br>or first used (within the meaning of the Regulations), such Preliminary Prospectus and any amendments thereof and supplements thereto<br>complied or will have been corrected in the Prospectus to comply in all material respects with the applicable provisions of the Act and<br>the Regulations and did not and will not contain an untrue statement of a material fact or omit to state any material fact required to<br>be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not<br>misleading. The representation and warranty made in this Section 2.3.1 does not apply to statements made or statements omitted<br>in reliance upon and in conformity with written information furnished to the Company with respect to the Underwriters by the Representative<br>expressly for use in the Registration Statement or Prospectus or any amendment thereof or supplement thereto. It is understood the following<br>identified statements set forth in the Prospectus under the heading “Underwriting” constitute, for the purposes of this Agreement,<br>information furnished by the Representative with respect to the Underwriters: (i) the table of underwriters in the first paragraph of<br>“Underwriting”, (ii) the second sentence of the third paragraph of the “Underwriting”, (iii) the eleventh paragraph<br>of the “Underwriting” section, the bullets following such paragraph and the twelfth paragraph of the “Underwriting”<br>section and (iv) the Underwriting subsection “Selling Restrictions.” |
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| 2.3.2. | Disclosure of Agreements. The agreements and documents described in the Registration Statement,<br>the Preliminary Prospectus and the Prospectus conform to the descriptions thereof contained therein and there are no agreements or other<br>documents required to be described in the Registration Statement, the Preliminary Prospectus or the Prospectus or to be filed with the<br>Commission as exhibits to the Registration Statement, that have not been so described or filed. Each agreement or other instrument (however<br>characterized or described) to which the Company is a party or by which its property or business is or may be bound or affected and (i)<br>that is referred to in the Registration Statement, Preliminary Prospectus or the Prospectus or attached as an exhibit thereto, or (ii)<br>is material to the Company’s business, has been duly and validly executed by the Company, is in full force and effect in all material<br>respects and is enforceable against the Company and, to the Company’s knowledge, the other parties thereto, in accordance with its<br>terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors’<br>rights generally, (y) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities<br>laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable<br>defenses and to the discretion of the court before which any proceeding therefor may be brought, and none of such agreements or instruments<br>has been assigned by the Company, and neither the Company nor, to the Company’s knowledge, any other party is in breach or default<br>thereunder and, to the Company’s knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both,<br>would constitute a breach or default thereunder. To the Company’s knowledge, performance by the Company of the material provisions<br>of such agreements or instruments will not result in a material violation of any existing applicable law, rule, regulation, judgment,<br>order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its assets or<br>businesses, including, without limitation, those relating to environmental laws and regulations. |
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| 2.3.3. | Prior Securities Transactions. No securities of the Company have been sold by the Company or by<br>or on behalf of, or for the benefit of, any person or persons controlling, controlled by, or under common control with the Company since<br>the date of the Company’s formation, except as disclosed in the Registration Statement. |
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| 2.3.4. | Regulations. The disclosures in the Registration Statement, the Preliminary Prospectus and the<br>Prospectus concerning the effects of Federal, state and local regulation on the Company’s business as currently contemplated fairly<br>summarize, to the best of the Company’s knowledge, such effects and do not omit to state a material fact necessary to make the statements<br>therein, in light of the circumstances in which they were made, not misleading. |
| --- | --- |
2.4. Changes After Dates in Registration Statement.
| 2.4.1. | No Material Adverse Change. Except as contemplated in the Prospectus or specifically stated therein,<br>since the respective dates as of which information is given in the Registration Statement, any Preliminary Prospectus and/or the Prospectus:<br>(i) there has been no material adverse change in the condition, financial or otherwise, or business prospects of the Company; (ii) there<br>have been no material transactions entered into by the Company, other than as contemplated pursuant to this Agreement; (iii) no member<br>of the Company’s board of directors or management has resigned from any position with the Company and (iv) no event or occurrence<br>has taken place which materially impairs, or would likely materially impair, with the passage of time, the ability of the members of the<br>Company’s board of directors or management to act in their capacities with the Company as described in the Registration Statement<br>and the Prospectus. |
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| 2.4.2. | Recent Securities Transactions, Etc. Except as contemplated in the Prospectus, subsequent to the<br>respective dates as of which information is given in the Registration Statement and the Prospectus, and except as may otherwise be indicated<br>or contemplated herein or therein, the Company has not: (i) issued any securities or incurred any liability or obligation, direct or contingent,<br>for borrowed money; or (ii) declared or paid any dividend or made any other distribution on or in respect to its share capital. |
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2.5. Independent Accountants. To the best of the Company’s knowledge, Adeptus Partners, LLC (the “Auditor”), whose report is filed with the Commission as part of the Registration Statement and included in the Registration Statement, the Preliminary Prospectus and the Prospectus, are independent accountants as required by the Act and the Regulations and the Public Company Accounting Oversight Board (including the rules and regulations promulgated by such entity, the “PCAOB”). To the best of the Company’s knowledge, the Auditor is duly registered and in good standing with the PCAOB. The Auditor has not, during the periods covered by the financial statements included in the Registration Statement and the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act.
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2.6. Financial Statements; Statistical Data.
| 2.6.1. | Financial Statements. The financial statements, including the notes thereto and supporting schedules<br>included in the Registration Statement, the Preliminary Prospectus and the Prospectus fairly present the financial position and the results<br>of operations of the Company at the dates and for the periods to which they apply; and such financial statements have been prepared in<br>conformity with generally accepted accounting principles, consistently applied throughout the periods involved; and the supporting schedules<br>included in the Registration Statement present fairly the information required to be stated therein. To the best of the Company’s<br>knowledge, no other financial statements or supporting schedules are required to be included or incorporated by reference in the Registration<br>Statement, the Preliminary Prospectus or the Prospectus. The Registration Statement, the Preliminary Prospectus and the Prospectus disclose<br>all material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of<br>the Company with unconsolidated entities or other persons that may have a material current or future effect on the Company’s financial<br>condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant components<br>of revenues or expenses. To the best of the Company’s knowledge, there are no pro forma or as adjusted financial statements which<br>are required to be included in the Registration Statement and the Prospectus in accordance with Regulation S-X which have not been included<br>as so required. |
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| 2.6.2. | Statistical Data. The statistical, industry-related and market-related data included in the Registration<br>Statement, the Preliminary Prospectus and the Prospectus are based on or derived from sources which the Company reasonably and in good<br>faith believes are reliable and accurate, and such data agree with the sources from which they are derived. |
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2.7. Authorized Capital; Options, Etc. The Company had at the date or dates indicated in the Registration Statement, the Preliminary Prospectus and the Prospectus, as the case may be, duly authorized, issued and outstanding capitalization as set forth in the Registration Statement, the Preliminary Prospectus and the Prospectus. Based on the assumptions stated in the Registration Statement, the Preliminary Prospectus and the Prospectus, the Company will have on the Closing Date the adjusted share capitalization set forth therein. Except as set forth in, or contemplated by, the Registration Statement, the Preliminary Prospectus and the Prospectus, on the Effective Date of the Prospectus and on the Closing Date and the Option Closing Date, if any, there will be no options, warrants, or other rights to purchase or otherwise acquire any authorized, but unissued Ordinary Shares of the Company or any security convertible into Ordinary Shares of the Company, or any contracts or commitments to issue or sell Ordinary Shares or any such options, warrants, rights or convertible securities.
2.8. Valid Issuance of Securities, Etc.
| 2.8.1. | Outstanding Securities. All issued and outstanding securities of the Company have been duly authorized<br>and validly issued and are fully paid and non-assessable; the holders thereof have no rights of rescission with respect thereto, and are<br>not subject to personal liability by reason of being such holders; and none of such securities were issued in violation of the preemptive<br>rights of any holders of any security of the Company or similar contractual rights granted by the Company. The Public Securities conform<br>in all material respects to all statements relating thereto contained in the Registration Statement, the Preliminary Prospectus and the<br>Prospectus. Subject to the disclosure contained in the Registration Statement, the Preliminary Prospectus and the Prospectus with respect<br>to the Placement Securities, the offers and sales of the outstanding Ordinary Shares were at all relevant times either registered under<br>the Act and the applicable state securities or Blue Sky laws or, based in part on the representations and warranties of the purchasers<br>of such Ordinary Shares, exempt from such registration requirements. |
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| 2.8.2. | Securities Sold. The Securities have been duly authorized and reserved for issuance and when issued<br>and paid for, will be validly issued, fully paid and non-assessable; the holders thereof are not and will not be subject to personal liability<br>by reason of being such holders; the Securities are not and will not be subject to the preemptive rights of any holders of any security<br>of the Company or similar contractual rights granted by the Company; and all corporate actions required to be taken for the authorization,<br>issuance and sale of the Securities have been duly and validly taken. The Securities conform in all material respects to all statements<br>with respect thereto contained in the Registration Statement, the Preliminary Prospectus and the Prospectus, as the case may be. |
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| 2.8.3. | Placement Securities. The Placement Units constitute valid and binding obligations of the Company<br>to issue the number and type of securities of the Company called for thereby in accordance with the terms thereof, and are, or will be,<br>enforceable against the Company in accordance with their respective terms, except: (i) as such enforceability may be limited by bankruptcy,<br>insolvency, reorganization or similar laws affecting creditors’ rights generally; (ii) as enforceability of any indemnification<br>or contribution provision may be limited under federal and state securities laws; and (iii) that the remedy of specific performance and<br>injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which<br>any proceeding therefor may be brought. The Placement Securities have been duly authorized and reserved for issuance and when issued and<br>paid for in accordance with the Subscription Agreement (as defined in Section 2.24.2 hereof) will be validly issued, fully paid and non-assessable;<br>the holders thereof are not and will not be subject to personal liability by reason of being such holders; the Placement Securities are<br>not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual rights granted<br>by the Company; and all corporate action required to be taken for the authorization, issuance and sale of the Placement Securities has<br>been duly and validly taken. The Placement Securities conform in all material respects to the descriptions thereof contained in the Registration<br>Statement, the Statutory Prospectus, and the Prospectus, as the case may be |
| --- | --- |
| 2.8.4. | No Integration. Subject to the disclosure contained in the Registration Statement, the Preliminary<br>Prospectus and/or the Prospectus with respect to the Placement Securities, neither the Company nor any of its affiliates has, prior to<br>the date hereof, made any offer or sale of any securities which are required to be “integrated” pursuant to the Act or the<br>Regulations with the offer and sale of the Public Securities pursuant to the Registration Statement. |
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2.9. Registration Rights of Third Parties. Except as set forth in the Registration Statement, the Preliminary Prospectus or the Prospectus, no holders of any securities of the Company or any rights exercisable for or convertible or exchangeable into securities of the Company have the right to require the Company to register any such securities of the Company under the Act or to include any such securities in a registration statement to be filed by the Company.
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2.10. Validity and Binding Effect of Agreements. This Agreement, the Right Agreement (as defined in Section 2.23 hereof), the Trust Agreement, the Administrative Agreement (as defined in Section 3.5.2 hereof), the Subscription Agreement (as defined in Section 2.24.2 hereof), the Registration Rights Agreement (as defined in Section 2.24.3 hereof) and the Escrow Agreement (as defined in Section 2.24.4 have been duly and validly authorized by the Company and constitute valid and binding agreements of the Company, enforceable against the Company in accordance with their respective terms, except: (i) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally; (ii) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws; and (iii) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.
2.11. No Conflicts, Etc. The execution, delivery, and performance by the Company of this Agreement, the Right Agreement, the Trust Agreement, the Administrative Agreement, the Subscription Agreement, the Registration Rights Agreement and the Escrow Agreement, the consummation by the Company of the transactions herein and therein contemplated and the compliance by the Company with the terms hereof and thereof do not and will not, with or without the giving of notice or the lapse of time or both: (i) result in a material breach of, or conflict with any of the terms and provisions of, or constitute a material default under, or result in the creation, modification, termination or imposition of any material lien, charge or encumbrance upon any property or assets of the Company pursuant to the terms of any agreement or instrument to which the Company is a party; result in any violation of the provisions of the memorandum and articles of association of the Company; or (iii) violate any existing applicable law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its properties or business
2.12. No Defaults; Violations. No material default exists in the due performance and observance of any term, covenant or condition of any material license, contract, indenture, mortgage, deed of trust, note, loan or credit agreement, or any other agreement or instrument evidencing an obligation for borrowed money, or any other material agreement or instrument to which the Company is a party or by which the Company may be bound or to which any of the properties or assets of the Company is subject. The Company is not in violation of any material agreement, license, permit, applicable law, rule, regulation, judgment or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its properties or businesses, except for such violations which would not reasonably be expected to have a material adverse effect on the Company. The Company is not in violation of any term or provision of its memorandum and articles of association.
2.13. Corporate Power; Licenses; Consents.
| 2.13.1. | Conduct of Business. The Company has all requisite corporate power and authority, and has all necessary<br>authorizations, approvals, orders, licenses, certificates and permits of and from all governmental regulatory officials and bodies that<br>it needs as of the date hereof to conduct its business for the purposes described in the Registration Statement, the Preliminary Prospectus<br>and the Prospectus. To the Company’s knowledge, the disclosures in the Registration Statement and the Prospectus concerning the<br>effects of federal, state and local regulation on the Offering and the Company’s business purpose as currently contemplated are<br>correct in all material respects and do not omit to state a material fact required to be stated therein or necessary in order to make<br>the statements therein (with respect to the Prospectus, in light of the circumstances under which they were made), not misleading. Since<br>its formation, the Company has conducted no business and has incurred no liabilities other than in connection with and in furtherance<br>of the Offering. |
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| 2.13.2. | Transactions Contemplated Herein. The Company has all corporate power and authority to enter into<br>this Agreement and to carry out the provisions and conditions hereof, and all consents, authorizations, approvals and orders required<br>in connection therewith have been obtained. No consent, authorization or order of, and no filing with, any court, government agency or<br>other body is required for the valid issuance, sale and delivery of the Securities and the consummation of the transactions and agreements<br>contemplated by this Agreement, the Right Agreement, the Trust Agreement, the Administrative Agreement, the Subscription Agreement, the<br>Registration Rights Agreement or the Escrow Agreement and as contemplated by the Prospectus, except with respect to applicable federal<br>and state securities laws and the rules and regulations promulgated by the Financial Industry Regulatory Authority (“FINRA”). |
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2.14. D&O Questionnaires. To the Company’s knowledge, all information contained in the questionnaires (the “Questionnaires”) completed by the Sponsor and each of the Company’s officers and directors and provided to the Underwriters is true and correct and the Company has not become aware of any information which would cause the information disclosed in the questionnaires completed by the Sponsor and each officer or director, to become inaccurate and incorrect.
2.15. Litigation; Governmental Proceedings. There is no action, suit, proceeding, inquiry, arbitration, investigation, litigation or governmental proceeding pending or, to the best of the Company’s knowledge, threatened against, or involving the Company or, to the best of the Company’s knowledge, the Sponsor, which has not been disclosed in the Registration Statement, the Questionnaires, the Preliminary Prospectus and the Prospectus.
2.16. Good Standing. The Company has been duly organized, is validly existing and is in good standing under the laws of its country of organization and is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction in which its ownership or lease of property or the conduct of business requires such qualification, except where the failure to qualify would not have a material adverse effect on the Company.
2.17. No Contemplation of a Business Combination. Prior to the date hereof, neither the Company, its officers and directors nor the Sponsor had, and as of the Closing, the Company, its officers and directors and other holders of insider shares (as defined in the Registration Statement) (collectively, the “Initial Shareholders”) will not have had: (i) any specific Business Combination under consideration or contemplation; or (ii) any substantive interactions or discussions with any target business regarding a possible Business Combination.
2.18. Transactions Affecting Disclosure to FINRA.
| 2.18.1. | Except as described in the Preliminary Prospectus and/or the Prospectus, there are no claims, payments,<br>arrangements, agreements or understandings relating to the payment of a finder’s, consulting or origination fee by the Company or<br>the Sponsor with respect to the sale of the Securities hereunder or any other arrangements, agreements or understandings of the Company<br>or, to the Company’s knowledge, the Sponsor that may affect the Underwriters’ compensation, as determined by FINRA. |
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| 2.18.2. | The Company has not made any direct or indirect payments (in cash, securities or otherwise) to: (i) any<br>person, as a finder’s fee, consulting fee or otherwise, in consideration of such person raising capital for the Company or introducing<br>to the Company persons who raised or provided capital to the Company; (ii) to any FINRA member; or (iii) to any person or entity that<br>has any direct or indirect affiliation or association with any FINRA member, within the twelve (12) months prior to the Effective Date,<br>other than payments to the Representative. |
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| 2.18.3. | Except as disclosed in the Registration Statement, no officer, director, or beneficial owner of any class<br>of the Company’s securities (whether debt or equity, registered or unregistered, regardless of the time acquired or the source from<br>which derived) (any such individual or entity, a “Company Affiliate”) is a member, a person associated, or affiliated with<br>a member of FINRA. |
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| 2.18.4. | No Company Affiliate is an owner of stock or other securities of any member of FINRA (other than securities<br>purchased on the open market). |
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| 2.18.5. | No Company Affiliate has made a subordinated loan to any member of FINRA. |
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| 2.18.6. | No proceeds from the sale of the Public Securities (excluding underwriting compensation) or the Placement<br>Securities will be paid to any FINRA member, or any persons associated or affiliated with a member of FINRA, except as specifically authorized<br>herein and in the Subscription Agreement. |
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| 2.18.7. | The Company has not issued any warrants or other securities, or granted any options, directly or indirectly<br>to anyone who is a potential underwriter in the Offering or a related person (as defined by FINRA rules) of such an underwriter within<br>the 180-day period prior to the initial filing date of the Registration Statement. |
| --- | --- |
| 2.18.8. | No person to whom securities of the Company have been privately issued within the 180-day period prior<br>to the initial filing date of the Registration Statement has any relationship or affiliation or association with any member of FINRA. |
| --- | --- |
| 2.18.9. | No FINRA member intending to participate in the Offering has a conflict of interest with the Company.<br>For this purpose, a “conflict of interest” exists when a member of FINRA and its associated persons, parent or affiliates<br>in the aggregate beneficially own 10% or more of the Company’s outstanding subordinated debt or common equity, or 10% or more of<br>the Company’s preferred equity. “Members participating in the Offering” include managing agents, syndicate group members<br>and all dealers that are members of FINRA. |
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| 2.18.10. | Except with respect to the Representative in connection with the Offering, the Company has not entered<br>into any agreement or arrangement (including, without limitation, any consulting agreement or any other type of agreement) during the<br>180-day period prior to the initial filing date of the Registration Statement, which arrangement or agreement provides for the receipt<br>of any item of value and/or the transfer of any warrants, options, or other securities from the Company to a FINRA member, any person<br>associated with a member (as defined by FINRA rules), any potential underwriters in the Offering and any related persons*.* |
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2.19. Foreign Corrupt Practices Act. Neither the Company nor the Initial Shareholder or any other person acting on behalf of the Company has, directly or indirectly, given or agreed to give any money, gift or similar benefit (other than legal price concessions to customers in the ordinary course of business) to any customer, supplier, employee or agent of a customer or supplier, or official or employee of any governmental agency or instrumentality of any government (domestic or foreign) or any political party or candidate for office (domestic or foreign) or any political party or candidate for office (domestic or foreign) or other person who was, is, or may be in a position to help or hinder the business of the Company (or assist it in connection with any actual or proposed transaction) that: (i) might subject the Company to any damage or penalty in any civil, criminal or governmental litigation or proceeding; (ii) if not given in the past, might have had a material adverse effect on the assets, business or operations of the Company as reflected in any of the financial statements contained in the Registration Statement, the Preliminary Prospectus and/or the Prospectus; or (iii) if not continued in the future, might adversely affect the assets, business, operations or prospects of the Company. The Company’s internal accounting controls and procedures are sufficient to cause the Company to comply with the Foreign Corrupt Practices Act of 1977, as amended.
2.20. Currency and Foreign Transactions Reporting Act. The operations of the Company are and have been conducted at all times in compliance with (i) the requirements of the U.S. Treasury Department Office of Foreign Asset Control and (ii) applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transaction Reporting Act of 1970, as amended, including the Money Laundering Control Act of 1986, as amended, the rules and regulations thereunder and any related or similar money laundering statutes, rules, regulations or guidelines, issued, administered or enforced by any Federal governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the Company’s knowledge, assuming reasonable inquiry, threatened.
2.21. Patriot Act. Neither the Company nor, to the Company’s knowledge, any officer, director or Initial Shareholder has violated: (i) the Bank Secrecy Act, as amended; (ii) the Money Laundering Control Act of 1986, as amended; or (iii) the Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, and/or the rules and regulations promulgated under any such law, or any successor law.
2.22. Officers’ Certificate. Any certificate signed by any duly authorized officer of the Company and delivered to the Representative or to the Representative’s counsel shall be deemed a representation and warranty by the Company to the Underwriters as to the matters covered thereby.
2.23. Right Agreement. The Company has entered into a right agreement with respect to the Rights and the Placement Rights with CST, substantially in the form filed as an exhibit to the Registration Statement (the “Right Agreement”)
2.24. Agreements With Officers, Directors and Initial Shareholder.
| 2.24.1. | Insider Letters. The Company has caused to be duly executed legally binding and enforceable agreements<br>(except: (i) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors’<br>rights generally; (ii) as enforceability of any indemnification, contribution or non-compete provision may be limited under the federal<br>and state securities laws; and (iii) that the remedy of specific performance and injunctive and other forms of equitable relief may be<br>subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought) annexed as exhibits<br>to the Registration Statement (the “Insider Letter”), pursuant to which each of the officers, directors and Initial Shareholder<br>of the Company agree to certain matters. |
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| 2.24.2. | Subscription Agreement. YHN Partners I Limited (the “Sponsor”) has executed and delivered<br>a subscription agreement, the form of which is attached as an exhibit to the Registration Statement (the “Subscription Agreement”),<br>pursuant to which such shareholder, among other things, agreed to purchase an aggregate of up to 268,900 Placement Units in the Private<br>Placement (assuming the Over-allotment Option is exercised in full). Pursuant to the Subscription Agreement, all of the proceeds from<br>the sale of the Placement Units will be deposited by the Company in the Trust Account in accordance with the terms of the Trust Agreement<br>prior to the Closing. |
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| 2.24.3. | Registration Rights Agreement. The Company and the Initial Shareholders have entered into a registration<br>rights agreement (the “Registration Rights Agreement”) substantially in the form annexed as an exhibit to the Registration<br>Statement, whereby the parties will be entitled to certain registration rights with respect to their securities, as set forth in such<br>Registration Rights Agreement and described more fully in the Registration Statement. |
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| 2.24.4. | Escrow Agreement. The Company, the Initial Shareholders and the Company officers and directors<br>and have entered into an escrow agreement and with CST (the “Escrow Agreement”) substantially in the form annexed an exhibit<br>to the Registration Statement whereby the Initial Shareholders and the Company’s officers and directors will deposit shares of the<br>Company into an escrow account with CST as escrow agent, to be held in accordance with the laws and conditions of such Escrow Agreement<br>and as more fully described in the Registration Statement. |
| --- | --- |
2.25. Investment Management Trust Agreement. The Company has entered into the Investment Management Trust Agreement (the “Trust Agreement”) with respect to certain proceeds of the Offering and the Private Placement substantially in the form filed as an exhibit to the Registration Statement.
2.26. Covenants Not to Compete. To the Company’s knowledge, the officers and directors of the Company are not subject to any non-competition agreement or non-solicitation agreement with any employer or prior employer which could materially affect its ability to be an employee, officer or director of the Company.
2.27. Investments. No more than 45% of the “value” (as defined in Section 2(a)(41) of the Investment Company Act of 1940, as amended (the “Investment Company Act”)) of the Company’s total assets consist of, and no more than 45% of the Company’s net income after taxes is derived from, securities other than “Government Securities” (as defined in Section 2(a)(16) of the Investment Company Act).
2.28. Subsidiaries. The Company does not own an interest in any corporation, partnership, limited liability company, joint venture, trust or other business entity.
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2.29. Related Party Transactions. No relationship, direct or indirect, exists between or among any of the Company or any Company Affiliate, on the one hand, and any director, officer, shareholder, customer or supplier of the Company or any Company Affiliate, on the other hand, which is required by the Act, the Exchange Act or the Regulations to be described in the Registration Statement, the Preliminary Prospectus and/or the Prospectus which is not so described and described as required. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of their respective family members, except as disclosed in the Registration Statement, the Preliminary Prospectus and/or the Prospectus. The Company has not extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any director or officer of the Company.
2.30. No Influence. The Company has not offered, or caused the Underwriters to offer, the Firm Units to any person or entity with the intention of unlawfully influencing: (i) a customer or supplier of the Company or any Company Affiliate to alter the customer’s or supplier’s level or type of business with the Company or such affiliate; or (ii) a journalist or publication to write or publish favorable information about the Company or any such affiliate.
2.31. Trading of the Public Securities on the Nasdaq Global Market. As of the Effective Date and the Closing Date, the Public Securities will have been authorized for listing on the Nasdaq Global Market and no proceedings have been instituted or threatened which would effect, and no event or circumstance has occurred as of the Effective Date which is reasonably likely to effect, the listing of the Public Securities on the Nasdaq Global Market.
2.32. Emerging Growth Company. From its formation through the date hereof, the Company has been and is an “emerging growth company,” as defined in Section 2(a) of the Act (an “Emerging Growth Company”).
2.33. No Disqualification Events. Neither the Company, nor any of its predecessors or any affiliated issuer, nor any director, executive officer, or other officer of the Company participating in the Offering, nor any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Act) connected with the Company in any capacity at the Applicable Time (each, a “Company Covered Person” and, together, “Company Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Company Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Underwriters a copy of any disclosures provided thereunder.
2.34. Free-Writing Prospectus and Testing-the-Waters. The Company has not made any offer relating to the Public Securities that would constitute an issuer free writing prospectus, as defined in Rule 433 under the Act, or that would otherwise constitute a “free writing prospectus” as defined in Rule 405. The Company: (a) has not engaged in any Testing-the-Waters Communication other than Testing-the-Waters Communications with the consent of the Representative with entities that are qualified institutional buyers within the meaning of Rule 144A under the Act or institutions that are accredited investors within the meaning of Rule 501 under the Act and (b) has not authorized anyone to engage in Testing-the-Waters Communications other than its officers and the Representative and individuals engaged by the Representative. The Company has not distributed any written Testing-the-Waters Communications other than those listed on Schedule B hereto. “Testing-the-Waters Communication” means any oral or written communication with potential investors undertaken in reliance on Section 5(d) of the Act.
2.35. Definition of “Knowledge”. As used in this Agreement, the term “knowledge of the Company” (or similar language) shall mean the knowledge of the officers and directors of the Company who are named in the Prospectus, with the assumption that such officers and directors shall have made reasonable and diligent inquiry of the matters presented.
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- Covenants of the Company. The Company covenants and agrees as follows:
3.1. Amendments to Registration Statement. The Company will deliver to the Representative, prior to filing, any amendment or supplement to the Registration Statement or Prospectus proposed to be filed after the Effective Date and will not file any such amendment or supplement to which the Representative shall reasonably object in writing.
3.2. Federal Securities Laws.
| 3.2.1. | Compliance. During the time when a Prospectus is required to be delivered under the Act, the Company<br>will use all reasonable efforts to comply with all requirements imposed upon it by the Act, the Regulations and the Exchange Act and by<br>the regulations under the Exchange Act, as from time to time in force, so far as necessary to permit the continuance of sales of or dealings<br>in the Public Securities in accordance with the provisions hereof and the Prospectus. If at any time when a Prospectus relating to the<br>Public Securities is required to be delivered under the Act, any event shall have occurred as a result of which, in the opinion of counsel<br>for the Company or counsel for the Underwriters, the Prospectus, as then amended or supplemented, includes an untrue statement of a material<br>fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances<br>under which they were made, not misleading, or if it is necessary during such period to amend the Registration Statement or amend or supplement<br>the Prospectus to comply with the Act, the Company will notify the Representative promptly and prepare and file with the Commission, subject<br>to Section 3.1 hereof, an appropriate amendment to the Registration Statement or amendment or supplement to the Prospectus (at the expense<br>of the Company) so as to correct such statement or omission or effect such compliance. |
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| 3.2.2. | Filing of Final Prospectus. The Company will file the Prospectus (in form and substance satisfactory<br>to the Representative) with the Commission pursuant to the requirements of Rule 424 of the Regulations. |
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| 3.2.3. | Exchange Act Registration. For a period of five (5) years from the Effective Date, or until such<br>earlier time upon which the Company is required to be liquidated, the Company will use its reasonable efforts to maintain the registration<br>of the Units, Ordinary Shares and Rights under the provisions of the Exchange Act. The Company will not deregister the Units, Ordinary<br>Shares and Rights prior to the Business Combination without the prior written consent of the Representative. |
| --- | --- |
| 3.2.4. | Sarbanes-Oxley Compliance. As soon as it is legally required to do so, the Company shall take all<br>actions necessary to obtain and thereafter maintain material compliance with each applicable provision of the Sarbanes-Oxley Act of 2002,<br>as amended, and the rules and regulations promulgated thereunder and related or similar rules and regulations promulgated by any other<br>governmental or self-regulatory entity or agency with jurisdiction over the Company. |
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| 3.2.5. | Blue Sky Filing. Unless the Public Securities are listed on the Nasdaq Global Market or another<br>national securities exchange, the Company, at its expense, will endeavor in good faith, in cooperation with the Representative, at or<br>prior to the time the Registration Statement becomes effective, to qualify the Public Securities for offering and sale under the securities<br>laws of such jurisdictions as the Representative may reasonably designate, provided that no such qualification shall be required in any<br>jurisdiction where, as a result thereof, the Company would be subject to service of general process or to taxation as a foreign corporation<br>doing business in such jurisdiction. In each jurisdiction where such qualification shall be effected, the Company will, unless the Representative<br>agrees that such action is not at the time necessary or advisable, use all reasonable efforts to file and make such statements or reports<br>at such times as are or may be required by the laws of such jurisdiction. |
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| 3.2.6. | Delivery to Underwriters of Prospectuses. The Company will deliver to each of the several Underwriters,<br>without charge, from time to time during the period when the Prospectus is required to be delivered under the Act or the Exchange Act<br>such number of copies of each Preliminary Prospectus and Prospectus and all amendments and supplements to such documents as such Underwriters<br>may reasonably request and, as soon as the Registration Statement or any amendment or supplement thereto becomes effective, deliver to<br>the Representative two original executed Registration Statements, including exhibits, and all post-effective amendments thereto and copies<br>of all exhibits filed therewith or incorporated therein by reference and all original executed consents of certified experts. |
| --- | --- |
| 3.2.7. | Free-Writing Prospectus. The Company agrees that it will not make any offer relating to the Public<br>Securities that would constitute an issuer free writing prospectus, as defined in Rule 433 under the Act, or that would otherwise constitute<br>a “free writing prospectus” as defined in Rule 405. |
| --- | --- |
3.3. Effectiveness and Events Requiring Notice to the Representative. The Company will use all reasonable efforts to cause the Registration Statement to remain effective and will notify the Representative immediately and confirm the notice in writing: (i) of the effectiveness of the Registration Statement and any amendment thereto; (ii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement, or any post-effective amendment thereto or preventing or suspending the use of any Preliminary Prospectus or the Prospectus or of the initiation, or the threatening, of any proceeding for that purpose; (iii) of the issuance by any state securities commission of any proceedings for the suspension of the qualification of the Public Securities for offering or sale in any jurisdiction or of the initiation, or the threatening, of any proceeding for that purpose; (iv) of the mailing and delivery to the Commission for filing of any amendment or supplement to the Registration Statement or Prospectus; (v) of the receipt of any comments or request for any additional information from the Commission; and (vi) of the happening of any event during the period described in Section 3.4 hereof that, in the judgment of the Company, makes any statement of a material fact made in the Registration Statement, the Preliminary Prospectus and/or the Prospectus untrue or that requires the making of any changes in the Registration Statement, the Preliminary Prospectus and/or the Prospectus in order to make the statements therein, (with respect to the Prospectus, in light of the circumstances under which they were made), not misleading. If the Commission or any state securities commission shall enter a stop order or suspend such qualification at any time, the Company will make every reasonable effort to obtain promptly the lifting of such order.
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3.4. Review of Financial Statements. Until the earlier of five (5) years from the Effective Date, or until such earlier date upon which the Company is required to be liquidated, the Company, at its expense, shall cause its regularly engaged independent certified public accountants to review (but not audit) the Company’s financial statements for each of the first three fiscal quarters prior to the announcement or filing of quarterly financial information, if any.
3.5. Affiliated Transactions.
| 3.5.1. | Business Combinations. The Company will not consummate a Business Combination with any entity which<br>is affiliated with the Sponsor or an officer or director of the Company unless the Company obtains an opinion from an independent investment<br>banking firm or another independent entity that commonly renders valuation opinions stating the Business Combination is fair to the Company’s<br>shareholders from a financial perspective. |
|---|---|
| 3.5.2. | Administrative Support Services. The Company has entered into an administrative support agreement<br>(the “Administrative Agreement”) with the Sponsor in the form filed as an exhibit to the Registration Statement pursuant to<br>which such entity will make available to the Company general and administrative support services including office space, utilities, receptionist<br>and secretarial support for the Company’s use for $10,000 per month. |
| --- | --- |
| 3.5.3. | Compensation. Except as disclosed in the Registration Statement or as set forth in this Section<br>3.5, the Company shall not pay any officer, director or shareholder, or any of their affiliates, any fees or compensation from the<br>Company, for services rendered to the Company prior to, or in connection with, the Offering or the consummation of a Business Combination. |
| --- | --- |
3.6. Secondary Market Trading. In the event the Public Securities are not listed on the Nasdaq Global Market or another national securities exchange, the Company will (i) apply to be included in Mergent, Inc. Manual for a period of five (5) years from the consummation of a Business Combination, (ii) take such commercially reasonable steps as may be necessary to obtain a secondary market trading exemption for the Company’s securities in such jurisdictions and (iii) take such other action as may be reasonably requested by the Representative to obtain a secondary market trading exemption in such other states as may be requested by the Representative; provided that no qualification shall be required in any jurisdiction where, as a result thereof, the Company would be subject to service of general process or to taxation as a foreign entity doing business in such jurisdiction.
3.7. Financial Public Relations Firm. Promptly after the execution of a definitive agreement for a Business Combination, the Company shall retain a financial public relations firm reasonably acceptable to the Representative for a term to be agreed upon by the Company and the Representative.
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3.8. Reports to the Representative.
| 3.8.1. | Periodic Reports, Etc. For a period of five (5) years from the Effective Date or until such earlier<br>time upon which the Company is dissolved, the Company will furnish to the Representative and its counsel copies of such financial statements<br>and other periodic and special reports as the Company from time to time furnishes generally to holders of any class of its securities,<br>and promptly furnish to the Representative: (i) a copy of each periodic report the Company shall be required to file with the Commission;<br>(ii) a copy of every press release and every news item and article with respect to the Company or its affairs which was released by the<br>Company; (iii) a copy of each Form 8-K or Schedules 13D, 13G, 14D-1 or 13E-4 received or prepared by the Company; (iv) five (5) copies<br>of each Registration Statement; and (v) such additional documents and information with respect to the Company and the affairs of any future<br>subsidiaries of the Company as the Representative may from time to time reasonably request; provided that the Representative shall sign,<br>if requested by the Company, a Regulation FD compliant confidentiality agreement which is reasonably acceptable to the Representative<br>and its counsel in connection with the Representative’s receipt of such information. Documents filed with the Commission pursuant<br>to its Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”) shall be deemed to have been delivered to the Representative<br>pursuant to this section. |
|---|---|
| 3.8.2. | Transfer Sheets. For a period of five (5) years following the Effective Date or until such earlier<br>time upon which the Company is dissolved, the Company shall retain a transfer and rights agent acceptable to the Representative (the “Transfer<br>Agent”). In the event the Public Securities are not listed on the Nasdaq Global Market or another national securities exchange,<br>the Company will furnish to the Underwriters at the Company’s sole cost and expense such transfer sheets of the Company’s<br>securities as the Representative may request, including the daily and monthly consolidated transfer sheets of the Transfer Agent and DTC.<br>CST is an acceptable Transfer Agent to the Representative. |
| --- | --- |
| 3.8.3. | Trading Reports. If the Public Securities are quoted on the OTC Bulletin Board (or any successor<br>trading market) or a market operated by the OTC Market Group Inc. (or similar publisher of quotations), then during such time the Company<br>shall provide to the Representative, at its expense, such reports published by the OTC Bulletin Board or the OTC Market Group Inc. relating<br>to price trading of the Public Securities, as the Representative shall reasonably request. In addition to the requirements of the preceding<br>sentence, if the Public Securities are not listed on the Nasdaq Global Market or such other national securities exchange for a period<br>of two (2) years from the Closing Date, the Company, at its expense, shall provide the Representative a subscription to the Company’s<br>weekly Depository Transfer Company Security Position Reports. |
| --- | --- |
3.9. Disqualification of Form S-1. Until the completion of the Company’s initial Business Combination, the Company will not take any action or actions which may prevent or disqualify the Company’s use of Form S-1 (or other appropriate form) for the registration of the Rights under the Act.
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3.10. Payment of Expenses. The Company hereby agrees to pay on each of the Closing Date and the Option Closing Date, if any, to the extent not paid at the Closing Date, all expenses incident to the performance of the obligations of the Company under this Agreement, including, but not limited to: (i) the Company’s legal and accounting fees and disbursements; (ii) the costs of preparing, printing, mailing (including the payment of postage with respect to such mailing) and delivering the Registration Statement, the Preliminary Prospectus and final Prospectus contained therein and amendments thereto, post-effective amendments and supplements thereto, this Agreement and related documents, including the cost of all copies thereof and any amendments thereof or supplements thereto supplied to the Underwriters in quantities as may be required by the Underwriters; (iii) the printing, engraving, issuance and delivery of the Units, and the Ordinary Shares and Rights included in the Units, including any transfer or other taxes payable thereon; (iv) if the Public Securities are not listed on the Nasdaq Global Market or such other national securities exchange, the qualification of the Public Securities under state or foreign securities or Blue Sky laws specified by Representative, including the costs of printing and mailing the “Preliminary Blue Sky Memorandum,” and all amendments and supplements thereto, and fees and disbursements for counsel of Representative’s choice retained for such purpose; (v) filing fees (including SEC filing fees), costs and expenses (including third party expenses and disbursements) incurred in registering the Offering; (vi) filing fees incurred in registering the Offering with FINRA; (vii) fees and disbursements of the registrar and transfer, warrant and escrow agent; (viii) the Company’s expenses associated with “due diligence” meetings arranged by the Representative (none of which will be received or paid on behalf of an “underwriter and related person” as such term is defined in Rule 5110 of FINRA’s Rules); (ix) all costs and expenses associated with “road show” meetings; (x) all fees, expenses and disbursements relating to background checks of the Company’s directors, director nominees and executive officers; (xi) the fees and expenses of background checks and other expenses actually incurred by the Underwriters including the fees and expenses of the Underwriters’ counsel and (xii) all other reasonable costs and expenses incident to the performance of its obligations hereunder which are not otherwise specifically provided for in this Section 3.10. The Representative may deduct from the net proceeds of the Offering payable to the Company on the Closing Date, or the Option Closing Date, if any, the fees and expenses set forth above to be paid by the Company to the Representative and others, as agreed to by the Company in writing; provided, however, that such fees and expenses set forth in the preceding sentence deducted from the net proceeds of the Offering payable to the Company shall not exceed $75,000 in the aggregate (“Expense Cap”); provided that the Expense Cap no way limits or impairs the indemnification or contribution provisions of this Agreement. In addition, the Company will reimburse the Underwriter for counsel fees and disbursements up to an aggregate of $15,000 incurred in connection with registering the Offering with FINRA. If the Offering is not consummated for any reason whatsoever, except as a result of the Representative’s or any Underwriter’s breach or default with respect to any of its obligations described in this Agreement, then the Company shall reimburse the Representative for its out-of-pocket accountable expenses actually incurred by the Representative, including, without limitation, its legal fees.
3.11. Application of Net Proceeds. The Company will apply the net proceeds from the Offering received by it in a manner consistent with the application described under the caption “Use of Proceeds” in the Prospectus.
3.12. Delivery of Earnings Statements to Security Holders. The Company will make generally available to its security holders as soon as practicable, but not later than the first day of the fifteenth (15th) full calendar month following the Effective Date, an earnings statement (which need not be certified by independent public or independent certified public accountants unless required by the Act or the Regulations, but which shall satisfy the provisions of Rule 158(a) under Section 11(a) of the Act) covering a period of at least twelve (12) consecutive months beginning after the Effective Date.
3.13. Notice to FINRA.
| 3.13.1. | Business Combination. In the event any person or entity (regardless of any FINRA affiliation or<br>association) is engaged to assist the Company in its search for a merger candidate or to provide any other merger and acquisition services,<br>the Company will provide the following to FINRA and the Representative prior to the consummation of the Business Combination: (i) complete<br>details of all services and copies of agreements governing such services; and (ii)justification as to why the person or entity providing<br>the merger and acquisition services should not be considered an “underwriter and related person” (as such term is defined<br>in Rule 5110 of FINRA’s Rules) with respect to the Offering. The Company also agrees that proper disclosure of such arrangement<br>or potential arrangement will be made in any proxy or tender offer statement which the Company files in connection with the Business Combination. |
|---|---|
| 3.13.2. | Broker/Dealer. In the event the Company intends to register as a broker/dealer, merge with or acquire<br>a registered broker/dealer, or otherwise become a member of FINRA, it shall promptly notify FINRA. |
| --- | --- |
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3.14. Stabilization. Neither the Company, nor, to its knowledge, any of its employees, directors or shareholders (without the consent of the Representative) has taken or will take, directly or indirectly, any action designed to or that has constituted or that might reasonably be expected to cause or result in, under the Exchange Act, or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Units.
3.15. Internal Controls. The Company will maintain a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary in order to permit preparation of financial statements in accordance with generally accepted accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
3.16. Accountants. For a period of five (5) years from the Effective Date or until such earlier time upon which the Company is required to be liquidated, the Company shall retain the Auditor or other independent public accountants reasonably acceptable to the Representative.
3.17. Form 8-K. The Company shall, on the date hereof, retain its independent public accountants to audit the financial statements of the Company as of the Closing Date (the “Audited Financial Statements”) reflecting the receipt by the Company of the proceeds of the Offering and the Private Placement, as well as the proceeds from the exercise of the Over-allotment Option if such exercise has occurred on the date of the Prospectus. Within four (4) Business Days of the Closing Date, the Company will file a Current Report on Form 8-K with the Commission, which Report shall contain the Audited Financial Statements.
3.18. FINRA. The Company shall advise FINRA if it is aware that any 5% or greater shareholder of the Company becomes an affiliate or associated person of a FINRA member participating in the distribution of the Company’s Public Securities.
3.19. Corporate Proceedings. All corporate proceedings and other legal matters necessary to carry out the provisions of this Agreement and the transactions contemplated hereby shall have been done to the reasonable satisfaction to counsel for the Underwriters.
3.20. Investment Company. The Company shall cause the proceeds of the Offering to be held in the Trust Account to be invested only in “government securities” with specific maturity dates or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act as set forth in the Trust Agreement and disclosed in the Prospectus. The Company will otherwise conduct its business in a manner so that it will not become subject to the Investment Company Act. Furthermore, once the Company consummates a Business Combination, it will be engaged in a business other than that of investing, reinvesting, owning, holding or trading securities.
3.21. Business Combination Announcement. Within four (4) Business Days following the consummation by the Company of a Business Combination, the Company shall cause an announcement (“Business Combination Announcement”) to be issued by a press release service announcing the consummation of the Business Combination and indicating that the Representative was one of the co-managing underwriters in the Offering and also indicating the name and location of any other financial advisors engaged by the Company as a merger and acquisitions advisor. The Company shall supply the Representative with a draft of the Business Combination Announcement and provide the Representative with a reasonable advance opportunity to comment thereon. The Company will not issue the Business Combination Announcement without the final approval of the Representative, which approval will not be unreasonably withheld.
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3.22. Press Releases. The Company agrees that it will not issue press releases or engage in any other publicity, without the Representative’s prior written consent (not to be unreasonably withheld), for a period of twenty-five (25) days after the Effective Date.
3.23. Electronic Prospectus. The Company shall cause to be prepared and delivered to the Representative, at its expense, within one (1) Business Day from the Effective Date, an Electronic Prospectus to be used by the Underwriters in connection with the Offering. As used herein, the term “Electronic Prospectus” means a form of prospectus, and any amendment or supplement thereto, that meets each of the following conditions: (i) it shall be encoded in an electronic format, satisfactory to the Representative, that may be transmitted electronically by the other Underwriters to offerees and purchasers of the Units for at least the period during which a Prospectus relating to the Units is required to be delivered under the Act; (ii) it shall disclose the same information as the paper prospectus and prospectus filed pursuant to EDGAR, except to the extent that graphic and image material cannot be disseminated electronically, in which case such graphic and image material shall be replaced in the electronic prospectus with a fair and accurate narrative description or tabular representation of such material, as appropriate; and (iii) it shall be in or convertible into a paper format or an electronic format, satisfactory to the Representative, that will allow recipients thereof to store and have continuously ready access to the prospectus at any future time, without charge to such recipients (other than any fee charged for subscription to the Internet as a whole and for on-line time). The Company hereby confirms that it has included or will include in the Prospectus filed pursuant to EDGAR or otherwise with the Commission and in the Registration Statement at the time it was declared effective an undertaking that, upon receipt of a request by an investor or his or her representative within the period when a prospectus relating to the Units is required to be delivered under the Securities Act, the Company shall transmit or cause to be transmitted promptly, without charge, a paper copy of the Prospectus.
3.24. Reservation of Shares. The Company will reserve and keep available that maximum number of its authorized but unissued securities which are issuable upon exercise of the Rights and the Placement Rights outstanding from time to time.
3.25. Private Placement Proceeds. Simultaneously with the Closing, the Company shall deposit such amount of the proceeds from the Private Placement in the Trust Account such that the amount of the funds in the Trust Account shall be $10.05 per public Ordinary Share sold in the Offering, and shall provide the Representative with evidence of the same.
3.26. Financial Printer. The Company shall retain a financial printer, reasonably acceptable to the Representative, for the purpose of facilitating the Company’s EDGAR filings and the printing of the Preliminary Prospectus and Prospectus.
3.27. Listing on the Nasdaq Global Market. The Company will use commercially reasonable efforts to maintain the listing of the Public Securities on the Nasdaq Global Market or another national securities exchange until the earlier of five (5) years from the Effective Date or until the Public Securities are no longer registered under the Exchange Act.
3.28. Emerging Growth Company Status. The Company will promptly notify the Representative if the Company ceases to be an Emerging Growth Company at any time prior to the earlier of five years after the consummation of the Company’s initial Business Combination, or the liquidation of the Trust Account if a Business Combination is not consummated as required by its memorandum and articles of association.
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3.29. Payment of Deferred Underwriting Commission on Business Combination. Upon the consummation of the Company’s initial Business Combination, the Company agrees that it will cause the Trustee to pay the Deferred Underwriting Commission directly from the Trust Account to the Representative, in accordance with Section 1.4
- Conditions of Underwriters’ Obligations. The obligations of the several Underwriters to purchase and pay for the Units, as provided herein, shall be subject to the continuing accuracy of the representations and warranties of the Company as of the date hereof and as of each of the Closing Date and the Option Closing Date, if any, to the accuracy of the statements of officers of the Company made pursuant to the provisions hereof and to the performance by the Company of its obligations hereunder and to the following conditions:
4.1. Regulatory Matters.
| 4.1.1. | Effectiveness of Registration Statement. The Registration Statement shall have become effective<br>not later than 5:00 P.M., New York time, on the date of this Agreement or such later date and time as shall be consented to in writing<br>by the Representative, and, at each of the Closing Date and the Option Closing Date, no stop order suspending the effectiveness of the<br>Registration Statement shall have been issued and no proceedings for the purpose shall have been instituted or shall be pending or contemplated<br>by the Commission and any request on the part of the Commission for additional information shall have been complied with to the reasonable<br>satisfaction of Blank Rome LLP (“Blank Rome”). |
|---|---|
| 4.1.2. | FINRA Clearance. By the Effective Date, the Representative shall have received clearance from FINRA<br>as to the amount of compensation allowable or payable to the Underwriters as described in the Registration Statement. |
| --- | --- |
| 4.1.3. | No Commission Stop Order. At each of the Closing Date and the Option Closing Date, the Commission<br>has not issued any order or threatened to issue any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus<br>or any part thereof, and has not instituted or threatened to institute any proceedings with respect to such an order. |
| --- | --- |
| 4.1.4. | No Blue Sky Stop Orders. No order suspending the sale of the Units in any jurisdiction designated<br>by the Representative pursuant to Section 3.3 hereof, if any, shall have been issued on either the Closing Date or the Option Closing<br>Date, and no proceedings for that purpose shall have been instituted or shall be contemplated. |
| --- | --- |
| 4.1.5. | The Nasdaq Global Market. By the Effective Date, the Securities shall have been approved for trading<br>on the Nasdaq Global Market. |
| --- | --- |
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4.2. Company Counsel Matters.
| 4.2.1. | Closing Date Opinion of Counsel. On the Closing Date, the Representative shall have received the<br>favorable opinions of Loeb & Loeb LLP (“Loeb”), counsel to the Company and Ogier (“Ogier”), British Virgin<br>Islands counsel to the Company, each dated the Closing Date, addressed to the Representative and the other Underwriters and in form and<br>substance reasonably satisfactory to the Representative. Each opinion of counsel shall further include a statement to the effect that<br>such counsel has participated in conferences with officers and other representatives of the Company, representatives of the independent<br>public accountants for the Company and representatives of the Underwriters at which the contents of the Registration Statement, final<br>Preliminary Prospectus, the Prospectus and related matters were discussed and although such counsel is not passing upon and does not assume<br>any responsibility for the accuracy, completeness or fairness of the statements contained in the Registration Statement, final Preliminary<br>Prospectus and the Prospectus (except as otherwise set forth in such opinion), no facts have come to the attention of such counsel which<br>lead them to believe that either the Registration Statement, final Preliminary Prospectus or the Prospectus or any amendment or supplement<br>thereto, as of the date of such opinion contained any untrue statement of a material fact or omitted to state a material fact required<br>to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading<br>(it being understood that such counsel need express no opinion with respect to the financial statements and related notes and schedules<br>and other financial and statistical data included in the Registration Statement, final Preliminary Prospectus or the Prospectus). Each<br>opinion of counsel shall state that such counsel is not opining as to the Placement Securities with respect to any rights to rescind or<br>the effect any exercise of such rights will have on any other securities of the Company or on the Offering, and the opinion of Ogier shall<br>include statements to the effect that it may be relied upon by Blank Rome in any opinion delivered to the Underwriters. |
|---|---|
| 4.2.2. | Option Closing Date Opinion of Counsel. On each Option Closing Date, if any, the Representative<br>shall have received the favorable opinions of Loeb and Ogier, dated each Option Closing Date, addressed to the Representative and in form<br>and substance reasonably satisfactory to counsel to the Representative, confirming as of each Option Closing Date, the statements made<br>by Loeb and Ogier in its opinion delivered on the Closing Date. |
| --- | --- |
| 4.2.3. | Reliance. In rendering such opinion, such counsel may rely: (i) as to matters involving the application<br>of laws other than the laws of the United States and jurisdictions in which they are admitted, to the extent such counsel deems proper<br>and to the extent specified in such opinion, if at all, upon an opinion or opinions (in form and substance reasonably satisfactory to<br>the Representative) of other counsel reasonably acceptable to the Representative, familiar with the applicable laws; and (ii) as to matters<br>of fact, to the extent they deem proper, on certificates or other written statements of officers of the Company and officers of departments<br>of various jurisdictions having custody of documents respecting the corporate existence or good standing of the Company, provided that<br>copies of any such statements or certificates shall be delivered to the Underwriters’ counsel if requested. The opinion of counsel<br>for the Company and any opinion relied upon by such counsel for the Company shall include a statement to the effect that it may be relied<br>upon by counsel for the Underwriters in its opinion delivered to the Underwriters. |
| --- | --- |
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4.3. Cold Comfort Letter. At the time this Agreement is executed, and at each of the Closing Date and the Option Closing Date, if any, the Representative shall have received a letter, addressed to the Representative and in form and substance satisfactory in all respects (including the nature of the changes or decreases, if any, referred to in clause (iii) below) to the Representative from the Auditor dated, respectively, as of the date of this Agreement and as of the Closing Date and the Option Closing Date, if any:
| 4.3.1. | Confirming that they are an independent registered public accounting firm with respect to the Company<br>within the meaning of the Act and the applicable Regulations; |
|---|---|
| 4.3.2. | Stating that in their opinion the financial statements of the Company included in the Registration Statement,<br>the Preliminary Prospectus and the Prospectus comply as to form in all material respects with the applicable accounting requirements of<br>the Act and the Regulations thereunder; |
| --- | --- |
| 4.3.3. | Stating that, on the basis of limited procedures which included a reading of the latest available minutes<br>of the shareholders and board of directors and the various committees of the board of directors, consultations with officers and other<br>employees of the Company responsible for financial and accounting matters and other specified procedures and inquiries, nothing has come<br>to their attention which would lead them to believe that: (a) at a date not later than five (5) days prior to the Effective Date, Closing<br>Date or Option Closing Date, as the case may be, there was any change in the share capital or long-term debt of the Company, or any decrease<br>in the shareholders’ equity of the Company as compared with amounts shown in the June 30, 2024 balance sheet included in the Registration<br>Statement, the Preliminary Prospectus and the Prospectus, other than as set forth in or contemplated by the Registration Statement, the<br>Preliminary Prospectus and the Prospectus, or, if there was any decrease, setting forth the amount of such decrease; and (c) during the<br>period from June 30,, 2024 (balance sheet date) to a specified date not later than five (5) days prior to the Effective Date, Closing<br>Date or Option Closing Date, as the case may be, there was any decrease in net earnings or net earnings per share of Ordinary Share, in<br>each case as compared with the Statement of Operations for the six months ended June 30, 2024 included in the Registration Statement and<br>the Prospectus, or, if there was any such decrease, setting forth the amount of such decrease; |
| --- | --- |
| 4.3.4. | Stating they have compared specific dollar amounts, numbers of shares, percentages of earnings, statements<br>and other financial information pertaining to the Company set forth in the Registration Statement, the Preliminary Prospectus and the<br>Prospectus in each case to the extent that such amounts, numbers, percentages, statements and information may be derived from the general<br>accounting records, including work sheets, of the Company and excluding any questions requiring an interpretation by legal counsel, with<br>the results obtained from the application of specified readings, inquiries and other appropriate procedures (which procedures do not constitute<br>an examination in accordance with the standards of the PCAOB) set forth in the letter and found them to be in agreement; and |
| --- | --- |
| 4.3.5. | Statements as to such other matters incident to the transaction contemplated hereby as the Representative<br>may reasonably request. |
| --- | --- |
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4.4. Officers’ Certificates.
| 4.4.1. | Officers’ Certificate. At each of the Closing Date and the Option Closing Date, if any, the<br>Representative shall have received a certificate of the Company signed by the Chief Executive Officer or Chief Financial Officer or the<br>President and the Secretary or Assistant Secretary of the Company, dated the Closing Date or the Option Closing Date, as the case may<br>be, respectively, to the effect that the Company has performed all covenants and complied with all conditions required by this Agreement<br>to be performed or complied with by the Company prior to and as of the Closing Date, or the Option Closing Date, as the case may be, and<br>that the conditions set forth in Section 4 hereof have been satisfied as of such date and that, as of Closing Date and the Option<br>Closing Date, as the case may be, the representations and warranties of the Company set forth in Section 2 hereof are true and<br>correct. In addition, the Representative will have received such other and further certificates of officers of the Company as the Representative<br>may reasonably request. |
|---|---|
| 4.4.2. | Secretary’s Certificate. At each of the Closing Date and the Option Closing Date, if any,<br>the Representative shall have received a certificate of the Company signed by the Secretary or Assistant Secretary or Chief Executive<br>Officer or Chief Financial Officer of the Company, dated the Closing Date or the Option Closing Date, as the case may be, certifying:<br>(i) that the memorandum and articles of association of the Company are true and complete, have not been modified and are in full force<br>and effect; (ii) that the resolutions relating to the Offering are in full force and effect and have not been modified; (iii) all correspondence<br>between the Company or its counsel and the Commission; (iv) all correspondence between the Company or its counsel and the Nasdaq Stock<br>Market; and (v) as to the incumbency of the officers of the Company. The documents referred to in such certificate shall be attached to<br>such certificate. |
| --- | --- |
4.5. No Material Changes
Prior to and on each of the Closing Date and the Option Closing Date, if any: (i) there shall have been no material adverse change or development that is likely to result in a material adverse change in the condition or prospects or the business activities, financial or otherwise, of the Company from the latest dates as of which such condition is set forth in the Registration Statement and Prospectus; (ii) no action, suit or proceeding, at law or in equity, shall have been pending or threatened against the Company or the Initial Shareholder before or by any court or federal or state commission, board or other administrative agency wherein an unfavorable decision, ruling or finding may materially adversely affect the business, operations, prospects or financial condition or income of the Company, except as set forth in the Registration Statement, the Preliminary Prospectus and Prospectus; (iii) no stop order shall have been issued under the Act and no proceedings therefor shall have been initiated or threatened by the Commission; and (iv) the Registration Statement, the Preliminary Prospectus and the Prospectus and any amendments or supplements thereto shall contain all material statements which are required to be stated therein in accordance with the Act and the Regulations and shall conform in all material respects to the requirements of the Act and the Regulations, and neither the Registration Statement, the Preliminary Prospectus nor the Prospectus nor any amendment or supplement thereto shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in light of the circumstances under which they were made), not misleading.
4.6. Delivery of Agreements. On the date hereof, the Company shall have delivered to the Representative executed copies of the Trust Agreement, the Right Agreement, the Administrative Agreement, all of the Insider Letters, the Subscription Agreement and the Registration Rights Agreement.
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- Indemnification.
5.1. Indemnification of Underwriters.
| 5.1.1. | General. Subject to the conditions set forth below, the Company agrees to indemnify and hold harmless<br>each of the Underwriters and each dealer selected by the Representative that participates in the offer and sale of the Units (each a “Selected<br>Dealer”) and each of their respective directors, officers and employees and each person, if any, who controls any such Underwriter<br>(“Controlling Person”) within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against any and all<br>loss, liability, claim, damage and expense whatsoever (including but not limited to any and all legal or other expenses reasonably incurred<br>in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, whether arising out<br>of any action between any of the Underwriters and the Company or between any of the Underwriters and any third party or otherwise) to<br>which they or any of them may become subject under the Act, the Exchange Act or any other federal, state or local statute, law, rule,<br>regulation or ordinance or at common law or otherwise or under the laws, rules and regulation of foreign countries, arising out of or<br>based upon any untrue statement or alleged untrue statement of a material fact contained in: (i) any Preliminary Prospectus, the Registration<br>Statement, or the Prospectus (as from time to time each may be amended and supplemented); or (ii) any application or other document or<br>written communication (in this Section 5, collectively called “Application”) executed by the Company or based upon written<br>information furnished by the Company in any jurisdiction in order to qualify the Units under the securities laws thereof or filed with<br>the Commission, any state securities commission or agency, the Nasdaq Stock Market or any securities exchange; or the omission or alleged<br>omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances<br>under which they were made, not misleading, unless such statement or omission was made in reliance upon and in conformity with written<br>information furnished to the Company with respect to an Underwriter by or on behalf of such Underwriter expressly for use in any Preliminary<br>Prospectus, the Registration Statement, or the Prospectus, or any amendment or supplement thereof. With respect to any untrue statement<br>or omission or alleged untrue statement or omission made in the Preliminary Prospectus, the indemnity agreement contained in this paragraph<br>shall not inure to the benefit of any Underwriter to the extent that any loss, liability, claim, damage or expense of such Underwriter<br>results from the fact that a copy of the Prospectus was not given or sent to the person asserting any such loss, liability, claim or damage<br>at or prior to the written confirmation of sale of the Securities to such person as required by the Act and the Regulations, and if the<br>untrue statement or omission has been corrected in the Prospectus, unless such failure to deliver the Prospectus was a result of non-compliance<br>by the Company with its obligations under Section 3.2 hereof. The Company agrees to promptly notify the Representative of the commencement<br>of any litigation or proceedings against the Company or any of its officers, directors or Controlling Persons in connection with the issue<br>and sale of the Securities or in connection with the Preliminary Prospectus, the Registration Statement, or the Prospectus. |
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| 5.1.2. | Procedure. If any action is brought against an Underwriter or Controlling Person in respect of<br>which indemnity may be sought against the Company pursuant to Section 5.1.1, such Underwriter shall promptly notify the Company<br>in writing of the institution of such action and the Company shall assume the defense of such action, including the employment and fees<br>of counsel (subject to the reasonable approval of such Underwriter) and payment of actual expenses. Such Underwriter or Controlling Person<br>shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense<br>of such Underwriter or such Controlling Person unless: (i) the employment of such counsel at the expense of the Company shall have been<br>authorized in writing by the Company in connection with the defense of such action within reasonable time under the circumstances; (ii)<br>the Company shall not have employed counsel to have charge of the defense of such action; or (iii) such indemnified party or parties shall<br>have reasonably concluded that there may be defenses available to it or them which are different from or additional to those available<br>to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party<br>or parties), in any of which events the reasonable fees and expenses of not more than one additional firm of attorneys selected by the<br>Underwriter and/or Controlling Person shall be borne by the Company. Notwithstanding anything to the contrary contained herein, if the<br>Underwriter or Controlling Person shall assume the defense of such action as provided above, the Company shall have the right to approve<br>the terms of any settlement of such action which approval shall not be unreasonably withheld. |
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5.2. Indemnification of the Company. Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company, its directors, officers and employees and agents who control the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described in the foregoing indemnity from the Company to the several Underwriters, as incurred, but only with respect to untrue statements or omissions made in any Preliminary Prospectus, the Registration Statement, or the Prospectus, or any amendment or supplement thereto, or in any Application, in reliance upon, and in strict conformity with, written information furnished to the Company with respect to such Underwriter by or on behalf of the Underwriter expressly for use in such Preliminary Prospectus, the Registration Statement, or the Prospectus, or any amendment or supplement thereto or in any such Application, which furnished written information, it is expressly agreed, consists solely of the information described in the last sentence of Section 2.3.1. In case any action shall be brought against the Company or any other person so indemnified based on any Preliminary Prospectus, the Registration Statement, or the Prospectus, or any amendment or supplement thereto or any Application, and in respect of which indemnity may be sought against any Underwriter, such Underwriter shall have the rights and duties given to the Company, and the Company and each other person so indemnified shall have the rights and duties given to the several Underwriters by the provisions of Section 5.1.2.
5.3. Contribution.
| 5.3.1. | Contribution Rights. In order to provide for just and equitable contribution under the Act in any<br>case in which: (i) any person entitled to indemnification under this Section 5 makes a claim for indemnification pursuant hereto<br>but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of<br>time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the<br>fact that this Section 5 provides for indemnification in such case; or (ii) contribution under the Act, the Exchange Act or otherwise<br>may be required on the part of any such person in circumstances for which indemnification is provided under this Section 5, then,<br>and in each such case, the Company and the Underwriters shall contribute to the aggregate losses, liabilities, claims, damages and expenses<br>of the nature contemplated by said indemnity agreement incurred by the Company and the Underwriters, as incurred, in such proportions<br>that the Underwriters are responsible for that portion represented by the percentage that the underwriting discount appearing on the cover<br>page of the Prospectus bears to the initial offering price appearing thereon and the Company is responsible for the balance; provided,<br>that, no person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution<br>from any person who was not guilty of such fraudulent misrepresentation. Notwithstanding the provisions of this Section 5.3.1,<br>no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Public Securities<br>underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages that such Underwriter has<br>otherwise been required to pay in respect of such losses, liabilities, claims, damages and expenses. For purposes of this Section, each<br>director, officer and employee of an Underwriter or the Company, as applicable, and each person, if any, who controls an Underwriter or<br>the Company, as applicable, within the meaning of Section 15 of the Act shall have the same rights to contribution as the Underwriters<br>or the Company, as applicable. |
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| 5.3.2. | Contribution Procedure. Within fifteen (15) days after receipt by any party to this Agreement (or<br>its representative) of notice of the commencement of any action, suit or proceeding, such party will, if a claim for contribution in respect<br>thereof is to be made against another party (“Contributing Party”), notify the Contributing Party of the commencement thereof,<br>but the omission to so notify the Contributing Party will not relieve it from any liability which it may have to any other party other<br>than for contribution hereunder. In case any such action, suit or proceeding is brought against any party, and such party notifies a Contributing<br>Party or its representative of the commencement thereof within the aforesaid fifteen (15) days, the Contributing Party will be entitled<br>to participate therein with the notifying party and any other Contributing Party similarly notified. Any such Contributing Party shall<br>not be liable to any party seeking contribution on account of any settlement of any claim, action or proceeding effected by such party<br>seeking contribution on account of any settlement of any claim, action or proceeding effected by such party seeking contribution without<br>the written consent of such Contributing Party. The contribution provisions contained in this Section are intended to supersede, to the<br>extent permitted by law, any right to contribution under the Act, the Exchange Act or otherwise available. The Underwriters’ obligations<br>to contribute pursuant to this Section 5.3 are several and not joint. |
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- Default by an Underwriter.
6.1. Default Not Exceeding 10% of Firm Units or Option Units. If any Underwriter or Underwriters shall default in its or their obligations to purchase the Firm Units or the Option Units, if the Over-allotment Option is exercised, hereunder, and if the number of the Firm Units or Option Units with respect to which such default relates does not exceed in the aggregate 10% of the number of Firm Units or Option Units that all Underwriters have agreed to purchase hereunder, then such Firm Units or Option Units to which the default relates shall be purchased by the non-defaulting Underwriters in proportion to their respective commitments hereunder.
6.2. Default Exceeding 10% of Firm Units or Option Units. In the event that the default addressed in Section 6.1 above relates to more than 10% of the Firm Units or Option Units, the Representative may in its discretion arrange for itself or for another party or parties to purchase such Firm Units or Option Units to which such default relates on the terms contained herein. If, within one (1) Business Day after such default relating to more than 10% of the Firm Units or Option Units, the Representative does not arrange for the purchase of such Firm Units or Option Units, then the Representative shall be entitled to a further period of one (1) Business Day within which to procure another party or parties satisfactory to the Company and the Representative to purchase said Firm Units or Option Units on such terms. In the event the Representative does not arrange for the purchase of the Firm Units or Option Units to which a default relates as provided in this Section 6, this Agreement may be terminated by the Company without liability on the part of the Company (except as provided in Sections 3.10 and 5 hereof) or the several Underwriters (except as provided in Section 5 hereof); provided, however, that if such default occurs with respect to the Option Units, this Agreement will not terminate as to the Firm Units; and provided further that nothing herein shall relieve a defaulting Underwriter of its liability, if any, to the other several Underwriters and to the Company for damages occasioned by its default hereunder.
6.3. Postponement of Closing Date. In the event the Firm Units or Option Units to which the default relates are to be purchased by the non-defaulting Underwriters, or are to be purchased by another party or parties as aforesaid, the Representative or the Company shall have the right to postpone the Closing Date or Option Closing Date for a reasonable period, but not in any event exceeding five (5) Business Days, in order to effect whatever changes may thereby be made necessary in the Registration Statement, the Preliminary Prospectus and/or the Prospectus, as the case may be, or in any other documents and arrangements, and the Company agrees to file promptly any amendment to, or to supplement, the Registration Statement, the Preliminary Prospectus and/or the Prospectus, as the case may be, that in the opinion of counsel for the Underwriters may thereby be made necessary. The term “Underwriter” as used in this Agreement shall include any party substituted under this Section 6 with like effect as if it had originally been a party to this Agreement with respect to such Securities.
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- Additional Covenants.
7.1. Additional Shares or Options. The Company hereby agrees that until the Company consummates a Business Combination, it shall not issue any Ordinary Shares or any options or other securities convertible into Ordinary Shares, or any class of shares which participate in any manner in the Trust Account or which vote as a class with the Ordinary Shares on a Business Combination.
7.2. Trust Account Waiver Acknowledgments. The Company hereby agrees that it will not commence its due diligence investigation of any operating business or businesses which the Company seeks to acquire (each, a “Target Business”) unless and until such Target Business acknowledges in writing, whether through a letter of intent, memorandum of understanding or other similar document (and subsequently acknowledges the same in any definitive document replacing any of the foregoing), that: (i) it has read the Prospectus and understands that the Company has established the Trust Account, initially in an amount of $60,300,000 for the benefit of the public shareholders and, with respect to the portion representing the Deferred Underwriting Commission only, the Underwriters, and that (ii) for and in consideration of the Company agreeing to evaluate such Target Business for purposes of consummating a Business Combination with it, such Target Business agrees that it does not have any right, title, interest or claim of any kind in or to any monies of the Trust Account (“Claim”) and waives any Claim it may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with the Company and will not seek recourse against the Trust Account for any reason whatsoever. The Company further agrees that it will use all reasonable efforts, prior to obtaining the services of any vendor, to obtain a written acknowledgment from such vendor, whether through a letter of intent, memorandum of understanding or other similar document (and subsequently acknowledges the same in any definitive document replacing any of the foregoing), that: (i) such vendor has read the Prospectus and understands that the Company has established the Trust Account, initially in an amount of $60,300,000 for the benefit of the public shareholders and, with respect to the portion representing the Deferred Underwriting Commission only, the Underwriters, and that (ii) for and in consideration of the Company agreeing to engage the services of the vendor, such vendor agrees that it does not have any Claim and waives any Claim it may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with the Company and will not seek recourse against the Trust Account for any reason whatsoever. The foregoing letters shall substantially be in the form attached hereto as Exhibit A and B, respectively. Furthermore, each officer and director of the Company shall execute a waiver letter in the form attached hereto as Exhibit C.
7.3. Insider Letters. The Company shall not take any action or omit to take any action which would cause a breach of any of the Insider Letters executed among the Initial Shareholder, the officers and directors of the Company, and the Company or the Subscription Agreement and will not allow any amendments to, or waivers of, such Insider Letters or the Subscription Agreement without the prior written consent of the Representative.
7.4. Tender Offer Documents, Proxy Materials and Other Information. The Company shall provide counsel to the Representative with copies of all tender offer documents or proxy information and all related material filed with the Commission in connection with a Business Combination concurrently with such filing with the Commission. In addition, the Company shall furnish any other State in which the Offering was registered, such information as may be requested by such State.
7.5. Rule 419. The Company agrees that it will use its reasonable efforts to prevent the Company from becoming subject to Rule 419 under the Act prior to the consummation of any Business Combination, including, but not limited to, using its reasonable efforts to prevent any of the Company’s outstanding securities from being deemed to be a “penny stock” as defined in Rule 3a-51-1 under the Exchange Act during such period.
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Representations and Agreements to Survive Delivery. Except as the context otherwise requires, all representations, warranties and agreements contained in this Agreement shall be deemed to be representations, warranties and agreements at the Closing Date or the Option Closing Date, if any, and such representations, warranties and agreements of the Underwriters and the Company, including the indemnity agreements contained in Section 5 hereof, shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any Underwriter, the Company or any Controlling Person, and shall survive termination of this Agreement or the issuance and delivery of the Units to the several Underwriters until the earlier of the expiration of any applicable statute of limitations and the seventh anniversary of the later of the Closing Date or the Option Closing Date, if any, at which time the representations, warranties and agreements shall terminate and be of no further force and effect.
- Effective Date of This Agreement and Termination Thereof.
9.1. Effective Date. This Agreement shall become effective on the Effective Date at the time the Registration Statement is declared effective by the Commission.
9.2. Termination. The Representative shall have the right to terminate this Agreement at any time prior to any Closing Date: (i) if any domestic or international event or act or occurrence has materially disrupted, or in the Representative’s opinion will in the immediate future materially disrupt, general securities markets in the United States; or (ii) if trading on the New York Stock Exchange, the NYSE American, the Nasdaq Stock Market or on the OTC Bulletin Board (or successor trading market) shall have been suspended, or minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall have been fixed, or maximum ranges for prices for securities shall have been required on the OTC Bulletin Board or by order of the Commission or any other government authority having jurisdiction; or (iii) if the United States shall have become involved in a war or an initiation or increase in major hostilities, or (iv) if a banking moratorium has been declared by a New York State or federal authority, or (v) if a moratorium on foreign exchange trading has been declared which materially adversely impacts the United States securities markets; or (vi) if the Company shall have sustained a material loss by fire, flood, accident, hurricane, earthquake, theft, sabotage or other calamity or malicious act which, whether or not such loss shall have been insured, will, in the Representative’s opinion, make it inadvisable to proceed with the delivery of the Units; or (vii) if any of the Company’s representations, warranties or covenants hereunder are breached; or (viii) if the Representative shall have become aware after the date hereof of such a material adverse change in the conditions or prospects of the Company, or such material adverse change in general market conditions, including, without limitation, as a result of terrorist activities after the date hereof, as in the Representative’s judgment would make it impracticable to proceed with the offering, sale and/or delivery of the Units or to enforce contracts made by the Underwriters for the sale of the Units.
9.3. Expenses. In the event this Agreement shall not be carried out for any reason whatsoever, except as a result of the Representative’s or any Underwriters’ breach or default with respect to any of its material obligations pursuant to this Agreement, within the time specified herein or any extensions thereof pursuant to the terms herein, the obligations of the Company to pay the out-of-pocket expenses actually incurred by the Representative related to the transactions contemplated herein shall be governed by Section 3.10 hereof.
9.4. Indemnification. Notwithstanding any contrary provision contained in this Agreement, any election hereunder or any termination of this Agreement, and whether or not this Agreement is otherwise carried out, the provisions of Section 5 shall not be in any way affected by such election or termination or failure to carry out the terms of this Agreement or any part hereof.
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Miscellaneous.
10.1. Notices. All communications hereunder, except as herein otherwise specifically provided, shall be in writing and shall be mailed, delivered by hand or reputable overnight courier or delivered by facsimile transmission (with printed confirmation of receipt) and confirmed, or by electronic transmission, and shall be deemed given when so mailed, delivered, or faxed or transmitted (or if mailed, three days after such mailing):
If to the Representative:
Lucid Capital Markets, LLC
570 Lexington Avenue, 40^th^ Floor
New York, New York 10022
Attn.: Steven Kaplan
Email: skaplan@lucidcm.com
Copy to (which copy shall not be deemed to constitute notice to the Representative):
Blank Rome LLP
1271 Avenue of the Americas
New York, New York 10020
Attn: Brad L. Shiffman, Esq.
Email: brad.shiffman@blankrome.com
Fax: (212) 885-5001
If to the Company:
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Attn: Satoshi Tominaga, Chief Executive Officer
Email: stominaga8@outlook.com
Copy to (which copy shall not be deemed to constitute notice to the Company):
Loeb & Loeb LLP
2206-19 Jardine House
1 Connaught Place
Central, Hong Kong SAR
Attn: Laurence S. Venick, Esq.
Email: lvenick@loeb.com
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10.2. Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Agreement.
10.3. Amendment. This Agreement may only be amended by a written instrument executed by each of the parties hereto.
10.4. Entire Agreement. This Agreement (together with the other agreements and documents being delivered pursuant to or in connection with this Agreement) constitute the entire agreement of the parties hereto with respect to the subject matter hereof and thereof, and supersede all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.
10.5. Binding Effect. This Agreement shall inure solely to the benefit of and shall be binding upon the Representative, the Underwriters, the Company and the Controlling Persons, directors and officers referred to in Section 5 hereof, and their respective successors, legal representatives and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Agreement or any provisions herein contained.
10.6. Governing Law, Venue, Etc.
| 10.6.1. | This Agreement shall be governed by and construed and enforced in accordance with the laws of the State<br>of New York, without giving effect to the conflict of laws principles thereof. Each of the Representative and the Company (and any individual<br>signatory hereto): (i) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement and/or the transactions<br>contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court<br>for the Southern District of New York; (ii) waives any objection which such party may have or hereafter have to the venue of any such<br>suit, action or proceeding; and (iii) irrevocably and exclusively consents to the jurisdiction of the New York Supreme Court, County of<br>New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding. |
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| 10.6.2. | Each of the Representative and the Company (and any individual signatory hereto) further agrees to accept<br>and acknowledge service of any and all process which may be served in any such suit, action or proceeding in the New York Supreme Court,<br>County of New York, or in the United States District Court for the Southern District of New York and agrees that service of process upon<br>the Company or any such individual mailed by certified mail to the Company’s address shall be deemed in every respect effective<br>service of process upon the Company or any such individual in any such suit, action or proceeding, and service of process upon the Representative<br>mailed by certified mail to the Representative’s addresses shall be deemed in every respect effective service process upon the Representative,<br>in any such suit, action or proceeding. |
| --- | --- |
| 10.6.3. | THE COMPANY (ON BEHALF OF ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY LAW, ON BEHALF OF ITS EQUITY<br>HOLDERS AND CREDITORS) HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF OR IN CONNECTION<br>WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE REGISTRATION STATEMENT AND THE PROSPECTUS. |
| --- | --- |
| 10.6.4. | The Company agrees that the prevailing party(ies) in any such action shall be entitled to recover from<br>the other party (ies) all of its reasonable attorneys’ fees and expenses relating to such action or proceeding and/or incurred in<br>connection with the preparation therefor. |
| --- | --- |
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10.7. Agent for Service; Submission to Jurisdiction; Waiver of Immunities. (a) By the execution and delivery of this Agreement, the Company hereby irrevocably designates and appoints Cogency Global Inc., 122 East 42^nd^ Street, 18^th^ Floor, New York, NY 10168 as its authorized agent upon whom process may be served in any suit, proceeding or other action against it instituted by any Underwriter or by any person controlling an Underwriter as to which such Underwriter or any such controlling person is a party and based upon this Agreement, or in any other action against the Company in the New York Supreme Court, County of New York and the United States District Court for the Southern District of New York, arising out of the offering made by the Prospectus or any purchase or sale of Shares in connection therewith. The Company expressly accepts jurisdiction of any such court in respect of any such suit, proceeding or other action and, without limiting other methods of obtaining jurisdiction, expressly submits to nonexclusive personal jurisdiction of any such court in respect of any such suit, proceeding or other action. Such designation and appointment shall be irrevocable, unless and until a successor authorized agent in the County and State of New York reasonably acceptable to the Representative shall have been appointed by the Company, such successor shall have accepted such appointment and written notice thereof shall have been given to the Underwriters. The Company further agrees that service of process upon its authorized agent or successor shall be deemed in every respect personal service of process upon the Company in any such suit, proceeding or other action. In the event that service of any process or notice of motion or other application to any such court in connection with any such motion in connection with any such action or proceeding cannot be made in the manner described above, such service may be made in the manner set forth in conformance with the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents on Civil and Commercial Matters or any successor convention or treaty. The Company hereby irrevocably waives any objection that it may have or hereafter have to the laying of venue of any such action or proceeding arising out of or based on the Shares, or this Agreement or otherwise relating to the offering, issuance and sale of the Shares in any Federal or state court sitting in the County of New York and hereby further irrevocably waives any claim that any such action or proceeding in any such court has been brought in an inconvenient forum. The Company agrees that any final judgment after exhaustion of all appeals or the expiration of time to appeal in any such action or proceeding arising out of the sale of the Shares or this Agreement rendered by any such Federal court or state court shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law. Nothing contained in this Agreement shall affect or limit the right of the Underwriters or any person controlling an Underwriter to serve any process or notice of motion or other application in any other manner permitted by law or limit or affect the right of the Underwriters or any person controlling an Underwriter to bring any action or proceeding against the Company or any of its properties in the courts of any other jurisdiction. The Company further agrees to take any and all action, including the execution and filing of all such instruments and documents, as may be necessary to continue such designations and appointments or such substitute designations and appointments in full force and effect. The Company hereby agrees with the Underwriters to the nonexclusive jurisdiction of the New York Supreme Court, County of New York or the United States District Court for the Southern District of New York in connection with any action or proceeding arising from the sale of the Shares or this Agreement brought by the Company, the Underwriters or any person controlling an Underwriter.
(b) The Company agrees that in any suit (whether in a court in the United States, China, Hong Kong or elsewhere) seeking enforcement of this Agreement or provisions of this Agreement (i) if the plaintiffs therein seek a judgment in either United States dollars or other currency, the Company will not interpose any defense or objection to or otherwise oppose judgment, if any, being awarded in such currencies except to the extent that such a judgment would violate the laws of Hong Kong, and (ii) if the plaintiffs therein seek to have any judgment (or any aspect thereof) awarded in any other currency, for the period from entry of such judgment until actual payment thereof in full has been made, to either or both of the consumer price index of the currency of such foreign country or changes in the applicable currency-United States dollar exchange rate, the Company will not interpose any defense or objection to or otherwise oppose inclusion of such linkage in any such judgment except to the extent that such a judgment would violate the laws of Hong Kong. The Company agrees that it will not initiate or seek to initiate any action, suit or proceeding, in Hong Kong or in any other jurisdiction other than in the United States, seeking damages in respect of or for the purpose of obtaining any injunction or declaratory judgment against the enforcement of, or a declaratory judgment concerning any alleged breach by the Company or other claim by the Underwriters, or any person controlling an Underwriter in respect of this Agreement or any of the Underwriters’ rights under this Agreement, including without limitation any action, suit or proceeding challenging the enforceability of or seeking to invalidate in any respect the submission by the Company hereunder to the jurisdiction of the courts or the designation of the laws as the law applicable to this Agreement, in each case as set forth herein.
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(c) The Company agrees that if any payment of any sum due under this Agreement from the Company is made to or received by the Underwriters or any controlling person of any Underwriter in a currency other than freely transferable United States dollars, whether by judicial judgment or otherwise, the obligations of the Company under this Agreement shall be discharged only to the extent of the net amount of freely transferable United States dollars that the Underwriters or such controlling persons, as the case may be, in accordance with normal bank procedures, are able to lawfully purchase with such amount of such other currency. To the extent that the Underwriters or such controlling persons are not able to purchase sufficient United States dollars with such amount of such other currency to discharge the obligations of the Company to the Underwriters or such controlling persons, the obligations of the Company shall not be discharged with respect to such difference, and any such undischarged amount will be due as a separate obligation and shall not be affected by payment of or judgment being obtained for any other sums due under or in respect of this Agreement.
10.8. Execution in Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Delivery of a signed counterpart of this Agreement by fax or email/.pdf transmission shall constitute valid and sufficient delivery thereof.
10.9. Waiver, Etc. The failure of any of the parties hereto to at any time enforce any of the provisions of this Agreement shall not be deemed or construed to be a waiver of any such provision, nor to in any way effect the validity of this Agreement or any provision hereof or the right of any of the parties hereto to thereafter enforce each and every provision of this Agreement. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.
10.10. No Fiduciary Relationship. The Company hereby acknowledges that the Underwriters are acting solely as underwriters in connection with the Offering. The Company further acknowledges that the Underwriters are acting pursuant to a contractual relationship created solely by this Agreement entered into on an arm’s length basis and in no event do the parties intend that the Underwriters act or be responsible as a fiduciary to the Company, its management, shareholders, creditors or any other person in connection with any activity that the Underwriters may undertake or have undertaken in furtherance of the Offering, either before or after the date hereof. The Underwriters hereby expressly disclaim any fiduciary or similar obligations to the Company, either in connection with the transactions contemplated by this Agreement or any matters leading up to such transactions, and the Company hereby confirms its understanding and agreement to that effect. The Company and the Underwriters agree that they are each responsible for making their own independent judgments with respect to any such transactions, and that any opinions or views expressed by the Underwriters to the Company regarding such transactions, including but not limited to any opinions or views with respect to the price or market for the Company’s securities, do not constitute advice or recommendations to the Company. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have against the Underwriters with respect to any breach or alleged breach of any fiduciary or similar duty to the Company in connection with the transactions contemplated by this Agreement or any matters leading up to such transactions.
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If the foregoing correctly sets forth the understanding between the Underwriters and the Company, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between us.
Very truly yours,
YHN ACQUISITION I LIMITED
| By: | /s/ Satoshi Tominaga |
|---|---|
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
Agreed to and accepted on the date first above written.
LUCID CAPITAL MARKETS, LLC, as Representative of the several Underwriters
| By: | /s/ Jeffrey Caliva |
|---|---|
| Name: | Jeffrey Caliva |
| Title: | Managing Director |
36
SCHEDULE A
YHN ACQUISITION I LIMITED
6,000,000 Units
| Underwriter | Number of Firm Units to be Purchased | |
|---|---|---|
| Lucid Capital Markets, LLC | 5,700,000 | |
| EarlyBirdCapital, Inc. | 300,000 | |
| TOTAL | 6,000,000 |
Sch. A
EXHIBIT A
Form of Target Business Letter
YHN Acquisition I Limited
Gentlemen:
Reference is made to the Final Prospectus of YHN Acquisition I Limited (the “Company”), dated __________, 2024 (the “Prospectus”).
Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Prospectus.
We have read the Prospectus and understand that the Company has established a “trust account”, initially in an amount of at least $60,300,000 for the benefit of the “public shareholders” and, with respect to the portion representing the Deferred Underwriting Commission only, the underwriters of the Company’s initial public offering (the “Underwriters”) and that, except for interest earned on the trust account that may be released to the Company to pay any taxes it incurs, proceeds in the trust account will not be released until (a) the consummation of a Business Combination, or (b) the dissolution and liquidation of the Company if it is unable to consummate a Business Combination within the allotted time.
For and in consideration of the Company agreeing to evaluate the undersigned for purposes of consummating a business combination or other form of acquisition with it, the undersigned hereby agrees that it does not have any right, title, interest or claim of any kind in or to any monies in the trust account (the “Claim”) and hereby waives any Claim it may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with the Company and will not seek recourse against the trust account for any reason whatsoever.
Print Name of Target Business
Authorized Signature of Target Business
Ex A
EXHIBIT B
Form of Vendor Letter
YHN Acquisition I Limited
Gentlemen:
Reference is made to the Final Prospectus of YHN Acquisition I Limited (the “Company”), dated __________, 2024 (the “Prospectus”). Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Prospectus.
We have read the Prospectus and understand that the Company has established a “trust account”, initially in an amount of at least $60,300,000 for the benefit of the “public shareholders” and, with respect to the portion representing the Deferred Underwriting Commission only, the underwriters of the Company’s initial public offering (the “Underwriters”) and that, except for interest earned on the trust account that may be released to the Company to pay any taxes it incurs, proceeds in the trust account will not be released until (a) the consummation of a Business Combination, or (b) the dissolution and liquidation of the Company if it is unable to consummate a Business Combination within the allotted time.
For and in consideration of the Company agreeing to use the products or services of the undersigned, the undersigned hereby agrees that it does not have any right, title, interest or claim of any kind in or to any monies in the trust account (the “Claim”) and hereby waives any Claim it may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with the Company and will not seek recourse against the trust account for any reason whatsoever.
Print Name of Vendor
Authorized Signature of Vendor
Ex B
EXHIBIT C
Form of Director/Officer Letter
YHN Acquisition I Limited
Gentlemen:
The undersigned officer or director of YHN Acquisition I Limited (the “Company”) hereby acknowledges that the Company has established the “trust account”, initially in an amount of at least $60,300,000 for the benefit of the “public shareholders” and, with respect to the portion representing the Deferred Underwriting Commission only, the underwriters of the Company’s initial public offering (the “Underwriters”) and that, except for interest earned on the trust account that may be released to the Company to pay any taxes it incurs, proceeds in the trust account will not be released until (a) the consummation of a Business Combination, or (b) the dissolution and liquidation of the Company if it is unable to consummate a Business Combination within the allotted time.
The undersigned hereby agrees that it does not have any right, title, interest or claim of any kind in or to any monies in the trust account (the “Claim”) and hereby waives any Claim it may have in the future as a result of, or arising out of, any contracts or agreements with the Company and will not seek recourse against the trust account for any reason whatsoever.
Notwithstanding the foregoing, such waiver shall not apply to any shares acquired by the undersigned in the public market.
Print Name of Officer/Director
Signature of Officer/Director
Ex C
Exhibit 3.1
Territory of the Virgin Islands
The BVI Business Companies Act,2004
THIRD AMENDED AND RESTATED
MEMORANDUM AND ARTICLES OF ASSOCIATION
OF
YHN Acquisition I Limited
Incorporated as a BVI business company on 18 December 2023
(adopted by a resolution of member dated 13 September 2024 and filed on
16 September 2024)
TERRITORY OF THE BRITISH VIRGIN ISLANDS
THE BVI BUSINESS COMPANIES ACT 2004
THIRD AMENDED AND RESTATED MEMORANDUMOF ASSOCIATION
OF
YHN Acquisition I Limited
A COMPANY LIMITED BY SHARES
(adopted by a resolution of memberpassed on 13 September 2024 and filed on 16 September 2024)
| 1 | NAME |
|---|
The name of the Company is YHN Acquisition I Limited.
| 2 | STATUS |
|---|
The Company shall be a company limited by shares.
| 3 | REGISTERED OFFICE AND REGISTERED AGENT |
|---|
| 3.1 | The first registered office of the Company is at Ritter House, Wickhams Cay II, PO Box 3170, Road Town,<br>Tortola VG1110, British Virgin Islands, the office of the first registered agent. |
|---|---|
| 3.2 | The first registered agent of the Company is Ogier Global (BVI) Limited of Ritter House, Wickhams Cay<br>II, PO Box 3170, Road Town, Tortola VG1110, British Virgin Islands. |
| --- | --- |
| 3.3 | The Company may change its registered office or registered agent by a Resolution of Directors or a Resolution<br>of Members. The change shall take effect upon the Registrar registering a notice of change filed under section 92 of the Act. |
| --- | --- |
| 4 | CAPACITY AND POWER |
| --- | --- |
| 4.1 | The Company has, subject to the Act and any other British Virgin Islands legislation for the time being<br>in force, irrespective of corporate benefit: |
|---|---|
| (a) | full capacity to carry on or undertake any business or activity, do any act or enter into any transaction; and |
| --- | --- |
| (b) | for the purposes of paragraph (a), full rights, powers and privileges. |
| --- | --- |
| 4.2 | There are subject to Clause 4.1 and Regulation 23, no limitations on the business that the Company may<br>carry on. |
| --- | --- |
1
| 5 | NUMBER AND CLASSES OF SHARES |
|---|
| 5.1 | The Company is authorised to issue a maximum of 500,000,000 Shares of no par value each of a single class. |
|---|---|
| 5.2 | The Company may at the discretion of the Board of Directors, but shall not otherwise be obliged to, issue<br>fractional Shares or round up or down fractional holdings of Shares to its nearest whole number and a fractional Share (if authorised<br>by the Board of Directors) may have the corresponding fractional rights, obligations and liabilities of a whole share of the same class<br>or series of shares. |
| --- | --- |
| 6 | DESIGNATIONS POWERS PREFERENCES OF SHARES |
| --- | --- |
| 6.1 | Each Share in the Company confers upon the Member (unless waived by such Member): |
|---|---|
| (a) | subject to Clause 11, the right to one vote at a meeting of the Members of the Company or on any Resolution<br>of Members; |
| --- | --- |
| (b) | the right to be redeemed on an Automatic Redemption Event in accordance with Regulation 23.2 or pursuant<br>to either a Tender Redemption Offer or Redemption Offer in accordance with Regulation 23.5 or pursuant to an Amendment Redemption Event<br>in accordance with Regulation 23.11; |
| --- | --- |
| (c) | the right to an equal share with each other Share in any dividend paid by the Company; and |
| --- | --- |
| (d) | subject to satisfaction of and compliance with Regulation 23, the right to an equal share with each other<br>Share in the distribution of the surplus assets of the Company on its liquidation. |
| --- | --- |
| 6.2 | The Directors may at their discretion by Resolution of Directors redeem, purchase or otherwise acquire<br>all or any of the Shares in the Company subject to Regulation 6 and Regulation 23 of the Articles. |
| --- | --- |
| 6.3 | The Directors have the authority and the power by Resolution of Directors: |
| --- | --- |
| (a) | to authorise and create additional classes of shares; and |
| --- | --- |
| (b) | to fix the designations, powers, preferences, rights, qualifications, limitations and restrictions, if<br>any, appertaining to any and all classes of shares that may be authorised to be issued under this Memorandum. |
| --- | --- |
| 7 | VARIATION OF RIGHTS |
| --- | --- |
| 7.1 | The rights attached to the Shares as specified in Clause 6.1 may only, whether or not the Company is being<br>wound up, be varied with the consent in writing of at least fifty percent (50%) of the issued Shares of that class, or by a resolution<br>passed at a meeting by, the holders of more than fifty percent<br>(50%) of the Shares present at a duly convened and constituted meeting of the Members of the Company holding Shares which were present<br>at the meeting and voted, or unless otherwise provided by the terms of issue of such class. |
|---|
2
| 8 | RIGHTS NOT VARIED BY THE ISSUE OF SHARES PARI PASSU |
|---|
The rights conferred upon the holders of the Shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking pari passu therewith.
| 9 | REGISTERED SHARES |
|---|
| 9.1 | The Company shall issue registered shares only. |
|---|---|
| 9.2 | The Company is not authorised to issue bearer shares, convert registered shares to bearer shares or exchange registered shares for<br>bearer shares. |
| --- | --- |
| 10 | TRANSFER OF SHARES |
| --- | --- |
A Share may be transferred in accordance with Regulation 4 of the Articles.
| 11 | AMENDMENT OF MEMORANDUM AND ARTICLES |
|---|
| 11.1 | The Company may amend its Memorandum or Articles by a Resolution of Members or by a Resolution of Directors, save that no amendment<br>may be made by a Resolution of Directors: |
|---|---|
| (a) | to restrict the rights or powers of the Members to amend the Memorandum or Articles; |
| --- | --- |
| (b) | to change the percentage of Members required to pass a Resolution of Members to amend the Memorandum or Articles; |
| --- | --- |
| (c) | in circumstances where the Memorandum or Articles cannot be amended by the Members; or |
| --- | --- |
| (d) | to change Clauses 7 or 8, this Clause 11 or Regulation 23 (or any of the defined terms used in any such Clause or Regulation). |
| --- | --- |
| 11.2 | Notwithstanding Clause 11.1, no amendment may be made to the Memorandum or Articles by a Resolution of Members to amend: |
| --- | --- |
| (b) | Regulation 23 prior to the Business Combination unless the<br>holders of the Public Shares are provided with the opportunity to redeem their Public Shares upon the approval of any such amendment<br>in the manner and for the price as set out in Regulation 23.11; or |
| --- | --- |
| (b) | this Clause 11.2 during the Target Business Acquisition Period. |
| --- | --- |
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| 12 | DEFINITIONS AND INTERPRETATION |
|---|
| 12.1 | In this Memorandum of Association and the attached Articles of Association, if not inconsistent with the subject or context: |
|---|---|
| (a) | Act means the BVI Business Companies<br>Act, 2004 (as amended) and includes the regulations made under the Act; |
| --- | --- |
| (b) | AGM means an annual general meeting of the Members; |
| --- | --- |
| (c) | Amendment has the meaning ascribed to it in Regulation 23.11; |
| --- | --- |
| (d) | Amendment Redemption Event has the meaning ascribed to it in<br>Regulation 23.11; |
| --- | --- |
| (e) | Applicable Law means, with respect<br>to any person, all provisions of laws, statutes, ordinances, rules, regulations, permits, certificates, judgments, decisions, decrees<br>or orders of any governmental authority applicable to such person; |
| --- | --- |
| (f) | Approved Amendment has the meaning ascribed to it in Regulation<br>23.11; |
| --- | --- |
| (g) | Articles means the attached Articles of Association of the<br>Company; |
| --- | --- |
| (h) | Automatic Redemption Event shall have the meaning given to<br>it in Regulation 23.2; |
| --- | --- |
| (i) | Board of Directors means the board of directors of the Company; |
| --- | --- |
| (j) | Business Combination shall mean<br>the initial acquisition by the Company, whether through a merger, share exchange, share reconstruction or amalgamation, asset or share<br>acquisition, a contractual arrangement or other similar business combination transaction, with a Target Business at Fair Value; |
| --- | --- |
| (k) | Business Combination Articles means<br>Regulation 23 relating to the Company's obligations regarding the consummation of a Business Combination; |
| --- | --- |
| (l) | Business Days means a day other<br>than a Saturday or Sunday or any other day on which commercial banks in New York are required or are authorised to be closed for business; |
| --- | --- |
| (m) | Chairman means a person who is<br>appointed as chairman to preside at a meeting of the Company and Chairmanof the Board means a person who is appointed as chairman to preside at a meeting of the Board of Directors of the Company,<br>in each case, in accordance with the Articles; |
| --- | --- |
| (n) | Designated Stock Exchange means<br>the Over-the-Counter Bulletin Board, the Global Select Market, Global Market or the Capital Market of the NASDAQ Stock Market LLC, the<br>NYSE American or the New York Stock Exchange, as applicable; provided, however, that until the Shares are<br>listed on any such Designated Stock Exchange, the rules of such Designated Stock Exchange shall be inapplicable to the Company and this<br>Memorandum or the Articles; |
| --- | --- |
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| (o) | Director means any director of the Company, from time to time; |
|---|---|
| (p) | Distribution in relation to a distribution<br>by the Company means the direct or indirect transfer of an asset, other than Shares, to or for the benefit of a Member in relation to<br>Shares held by a Member, and whether by means of a purchase of an asset, the redemption or other acquisition of Shares, a distribution<br>of indebtedness or otherwise, and includes a dividend; |
| --- | --- |
| (q) | Electronic Communication means<br>a communication sent by electronic means, including electronic posting to the Company’s website, transmission to any number, address<br>or internet website (including the website of the SEC) or other electronic delivery methods as otherwise decided and approved by the Directors; |
| --- | --- |
| (r) | Eligible Person means individuals,<br>corporations, trusts, the estates of deceased individuals, partnerships and unincorporated associations of persons; |
| --- | --- |
| (s) | Enterprise means the Company and<br>any other corporation, constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger to which<br>the Company (or any of its wholly owned subsidiaries) is a party, limited liability company, partnership, joint venture, trust, employee<br>benefit plan or other enterprise of which an Indemnitee is or was serving at the request of the Company as a Director, Officer, trustee,<br>general partner, managing member, fiduciary, employee or agent; |
| --- | --- |
| (t) | Exchange Act means the United States<br>Securities Exchange Act of 1934, as amended; |
| --- | --- |
| (u) | Expenses shall include all direct<br>and indirect costs, fees and expenses of any type or nature whatsoever, including, without limitation, all legal fees and costs, retainers,<br>court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators and professional advisors,<br>duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, fax transmission charges, secretarial<br>services and all other disbursements, obligations or expenses, in each case reasonably incurred in connection with prosecuting, defending,<br>preparing to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal of, or otherwise participating<br>in, a Proceeding, including reasonable compensation for time spent by the Indemnitee for which he or she is not otherwise compensated<br>by the Company or any third party. Expenses shall also include any or all of the foregoing expenses incurred in connection with all judgments,<br>liabilities, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in<br>connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred<br>(whether by an Indemnitee, or on his behalf) in connection with such Proceeding or any claim, issue or matter<br>therein, or any appeal resulting from any Proceeding, including without limitation the principal, premium, security for, and other costs<br>relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, but shall not include amounts paid in settlement<br>by an Indemnitee or the amount of judgments or fines against an Indemnitee; |
| --- | --- |
5
| (v) | Fair Value shall mean a value at<br>least equal to 80% of the balance in the Trust Account (excluding any deferred underwriting fees and commissions and taxes payable on<br>the income earned on the Trust Account, and net of funds previously released to the Company to pay taxes) at the time of the execution<br>of a definitive agreement for a Business Combination; |
|---|---|
| (w) | FINRA means the Financial Industry Regulatory Authority of<br>the United States; |
| --- | --- |
| (x) | Indemnitee means any person detailed<br>in sub regulations (a) and (b) of Regulation 15; |
| --- | --- |
| (y) | Initial Shareholders means the<br>Sponsor and any Members who hold Shares prior to the IPO; |
| --- | --- |
| (z) | IPO means the initial public offering<br>of securities or other and rights to receive or subscribe for securities of the Company; |
| --- | --- |
| (aa) | Member means an Eligible Person whose name is entered in the<br>share register of the Company as the holder of one or more Shares or fractional Shares; |
| --- | --- |
| (bb) | Memorandummeans this Memorandum of Association of the Company; |
| --- | --- |
| (cc) | Officermeans any officer of the Company, from time to time; |
| --- | --- |
| (dd) | Per-ShareRedemption Price means: |
| --- | --- |
| (i) | with respect to an Automatic Redemption Event, the aggregate amount on deposit in the Trust Account calculated<br>as of the date that is two (2) days prior to the distribution date including interest earned, but net of taxes payable, divided by the<br>number of then outstanding Public Shares; |
| --- | --- |
| (ii) | with respect to an Amendment Redemption Event, the aggregate amount on deposit in the Trust Account, including<br>interest earned but net of taxes payable, divided by the number of then outstanding Public Shares on the date that is two Business Days<br>prior to the Resolution of Members approving the Amendment; and |
| --- | --- |
| (iii) | with respect to either a Tender Redemption Offer or a Redemption Offer, the aggregate amount then on<br> deposit in the Trust Account, including interest earned but net of taxes payable, on the date that is two Business Days prior to the consummation of the Business Combination, divided by<br>the number of then outstanding Public Shares; |
| --- | --- |
6
| (ee) | Proceedingmeans any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation,<br>inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the name of the Company or<br>otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative nature,<br>in which an Indemnitee was, is, will or might be involved as a party or otherwise by reason of the fact that such Indemnitee is or was<br>a Director or Officer of the Company, by reason of any action (or failure to act) taken by him or of any action (or failure to act) on<br>his part while acting as a Director, Officer, employee or adviser of the Company, or by reason of the fact that he is or was serving<br>at the request of the Company as a Director, Officer, trustee, general partner, managing member, fiduciary, employee, adviser or agent<br>of any other Enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which<br>indemnification, reimbursement, or advancement of expenses can be provided under these Articles; |
|---|---|
| (ff) | PublicShares means the Shares included in the units issued in the IPO; |
| --- | --- |
| (gg) | RedemptionOffer has the meaning ascribed to it in Regulation 23.5(b); |
| --- | --- |
| (hh) | RegistrationStatement has the meaning ascribed to it in Regulation 23.10; |
| --- | --- |
| (ii) | relevant system means a relevant system for the holding and<br>transfer of shares in uncertificated form; |
| --- | --- |
| (jj) | Resolutionof Directors means either: |
| --- | --- |
| (i) | a resolution approved at a duly convened and constituted meeting of Directors of the Company or of a committee<br>of Directors of the Company by the affirmative vote of a majority of the Directors present at the meeting who voted except that where<br>a Director is given more than one vote, he shall be counted by the number of votes he casts for the purpose of establishing a majority;<br>or |
| --- | --- |
| (ii) | a resolution consented to in writing by all Directors or by all members of a committee of Directors of<br>the Company, as the case may be; |
| --- | --- |
| (kk) | Resolutionof Members means a resolution approved at a duly convened and constituted meeting of the Members of the Company by the affirmative<br>vote of a majority of the votes of the Shares entitled to vote thereon which were present at the meeting and were voted; |
| --- | --- |
| (ll) | Sealmeans any seal which has been duly adopted as the common seal of the Company; |
| --- | --- |
7
| (mm) | SECmeans the United States Securities and Exchange Commission; |
|---|---|
| (nn) | Securitiesmeans Shares, other securities and debt obligations of every kind of the Company, and including without limitation options,<br>warrants, rights to receive Shares or other securities or debt obligations; |
| --- | --- |
| (oo) | SecuritiesAct means the United States Securities Act of 1933, as amended; |
| --- | --- |
| (pp) | Sharemeans a share issued or to be issued by the Company and Sharesshall be construed accordingly; |
| --- | --- |
| (qq) | Sponsormeans YHN Partners I Limited; |
| --- | --- |
| (rr) | SponsorGroup means the Sponsor and its respective affiliates, successors and assigns; |
| --- | --- |
| (ss) | TargetBusiness means any businesses or entity with whom the Company wishes to undertake a Business Combination; |
| --- | --- |
| (tt) | TargetBusiness Acquisition Period shall mean the period commencing from the effectiveness of the registration statement filed with<br>the SEC in connection with the Company's IPO up to and including the first to occur of (i) a Business Combination; or (ii) the Termination Date. |
| --- | --- |
| (uu) | TenderRedemption Offer has the meaning ascribed to it in Regulation 23.5(a); |
| --- | --- |
| (vv) | TerminationDate has the meaning given to it in Regulation 23.2; |
| --- | --- |
| (ww) | TreasuryShare means a Share that was previously issued but was repurchased, redeemed or otherwise acquired by the Company and not<br>cancelled; |
| --- | --- |
| (xx) | TrustAccount shall mean the trust account established by the Company prior to the IPO and into which a certain amount of the IPO<br>proceeds and the proceeds from a simultaneous private placement of like units comprising like securities to those in included in the<br>IPO by the Company are deposited, interest on the balance of which may be released to the Company from to time to time to pay the Company’s<br>income or other tax obligations, if applicable; and |
| --- | --- |
| (yy) | writtenor any term of like import includes information generated, sent, received or stored by electronic, electrical, digital, magnetic,<br>optical, electromagnetic, biometric or photonic means, including electronic data interchange, electronic mail, telegram, telex or telecopy,<br>and "in writing" shall be construed accordingly. |
| --- | --- |
| 12.2 | In the Memorandum and the Articles, unless the context otherwise requires a reference to: |
| --- | --- |
| (a) | a Regulation is a reference to a regulation of the Articles; |
| --- | --- |
8
| (b) | a Clause is a reference to a clause of the Memorandum; |
|---|---|
| (c) | voting by Member is a reference to the casting of the votes attached to the Shares held by the Member<br>voting; |
| --- | --- |
| (d) | the Act, the Memorandum or the Articles is a reference to the Act or those documents as amended; |
| --- | --- |
| (e) | the singular includes the plural and vice versa; |
| --- | --- |
| (f) | where a meeting of (i) Members; (ii) a class of Members; (iii) the board of Directors; or (iv) any committee of the Directors,<br>is required to be convened for a place, such place may be a physical place, or a virtual place, or both, and where a meeting is convened<br>for or including a virtual place any person, including the person duly appointed as the chairperson of such meeting, may attend such meeting<br>by virtual attendance and such virtual attendance shall constitute presence in person at that meeting; |
| --- | --- |
| (g) | the term "virtual place" includes a discussion facility or forum with a telephonic, electronic<br>or digital identifier; and |
| --- | --- |
| (h) | the term "virtual attendance" means attendance at a virtual place by means of conference telephone<br>or other digital or Electronic Communications equipment or software or other facilities by means of which all the persons participating<br>in the meeting can communicate with each other. |
| --- | --- |
| 12.3 | Any words or expressions defined in the Act unless the context otherwise requires bear the same meaning in the Memorandum and Articles<br>unless otherwise defined herein. |
| --- | --- |
| 12.4 | Headings are inserted for convenience only and shall be disregarded in interpreting the Memorandum and Articles. |
| --- | --- |
9
We, Ogier Global (BVI) Limited of Ritter House, Wickhams Cay II, PO Box 3170, Road Town, Tortola VG1110, British Virgin Islands, for the purpose of incorporating a BVI business company under the laws of the British Virgin Islands hereby sign this Memorandum of Association.
Dated 18 December 2023
Incorporator
Signed for and on behalf of Ogier Global (BVI) Limitedof Ritter House, Wickhams Cay II, PO Box 3170, Road Town, Tortola VG1110, British Virgin Islands
| SGD: Toshra Glasgow |
|---|
| Signature of authorised signatory |
| Toshra Glasgow |
| --- |
| Print name |
10
TERRITORY OF THE BRITISH VIRGIN ISLANDS
THE BVI BUSINESS COMPANIES ACT 2004
THIRD AMENDED AND RESTATED ARTICLESOF ASSOCIATION
OF
YHN Acquisition I Limited
A COMPANY LIMITED BY SHARES
(adopted by a resolution of memberpassed on 13 September 2024 and filed on 16 September 2024)
| 1 | REGISTERED SHARES |
|---|
| 1.1 | Every Member is entitled to a certificate signed by a Director of the Company or under the Seal specifying<br>the number of Shares held by him and the signature of the Director and the Seal may be facsimiles. |
|---|---|
| 1.2 | Any Member receiving a certificate shall indemnify and hold the Company and its Directors and officers<br>harmless from any loss or liability which it or they may incur by reason of any wrongful or fraudulent use or representation made by any<br>person by virtue of the possession thereof. If a certificate for Shares is worn out or lost it may be renewed on production of the worn<br>out certificate or on satisfactory proof of its loss together with such indemnity as may be required by a Resolution of Directors. |
| --- | --- |
| 1.3 | If several Eligible Persons are registered as joint holders of any Shares, any one of such Eligible Persons<br>may give an effectual receipt for any Distribution. |
| --- | --- |
| 1.4 | Nothing in these Articles shall require title to any Shares or other Securities to be evidenced by a certificate<br>if the Act and the rules of the Designated Stock Exchange permit otherwise. |
| --- | --- |
| 1.5 | Subject to the Act and the rules of the Designated Stock Exchange, the Board of Directors without further<br>consultation with the holders of any Shares or Securities may resolve that any class or series of Shares or other Securities in issue<br>or to be issued from time to time may be issued, registered or converted to uncertificated form and the practices instituted by the operator<br>of the relevant system. No provision of these Articles will apply to any uncertificated shares or Securities to the extent that they are<br>inconsistent with the holding of such shares or securities in uncertificated form or the transfer of title to any such shares or securities<br>by means of a relevant system. |
| --- | --- |
| 1.6 | Conversion of Shares held in certificated form into Shares held in uncertificated form, and vice versa,<br>may be made in such manner as the Board of Directors, in its absolute discretion, may think fit (subject always to the requirements of<br>the relevant system concerned). The Company or any duly authorised transfer agent shall enter on the register of members how many Shares<br>are held by each member in uncertificated form and certificated form and shall maintain the register of members in each case as is required<br>by the relevant system concerned. Notwithstanding any provision of these Articles, a class or series of Shares shall not be treated as<br>two classes by virtue only of that class or series comprising both certificated shares and uncertificated shares or as a result of any<br>provision of these Articles which applies only in respect of certificated shares or uncertificated shares. |
| --- | --- |
1
| 1.7 | Nothing contained in Regulation 1.5 and 1.6 is meant to prohibit the Shares from being able to trade electronically.<br>For the avoidance of doubt, Shares shall only be traded and transferred electronically upon listing on the Designated Stock Exchange. |
|---|---|
| 2 | SHARES |
| --- | --- |
| 2.1 | Subject to the provisions of these Articles (including, without limitation, Regulation 23.7) and, where<br>applicable, the rules of the Designated Stock Exchange, the unissued Shares of the Company shall be at the disposal of the Directors and<br>Shares and other Securities may be issued and option to acquire Shares or other Securities may be granted at such times, to such Eligible<br>Persons, for such consideration and on such terms as the Directors may by Resolution of Directors determine. |
|---|---|
| 2.2 | Without prejudice to any special rights previously conferred on the holders of any existing Shares, the<br>Directors may be issued Shares with such preferred, deferred or other special rights or such restrictions, whether in regard to dividend,<br>voting or otherwise as the Directors may from time to time determine subject to Regulation 23.7. |
| --- | --- |
| 2.3 | Section 46 of the Act does not apply to the Company. |
| --- | --- |
| 2.4 | A Share may be issued for consideration in any form, including money, a promissory note, real property,<br>personal property (including goodwill and know-how) or a contract for future services. |
| --- | --- |
| 2.5 | No Shares may be issued for a consideration other than money, unless a Resolution of Directors has been<br>passed stating: |
| --- | --- |
| (a) | the amount to be credited for the issue of the Shares; and |
| --- | --- |
| (b) | that, in their opinion, the present cash value of the non-money consideration for the issue is not less than the amount to be credited<br>for the issue of the Shares. |
| --- | --- |
| 2.6 | The Company shall keep a register (the share register) containing: |
| --- | --- |
| (a) | the names and addresses of the persons who hold Shares; |
| --- | --- |
| (b) | the number of each class and series of Shares held by each Member; |
| --- | --- |
| (c) | the date on which the name of each Member was entered in the share register; and |
| --- | --- |
| (d) | the date on which any Eligible Person ceased to be a Member. |
| --- | --- |
2
| 2.7 | Where the Company or any of its Shares is listed on a Designated Stock Exchange, the company may keep<br>a share register containing the information referred to in Regulation 2.6 or such other information as these Articles permit<br>or as may be approved by a Resolution of Members. |
|---|---|
| 2.8 | The share register may be in any such form as the Directors may approve, but if it is in magnetic, electronic<br>or other data storage form, the Company must be able to produce legible evidence of its contents. Until the Directors otherwise determine,<br>the magnetic, electronic or other data storage form shall be the original share register. |
| --- | --- |
| 2.9 | A Share is deemed to be issued when the name of the Member is entered in the share register. |
| --- | --- |
| 2.10 | Subject to the provisions of the Act and the Business Combination Articles, Shares may be issued on the<br>terms that they are redeemable, or at the option of the Company be liable to be redeemed on such terms and in such manner as the Directors<br>before or at the time of the issue of such Shares may determine. The Directors may issue options, warrants, rights or convertible securities<br>or securities or a similar nature conferring the right upon the holders thereof to subscribe for, purchase or receive any class of Shares<br>or Securities on such terms as the Directors may from time to time determine. Notwithstanding the foregoing, the Directors may also issue<br>options, warrants, rights to acquire or receive shares or convertible securities in connection with the Company's IPO. |
| --- | --- |
| 3 | FORFEITURE |
| --- | --- |
| 3.1 | Shares that are not fully paid on issue, or are issued with the terms that they are subject to forfeiture<br>as the Directors determine upon allotment, are subject to the forfeiture provisions set forth in this Regulation and for this purpose<br>Shares issued for a promissory note or a contract for future services are deemed to be not fully paid. |
|---|---|
| 3.2 | A written notice of call specifying the date for payment to be made shall be served on the Member who<br>defaults in making payment in respect of the Shares. |
| --- | --- |
| 3.3 | The written notice of call referred to in Regulation 3.2 shall name a further date not earlier than the<br>expiration of 14 days from the date of service of the notice on or before which the payment required by the notice is to be made and shall<br>contain a statement that in the event of non-payment at or before the time named in the notice the Shares, or any of them, in respect<br>of which payment is not made will be liable to be forfeited. |
| --- | --- |
| 3.4 | Where a written notice of call has been issued pursuant to Regulation 3.2 and the requirements of the<br>notice have not been complied with, the Directors may, at any time before tender of payment, forfeit and cancel the Shares to which the<br>notice relates. |
| --- | --- |
| 3.5 | The Company is under no obligation to refund any moneys to the Member whose Shares have been cancelled<br>pursuant to Regulation 3.4 and that Member shall be discharged from any further obligation to the Company. |
| --- | --- |
3
| 4 | TRANSFER OF SHARES |
|---|
| 4.1 | Subject to the Memorandum, certificated shares may be transferred by a written instrument of transfer<br>signed by the transferor and containing the name and address of the transferee, which shall be sent to the Company for registration. A<br>member shall be entitled to transfer uncertificated shares by means of a relevant system and the operator of the relevant system shall<br>act as agent of the Members for the purposes of the transfer of such uncertificated shares. |
|---|---|
| 4.2 | The transfer of a Share is effective when the name of the transferee is entered on the share register. |
| --- | --- |
| 4.3 | If the Directors of the Company are satisfied that an instrument of transfer relating to Shares has been<br>signed but that the instrument has been lost or destroyed, they may resolve by Resolution of Directors: |
| --- | --- |
| (a) | to accept such evidence of the transfer of Shares as they consider appropriate; and |
| --- | --- |
| (b) | that the transferee's name should be entered in the share register notwithstanding the absence of the instrument of transfer. |
| --- | --- |
| 4.4 | Subject to the Memorandum, the personal representative of a deceased Member may transfer a Share even<br>though the personal representative is not a Member at the time of the transfer. |
| --- | --- |
| 5 | DISTRIBUTIONS |
| --- | --- |
| 5.1 | Subject to the Business Combination Articles, the Directors of the Company may, by Resolution of Directors,<br>authorise a distribution at a time and of an amount they think fit if they are satisfied, on reasonable grounds, that, immediately after<br>the distribution, the value of the Company's assets will exceed its liabilities and the Company will be able to pay its debts as and when<br>they fall due. |
|---|---|
| 5.2 | Dividends may be paid in money, shares, or other property. |
| --- | --- |
| 5.3 | The Company may, by Resolution of Directors, from time to time pay to the Members such interim dividends<br>as appear to the Directors to be justified by the profits of the Company, provided always that they are satisfied, on reasonable grounds,<br>that, immediately after the distribution, the value of the Company's assets will exceed its liabilities and the Company will be able to<br>pay its debts as and when they fall due. |
| --- | --- |
| 5.4 | Notice in writing of any dividend that may have been declared shall be given to each Member in accordance<br>with Regulation 21 and all dividends unclaimed for three years after such notice has been given to a Member may be forfeited by Resolution<br>of Directors for the benefit of the Company. |
| --- | --- |
| 5.5 | No dividend shall bear interest as against the Company. |
| --- | --- |
4
| 6 | REDEMPTION OF SHARES AND TREASURY SHARES |
|---|
| 6.1 | The Company may purchase, redeem or otherwise acquire and hold its own Shares save that the Company may<br>not purchase, redeem or otherwise acquire its own Shares without the consent of the Member whose Shares are to be purchased, redeemed<br>or otherwise acquired unless the Company is permitted or required by the Act or any other provision in the Memorandum or Articles to purchase,<br>redeem or otherwise acquire the Shares without such consent. |
|---|---|
| 6.2 | The purchase, redemption or other acquisition by the Company of its own Shares is deemed not to be a distribution<br>where: |
| --- | --- |
| (a) | the Company purchases, redeems or otherwise acquires the Shares pursuant to a right of a Member to have<br>his Shares redeemed or to have his shares exchanged for money or other property of the Company, or |
| --- | --- |
| (b) | the Company purchases, redeems or otherwise acquires the Shares by virtue of the provisions of section<br>179 of the Act. |
| --- | --- |
| 6.3 | Sections 60, 61 and 62 of the Act shall not apply to the Company. |
| --- | --- |
| 6.4 | Subject to the provisions of Regulation 23, shares that the Company purchases, redeems or otherwise acquires<br>pursuant to this Regulation may be cancelled or held as Treasury Shares except to the extent that such Shares are in excess of 50 percent<br>of the issued Shares in which case they shall be cancelled but they shall be available for reissue. |
| --- | --- |
| 6.5 | All rights and obligations attaching to a Treasury Share are suspended and shall not be exercised by the<br>Company while it holds the Share as a Treasury Share. |
| --- | --- |
| 6.6 | Treasury Shares may be disposed of by the Company on such terms and conditions (not otherwise inconsistent<br>with the Memorandum and Articles) as the Company may by Resolution of Directors determine. |
| --- | --- |
| 6.7 | Where Shares are held by another body corporate of which the Company holds, directly or indirectly, shares<br>having more than 50 per cent of the votes in the election of Directors of the other body corporate, all rights and obligations attaching<br>to the Shares held by the other body corporate are suspended and shall not be exercised by the other body corporate. |
| --- | --- |
| 6.8 | The Company shall be entitled to sell (at a price which the Company shall use its reasonable endeavours<br>to ensure is the best obtainable) the Shares of a Member or the Shares to which a person is entitled by virtue of transmission on death<br>or insolvency or otherwise by operation of law if and provided that: |
| --- | --- |
| (a) | all checks, not being less than three (3) in total number, for any sums payable in cash to the holder<br>of such shares have remained uncashed for a period of twelve (12) years; |
| --- | --- |
| (b) | the Company shall following the expiry of such period of twelve (12) years have inserted advertisements<br>in a national newspaper and in a newspaper circulating in the area in which the last known address<br>of the Member or the address at which service of notices may be effected under these Articles is located giving notice of its intention<br>to sell the said shares; and |
| --- | --- |
5
| (c) | during the period of three (3) months following the publication of such advertisements (or, if published<br>on different dates, the last thereof) the Company shall have received indication neither of the whereabouts nor of the existence of such<br>Member or person. |
|---|
The net proceeds of any such sale shall belong to the Company and when the Company receive these net proceeds, the Company shall become indebted to the former shareholder for an amount equal to such net proceeds. For the avoidance of doubt, the foregoing provisions of this Article are subject to any restrictions applicable under any regulations relating to the holding and/or transferring of securities in any paperless system as may be introduced from time to time in respect of the shares of the Company or any class thereof.
| 7 | MORTGAGES AND CHARGES OF SHARES |
|---|
| 7.1 | Unless a Member agrees otherwise, a Member may by an instrument in writing mortgage or charge his Shares. |
|---|---|
| 7.2 | There shall be entered in the share register at the written request of the Member: |
| --- | --- |
| (a) | a statement that the Shares held by him are mortgaged or charged; |
| --- | --- |
| (b) | the name of the mortgagee or chargee; and |
| --- | --- |
| (c) | the date on which the particulars specified in subparagraphs (a) and (b) are entered in the share register. |
| --- | --- |
| 7.3 | Where particulars of a mortgage or charge are entered in the share register, such particulars may be cancelled: |
| --- | --- |
| (a) | with the written consent of the named mortgagee or chargee or anyone authorised to act on his behalf;<br>or |
| --- | --- |
| (b) | upon evidence satisfactory to the Directors of the discharge of the liability secured by the mortgage<br>or charge and the issue of such indemnities as the Directors shall consider necessary or desirable. |
| --- | --- |
| 7.4 | Whilst particulars of a mortgage or charge over Shares are entered in the share register pursuant to this Regulation: |
| --- | --- |
| (a) | no transfer of any Share the subject of those particulars shall be effected; |
| --- | --- |
| (b) | the Company may not purchase, redeem or otherwise acquire any such Share; and |
| --- | --- |
| (c) | no replacement certificate shall be issued in respect of such Shares, without the written consent of the named mortgagee or chargee. |
| --- | --- |
6
| 8 | MEETINGS AND CONSENTS OF MEMBERS |
|---|
| 8.1 | Any Director of the Company may convene meetings of the Members at such times and in such manner and places<br>within or outside the British Virgin Islands as the Director considers necessary or desirable. Following consummation of the Business<br>Combination, an AGM shall be held annually at such date and time as may be determined by the Directors. |
|---|---|
| 8.2 | Upon the written request of the Members entitled to exercise 30 percent or more of the voting rights in<br>respect of the matter for which the meeting is requested the Directors shall convene a meeting of Members. |
| --- | --- |
| 8.3 | The Director convening a meeting of Members shall give not less than seven (7) clear calendar days' written<br>notice of such meeting to: |
| --- | --- |
| (a) | those Members whose names on the date the notice is given appear as Members in the share register of the Company and are entitled<br>to vote at the meeting; and |
| --- | --- |
| (b) | the other Directors. |
| --- | --- |
| 8.4 | The Director convening a meeting of Members shall fix in the notice of the meeting the record date for<br>determining those Members that are entitled to vote at the meeting. The notice of meeting shall state the place, date and hour of the<br>meeting and indicate that it is being issued by or at the direction of the person calling the meeting. |
| --- | --- |
| 8.5 | A meeting of Members held in contravention of the requirement to give notice is valid if Members holding<br>at least 90 per cent of the total voting rights on all the matters to be considered at the meeting have waived notice of the meeting and,<br>for this purpose, the presence of a Member at the meeting shall constitute waiver in relation to all the Shares which that Member holds. |
| --- | --- |
| 8.6 | The inadvertent failure of a Director who convenes a meeting to give notice of a meeting to a Member or<br>another Director, or the fact that a Member or another Director has not received notice, does not invalidate the meeting. |
| --- | --- |
| 8.7 | A Member may be represented at a meeting of Members by a proxy who may speak and vote on behalf of the<br>Member. |
| --- | --- |
| 8.8 | The instrument appointing a proxy shall be produced at the place designated for the meeting before the<br>time for holding the meeting at which the person named in such instrument proposes to vote. |
| --- | --- |
| 8.9 | The instrument appointing a proxy shall be in substantially the following form or such other form as the<br>chairman of the meeting shall accept as properly evidencing the wishes of the Member appointing the proxy. |
| --- | --- |
YHN Acquisition I Limited
7
I/We being a Member of the above Company HEREBY APPOINT __________________________ of _________________________ or failing him ________________________________________________________________ of _________________________________________ to be my/our proxy to vote for me/us at the meeting of Members to be held on the ________ day of _______, 20 _____ and at any adjournment thereof.
(Any restrictions on voting to be inserted here.)
Signed this day of , 20
Member
| 8.10 | The following applies where Shares are jointly owned: |
|---|---|
| (a) | if two or more persons hold Shares jointly each of them may be present in person or by proxy at a meeting<br>of Members and may speak as a Member; |
| --- | --- |
| (b) | if only one of the joint owners is present in person or by proxy he may vote on behalf of all joint owners;<br>and |
| --- | --- |
| (c) | if two or more of the joint owners are present in person or by proxy they must vote as one and in the<br>event of disagreement between any of the joint owners of Shares then the vote of the joint owner whose name appears first (or earliest)<br>in the share register in respect of the relevant Shares shall be recorded as the vote attributable to the Shares. |
| --- | --- |
| 8.11 | A Member shall be deemed to be present at a meeting of Members if he participates by telephone or other<br>electronic means and all Members participating in the meeting are able to hear each other. All persons seeking to attend and participate<br>in a meeting at a virtual place shall be responsible for maintaining adequate facilities to enable them to do so, and any inability of<br>a person or persons to attend or participate in meeting by way of digital or Electronic Communications equipment or software or other<br>facilities shall not invalidate the proceedings of that meeting. |
| --- | --- |
| 8.12 | A meeting of Members is duly constituted if, at the commencement of the meeting, there are present in<br>person or by proxy not less than 50 per cent of the votes of the Shares entitled to vote on Resolutions of Members to be considered at<br>the meeting. If the Company has two or more classes of shares, a meeting may be quorate for some purposes and not for others. A quorum<br>may comprise a single Member or proxy and then such person may pass a Resolution of Members and a certificate signed by such person accompanied<br>where such person holds a proxy by a copy of the proxy instrument shall constitute a valid Resolution of Members. |
| --- | --- |
8
| 8.13 | If within two hours from the time appointed for the meeting of Members, a quorum is not present, the meeting,<br>at the discretion of the Chairman of the Board of Directors shall either be dissolved or stand adjourned<br>to a business day in the jurisdiction in which the meeting was to have been held at the same time and place, and if at the adjourned meeting<br>there are present within one hour from the time appointed for the meeting in person or by proxy not less than one third of the votes of<br>the Shares entitled to vote or each class or series of Shares entitled to vote, as applicable, on the matters to be considered by the<br>meeting, those present shall constitute a quorum but otherwise the meeting shall either be dissolved or stand further adjourned at the<br>discretion of the Chairman of the Board of Directors. |
|---|---|
| 8.14 | At every meeting of Members, the Chairman of the Board shall preside as chairman of the meeting. The chairman<br>of the meeting shall be deemed to be present in person at the meeting if he or she participates by telephone or other electronic means<br>and all Members participating in the meeting are able to communicate with the chairman of the meeting. If there is no Chairman of the<br>Board or if the Chairman of the Board is not present at the meeting, either physically in person, by telephone or other electronic means,<br>if appropriate, the Members present shall choose one of their number to be the chairman. If the Members are unable to choose a chairman<br>for any reason, then the person representing the greatest number of voting Shares present in person or by proxy at the meeting shall preside<br>as chairman failing which the oldest individual Member or representative of a Member present shall take the chair. |
| --- | --- |
| 8.15 | The person appointed as chairman of the meeting pursuant to Regulation 8.14 may adjourn any meeting from<br>time to time, and from place to place. For the avoidance of doubt, a meeting can be adjourned for as many times as may be determined to<br>be necessary by the chairman and a meeting may remain open indefinitely for as long a period as may be determined by the chairman. |
| --- | --- |
| 8.16 | Voting at any meeting of the Members is by show of hands unless a poll is demanded by the chairman. On<br>a show of hands every Member who is present in person (or, in the case of a Member being a corporation, by its duly authorized representative)<br>or by proxy shall have one vote and on a poll every Member shall present in person (or, in the case of a Member being a corporation, by<br>its duly authorized representative) or by proxy shall have one vote for each Share which such Member is the holder. Any Member present<br>in person or by proxy who disputes the announcement by the chairman of the result of any vote may immediately following such announcement<br>demand that a poll be taken and the chairman shall cause a poll to be taken. If a poll is taken at any meeting, the result shall be announced<br>to the meeting and recorded in the minutes of the meeting. |
| --- | --- |
| 8.17 | Subject to the specific provisions contained in this Regulation for the appointment of representatives<br>of Members other than individuals the right of any individual to speak for or represent a Member shall be determined by the law of the<br>jurisdiction where, and by the documents by which, the Member is constituted or derives its existence. In case of doubt, the Directors<br>may in good faith seek legal advice and unless and until a court of competent jurisdiction shall otherwise rule, the Directors may rely<br>and act upon such advice without incurring any liability to any Member or the Company. |
| --- | --- |
| 8.18 | Any Member other than an individual may by resolution of its Directors or other governing body authorise<br>such individual as it thinks fit to act as its representative at any meeting of Members or of any class of Members, and the individual<br>so authorised shall be entitled to exercise the same rights on behalf of the Member which<br>he represents as that Member could exercise if it were an individual. |
| --- | --- |
9
| 8.19 | The chairman of any meeting at which a vote is cast by proxy or on behalf of any Member other than an<br>individual may at the meeting but not thereafter call for a notarially certified copy of such proxy or authority which shall be produced<br>within 7 days of being so requested or the votes cast by such proxy or on behalf of such Member shall be disregarded. |
|---|---|
| 8.20 | Directors of the Company may attend and speak at any meeting of Members and at any separate meeting of<br>the holders of any class or series of Shares. |
| --- | --- |
| 8.21 | Until the consummation of the Company's IPO, any action that may be taken by the Members at a meeting<br>may also be taken by a Resolution of Members consented to in writing, without the need for any prior notice. If any Resolution of Members<br>is adopted otherwise than by the unanimous written consent of all Members, a copy of such resolution shall forthwith be sent to all Members<br>not consenting to such resolution. The consent may be in the form of counterparts, each counterpart being signed by one or more Members.<br>If the consent is in one or more counterparts, and the counterparts bear different dates, then the resolution shall take effect on the<br>earliest date upon which Eligible Persons holding a sufficient number of votes of Shares to constitute a Resolution of Members have consented<br>to the resolution by signed counterparts. Following the Company's IPO, any action required or permitted to be taken by the Members of<br>the Company must be effected by a meeting of the Company, such meeting to be duly convened and held in accordance with these Articles. |
| --- | --- |
| 9 | DIRECTORS |
| --- | --- |
| 9.1 | The first Directors of the Company shall be appointed by the first registered agent within 30 days of the incorporation of the Company; and thereafter,<br>the Directors shall be elected by Resolution of Members or by Resolution of Directors. |
|---|---|
| 9.2 | No person shall be appointed as a Director of the Company unless he has consented in writing to act as<br>a Director. |
| --- | --- |
| 9.3 | The minimum number of Directors shall be one and there shall be no maximum number of Directors. |
| --- | --- |
| 9.4 | Each Director holds office for the term, if any, fixed by the Resolution of Members or Resolution of Directors<br>appointing him, or until his earlier death, resignation or removal (provided that no director may be removed by a Resolution of Members<br>prior to the consummation of the initial Business Combination). If no term is fixed on the appointment of a Director, the Director serves<br>indefinitely until his earlier death, resignation or removal. |
| --- | --- |
| 9.5 | A Director may be removed from office with or without cause by: |
| --- | --- |
| (a) | (following the consummation of the initial Business Combination but not at any time before) a Resolution<br>of Members passed at a meeting of Members called for the purposes of removing the Director or for purposes including the removal of the<br>Director; or |
| --- | --- |
10
| (b) | a Resolution of Directors passed at a meeting of Directors. |
|---|---|
| 9.6 | A Director may resign his office by giving written notice of his resignation to the Company and the resignation<br>has effect from the date the notice is received by the Company at the office of its registered agent or from such later date as may be<br>specified in the notice. A Director shall resign forthwith as a Director if he is, or becomes, disqualified from acting as a Director<br>under the Act. |
| --- | --- |
| 9.7 | The Directors may at any time appoint any person to be a Director either to fill a vacancy or as an addition<br>to the existing Directors. Where the Directors appoint a person as Director to fill a vacancy, the term shall not exceed the term that<br>remained when the person who has ceased to be a Director ceased to hold office. |
| --- | --- |
| 9.8 | A vacancy in relation to Directors occurs if a Director dies or otherwise ceases to hold office prior<br>to the expiration of his term of office. |
| --- | --- |
| 9.9 | The Company shall keep a register of Directors containing: |
| --- | --- |
| (a) | the names and addresses of the persons who are Directors of the Company; |
| --- | --- |
| (b) | the date on which each person whose name is entered in the register was appointed as a Director of the Company; |
| --- | --- |
| (c) | the date on which each person named as a Director ceased to be a Director of the Company; and |
| --- | --- |
| (d) | such other information as may be prescribed by the Act. |
| --- | --- |
| 9.10 | The register of Directors may be kept in any such form as the Directors may approve, but if it is in magnetic,<br>electronic or other data storage form, the Company must be able to produce legible evidence of its contents. Until a Resolution of Directors<br>determining otherwise is passed, the magnetic, electronic or other data storage shall be the original register of Directors. |
| --- | --- |
| 9.11 | The Directors, or if the Shares (or depository receipts therefore) are listed or quoted on a Designated<br>Stock Exchange, and if required by the Designated Stock Exchange, any committee thereof, may, by a Resolution of Directors, fix the emoluments<br>of Directors with respect to services to be rendered in any capacity to the Company. |
| --- | --- |
| 9.12 | A Director is not required to hold a Share as a qualification to office. |
| --- | --- |
| 9.13 | Prior to the consummation of any transaction with: |
| --- | --- |
| (a) | any affiliate of the Company; |
| --- | --- |
| (b) | any Member owning an interest in the voting power of the Company that gives such Member a significant influence over the Company; |
| --- | --- |
| (c) | any Director or executive officer of the Company and any relative of such Director or executive officer; and |
| --- | --- |
11
| (d) | any person in which a substantial interest in the voting power of the Company is owned, directly or indirectly,<br>by a person referred to in Regulations 9.13(b) and (c) or over which such a person is able to exercise significant influence, |
|---|
such transaction must be approved by a majority of the members of the Board of Directors who do not have an interest in the transaction, such directors having been provided with access (at the Company's expense) to the Company's attorney or independent legal counsel, unless the disinterested directors determine that the terms of such transaction are no less favourable to the Company than those that would be available to the Company with respect to such a transaction from unaffiliated third parties.
| 10 | POWERS OF DIRECTORS |
|---|
| 10.1 | The business and affairs of the Company shall be managed by, or under the direction or supervision of,<br>the Directors of the Company. The Directors of the Company have all the powers necessary for managing, and for directing and supervising,<br>the business and affairs of the Company. The Directors may pay all expenses incurred preliminary to and in connection with the incorporation<br>of the Company and may exercise all such powers of the Company as are not by the Act or by the Memorandum or the Articles required to<br>be exercised by the Members. |
|---|---|
| 10.2 | If the Company is the wholly owned subsidiary of a holding company, a Director of the Company may, when<br>exercising powers or performing duties as a Director, act in a manner which he believes is in the best interests of the holding company<br>even though it may not be in the best interests of the Company. |
| --- | --- |
| 10.3 | Each Director shall exercise his powers for a proper purpose and shall not act or agree to the Company<br>acting in a manner that contravenes the Memorandum, the Articles or the Act. Each Director, in exercising his powers or performing his<br>duties, shall act honestly and in good faith in what the Director believes to be the best interests of the Company. |
| --- | --- |
| 10.4 | Any Director which is a body corporate may appoint any individual as its duly authorised representative<br>for the purpose of representing it at meetings of the Directors, with respect to the signing of consents or otherwise. |
| --- | --- |
| 10.5 | The continuing Directors may act notwithstanding any vacancy in their body. |
| --- | --- |
| 10.6 | Subject to Regulation 23.7, the Directors may by Resolution of Directors exercise all the powers of the<br>Company to incur indebtedness, liabilities or obligations and to secure indebtedness, liabilities or obligations whether of the Company<br>or of any third party, provided always that if the same occurs prior to the consummation of a Business Combination, the Company must first<br>obtain from the lender a waiver of any right, title, interest or claim of any kind in or to any monies held in the Trust Account. |
| --- | --- |
| 10.7 | All cheques, promissory notes, drafts, bills of exchange and other negotiable instruments and all receipts<br>for moneys paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed, as the case may be, in such manner as<br>shall from time to time be determined by Resolution of Directors. |
| --- | --- |
| 10.8 | Section 175 of the Act shall not apply to the Company. |
| --- | --- |
12
| 11 | PROCEEDINGS OF DIRECTORS |
|---|
| 11.1 | Any one Director of the Company may call a meeting of the Directors by sending a written notice to each<br>other Director. |
|---|---|
| 11.2 | The Directors of the Company or any committee thereof may meet at such times and in such manner and places<br>within or outside the British Virgin Islands as the notice calling the meeting provides. |
| --- | --- |
| 11.3 | A Director is deemed to be present at a meeting of Directors if he participates by telephone or other<br>electronic means and all Directors participating in the meeting are able to hear each other. |
| --- | --- |
| 11.4 | Until the consummation of a Business Combination, a Director may not appoint an alternate. Following the<br>consummation of a Business Combination, a Director may by a written instrument appoint an alternate who need not be a Director, any such<br>alternate shall be entitled to attend meetings in the absence of the Director who appointed him and to vote or consent in place of the<br>Director until the appointment lapses or is terminated. |
| --- | --- |
| 11.5 | A Director shall be given not less than three days' notice of meetings of Directors, but a meeting of<br>Directors held without three days' notice having been given to all Directors shall be valid if all the Directors entitled to vote at the<br>meeting who do not attend waive notice of the meeting, and for this purpose the presence of a Director at a meeting shall constitute waiver<br>by that Director. The inadvertent failure to give notice of a meeting to a Director, or the fact that a Director has not received the<br>notice, does not invalidate the meeting. |
| --- | --- |
| 11.6 | A meeting of Directors is duly constituted for all purposes if at the commencement of the meeting there<br>are present in person or, following the consummation of a Business Combination, by alternate not less than one-half of the total number<br>of Directors, unless there are only two Directors in which case the quorum is two. |
| --- | --- |
| 11.7 | If the Company has only one Director the provisions herein contained for meetings of Directors do not<br>apply and such sole Director has full power to represent and act for the Company in all matters as are not by the Act, the Memorandum<br>or the Articles required to be exercised by the Members. In lieu of minutes of a meeting the sole Director shall record in writing and<br>sign a note or memorandum of all matters requiring a Resolution of Directors. Such a note or memorandum constitutes sufficient evidence<br>of such resolution for all purposes. |
| --- | --- |
| 11.8 | At meetings of Directors at which the Chairman of the Board is present, he shall preside as chairman of<br>the meeting. If there is no Chairman of the Board or if the Chairman of the Board is not present, the Directors present shall choose one<br>of their number to be chairman of the meeting. If the Directors are unable to choose a chairman for any reason, then the oldest individual<br>Director present (and for this purpose an alternate Director shall be deemed to be the same age as the Director that he represents) shall<br>take the chair. In the case of an equality of votes at a meeting of Directors, the Chairman of the Board shall have a second and casting<br>vote. |
| --- | --- |
13
| 11.9 | An action that may be taken by the Directors or a committee of Directors at a meeting may also be taken<br>by a Resolution of Directors or a resolution of a committee of Directors consented to in writing by all Directors or by all members of<br>the committee, as the case may be, without the need for any notice. The consent may be in the form of counterparts each counterpart being<br>signed by one or more Directors. If the consent is in one or more counterparts, and the counterparts bear different dates, then the resolution<br>shall take effect on the date upon which the last Director has consented to the resolution by signed counterparts. |
|---|---|
| 12 | COMMITTEES |
| --- | --- |
| 12.1 | The Directors may, by Resolution of Directors, designate one or more committees, each consisting of one<br>or more Directors, and delegate one or more of their powers, including the power to affix the Seal, to the committee. |
|---|---|
| 12.2 | The Directors have no power to delegate to a committee of Directors any of the following powers: |
| --- | --- |
| (a) | to amend the Memorandum or the Articles; |
| --- | --- |
| (b) | to designate committees of Directors; |
| --- | --- |
| (c) | to delegate powers to a committee of Directors; |
| --- | --- |
| (d) | to appoint Directors; |
| --- | --- |
| (e) | to appoint an agent; |
| --- | --- |
| (f) | to approve a plan of merger, consolidation or arrangement; or |
| --- | --- |
| (g) | to make a declaration of solvency or to approve a liquidation plan. |
| --- | --- |
| 12.3 | Regulations 12.2(b) and (c) do not prevent a committee of Directors, where authorised by the Resolution<br>of Directors appointing such committee or by a subsequent Resolution of Directors, from appointing a sub-committee and delegating powers<br>exercisable by the committee to the sub-committee. |
| --- | --- |
| 12.4 | The meetings and proceedings of each committee of Directors consisting of 2 or more Directors shall be<br>governed mutatis mutandis by the provisions of the Articles regulating<br>the proceedings of Directors so far as the same are not superseded by any provisions in the Resolution of Directors establishing the committee. |
| --- | --- |
| 13 | OFFICERS AND AGENTS |
| --- | --- |
| 13.1 | The Company may by Resolution of Directors appoint officers of the Company at such times as may be considered<br>necessary or expedient. Such officers may consist of a Chairman of the Board of Directors, a Chief Executive Officer, a President, a Chief<br>Financial Officer (in each case there may be more than one of such officers), one or more vice-presidents, secretaries and treasurers<br>and such other officers as may from time to time be considered necessary or expedient. Any number of<br>offices may be held by the same person. |
|---|
14
| 13.2 | The officers shall perform such duties as are prescribed at the time of their appointment subject to any<br>modification in such duties as may be prescribed thereafter by Resolution of Directors. In the absence of any specific prescription of<br>duties it shall be the responsibility of the Chairman of the Board (or Co-Chairman, as the case may be) to preside at meetings of Directors<br>and Members, the Chief Executive Officer (or Co-Chief Executive Officer, as the case may be) to manage the day to day affairs of the Company,<br>the vice-presidents to act in order of seniority in the absence of the Chief Executive Officer (or Co-Chief Executive Officer, as the<br>case may be) but otherwise to perform such duties as may be delegated to them by the Chief Executive Officer (or Co-Chief Executive Officer,<br>as the case may be), the secretaries to maintain the share register, minute books and records (other than financial records) of the Company<br>and to ensure compliance with all procedural requirements imposed on the Company by applicable law, and the treasurer to be responsible<br>for the financial affairs of the Company. |
|---|---|
| 13.3 | The emoluments of all officers shall be fixed by Resolution of Directors. |
| --- | --- |
| 13.4 | The officers of the Company shall hold office until their death, resignation or removal. Any officer elected<br>or appointed by the Directors may be removed at any time, with or without cause, by Resolution of Directors. Any vacancy occurring in<br>any office of the Company may be filled by Resolution of Directors. |
| --- | --- |
| 13.5 | The Directors may, by a Resolution of Directors, appoint any person, including a person who is a Director,<br>to be an agent of the Company. An agent of the Company shall have such powers and authority of the Directors, including the power and<br>authority to affix the Seal, as are set forth in the Articles or in the Resolution of Directors appointing the agent, except that no agent<br>has any power or authority with respect to the matters specified in Regulation 12.2. The Resolution of Directors appointing an agent may<br>authorise the agent to appoint one or more substitutes or delegates to exercise some or all of the powers conferred on the agent by the<br>Company. The Directors may remove an agent appointed by the Company and may revoke or vary a power conferred on him. |
| --- | --- |
| 14 | CONFLICT OF INTERESTS |
| --- | --- |
| 14.1 | A Director of the Company shall, forthwith after becoming aware of the fact that he is interested in a<br>transaction entered into or to be entered into by the Company, disclose the interest to all other Directors of the Company. |
|---|---|
| 14.2 | For the purposes of Regulation 14.1, a disclosure to all other Directors to the effect that a Director<br>is a member, Director or officer of another named entity or has a fiduciary relationship with respect to the entity or a named individual<br>and is to be regarded as interested in any transaction which may, after the date of the entry or disclosure, be entered into with that<br>entity or individual, is a sufficient disclosure of interest in relation to that transaction. |
| --- | --- |
15
| 14.3 | Provided that the requirements of Regulation 9.13 have first been satisfied, a Director of the Company<br>who is interested in a transaction entered into or to be entered into by the Company may: |
|---|---|
| (a) | vote on a matter relating to the transaction; |
| --- | --- |
| (b) | attend a meeting of Directors at which a matter relating to the transaction arises and be included among<br>the Directors present at the meeting for the purposes of a quorum; and |
| --- | --- |
| (c) | sign a document on behalf of the Company, or do any other thing in his capacity as a Director, that relates<br>to the transaction, |
| --- | --- |
and, subject to compliance with the Act and these Articles shall not, by reason of his office be accountable to the Company for any benefit which he derives from such transaction and no such transaction shall be liable to be avoided on the grounds of any such interest or benefit.
| 15 | INDEMNIFICATION |
|---|
| 15.1 | Subject to the limitations hereinafter provided the Company shall indemnify, hold harmless and exonerate<br>against all direct and indirect costs, fees and Expenses of any type or nature whatsoever, any person who: |
|---|---|
| (a) | is or was a party or is threatened to be made a party to any Proceeding by reason of the fact that such<br>person is or was a Director, officer, key employee, adviser of the Company or who at the request of the Company; or |
| --- | --- |
| (b) | is or was, at the request of the Company, serving as a Director of, or in any other capacity is or was<br>acting for, another Enterprise. |
| --- | --- |
| 15.2 | The indemnity in Regulation 15.1 only applies if the relevant Indemnitee acted honestly and in good faith<br>with a view to the best interests of the Company and, in the case of criminal proceedings, the Indemnitee had no reasonable cause to believe<br>that his conduct was unlawful. |
| --- | --- |
| 15.3 | The decision of the Directors as to whether an Indemnitee acted honestly and in good faith and with a<br>view to the best interests of the Company and as to whether such Indemnitee had no reasonable cause to believe that his conduct was unlawful<br>is, in the absence of fraud, sufficient for the purposes of the Articles, unless a question of law is involved. |
| --- | --- |
| 15.4 | The termination of any Proceedings by any judgment, order, settlement, conviction or the entering of a<br>nolle prosequi does not, by itself, create a presumption that the<br>relevant Indemnitee did not act honestly and in good faith and with a view to the best interests of the Company or that such Indemnitee<br>had reasonable cause to believe that his conduct was unlawful. |
| --- | --- |
16
| 15.5 | The Company may purchase and maintain insurance, purchase or furnish similar protection or make other<br>arrangements including, but not limited to, providing a trust fund, letter of credit, or surety bond in<br>relation to any Indemnitee or who at the request of the Company is or was serving as a Director, officer or liquidator of, or in any other<br>capacity is or was acting for, another Enterprise, against any liability asserted against the person and incurred by him in that capacity,<br>whether or not the Company has or would have had the power to indemnify him against the liability as provided in these Articles. |
|---|---|
| 16 | RECORDS |
| --- | --- |
| 16.1 | The Company shall keep the following documents at the office of its registered agent: |
|---|---|
| (a) | the Memorandum and the Articles; |
| --- | --- |
| (b) | the share register, or a copy of the share register; |
| --- | --- |
| (c) | the register of Directors, or a copy of the register of Directors; and |
| --- | --- |
| (d) | copies of all notices and other documents filed by the Company with the Registrar of Corporate Affairs<br>in the previous 10 years. |
| --- | --- |
| 16.2 | If the Company maintains only a copy of the share register or a copy of the register of Directors at the<br>office of its registered agent, it shall: |
| --- | --- |
| (a) | within 15 days of any change in either register, notify the registered agent in writing of the change;<br>and |
| --- | --- |
| (b) | provide the registered agent with a written record of the physical address of the place or places at which<br>the original share register or the original register of Directors is kept. |
| --- | --- |
| 16.3 | The Company shall keep the following records at the office of its registered agent or at such other place<br>or places, within or outside the British Virgin Islands, as the Directors may determine: |
| --- | --- |
| (a) | minutes of meetings and Resolutions of Members and classes of Members; |
| --- | --- |
| (b) | minutes of meetings and Resolutions of Directors and committees of Directors; and |
| --- | --- |
| (c) | an impression of the Seal, if any. |
| --- | --- |
| 16.4 | Where any original records referred to in this Regulation are maintained other than at the office of the<br>registered agent of the Company, and the place at which the original records is changed, the Company shall provide the registered agent<br>with the physical address of the new location of the records of the Company within 14 days of the change of location. |
| --- | --- |
| 16.5 | The records kept by the Company under this Regulation shall be in written form or either wholly or partly<br>as electronic records complying with the requirements of the Electronic Transactions Act. |
| --- | --- |
17
| 17 | REGISTERS OF CHARGES |
|---|
| 17.1 | The Company shall maintain at the office of its registered agent a register of charges in which there<br>shall be entered the following particulars regarding each mortgage, charge and other encumbrance created by the Company: |
|---|---|
| (a) | the date of creation of the charge; |
| --- | --- |
| (b) | a short description of the liability secured by the charge; |
| --- | --- |
| (c) | a short description of the property charged; |
| --- | --- |
| (d) | the name and address of the trustee for the security or, if there is no such trustee, the name and address<br>of the chargee; |
| --- | --- |
| (e) | unless the charge is a security to bearer, the name and address of the holder of the charge; and |
| --- | --- |
| (f) | details of any prohibition or restriction contained in the instrument creating the charge on the power<br>of the Company to create any future charge ranking in priority to or equally with the charge. |
| --- | --- |
| 18 | CONTINUATION |
| --- | --- |
The Company may by Resolution of Members or by a Resolution of Directors continue as a company incorporated under the laws of a jurisdiction outside the British Virgin Islands in the manner provided under those laws.
| 19 | SEAL |
|---|
The Company may have more than one Seal and references herein to the Seal shall be references to every Seal which shall have been duly adopted by Resolution of Directors. The Directors shall provide for the safe custody of the Seal and for an imprint thereof to be kept at the registered office. Except as otherwise expressly provided herein the Seal when affixed to any written instrument shall be witnessed and attested to by the signature of any one Director or other person so authorised from time to time by Resolution of Directors. Such authorisation may be before or after the Seal is affixed, may be general or specific and may refer to any number of sealings. The Directors may provide for a facsimile of the Seal and of the signature of any Director or authorised person which may be reproduced by printing or other means on any instrument and it shall have the same force and validity as if the Seal had been affixed to such instrument and the same had been attested to as hereinbefore described.
| 20 | ACCOUNTS AND AUDIT |
|---|
| 20.1 | The Company shall keep records that are sufficient to show and explain the Company's transactions and<br>that will, at any time, enable the financial position of the Company to be determined with reasonable accuracy. |
|---|---|
| 20.2 | The Company may by Resolution of Members call for the Directors to prepare periodically and make available<br>a profit and loss account and a balance sheet. The profit and loss account and balance sheet shall be<br>drawn up so as to give respectively a true and fair view of the profit and loss of the Company for a financial period and a true and fair<br>view of the assets and liabilities of the Company as at the end of a financial period. |
| --- | --- |
18
| 20.3 | The Company may by Resolution of Members call for the accounts to be examined by auditors. |
|---|---|
| 20.4 | If the Shares are listed or quoted on a Designated Stock Exchange, and if required by the Designated Stock<br>Exchange, the Directors shall establish and maintain an audit committee of the Board of Directors, the composition and responsibilities<br>of which shall comply with the rules and regulations of the Designated Stock Exchange subject to any available exemptions therefrom and<br>the operation of the Act. If an audit committee is established, the Directors shall adopt a formal written audit committee charter and<br>review and assess the adequacy of the formal written charter on an annual basis. |
| --- | --- |
| 20.5 | If the Shares are listed or quoted on the Designated Stock Exchange, the Company shall conduct an appropriate<br>review of all related party transactions on an ongoing basis and, if required, shall utilise the audit committee for the review and approval<br>of potential conflicts of interest. |
| --- | --- |
| 20.6 | The Directors may by a Resolution of Directors appoint or remove the auditor of the Company on such terms<br>as the Directors determine, except that if under applicable law and the rules of the SEC and the Designated Stock Exchange the auditor<br>is required to be appointed by shareholders, then: |
| --- | --- |
| (a) | at the AGM or at a subsequent general meeting in each year, the Members shall appoint an auditor who shall<br>hold office until the Members appoint another auditor. Such auditor may be a Member but no Director or officer or employee of the Company<br>shall during, his continuance in office, be eligible to act as auditor; |
| --- | --- |
| (b) | a person, other than a retiring auditor, shall not be capable of being appointed auditor at an AGM unless<br>notice in writing of an intention to nominate that person to the office of auditor has been given not less than ten days before the AGM<br>and furthermore the Company shall send a copy of such notice to the retiring auditor; and |
| --- | --- |
| (c) | the Members may, at any meeting convened and held in accordance with these Articles, by resolution remove<br>the auditor at any time before the expiration of his term of office and shall by resolution at that meeting appoint another auditor in<br>his stead for the remainder of his term. |
| --- | --- |
| 20.7 | The remuneration of the auditors shall be fixed by Resolution of Directors in such manner as the Directors<br>may determine or in a manner required by the rules and regulations of the Designated Stock Exchange and the SEC. |
| --- | --- |
| 20.8 | The report of the auditors shall be annexed to the accounts and shall be read at the meeting of Members<br>at which the accounts are laid before the Company or shall be otherwise given to the Members. |
| --- | --- |
19
| 20.9 | Every auditor of the Company shall have a right of access at all times to the books of account and vouchers<br>of the Company, and shall be entitled to require from the Directors and officers of the Company such information and explanations as he<br>thinks necessary for the performance of the duties of the auditors. |
|---|---|
| 20.10 | The auditors of the Company shall be entitled to receive notice of, and to attend any meetings of Members<br>at which the Company's profit and loss account and balance sheet are to be presented. |
| --- | --- |
| 21 | NOTICES |
| --- | --- |
| 21.1 | Any notice, information or written statement to be given by the Company to Members may be given by personal<br>service by mail, facsimile or other similar means of Electronic Communication, addressed to each Member at the address shown in the share<br>register. |
|---|---|
| 21.2 | Any summons, notice, order, document, process, information or written statement to be served on the Company<br>may be served by leaving it, or by sending it by registered mail addressed to the Company, at its registered office, or by leaving it<br>with, or by sending it by registered mail to, the registered agent of the Company. |
| --- | --- |
| 21.3 | Service of any summons, notice, order, document, process, information or written statement to be served<br>on the Company may be proved by showing that the summons, notice, order, document, process, information or written statement was delivered<br>to the registered office or the registered agent of the Company or that it was mailed in such time as to admit to its being delivered<br>to the registered office or the registered agent of the Company in the normal course of delivery within the period prescribed for service<br>and was correctly addressed and the postage was prepaid. |
| --- | --- |
| 22 | VOLUNTARY WINDING UP |
| --- | --- |
The Company may by a Resolution of Members or by a Resolution of Directors appoint a voluntary liquidator.
| 23 | BUSINESS COMBINATION |
|---|
| 23.1 | Regulations 23.1 to 23.11 shall terminate upon consummation of any Business Combination. |
|---|---|
| 23.2 | The Company has until 15 months from the closing of the IPO to consummate a Business Combination (the<br>Combination Period). In the event that the Company does not consummate<br>a Business Combination within 15 months (the Termination Date),<br>such failure shall trigger an automatic redemption of the Public Shares (an AutomaticRedemption Event) and the Directors of the Company shall take all such action necessary (i) as promptly as practicable, to<br>cease all operations except for the purpose of making redemption and the subsequent winding up of the Company's affairs; (ii) as promptly<br>as reasonably possible but no more than ten (10) Business Days thereafter to redeem the Public Shares in cash at a per-share amount equal<br>to the applicable Per- Share Redemption Price; and (iii) as promptly as reasonably possible following such redemption, subject to the<br>approval of our remaining shareholders and our Board of Directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii),<br>to the Company's obligations under the laws<br>of the British Virgin Islands to provide for claims of creditors and the requirements of other Applicable Law. In the event of an Automatic<br>Redemption Event, only the holders of Public Shares shall be entitled to receive pro rata redeeming distributions from the Trust Account<br>(including interest but net of taxes payable on the income earned on the Trust Account and funds previously released to the Company to<br>pay taxes) with respect to their Public Shares. |
| --- | --- |
20
| 23.3 | Unless a shareholder vote is required by law or the rules of the Designated Stock Exchange, or, at the<br>sole discretion of the Directors, the Directors determine to hold a shareholder vote for business or other reasons, the Company may enter<br>into a Business Combination without submitting such Business Combination to its Members for approval. |
|---|---|
| 23.4 | Although not required, in the event that a shareholder vote is held, and a majority of the votes of the<br>Shares entitled to vote thereon which were present at the meeting to approve the Business Combination are voted for the approval of such<br>Business Combination, the Company shall be authorised to consummate the Business Combination. |
| --- | --- |
| 23.5 | |
| --- | |
| (a) | In the event that a Business Combination is consummated by the Company other than in connection with a<br>shareholder vote under Regulation 23.4, the Company will, subject to as provided below, offer to redeem the Public Shares for cash in<br>accordance with Rule 13e-4 and Regulation 14E of the Exchange Act and subject to any limitations (including but not limited to cash requirements)<br>set forth in the definitive transaction agreements related to the initial Business Combination (the TenderRedemption Offer), provided however that the Company shall not redeem those Shares held by the Initial Shareholders or their<br>affiliates pursuant to such Tender Redemption Offer, whether or not such holders accept such Tender Redemption Offer. The Company will<br>file tender offer documents with the SEC prior to consummating the Business Combination which contain substantially the same financial<br>and other information about the Business Combination and the redemption rights as would be required in a proxy solicitation pursuant to<br>Regulation 14A of the Exchange Act. In accordance with the Exchange Act, the Tender Redemption Offer will remain open for a minimum of<br>20 Business Days and the Company will not be permitted to consummate its Business Combination until the expiry of such period. If in the<br>event a Member holding Public Shares accepts the Tender Redemption Offer and the Company has not otherwise withdrawn the tender offer,<br>the Company shall, promptly after the consummation of the Business Combination, pay such redeeming Member, on a pro rata basis, cash equal<br>to the applicable Per-Share Redemption Price. |
| --- | --- |
| (b) | In the event that a Business Combination is consummated by the Company in connection with a shareholder<br>vote held pursuant to Regulation 23.4 in accordance with a proxy solicitation pursuant to Regulation 14A of the Exchange Act (the RedemptionOffer), the Company will, subject as provided below, offer to redeem the Public Shares, other than those Shares held by the<br>Initial Shareholders or their affiliates, regardless of whether such shares are voted for or against the Business Combination, for cash,<br>on a pro rata basis, at a per-share amount equal to the applicable Per-Share Redemption Price, provided however that: (i) the Company shall not redeem<br>those Shares held by the Initial Shareholders or their affiliates pursuant to such Redemption Offer, whether or not such holders accept<br>such Redemption Offer; and (ii) any other redeeming Member who either individually or together with any affiliate of his or any other<br>person with whom he is acting in concert or as a "group" (as such term is defined under Section 13 of the Exchange Act) shall<br>not be permitted to redeem, without the consent of the Directors, more than fifteen percent (15%) of the total Public Shares sold in the<br>IPO. |
| --- | --- |
21
| (c) | In no event will the Company consummate the Tender Redemption Offer or the Redemption Offer under Regulation<br>23.5(a) or 23.5(b) or an Amendment Redemption Event under Regulation 23.11 if such redemptions would cause the Company to have net tangible<br>assets of less than US$5,000,001 (after payment of deferred underwriting fees and commissions and net of taxes payable on the income earned<br>on the Trust Account and funds previously released to the Company to pay taxes) upon consummation of a Business Combination, unless the<br>Company is otherwise exempted from the provisions of Rule 419 promulgated under the Securities Act, as amended. |
|---|---|
| 23.6 | A holder of Public Shares shall be entitled to receive distributions from the Trust Account only in the<br>event of an Automatic Redemption Event, an Amendment Redemption Event or in the event he accepts a Tender Redemption Offer or a Redemption<br>Offer where the Business Combination is consummated. In no other circumstances shall a holder of Public Shares have any right or interest<br>of any kind in or to the Trust Account. |
| --- | --- |
| 23.7 | Following the IPO, the Company will not issue any Securities (other than Public Shares) prior to a Business<br>Combination that would entitle the holder thereof to (i) receive funds from the Trust Account; or (ii) vote on any Business Combination. |
| --- | --- |
| 23.8 | In the event the Company seeks to complete a Business Combination with a company that is affiliated with<br>any of the Directors, officers of the Company or an Initial Shareholder, the Company will obtain (i) an opinion from an independent investment<br>banking firm or another independent firm that commonly renders valuation opinions for the type of company we are seeking to acquire or<br>an independent accounting firm that such a Business Combination is fair to the unaffiliated shareholders from a financial point of view<br>and (ii) the approval of a majority of our disinterested and independent directors (if we have any at that time). |
| --- | --- |
| 23.9 | The Company will not effectuate a Business Combination with another "blank cheque" company or<br>a similar company with nominal operations. |
| --- | --- |
| 23.10 | Immediately after the Company's IPO, that amount of the net proceeds received by the Company from<br> the IPO (including proceeds of any exercise of the underwriter's over-allotment option) and from the simultaneous private placement<br> by the Company as is stated in the Company's registration statement on Form S-1 filed with the SEC (such registration statement at<br> the time it initially goes effective, the Registration Statement) to be deposited in the Trust Account shall be so deposited and thereafter held in the Trust Account until<br> released in the event of a Business Combination or otherwise in accordance with this Regulation 23. Neither the Company nor any<br> officer, Director or employee of the Company will disburse any of the proceeds<br>held in the Trust Account until the earlier of (i) a Business Combination, or (ii) an Automatic Redemption Event or in payment of the<br>acquisition price for any shares which the Company elects to purchase, redeem or otherwise acquire in accordance with this Regulation<br>23, in each case in accordance with the trust agreement governing the Trust Account; provided that interest earned on the Trust Account<br>(as described in the Registration Statement) may be released from time to time to the Company to pay the Company’s tax obligations. |
| --- | --- |
| 23.11 | In the event the Directors of the Company propose any amendment to Regulation 23 or to any of the other<br>rights of the Shares as set out at Clause 6.1 of the Memorandum prior to, but not for the purposes of approving or in conjunction with<br>the consummation of, a Business Combination that would affect the substance or timing of the Company’s obligations as described<br>in this Regulation 23 to pay or to offer to pay the Per-Share Redemption Price to any holder of the Public Shares (an Amendment)<br>and such Amendment is (i) duly approved by a Resolution of Members; and (ii) the amended Memorandum and Articles reflecting such amendment<br>are to be filed at the Registry of Corporate Affairs (an Approved Amendment),<br>the Company will offer to redeem the Public Shares of any Member for cash, on a pro rata basis, at a per-share amount equal to the applicable<br>Per-Share Redemption Price (an Amendment Redemption Event), provided<br>however that the Company shall not redeem those Shares held by the Initial Shareholders or their affiliates pursuant to such offer, whether<br>or not such holders accept such offer. |
| --- | --- |
22
| 24 | Business Opportunities |
|---|
| 24.1 | In recognition and anticipation of the facts that: (a) directors, managers, officers, members, partners,<br>managing members, employees and/or agents of one or more members of the Sponsor Group (each of the foregoing, a SponsorGroup Related Person) may serve as directors and/or officers of the Company; and (b) the Sponsor Group engages, and may continue<br>to engage in the same or similar activities or related lines of business as those in which the Company, directly or indirectly, may engage<br>and/or other business activities that overlap with or compete with those in which the Company, directly or indirectly, may engage, the<br>provisions under this heading “Business Opportunities” are set forth to regulate and define the conduct of certain affairs<br>of the Company as they may involve the Members and the Sponsor Group Related Persons, and the powers, rights, duties and liabilities of<br>the Company and its officers, directors and Members in connection therewith. |
|---|---|
| 24.2 | To the fullest extent permitted by Applicable Law, the directors and officers of the Company shall have<br>no duty, except and to the extent expressly assumed by contract, to refrain from engaging directly or indirectly in the same or similar<br>business activities or lines of business as the Company. To the fullest extent permitted by Applicable Law, and subject to his or her<br>fiduciary duties under Applicable Law, the Company renounces any interest or expectancy of the Company in, or in being offered an opportunity<br>to participate in, any potential transaction or matter which may be a corporate opportunity offered to any director and officer of the<br>Company, on the one hand, and the Company, on the other, unless such opportunity is (i) expressly offered to such director or officer<br>of the Company solely in their capacity as an officer or director of the Company; (ii) one that the Company is legally and contractually<br>permitted to undertake and would otherwise be reasonable for the Company to pursue; and (iii) one<br>that the director or officer of the Company is permitted to refer the opportunity to the Company without violating another legal obligation. |
| --- | --- |
| 24.3 | Except as provided elsewhere in the Articles, the Company hereby renounces any interest or expectancy<br>of the Company in, or in being offered an opportunity to participate in, any potential transaction or matter which may be a corporate<br>opportunity for both the Company and the Sponsor Group, about which a director and/or officer of the Company who is also a Sponsor Group<br>Related Person acquires knowledge. |
| --- | --- |
| 24.4 | To the extent a court might hold that the conduct of any activity related to a corporate opportunity that<br>is renounced in this Article to be a breach of duty to the Company or its Members, the Company hereby waives, to the fullest extent permitted<br>by Applicable Law, any and all claims and causes of action that the Company may have for such activities. To the fullest extent permitted<br>by Applicable Law, the provisions of this Article apply equally to activities conducted in the future and that have been conducted in<br>the past. |
| --- | --- |
23
We, Ogier Global (BVI) Limited of Ritter House, Wickhams Cay II, PO Box 3170, Road Town, Tortola VG1110, British Virgin Islands, for the purpose of incorporating a BVI business company under the laws of the British Virgin Islands hereby sign these Articles of Association.
Dated 18 December 2023
Incorporator
Signed for and on behalf of Ogier Global (BVI) Limitedof Ritter House, Wickhams Cay II, PO Box 3170, Road Town, Tortola VG1110, British Virgin Islands
| SGD: Toshra Glasgow |
|---|
| Signature of authorised signatory |
| Toshra Glasgow |
| --- |
| Print name |
24
Exhibit 4.2
RIGHTS AGREEMENT
This Rights Agreement (this “Agreement”) is made as of September 17, 2024 between YHN Acquisition I Limited, a British Virgin Islands company (the “Company”), and Continental Stock Transfer & Trust Company (the “Rights Agent”).
WHEREAS, the Company is engaged in a public offering (the “Public Offering”) of 6,000,000 units (the “Public Unit(s)”) of the Company (and up to 900,000 additional Units if the underwriters’ over-allotment option is exercised in full), each Unit consisting of one ordinary share and one right (the “Public Right(s)”) to receive one-tenth (1/10) of one ordinary share upon the consummation of an initial business combination;
WHEREAS, the Company has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-1, File No. 333-279308 (“Registration Statement”), and related Prospectus (“Prospectus”) for the registration, under the Securities Act of 1933, as amended (“Act”) of, among other securities, the Public Rights and the ordinary shares issuable to the holders of the Rights;
WHEREAS, YHN Partners I Limited, the sponsor to the Company in the Public Offering, has committed to purchase from the Company an aggregate of 250,000 units (or up to 268,900 units if the underwriters’ over-allotment option is exercised in full) (the “Private Unit(s)”) at $10.00 per Private Unit, each Private Unit consisting of one ordinary share and one right (the “Private Right(s)”, together with the Public Rights, the “Rights”) to receive one-tenth (1/10) of one ordinary share upon the consummation of an initial business combination;
WHEREAS, the Company desires the Rights Agent to act on behalf of the Company, and the Rights Agent is willing to so act, in connection with the issuance, registration, transfer and exchange of the Rights;
WHEREAS, the Company desires to provide for the form and provisions of the Rights, the terms upon which they shall be issued, and the respective rights, limitation of rights, and immunities of the Company, the Rights Agent, and the holders of the Rights; and
WHEREAS, all acts and things have been done and performed which are necessary to make the Rights, when executed on behalf of the Company and countersigned by or on behalf of the Rights Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution and delivery of this Agreement.
NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:
| 1. | Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company for the Rights, and the Rights Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement. |
|---|---|
| 2. | Rights. |
| --- | --- |
| 2.1. | Form of Right. Each Right shall be issued in registered or book entry form, as requested by the Company or the holder of a Right. Any Rights issued in registered form only, shall be in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and shall be signed by, or bear the facsimile signature of, the Chairman of the Board or Chief Executive Officer and Treasurer, Secretary or Assistant Secretary or Chief Financial Officer of the Company and shall bear a facsimile of the Company’s seal, if any. In the event the person whose facsimile signature has been placed upon any Right shall have ceased to serve in the capacity in which such person signed the Right before such Right is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance. |
| --- | --- |
| 2.2. | Effect of Countersignature. Unless and until countersigned by the Rights Agent pursuant to this Agreement, a Right shall be invalid and of no effect and may not be exchanged for ordinary shares. |
| --- | --- |
| 2.3. | Registration. |
| --- | --- |
| 2.3.1. | Right Register. The Rights Agent shall maintain books (“Right Register”) for the registration of original issuance and the registration of transfer of the Rights. Upon the initial issuance of the Rights, the Rights Agent shall issue and register the Rights in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions delivered to the Rights Agent by the Company. |
| --- | --- |
| 2.3.2. | Registered Holder. Prior to due presentment for registration of transfer of any Right, the Company and the Rights Agent may deem and treat the person in whose name such Right shall be registered upon the Right Register (“registered holder”) as the absolute owner of such Right and of each Right represented thereby (notwithstanding any notation of ownership or other writing on the Right Certificate made by anyone other than the Company or the Rights Agent), for the purpose of the exchange thereof, and for all other purposes, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary. |
| --- | --- |
| 2.4. | Detachability of Rights. The securities comprising the Units, including the Rights, will not be separately transferable until the fifty-second (52^nd^) day after the date hereof unless Lucid Capital Markets, LLC (“Lucid”) informs the Company of its decision to allow earlier separate trading (the “Detachment Date”), but in no event will separate trading of the securities comprising the Units begin until (i) the Company files a Current Report on Form 8-K which includes an audited balance sheet reflecting the receipt by the Company of the gross proceeds of the Public Offering including the proceeds received by the Company from the exercise of the over-allotment option, if the over-allotment option is exercised on the date hereof, and (ii) the Company issues a press release and files a Current Report on Form 8-K announcing when such separate trading shall begin. Upon the Detachment Date, the Units will no longer trade, and each holder of Units will become, without any action by such holder, the holder of that number of ordinary shares and Rights comprising the Units held by such holder. |
| --- | --- |
| 3. | Terms and Exchange of Rights. |
| --- | --- |
| 3.1. | Rights. Each Right shall entitle the holder thereof to receive one-tenth of one ordinary share upon the happening of the Exchange Event (described below). No additional consideration shall be paid by a holder of Rights in order to receive his, her or its ordinary shares upon the Exchange Event as the purchase price for such ordinary shares has been included in the purchase price for the Units. In no event will the Company be required to net cash settle the Rights or issue fractional ordinary shares. The provisions of this Section 3.1 may not be modified, amended or deleted without the prior written consent of Lucid. |
| --- | --- |
| 3.2. | Exchange Event. The Exchange Event shall be the Company’s consummation of an initial Business Combination (as defined in the Company’s Amended and Restated Memorandum and Articles of Association). |
| --- | --- |
| 3.3. | Exchange of Rights. |
| --- | --- |
| 3.3.1. | Issuance of Certificates. As soon as practicable upon the occurrence of the Exchange Event, the Company shall direct holders of the Rights to return their Rights Certificates to the Rights Agent. If the Company is not the surviving entity in a Business Combination, the holder of Rights must affirmatively elect to such conversion. Upon receipt of a valid Rights Certificate, the Company shall issue to the registered holder of such Right(s) a certificate or certificates for the number of full ordinary shares to which he, she or it is entitled, registered in such name or names as may be directed by him, her or it. Notwithstanding the foregoing, or any provision contained in this Agreement to the contrary, in no event will the Company be required to net cash settle the Rights. The Company shall not issue fractional shares upon exchange of Rights. In the event that any holder would otherwise be entitled to any fractional share upon exchange of Rights, at the time of an Exchange Event, the Company will instruct the Rights Agent how any such entitlement will be addressed. To the fullest extent permitted by the Company’s Amended and Restated Memorandum and Articles of Association the Company reserves the right to deal with any such fractional entitlement at the relevant time in any manner permitted by the Act and the Amended and Restated Memorandum and Articles of Association, which would include the rounding down of any entitlement to receive ordinary shares to the nearest whole share (and in effect extinguishing any fractional entitlement), or the holder being entitled to hold any remaining fractional entitlement (without any share being issued) and to aggregate the same with any future fractional entitlement to receive shares in the Company until the holder is entitled to receive a whole number. Any rounding down and extinguishment may be done with or without any in lieu cash payment or other compensation being made to the holder of the relevant Rights, such that value received on exchange of the Rights may be considered less than the value that the holder would otherwise expect to receive Rights. |
| --- | --- |
2
| 3.3.2. | Valid Issuance. All ordinary shares issued upon an Exchange Event in conformity with this Agreement shall be validly issued, fully paid and nonassessable. |
|---|---|
| 3.3.3. | Date of Issuance. Each person in whose name any such certificate for ordinary shares is issued shall for all purposes be deemed to have become the holder of record of such shares on the date of the Exchange Event, irrespective of the date of delivery of such certificate. |
| --- | --- |
| 3.3.4. | Company Not Surviving Following Exchange Event. If the Exchange Event results in the Company not continuing as a publicly held reporting entity, the definitive agreement will provide for the holders of Rights to receive the same per share consideration as the holders of the ordinary shares will receive in with the Exchange Event, for the number of shares such holder is entitled to pursuant to Section 3.1 above. |
| --- | --- |
| 3.4. | Duration of Rights. If an Exchange Event does not occur within the time period set forth in the Company’s Amended and Restated Memorandum and Articles of Association, as the same may be amended from time to time, the Rights shall expire and shall be worthless. |
| --- | --- |
| 4. | Transfer and Exchange of Rights. |
| --- | --- |
| 4.1. | Registration of Transfer. The Rights Agent shall register the transfer, from time to time, of any outstanding Right upon the Right Register, upon surrender of such Right for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Right representing an equal aggregate number of Rights shall be issued and the old Right shall be cancelled by the Rights Agent. The Rights so cancelled shall be delivered by the Rights Agent to the Company from time to time upon request. |
| --- | --- |
| 4.2. | Procedure for Surrender of Rights. Rights may be surrendered to the Rights Agent, together with a written request for exchange or transfer, and thereupon the Rights Agent shall issue in exchange therefor one or more new Rights as requested by the registered holder of the Rights so surrendered, representing an equal aggregate number of Rights; provided, however, that in the event that a Right surrendered for transfer bears a restrictive legend, the Rights Agent shall not cancel such Right and issue new Rights in exchange therefor until the Rights Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the new Rights must also bear a restrictive legend. |
| --- | --- |
| 4.3. | Fractional Rights. The Rights Agent shall not be required to effect any registration of transfer or exchange which will result in the issuance of a Right Certificate for a fraction of a Right. |
| --- | --- |
| 4.4. | Service Charges. No service charge shall be made for any exchange or registration of transfer of Rights. |
| --- | --- |
| 4.5. | Adjustments to Conversion Ratios. The number of ordinary shares that the holders of Rights are entitled to receive as a result of the occurrence of an Exchange Event shall be equitably adjusted to reflect appropriately the effect of any share split, reverse share split, share dividend, reorganization, recapitalization, reclassification, combination, exchange of shares or other like change with respect to the ordinary shares occurring on or after the date hereof and prior to the Exchange Event. |
| --- | --- |
| 4.6. | Right Execution and Countersignature. The Rights Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Rights required to be issued pursuant to the provisions of this Section 4, and the Company, whenever required by the Rights Agent, will supply the Rights Agent with Rights duly executed on behalf of the Company for such purpose. |
| 5. | Other Provisions Relating to Rights of Holders of Rights. |
| --- | --- |
| 5.1. | No Rights as Shareholder. Until exchange<br>of a Right for ordinary shares as provided for herein, a Right does not entitle the registered holder thereof to any of the rights of<br>a shareholder of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive<br>rights to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders or the election of directors<br>of the Company or any other matter. |
| --- | --- |
3
| 5.2. | Lost, Stolen, Mutilated, or Destroyed Rights. If any Right is lost, stolen, mutilated, or destroyed, the Company and the Rights Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Right, include the surrender thereof), issue a new Right of like denomination, tenor, and date as the Right so lost, stolen, mutilated, or destroyed. Any such new Right shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Right shall be at any time enforceable by anyone. |
|---|---|
| 5.3. | Reservation of Ordinary Shares. The Company shall at all times reserve and keep available a number of its authorized but unissued ordinary shares that will be sufficient to permit the exchange of all outstanding Rights issued pursuant to this Agreement. |
| --- | --- |
| 6. | Concerning the Rights Agent and Other Matters. |
| --- | --- |
| 6.1. | Payment of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Rights Agent in respect of the issuance or delivery of ordinary shares upon the exchange of Rights, but the Company shall not be obligated to pay any transfer taxes in respect of the Rights or such shares. |
| --- | --- |
| 6.2. | Resignation, Consolidation, or Merger of Rights Agent. |
| --- | --- |
| 6.2.1. | Appointment of Successor Rights Agent. The Rights Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office of the Rights Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Rights Agent in place of the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or incapacity by the Rights Agent or by the holder of the Right (who shall, with such notice, submit his, her or its Right for inspection by the Company), then the holder of any Right may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Rights Agent at the Company’s cost. Any successor Rights Agent, whether appointed by the Company or by such court, shall be a corporation organized and existing under the laws of the State of New York, in good standing and having its principal office in the Borough of Manhattan, City and State of New York, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority. After appointment, any successor Rights Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Rights Agent with like effect as if originally named as Rights Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Rights Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Rights Agent all the authority, powers, and rights of such predecessor Rights Agent hereunder; and upon request of any successor Rights Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Rights Agent all such authority, powers, rights, immunities, duties, and obligations. |
| --- | --- |
| 6.2.2. | Notice of Successor Rights Agent. In the event a successor Rights Agent shall be appointed, the Company shall give notice thereof to the predecessor Rights Agent and the transfer agent for the ordinary shares of any such appointment. |
| --- | --- |
| 6.2.3. | Merger or Consolidation of Rights Agent. Any corporation into which the Rights Agent may be merged or with which it may be consolidated or any corporation resulting from any merger or consolidation to which the Rights Agent shall be a party shall be the successor Rights Agent under this Agreement without any further act. |
| --- | --- |
4
| 6.3. | Fees and Expenses of Rights Agent. |
|---|---|
| 6.3.1. | Remuneration. The Company agrees to pay the Rights Agent reasonable remuneration for its services as such Rights Agent hereunder and will reimburse the Rights Agent upon demand for all expenditures that the Rights Agent may reasonably incur in the execution of its duties hereunder. |
| --- | --- |
| 6.3.2. | Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Rights Agent for the carrying out or performing of the provisions of this Agreement. |
| --- | --- |
| 6.4. | Liability of Rights Agent. |
| --- | --- |
| 6.4.1. | Reliance on Company Statement. Whenever in the performance of its duties under this Agreement, the Rights Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer or Chief Financial Officer and delivered to the Rights Agent. The Rights Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement. |
| --- | --- |
| 6.4.2. | Indemnity. The Rights Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. Subject to Section 6.6 below, the Company agrees to indemnify the Rights Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel fees, for anything done or omitted by the Rights Agent in the execution of this Agreement except as a result of the Rights Agent’s gross negligence, willful misconduct, or bad faith. |
| --- | --- |
| 6.4.3. | Exclusions. The Rights Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or execution of any Right (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Right; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any ordinary shares to be issued pursuant to this Agreement or any Right or as to whether any ordinary shares will, when issued, be valid and fully paid and nonassessable. |
| --- | --- |
| 6.5. | Acceptance of Agency. The Rights Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms and conditions herein set forth. |
| --- | --- |
| 6.6. | Waiver. The Rights Agent hereby waives any right of set-off or any other right, title, interest or claim of any kind (“Claim”) in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by and between the Company and the Rights Agent as trustee thereunder) and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever. |
| --- | --- |
| 7. | Miscellaneous Provisions. |
| --- | --- |
| 7.1. | Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns. |
| --- | --- |
| 7.2. | Notices. Any notice, statement or demand authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Right to or on the Company shall be sufficiently given when so delivered if by electronic transmission, hand or overnight delivery or if sent by certified mail or private courier service within five days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with the Rights Agent), as follows: |
| --- | --- |
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Attn: Satoshi Tominaga, Chief Executive Officer
E-mail: stominaga8@outlook.com
5
Any notice, statement or demand authorized by this Agreement to be given or made by the holder of any Right or by the Company to or on the Rights Agent shall be sufficiently given when so delivered if by electronic transmission, hand or overnight delivery or if sent by certified mail or private courier service within five days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Rights Agent with the Company), as follows:
Continental Stock Transfer & Trust Company
1 State Street 30th Floor
New York, NY 10004-1561
Attn: Leicia Savinetti
E-mail: lsavinetti@continentalstock.com
Phone: 212.616.6895
with a copy in each case to:
Loeb & Loeb LLP
345 Park Avenue
New York, NY 10154
Attn: Lawrence Venick, Esq.
E-mail: lvenick@loeb.com
and
Lucid Capital Markets, LLC
570 Lexington Avenue, 40th Floor
New York, NY 10022
Attn: Jeffrey Caliva
E-mail: JCaliva@lucidcm.com
and
Blank Rome LLP
1271 Avenue of the Americas
New York, New York 10020
Attn: Brad L. Shiffman
E-mail: brad.shiffman@blankrome.com
| 7.3. | Applicable Law. The validity, interpretation, and performance of this Agreement and of the Rights shall be governed in all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Notwithstanding the foregoing, this exclusive forum provision shall not apply to suits brought to enforce a duty or liability created by the Securities and Exchange Act of 1934 (“Exchange Act”) or any other claim for which the federal courts have exclusive jurisdiction. Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by electronic transmission, registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 7.2 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. |
|---|
6
| 7.4. | Persons Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the registered holders of the Rights and, for the purposes of Sections 3.1, 3.2, 7.4 and 7.8 hereof, Lucid, any right, remedy, or claim under or by reason of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. Lucid shall be deemed to be a third-party beneficiary of this Agreement with respect to Sections 3.1, 3.2, 7.4 and 7.8 hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto (and Lucid with respect to Sections 3.1, 3.2, 7.4 and 7.8 hereof) and their successors and assigns and of the registered holders of the Rights. |
|---|---|
| 7.5. | Examination of this Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Rights Agent in the Borough of Manhattan, City and State of New York, for inspection by the registered holder of any Right. The Rights Agent may require any such holder to submit his, her or its Right for inspection by it. |
| --- | --- |
| 7.6. | Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. |
| --- | --- |
| 7.7. | Effect of Headings. The Section headings herein are for convenience only and are not part of this Agreement and shall not affect the interpretation thereof. |
| --- | --- |
| 7.8. | Amendments. This Agreement may be amended by the parties hereto without the consent of any registered holder for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties deem shall not adversely affect the interest of the registered holders. All other modifications or amendments shall require the written consent or vote of the registered holders of a majority of the then outstanding Rights. The provisions of this Section 7.8 may not be modified, amended or deleted without the prior written consent of Lucid. |
| --- | --- |
| 7.9. | Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. |
| --- | --- |
[Signature Page Follows]
7
IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written.
| YHN ACQUISITION I LIMITED | ||
|---|---|---|
| By: | /s/ Satoshi Tominaga | |
| Name: | Satoshi Tominaga | |
| Title: | Chief Executive Officer | |
| CONTINENTAL STOCK TRANSFER & TRUST COMPANY | ||
| --- | --- | --- |
| By: | /s/ Leicia Savinetti | |
| Name: | Leicia Savinetti | |
| Title: | Vice President |
Signature page to Rights Agreement
8
EXHIBIT A
Form of Right
9
SPECIMEN RIGHT CERTIFICATE
| NUMBER | [ ] RIGHTS |
|---|---|
| [ ] |
YHN ACQUISITION I LIMITED
SEE REVERSE FOR
CERTAIN DEFINITIONS
CUSIP G1514D 127
RIGHT
THIS CERTIFIES THAT, for value received , or registered agents, is the registered holder of a right or rights (the “Right”) to automatically receive one-tenth of one ordinary share, with no par value (“Ordinary Share”), of YHN Acquisition I Limited, a British Virgin Islands company (the “Company”) for each Right evidenced by this Rights Certificate on the Company’s completion of an initial business combination (as defined in the prospectus relating to the Company’s initial public offering (“Prospectus”)) upon surrender of this Right Certificate pursuant to the Rights Agreement between the Company and Continental Stock Transfer & Trust Company, as Rights Agent. In no event will the Company be required to net cash settle any Right.
Upon liquidation of the Company in the event an initial business combination is not consummated during the required period as identified in the Company’s Amended and Restated Memorandum and Articles of Association, the Right shall expire and be worthless. The holder of a Right shall have no right or interest of any kind in the Company’s trust account (as defined in the Prospectus).
Upon due presentment for registration of transfer of the Right Certificate at the office or agency of the Rights Agent, a new Right Certificate or Right Certificates of like tenor and evidencing in the aggregate a like number of Rights shall be issued to the transferee in exchange for this Right Certificate, without charge except for any applicable tax or other governmental charge. The Company shall not issue fractional shares upon exchange of Rights. The Company reserves the right to deal with any fractional entitlement at the relevant time in any manner (as provided in the Rights Agreement).
The Company and the Rights Agent may deem and treat the registered holder as the absolute owner of this Right Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any conversion hereof, of any distribution to the registered holder, and for all other purposes, and neither the Company nor the Right Agent shall be affected by any notice to the contrary.
This Right does not entitle the registered holder to any of the rights of a shareholder of the Company.
Dated:
| Chairman | Chief Financial Officer |
|---|
10
[REVERSE OF CERTIFICATE]
The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
| UNIF GIFT MIN ACT - | Custodian | ||
|---|---|---|---|
| (Cust) | (Minor) | ||
| under Uniform Gifts to Minors | |||
| Act | |||
| (State) |
Additional Abbreviations may also be used though not in the above list.
YHN ACQUISITION I LIMITED
The Company will furnish without charge to each shareholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of share or series thereof of the Company and the qualifications, limitations, or restrictions of such preferences and/or rights. This certificate and the rights represented thereby are issued and shall be held subject to all the provisions of the Rights Agreement, the Amended and Restated Memorandum and Articles of Association and all amendments thereto and resolutions of the Board of Directors providing for the terms of rights and the issuance of Ordinary Shares (copies of which may be obtained from the secretary of the Company), to all of which the holder of this certificate by acceptance hereof assents.
For Value Received,__________________________hereby sell(s), assign(s), and transfer(s) unto
| PLEASE INSERT SOCIAL SECURITY OR OTHER<br><br>IDENTIFYING NUMBER OF ASSIGNEE | ||
|---|---|---|
| (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) | ||
| rights | ||
| --- | --- | |
| represented by the within Certificate, and do hereby irrevocably constitute and appoint | ||
| Attorney | ||
| to transfer the said rights on the books of the within named Corporation will full power of substitution in the premises. | ||
| Dated | ||
| --- | --- | --- |
| NOTICE: | The signature to this assignment must correspond with the name as written upon the face of the certificate in every particular, without alteration or enlargement or any change whatever. | |
| Signature(s) Guaranteed: | ||
| --- | ||
| THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE<br> GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE<br> MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15). |
The holder of this certificate shall have no right or interest of any kind in or to the funds held in the Company’s trust account (as defined in the Prospectus).
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Exhibit 10.1
September 17, 2024
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Lucid Capital Markets, LLC
570 Lexington Avenue, 40th Floor
New York, NY 10022
| Re: | Initial Public Offering |
|---|
Ladies and Gentlemen:
This letter is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”) entered into by and between YHN Acquisition I Limited, a British Virgin Islands company (the “Company”), and Lucid Capital Markets, LLC., as Representative (the “Representative”) of the several underwriters named on Schedule A thereto (the “Underwriters”), relating to an underwritten initial public offering (the “IPO”) of the Company’s units (the “Units”), each comprised of one ordinary share of the Company, no par value (the “Ordinary Shares”) and one right, with each right entitling its holder to automatically receive 1/10 (one-tenth) of one Ordinary Share (the “Rights”) upon the consummation of the Company’s initial business combination. Certain capitalized terms used herein are defined in paragraph 15 hereof.
In order to induce the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the IPO, and in recognition of the benefit that such IPO will confer upon the undersigned as a shareholder of the Company, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agrees with the Company as follows:
1. If the Company solicits approval of its shareholders of a Business Combination, the undersigned will vote all Ordinary Shares beneficially owned by him, her or it, whether acquired before, in or after the IPO, in favor of such Business Combination.
2. (a) Unless the Company’s shareholders are previously given the option to redeem their shares in connection with amending applicable documents to extend the time that the Company has to complete a Business Combination, if the Company fails to consummate a Business Combination within 15 months from the closing of the Company’s IPO, the undersigned shall take all reasonable steps to (i) cause the Trust Fund to be liquidated and distributed to the holders of the IPO Shares and (ii) cause the Company to liquidate as soon as reasonably practicable.
(b) The undersigned hereby waives any and all right, title, interest or claim of any kind in or to any distribution of the Trust Fund and any remaining net assets of the Company as a result of such liquidation with respect to his, her or its Insider Shares (“Claim”) and hereby waives any Claim the undersigned may have in the future as a result of, or arising out of, any contracts or agreements with the Company and will not seek recourse against the Trust Fund for any reason whatsoever.
3. [Deleted]
4. The undersigned will escrow all of his, her or its Insider Shares pursuant to the terms of a Stock Escrow Agreement, which the Company will enter into with the undersigned and an escrow agent acceptable to the Company.
5. [Deleted]
6. In order to minimize potential conflicts of interest which may arise from multiple affiliations, the undersigned agrees to present to the Company for its consideration, prior to presentation to any other person or entity, any suitable opportunity to acquire a target business, until the earlier of the consummation by the Company of a Business Combination or the liquidation of the Company, subject to any pre-existing fiduciary and contractual obligations the undersigned might have.
7. The undersigned acknowledges and agrees that prior to entering into a Business Combination with a target business that is affiliated with any Insiders of the Company or their affiliates, including any company that is a portfolio company of, or otherwise affiliated with, or has received financial investment from, an entity with which any Insider or their affiliates is affiliated, such transaction must be approved by a majority of the Company’s disinterested independent directors and the Company must obtain an opinion from an independent investment banking firm that such Business Combination is fair to the Company’s unaffiliated shareholders from a financial point of view.
8. Neither the undersigned, any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive and will not accept any compensation or other cash payment prior to, or for services rendered in connection with, the consummation of the Business Combination; provided that the Company shall be allowed to repay working capital loans made by the undersigned to the Company in cash upon consummation of the Business Combination. Notwithstanding the foregoing, the undersigned and any affiliate of the undersigned shall be entitled to reimbursement from the Company for their out-of-pocket expenses incurred in connection with identifying, investigating and consummating a Business Combination.
9. Neither the undersigned, any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive or accept a finder’s fee or any other compensation in the event the undersigned, any member of the family of the undersigned or any affiliate of the undersigned originates a Business Combination.
10. The undersigned agrees to be a director/officer of the Company until the earlier of the consummation by the Company of a Business Combination or the liquidation of the Company. The undersigned’s biographical information previously furnished to the Company and the Representative is true and accurate in all material respects, does not omit any material information with respect to the undersigned’s biography and contains all of the information required to be disclosed pursuant to Item 401 of Regulation S-K, promulgated under the Securities Act of 1933. The undersigned’s FINRA Questionnaire previously furnished to the Company and the Representative is true and accurate in all material respects. The undersigned represents and warrants that:
| (a) | He, she or it has never had a petition under the federal bankruptcy laws or any state insolvency law been<br>filed by or against (i) him, her or it, or any partnership in which he or she was a general partner at or within two years before the<br>time of filing; or (ii) any corporation or business association of which he or she was an executive officer at or within two years before<br>the time of such filing; |
|---|
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| (b) | He, she or it has never had a receiver, fiscal agent or similar officer been appointed by a court for<br>his business or property, or any such partnership; |
|---|---|
| (c) | He, she or it has never been convicted of fraud in a civil or criminal proceeding; |
| --- | --- |
| (d) | He, she or it has never been convicted in a criminal proceeding or named the subject of a pending criminal<br>proceeding (excluding traffic violations and minor offenses); |
| --- | --- |
| (e) | He, she or it has never been the subject of any order, judgment or decree, not subsequently reversed,<br>suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining or otherwise limiting him, her or it<br>from (i) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker,<br>leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission (“CFTC”) or an associated<br>person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person,<br>director or employee of any investment company, bank, savings and loan association or insurance company, or from engaging in or continuing<br>any conduct or practice in connection with any such activity; or (ii) engaging in any type of business practice; or (iii) engaging<br>in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or<br>state securities or federal commodities laws; |
| --- | --- |
| (f) | He, she, or it has never been the subject of any order, judgment or decree, not subsequently reversed,<br>suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days his, her or its<br>right to engage in any activity described in 10(e)(i) above, or to be associated with persons engaged in any such activity; |
| --- | --- |
| (g) | He, she, or it has never been found by a court of competent jurisdiction in a civil action or by the SEC<br>to have violated any federal or state securities law, where the judgment in such civil action or finding by the SEC has not been subsequently<br>reversed, suspended or vacated; |
| --- | --- |
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| (h) | He, she, or it has never been found by a court of competent jurisdiction in a civil action or by the CFTC<br>to have violated any federal commodities law, where the judgment in such civil action or finding by the CFTC has not been subsequently<br>reversed, suspended or vacated; |
|---|---|
| (i) | He, she, or it has never been the subject of, or a party to, any Federal, State or foreign judicial or<br>administrative order, judgment, decree or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of<br>(i) any Federal, State or foreign securities or commodities law or regulation, (ii) any law or regulation respecting financial institutions<br>or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil<br>money penalty or temporary or permanent cease-and desist order, or removal or prohibition order or (iii) any law or regulation prohibiting<br>mail or wire fraud or fraud in connection with any business entity; |
| --- | --- |
| (j) | He, she or it has never been the subject of, or party to, any sanction or order, not subsequently reversed,<br>suspended or vacated, or any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization<br>that has disciplinary authority over its members or persons associated with a member; |
| --- | --- |
| (k) | He, she or it has never been convicted of any felony or misdemeanor: (i) in connection with the purchase<br>or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii) arising out of the conduct of the business<br>of an underwriter, broker, dealer, municipal securities dealer, investment advisor or paid solicitor of purchasers of securities; |
| --- | --- |
| (l) | He, she or it was never subject to a final order of a state or foreign securities commission (or an agency<br>of officer of a state performing like functions); a state or foreign authority that supervises or examines banks, savings associations,<br>or credit unions; a state or foreign insurance commission (or an agency or officer of a state performing like functions); an appropriate<br>federal or foreign banking agency; the CFTC; or the National Credit Union Administration that is based on a violation of any law or regulation<br>that prohibits fraudulent, manipulative, or deceptive conduct; |
| --- | --- |
| (m) | He, she or it has never been subject to any order, judgment or decree of any court of competent jurisdiction,<br>that, at the time of the sale of the Units, restrained or enjoined him, her or it from engaging or continuing to engage in any conduct<br>or practice: (i) in connection with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC or<br>any foreign regulatory agency with similar functions; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer,<br>municipal securities dealer, investment adviser or paid solicitor of purchasers of securities; |
| --- | --- |
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| (n) | He, she or it has never been subject to any order of the SEC or any foreign regulatory agency with similar<br>functions that orders him, her or it to cease and desist from committing or causing a future violation of: (i) any scienter-based anti-fraud<br>provision of the federal securities laws, including, but not limited to, Section 17(a)(1) of the Securities Act, Section 10(b) of the<br>Exchange Act and Rule 10b-5 thereunder, Section 15(c) and Section 206(1) of the Advisers Act or any other rule or regulation thereunder;<br>or (ii) Section 5 of the Securities Act; |
|---|---|
| (o) | He, she or it has never filed (as a registrant or issuer), or been named as an underwriter in any registration<br>statement or Regulation A offering statement filed with the SEC that was the subject of a refusal order, stop order, or order suspending<br>the Regulation A exemption, or is, currently, the subject of an investigation or proceeding to determine whether a stop order or suspension<br>order should be issued; |
| --- | --- |
| (p) | He, she or it has never been subject to a United States Postal Service false representation order, or<br>is currently subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal<br>Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations; |
| --- | --- |
| (q) | He, she or it is not subject to a final order of a state securities commission (or an agency of officer<br>of a state performing like functions); a state authority that supervises or examines banks, savings associations, or credit unions; a<br>state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the<br>CFTC; or the National Credit Union Administration that bars the undersigned from: (i) association with an entity regulated by such commission,<br>authority, agency or officer; (ii) engaging in the business of securities, insurance or banking; or (iii) engaging in savings association<br>or credit union activities; |
| --- | --- |
| (r) | He, she or it is not subject to an order of the SEC entered pursuant to section 15(b) or 15B(c) of the<br>Securities Exchange Act of 1934 (the “Exchange Act”) or section 203(e) or 203(f) of the Investment Advisers Act of 1940 (the<br>“Advisers Act”) that: (i) suspends or revokes the undersigned’s registration as a broker, dealer, municipal securities<br>dealer or investment adviser; (ii) places limitations on the activities, functions or operations of, or imposes civil money penalties<br>on, such person; or (iii) bars the undersigned from being associated with any entity or from participating in the offering of any penny<br>stock; and |
| --- | --- |
| (s) | He, she or it has never been suspended or expelled from membership in, or suspended or barred from association<br>with a member of, a securities self-regulatory organization (e.g., a registered national securities exchange or a registered national<br>or affiliated securities association) for any act or omission to act constituting conduct inconsistent with just and equitable principles<br>of trade. |
| --- | --- |
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11. The undersigned has full right and power, without violating any agreement by which he, she or it is bound, to enter into this letter agreement and to serve as a Director and/or officer of the Company.
12. The undersigned hereby waives his, her or its right to exercise redemption rights with respect to any Ordinary Shares owned or to be owned by the undersigned, directly or indirectly (or to sell such shares to the Company in a tender offer), whether purchased by the undersigned prior to the IPO, in the IPO or in the aftermarket, and agrees that he, she or it will not seek redemption with respect to or otherwise sell, such shares in connection with any vote to approve a Business Combination with respect thereto, a vote to amend the provisions of the Company’s Amended and Restated Memorandum and Articles of Association, or a tender offer by the Company prior to a Business Combination.
13. The undersigned hereby agrees to not propose, or vote in favor of, an amendment to the Company’s Amended and Restated Memorandum and Articles of Association with respect to the Company’s pre-Business Combination activities prior to the consummation of a Business Combination unless the Company offers holders of IPO Shares the right to receive their pro rata portion of the funds then held in the Trust Fund.
14. In connection with Section 5-1401 of the General Obligations Law of the State of New York, this letter agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of law that would result in the application of the substantive law of another jurisdiction. The parties hereto agree that any action, proceeding or claim arising out of or relating in any way to this letter agreement shall be resolved through final and binding arbitration in accordance with the International Arbitration Rules of the American Arbitration Association (“AAA”). The arbitration shall be brought before the AAA International Center for Dispute Resolution’s offices in New York City, New York, will be conducted in English and will be decided by a panel of three arbitrators selected from the AAA Commercial Disputes Panel and that the arbitrator panel’s decision shall be final and enforceable by any court having jurisdiction over the party from whom enforcement is sought. The cost of such arbitrators and arbitration services, together with the prevailing party’s legal fees and expenses, shall be borne by the non-prevailing party or as otherwise directed by the arbitrators.
15. As used herein, (i) a “Business Combination” shall mean a merger, share exchange, asset acquisition, contractual arrangement, share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities; (ii) “Insiders” shall mean all officers, directors and shareholders of the Company immediately prior to the IPO; (iii) “Insider Shares” shall mean all of the Ordinary Shares of the Company acquired by an Insider prior to the IPO and any Ordinary Shares underlying the Private Units; (iv) “IPO Shares” shall mean the Ordinary Shares issued in the Company’s IPO; (v) “Registration Statement” means the registration statement on Form S-1 filed by the Company with respect to the IPO; and (vi) “Trust Fund” shall mean the trust fund into which a portion of the net proceeds of the Company’s IPO will be deposited.
16. Any notice, consent or request to be given in connection with any of the terms or provisions of this letter agreement shall be in writing and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery, by electronic mail or by facsimile transmission.
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If to the Representative:
Lucid Capital Markets, LLC
570 Lexington Avenue, 40th Floor
New York, NY 10022
with a copy (which copy shall not constitute notice) to:
Brad L. Shiffman
Blank Rome LLP
1271 Avenue of the Americas
New York, New York 10020
If to the Company:
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Attn: Satoshi Tominaga, Chief Executive Officer
Email: stominaga8@outlook.com
with a copy (which copy shall not constitute notice) to:
Loeb & Loeb LLP
345 Park Avenue
New York, NY 10154
Attn: Lawrence Venick, Esq.
Email: lvenick@loeb.com
17. No party hereto may assign either this letter agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee. This letter agreement shall be binding on the parties hereto and any successors and assigns thereof.
18. This Letter Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed by all parties hereto.
19. The undersigned acknowledges and understands that the Underwriters and the Company will rely upon the agreements, representations and warranties set forth herein in proceeding with the IPO. Nothing contained herein shall be deemed to render the Underwriters a representative of, or a fiduciary with respect to, the Company, its shareholders or any creditor or vendor of the Company with respect to the subject matter hereof.
[Signature pages follow]
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Very truly yours,
| /s/ Satoshi Tominaga |
|---|
| Satoshi Tominaga |
| /s/ Yangyujia An |
| Yangyujia An |
| /s/ Zhengming Feng |
| Zhengming Feng |
| /s/ Donghui Xu |
| Donghui Xu |
| /s/ Min Zhang |
| Min Zhang |
Acknowledged and Agreed:
| YHN Acquisition I Limited | |
|---|---|
| By: | /s/ Satoshi Tominaga |
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
[Signature page to insiderletter]
Exhibit 10.2
September 17, 2024
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Lucid Capital Markets, LLC
570 Lexington Avenue, 40th Floor
New York, NY 10022
| Re: | Initial Public Offering |
|---|
Ladies and Gentlemen:
This letter is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”) entered into by and between YHN Acquisition I Limited, a British Virgin Islands company (the “Company”), and Lucid Capital Markets, LLC., as Representative (the “Representative”) of the several underwriters named on Schedule A thereto (the “Underwriters”), relating to an underwritten initial public offering (the “IPO”) of the Company’s units (the “Units”), each comprised of one ordinary share of the Company, no par value (the “Ordinary Shares”) and one right, with each right entitling its holder to automatically receive 1/10 (one-tenth) of one Ordinary Share (the “Rights”) upon the consummation of the Company’s initial business combination. Certain capitalized terms used herein are defined in paragraph 15 hereof.
In order to induce the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the IPO, and in recognition of the benefit that such IPO will confer upon the undersigned as a shareholder of the Company, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agrees with the Company as follows:
1. If the Company solicits approval of its shareholders of a Business Combination, the undersigned will vote all Ordinary Shares beneficially owned by him, her or it, whether acquired before, in or after the IPO, in favor of such Business Combination.
2. (a) Unless the Company’s shareholders are previously given the option to redeem their shares in connection with amending applicable documents to extend the time that the Company has to complete a Business Combination, if the Company fails to consummate a Business Combination within 15 months from the closing of the Company’s IPO, the undersigned shall take all reasonable steps to (i) cause the Trust Fund to be liquidated and distributed to the holders of the IPO Shares and (ii) cause the Company to liquidate as soon as reasonably practicable.
(b) The undersigned hereby waives any and all right, title, interest or claim of any kind in or to any distribution of the Trust Fund and any remaining net assets of the Company as a result of such liquidation with respect to his, her or its Insider Shares including any shares underlying the Private Units (“Claim”) and hereby waives any Claim the undersigned may have in the future as a result of, or arising out of, any contracts or agreements with the Company and will not seek recourse against the Trust Fund for any reason whatsoever. The undersigned acknowledges and agrees that there will be no distribution from the Trust Fund with respect to any Rights underlying the Private Units, all of which will terminate on the Company’s liquidation.
(c) In the event of the liquidation of the Trust Fund, the undersigned agrees to indemnify and hold harmless the Company against any and all loss, liability, claims, damage and expense whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, whether pending or threatened, or any claim whatsoever) which the Company may become subject as a result of any claim by any vendor or other person who is owed money by the Company for services rendered or products sold or contracted for, but only to the extent necessary to ensure that such loss, liability, claim, damage or expense does not reduce the amount of funds in the Trust Fund; provided, that such indemnity shall not apply if such vendor or other person has executed an agreement waiving any claims against the Trust Fund.
3. In the event that the Company does not consummate a Business Combination and must liquidate and its remaining net assets are insufficient to complete such liquidation, the undersigned agrees to advance such funds necessary to complete such liquidation and agrees not to seek recourse for such expenses.
4. The undersigned will escrow all of his, her or its Insider Shares pursuant to the terms of a Stock Escrow Agreement, which the Company will enter into with the undersigned and an escrow agent acceptable to the Company.
5. The undersigned agrees that until the Company consummates a Business Combination, the undersigned’s Private Units will be subject to the transfer restrictions described in the Subscription Agreement relating to the undersigned’s Private Units.
6. In order to minimize potential conflicts of interest which may arise from multiple affiliations, the undersigned agrees to present to the Company for its consideration, prior to presentation to any other person or entity, any suitable opportunity to acquire a target business, until the earlier of the consummation by the Company of a Business Combination or the liquidation of the Company, subject to any pre-existing fiduciary and contractual obligations the undersigned might have.
7. The undersigned acknowledges and agrees that prior to entering into a Business Combination with a target business that is affiliated with any Insiders of the Company or their affiliates, including any company that is a portfolio company of, or otherwise affiliated with, or has received financial investment from, an entity with which any Insider or their affiliates is affiliated, such transaction must be approved by a majority of the Company’s disinterested independent directors and the Company must obtain an opinion from an independent investment banking firm that such Business Combination is fair to the Company’s unaffiliated shareholders from a financial point of view.
8. Neither the undersigned, any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive and will not accept any compensation or other cash payment prior to, or for services rendered in connection with, the consummation of the Business Combination; provided that the Company shall be allowed to repay working capital loans made by the undersigned to the Company in cash upon consummation of the Business Combination. Notwithstanding the foregoing, the undersigned and any affiliate of the undersigned shall be entitled to reimbursement from the Company for their out-of-pocket expenses incurred in connection with identifying, investigating and consummating a Business Combination.
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9. Neither the undersigned, any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive or accept a finder’s fee or any other compensation in the event the undersigned, any member of the family of the undersigned or any affiliate of the undersigned originates a Business Combination.
10. The undersigned’s FINRA Questionnaire previously furnished to the Company and the Representative is true and accurate in all material respects. The undersigned represents and warrants that:
| (a) | He, she or it has never had a petition under the federal bankruptcy laws or any state insolvency law been<br>filed by or against (i) him, her or it, or any partnership in which he or she was a general partner at or within two years before the<br>time of filing; or (ii) any corporation or business association of which he or she was an executive officer at or within two years before<br>the time of such filing; |
|---|---|
| (b) | He, she or it has never had a receiver, fiscal agent or similar officer been appointed by a court for<br>his business or property, or any such partnership; |
| --- | --- |
| (c) | He, she or it has never been convicted of fraud in a civil or criminal proceeding; |
| --- | --- |
| (d) | He, she or it has never been convicted in a criminal proceeding or named the subject of a pending criminal<br>proceeding (excluding traffic violations and minor offenses); |
| --- | --- |
| (e) | He, she or it has never been the subject of any order, judgment or decree, not subsequently reversed,<br>suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining or otherwise limiting him, her or it<br>from (i) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker,<br>leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission (“CFTC”) or an associated<br>person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person,<br>director or employee of any investment company, bank, savings and loan association or insurance company, or from engaging in or continuing<br>any conduct or practice in connection with any such activity; or (ii) engaging in any type of business practice; or (iii) engaging<br>in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or<br>state securities or federal commodities laws; |
| --- | --- |
| (f) | He, she, or it has never been the subject of any order, judgment or decree, not subsequently reversed,<br>suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days his, her or its<br>right to engage in any activity described in 10(e)(i) above, or to be associated with persons engaged in any such activity; |
| --- | --- |
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| (g) | He, she, or it has never been found by a court of competent jurisdiction in a civil action or by the SEC<br>to have violated any federal or state securities law, where the judgment in such civil action or finding by the SEC has not been subsequently<br>reversed, suspended or vacated; |
|---|---|
| (h) | He, she, or it has never been found by a court of competent jurisdiction in a civil action or by the CFTC<br>to have violated any federal commodities law, where the judgment in such civil action or finding by the CFTC has not been subsequently<br>reversed, suspended or vacated; |
| --- | --- |
| (i) | He, she, or it has never been the subject of, or a party to, any Federal, State or foreign judicial or<br>administrative order, judgment, decree or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of<br>(i) any Federal, State or foreign securities or commodities law or regulation, (ii) any law or regulation respecting financial institutions<br>or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil<br>money penalty or temporary or permanent cease-and desist order, or removal or prohibition order or (iii) any law or regulation prohibiting<br>mail or wire fraud or fraud in connection with any business entity; |
| --- | --- |
| (j) | He, she or it has never been the subject of, or party to, any sanction or order, not subsequently reversed,<br>suspended or vacated, or any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization<br>that has disciplinary authority over its members or persons associated with a member; |
| --- | --- |
| (k) | He, she or it has never been convicted of any felony or misdemeanor: (i) in connection with the purchase<br>or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii) arising out of the conduct of the business<br>of an underwriter, broker, dealer, municipal securities dealer, investment advisor or paid solicitor of purchasers of securities; |
| --- | --- |
| (l) | He, she or it was never subject to a final order of a state or foreign securities commission (or an agency<br>of officer of a state performing like functions); a state or foreign authority that supervises or examines banks, savings associations,<br>or credit unions; a state or foreign insurance commission (or an agency or officer of a state performing like functions); an appropriate<br>federal or foreign banking agency; the CFTC; or the National Credit Union Administration that is based on a violation of any law or regulation<br>that prohibits fraudulent, manipulative, or deceptive conduct; |
| --- | --- |
| (m) | He, she or it has never been subject to any order, judgment or decree of any court of competent jurisdiction,<br>that, at the time of the sale of the Units, restrained or enjoined him, her or it from engaging or continuing to engage in any conduct<br>or practice: (i) in connection with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC or<br>any foreign regulatory agency with similar functions; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer,<br>municipal securities dealer, investment adviser or paid solicitor of purchasers of securities; |
| --- | --- |
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| (n) | He, she or it has never been subject to any order of the SEC or any foreign regulatory agency with similar<br>functions that orders him, her or it to cease and desist from committing or causing a future violation of: (i) any scienter-based anti-fraud<br>provision of the federal securities laws, including, but not limited to, Section 17(a)(1) of the Securities Act, Section 10(b) of the<br>Exchange Act and Rule 10b-5 thereunder, Section 15(c) and Section 206(1) of the Advisers Act or any other rule or regulation thereunder;<br>or (ii) Section 5 of the Securities Act; |
|---|---|
| (o) | He, she or it has never filed (as a registrant or issuer), or been named as an underwriter in any registration<br>statement or Regulation A offering statement filed with the SEC that was the subject of a refusal order, stop order, or order suspending<br>the Regulation A exemption, or is, currently, the subject of an investigation or proceeding to determine whether a stop order or suspension<br>order should be issued; |
| --- | --- |
| (p) | He, she or it has never been subject to a United States Postal Service false representation order, or<br>is currently subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal<br>Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations; |
| --- | --- |
| (q) | He, she or it is not subject to a final order of a state securities commission (or an agency of officer<br>of a state performing like functions); a state authority that supervises or examines banks, savings associations, or credit unions; a<br>state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the<br>CFTC; or the National Credit Union Administration that bars the undersigned from: (i) association with an entity regulated by such commission,<br>authority, agency or officer; (ii) engaging in the business of securities, insurance or banking; or (iii) engaging in savings association<br>or credit union activities; |
| --- | --- |
| (r) | He, she or it is not subject to an order of the SEC entered pursuant to section 15(b) or 15B(c) of the<br>Securities Exchange Act of 1934 (the “Exchange Act”) or section 203(e) or 203(f) of the Investment Advisers Act of 1940 (the<br>“Advisers Act”) that: (i) suspends or revokes the undersigned’s registration as a broker, dealer, municipal securities<br>dealer or investment adviser; (ii) places limitations on the activities, functions or operations of, or imposes civil money penalties<br>on, such person; or (iii) bars the undersigned from being associated with any entity or from participating in the offering of any penny<br>stock; and |
| --- | --- |
| (s) | He, she or it has never been suspended or expelled from membership in, or suspended or barred from association<br>with a member of, a securities self-regulatory organization (e.g., a registered national securities exchange or a registered national<br>or affiliated securities association) for any act or omission to act constituting conduct inconsistent with just and equitable principles<br>of trade. |
| --- | --- |
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11. [Deleted]
12. The undersigned hereby waives his, her or its right to exercise redemption rights with respect to any Ordinary Shares owned or to be owned by the undersigned, directly or indirectly (or to sell such shares to the Company in a tender offer), whether purchased by the undersigned prior to the IPO, in the IPO or in the aftermarket, and agrees that he, she or it will not seek redemption with respect to or otherwise sell, such shares in connection with any vote to approve a Business Combination with respect thereto, a vote to amend the provisions of the Company’s Amended and Restated Memorandum and Articles of Association, or a tender offer by the Company prior to a Business Combination.
13. The undersigned hereby agrees to not propose, or vote in favor of, an amendment to the Company’s Amended and Restated Memorandum and Articles of Association with respect to the Company’s pre-Business Combination activities prior to the consummation of a Business Combination unless the Company offers holders of IPO Shares the right to receive their pro rata portion of the funds then held in the Trust Fund.
14. In connection with Section 5-1401 of the General Obligations Law of the State of New York, this letter agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of law that would result in the application of the substantive law of another jurisdiction. The parties hereto agree that any action, proceeding or claim arising out of or relating in any way to this letter agreement shall be resolved through final and binding arbitration in accordance with the International Arbitration Rules of the American Arbitration Association (“AAA”). The arbitration shall be brought before the AAA International Center for Dispute Resolution’s offices in New York City, New York, will be conducted in English and will be decided by a panel of three arbitrators selected from the AAA Commercial Disputes Panel and that the arbitrator panel’s decision shall be final and enforceable by any court having jurisdiction over the party from whom enforcement is sought. The cost of such arbitrators and arbitration services, together with the prevailing party’s legal fees and expenses, shall be borne by the non-prevailing party or as otherwise directed by the arbitrators.
15. As used herein, (i) a “Business Combination” shall mean a merger, share exchange, asset acquisition, contractual arrangement, share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities; (ii) “Insiders” shall mean all officers, directors and shareholders of the Company immediately prior to the IPO; (iii) “Insider Shares” shall mean all of the Ordinary Shares of the Company acquired by an Insider prior to the IPO and any Ordinary Shares underlying the Private Units; (iv) “IPO Shares” shall mean the Ordinary Shares issued in the Company’s IPO; (v) “Private Units” shall mean (x) the Units purchased in the private placement taking place simultaneously with the consummation of the Company’s IPO and (y) the additional Units that may be purchased in connection with the exercise of the over-allotment option by the underwriters in the IPO as described in the Registration Statement; (vi) “RegistrationStatement” means the registration statement on Form S-1 filed by the Company with respect to the IPO; and (vii) “TrustFund” shall mean the trust fund into which a portion of the net proceeds of the Company’s IPO will be deposited.
16. Any notice, consent or request to be given in connection with any of the terms or provisions of this letter agreement shall be in writing and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery, by electronic mail or by facsimile transmission.
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If to the Representative:
Lucid Capital Markets, LLC
570 Lexington Avenue, 40th Floor
New York, NY 10022
with a copy (which copy shall not constitute notice) to:
Brad L. Shiffman
Blank Rome LLP
1271 Avenue of the Americas
New York, New York 10020
If to the Company:
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Attn: Satoshi Tominaga, Chief Executive Officer
Email: stominaga8@outlook.com
with a copy (which copy shall not constitute notice) to:
Loeb & Loeb LLP
345 Park Avenue
New York, NY 10154
Attn: Lawrence Venick, Esq.
Email: lvenick@loeb.com
17. No party hereto may assign either this letter agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee. This letter agreement shall be binding on the parties hereto and any successors and assigns thereof.
18. This Letter Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed by all parties hereto.
19. The undersigned acknowledges and understands that the Underwriters and the Company will rely upon the agreements, representations and warranties set forth herein in proceeding with the IPO. Nothing contained herein shall be deemed to render the Underwriters a representative of, or a fiduciary with respect to, the Company, its shareholders or any creditor or vendor of the Company with respect to the subject matter hereof.
[Signature pages follow]
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Very truly yours,
| YHN Partners I Limited | |
|---|---|
| By: | /s/ Pui Chun Wong |
| Name: | Pui Chun Wong |
| Title: | Director |
Acknowledged and Agreed:
| YHN Acquisition I Limited | |
|---|---|
| By: | /s/ Satoshi Tominaga |
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
[Signature page to insider letter]
Exhibit 10.3
INVESTMENT MANAGEMENT TRUST AGREEMENT
This Agreement is made effective as of September 17, 2024 by and between YHN Acquisition I Limited (the “Company”) and Continental Stock Transfer & Trust Company, as trustee (“Trustee”).
WHEREAS, the Company’s registration statement on Form S-1, No. 333-279308 (“Registration Statement”) for its initial public offering of securities (“IPO”) has been declared effective as of the date hereof (“Effective Date”) by the Securities and Exchange Commission (capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Registration Statement); and
WHEREAS, Lucid Capital Markets, LLC (“Lucid Capital Markets”) is acting as the representative of the underwriters in the IPO; and
WHEREAS, as described in the Registration Statement, and in accordance with the Company’s Amended and Restated Memorandum and Articles of Association, $60,300,000 of the gross proceeds of the IPO and the net proceeds of a private placement taking place simultaneously therewith ($69,345,000 if the over-allotment option is exercised in full), will be delivered to the Trustee to be deposited and held in the Trust Account for the benefit of the Company and the holders of the Company’s ordinary shares, no par value, issued in the IPO as hereinafter provided (the proceeds to be delivered to the Trustee will be referred to herein as the “Property”; the shareholders for whose benefit the Trustee shall hold the Property will be referred to as the “Public Shareholders,” and the Public Shareholders and the Company will be referred to together as the “Beneficiaries”); and
WHEREAS, pursuant to the Underwriting Agreement, a portion of the Property equal to up to $1,500,000 (or up to $1,725,000 if the underwriters’ over-allotment option is exercised in full), which shall be reduced by $0.25 per share redeemed in connection with the Company’s initial business combination (subject to a minimum payment of $500,000), is attributable to deferred underwriting fees and commissions that will be payable by the Company to the Underwriters upon and concurrently with the consummation of the Business Combination (as defined below) (the “DeferredUnderwriting Fees”); and
WHEREAS, the Company and the Trustee desire to enter into this Agreement to set forth the terms and conditions pursuant to which the Trustee shall hold the Property.
IT IS AGREED:
- Agreements and Covenants of Trustee. The Trustee hereby agrees and covenants to:
(a) Hold the Property in trust for the Beneficiaries in accordance with the terms of this Agreement in a segregated trust account (“TrustAccount”) established by the Trustee at JP Morgan Chase Bank, N.A. (or at another U.S. chartered commercial bank with consolidated assets of $100 billion or more) in the United States, maintained by Trustee, and at a brokerage institution selected by the Trustee that is reasonably satisfactory to the Company;
(b) Manage, supervise and administer the Trust Account subject to the terms and conditions set forth herein;
(c) In a timely manner, upon the written instruction of the Company, (i) invest and reinvest the Property solely in United States government securities within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 185 days or less, or in money market funds meeting the conditions of paragraphs (d)(1), (d)(2), (d)(3) and (d)(4) of Rule 2a-7 promulgated under the Investment Company Act (or any successor rule), which invest only in direct U.S. government treasury obligations or (ii) deposit the Property into an interest bearing or non-interest bearing bank demand deposit account at a U.S. chartered commercial bank with consolidated assets of $100 billion or more selected by the Trustee that is reasonably satisfactory to the Company, it being understood that the Trust Account will earn no interest while account funds are uninvested awaiting the Company’s instructions hereunder and while the account funds are invested or uninvested, the Trustee may earn bank credits or other consideration during such periods;
(d) Collect and receive, when due, all principal and income arising from the Property, which shall become part of the “Property,” as such term is used herein;
(e) Notify the Company and Lucid Capital Markets of all communications received by it with respect to any Property requiring action by the Company;
(f) Supply any necessary information or documents as may be requested by the Company in connection with the Company’s preparation of its tax returns;
(g) Participate in any plan or proceeding for protecting or enforcing any right or interest arising from the Property if, as and when instructed by the Company to do so;
(h) Upon request, render to the Company monthly written statements of the activities of and amounts in the Trust Account reflecting all receipts and disbursements of the Trust Account; and
(i) Commence liquidation of the Trust Account only after and promptly after receipt of, and only in accordance with, the terms of a letter (“TerminationLetter”), in a form substantially similar to that attached hereto as either Exhibit A or Exhibit B, as applicable, signed on behalf of the Company by its Chief Executive Officer, Chief Financial Officer or Chairman of the board of directors of the Company (the “Board”) and, in the case of a Termination Letter in a form substantially similar to that attached hereto as Exhibit A, acknowledged and agreed to by Lucid Capital Markets, and complete the liquidation of the Trust Account and distribute the Property in the Trust Account only as directed in the Termination Letter and the other documents referred to therein; provided, however, that in the event that a Termination Letter has not been received by the Trustee by the 15-month anniversary (“Last Date”) after the closing of the IPO (“Closing”), the Trust Account shall be liquidated in accordance with the procedures set forth in the Termination Letter attached as Exhibit B hereto and distributed to the Public Shareholders as of the Last Date.
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(j) Upon written request from the Company, which may be given from time to time in a form substantially similar to that attached hereto as Exhibit C (a “Tax Payment Withdrawal Instruction”), withdraw from the Trust Account and distribute to the Company the amount of interest earned on the Property requested by the Company to cover any tax obligation owed by the Company as a result of assets of the Company or interest earned on the Property. The amount to be withdrawn under (i) of this Section 1(j) shall be delivered directly to the Company and the Company shall forward such payment to the relevant taxing authority, so long as there is no reduction in the principal amount per share initially deposited in the Trust Account; provided, however, that to the extent there is not sufficient cash in the Trust Account to pay such tax obligation, the Trustee shall liquidate such assets held in the Trust Account as shall be designated by the Company in writing to make such distribution (it being acknowledged and agreed that any such amount in excess of interest income earned on the Property shall not be payable from the Trust Account); provided, further, that, if the tax to be paid is a franchise tax, the written request by the Company to make such distribution shall be accompanied by a copy of the franchise tax bill from the relevant taxing authority for the Company. The written request of the Company referenced above shall constitute presumptive evidence that the Company is entitled to said funds, and the Trustee shall have no responsibility to look beyond said request;
(k) Upon written request from the Company, which may be given from time to time in a form substantially similar to that attached hereto as Exhibit F (a “Shareholder Redemption Withdrawal Instruction”), the Trustee shall distribute to the remitting brokers on behalf of the redeeming Public Shareholders, or the redeeming Public Shareholders themselves, the amount required to redeem the ordinary shares pursuant to the Company’s amended and restated memorandum and articles of association; and
(l) Not make any withdrawals or distributions from the Trust Account other than pursuant to Section 1(i), (j) or (k) above.
(m) Promptly acknowledge, in writing to any redeeming Public Shareholder and the Company, any irrevocable instruction letter in the form of Exhibit E delivered by such redeeming Public Shareholder after the announcement by the Company of a proposed Business Combination and promptly comply with any irrevocable written instruction letter in the form of Exhibit E delivered by such Public Shareholder in connection with the disbursement of funds to such Public Shareholder if the Company has not notified the Trustee in writing during the Objection Period that such irrevocable written instruction letter is a Non-Compliant Instruction Letter (as defined below).
- Limited Distributions of Income from Trust Account.
(a) Upon written request from the Company, which may be given from time to time in a form substantially similar to that attached hereto as Exhibit C, the Trustee shall distribute to the Company the amount of interest income earned on the Trust Account requested by the Company to cover any income or other tax obligation owed by the Company.
(b) The limited distributions referred to in Section 2(a) above shall be made only from income collected on the Property. Except as provided in Sections 1(j) and 2(a), no other distributions from income collected on the Property shall be permitted except in accordance with Section 1(i) and 1(k) hereof.
(c) The Company shall provide Lucid Capital Markets with a copy of any Termination Letters and/or any other correspondence that it issues to the Trustee with respect to any proposed withdrawal from the Trust Account promptly after such issuance.
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- Agreements and Covenants of the Company. The Company hereby agrees and covenants to:
(a) Give all instructions to the Trustee hereunder in writing, signed by the Company’s Chairman of the Board, Chief Executive Officer or Chief Financial Officer. In addition, except with respect to its duties under Sections 1(i), 2(a) and 2(b) above, the Trustee shall be entitled to rely on, and shall be protected in relying on, any verbal or telephonic advice or instruction which it in good faith believes to be given by any one of the persons authorized above to give written instructions, provided that the Company shall promptly confirm such instructions in writing;
(b) Subject to the provisions of Sections 5 and 7(g) of this Agreement, hold the Trustee harmless and indemnify the Trustee from and against, any and all expenses, including reasonable counsel fees and disbursements, or loss suffered by the Trustee in connection with any claim, potential claim, action, suit or other proceeding brought against the Trustee involving any claim, or in connection with any claim or demand which in any way arises out of or relates to this Agreement, the services of the Trustee hereunder, or the Property or any income earned from investment of the Property, except for expenses and losses resulting from the Trustee’s gross negligence, fraud or willful misconduct. Promptly after the receipt by the Trustee of notice of demand or claim or the commencement of any action, suit or proceeding, pursuant to which the Trustee intends to seek indemnification under this Section, it shall notify the Company in writing of such claim (hereinafter referred to as the “Indemnified Claim”). The Trustee shall have the right to conduct and manage the defense against such Indemnified Claim, provided, that the Trustee shall obtain the consent of the Company with respect to the selection of counsel, which consent shall not be unreasonably withheld. The Trustee may not agree to settle any Indemnified Claim without the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. The Company may participate in such action with its own counsel;
(c) Pay the Trustee an initial acceptance fee, an annual fee and a transaction processing fee for each disbursement made pursuant to Sections 2(a) and 2(b) as set forth on Schedule A hereto, which fees shall be subject to modification by the parties from time to time. It is expressly understood that the Property shall not be used to pay such fees and further agreed that any fees owed to the Trustee may be deducted by the Trustee from the disbursements made to the Company pursuant to Sections 1(i) solely in connection with the consummation of a Business Combination, or pursuant to Section 2(b). The Company shall pay the Trustee the initial acceptance fee and first year’s fee at the consummation of the IPO and thereafter on the anniversary of the Effective Date;
(d) In connection with any vote of the Company’s shareholders regarding a Business Combination, provide to the Trustee an affidavit or certificate of a firm regularly engaged in the business of soliciting proxies and/or tabulating shareholder votes verifying the vote of the Company’s shareholders regarding such Business Combination;
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(e) Provide the Representative with a copy of any Termination Letter(s) and/or any other correspondence that is sent to the Trustee with respect to any proposed withdrawal from the Trust Account promptly after it issues the same; and
(f) In the event that the Company directs the Trustee to commence liquidation of the Trust Account pursuant to Section 1(i), the Company agrees that it will not direct the Trustee to make any payments that are not specifically authorized by this Agreement.
(g) Within four (4) business days after the Underwriters exercise the over-allotment option (or any unexercised portion thereof) or such over-allotment option expires, provide the Trustee with a notice in writing of the total amount of the Deferred Underwriting Fees;
(h) Upon receiving the written request of a Public Shareholder to do so at any time after the date hereof, provide such Public Shareholder with a copy of any instruction provided to the Trustee pursuant to Section 1(i) along with any Notification (as defined in Exhibit A), Instruction Letter (as defined in Exhibit A), applicable flow of funds memorandum (or similar document), or any other notice delivered to the Trustee by the Company regarding the disbursement of Property from the Trust Account resulting in the Property left in the Trust Account being less than $60,300,000 (or $69,345,000 if the Underwriters’ over-allotment option is exercised in full) which, in each case, shall specify to whom the Property shall be disbursed (such written notice, a “Disbursement Notice” and the date such Public Shareholder receives a Disbursement Notice, a “Disbursement Notice Date”). Each Disbursement Notice shall be delivered to such Public Shareholder at least two business days prior to the disbursement of any Property pursuant to Section 1(i) and no Property shall be disbursed from the Trust Account prior to the date that is two business days from the applicable Disbursement Notice Date.
(i) At the request of any Public Shareholder who has removed shares from street name and holds such shares either in certificated or book-entry form and, except if such shares are held in book-entry form, delivered such certificated shares to the Trustee for purposes of redemption in connection with a Business Combination, concurrently with the delivery of such shares, solely if such shares are certificated. to the Trustee, send an irrevocable written instruction letter in the form of Exhibit E to the Trustee directing the Trustee to disburse no less than $10.05 per share to such Public Shareholder.
(j) Following receipt of a copy of an irrevocable written instruction letter in the form of Exhibit E delivered by a Public Shareholder who has removed shares from street name and holds such shares either in certificated or book-entry form and, except if such shares are held in book-entry form, delivered such certificated shares to the Trustee for purposes of redemption in connection with a Business Combination to the Trustee, review such letter to confirm (i) such letter is in the form of Exhibit E, (ii) a Business Combination has been announced on or prior to the date of such letter and (iii) the number of ordinary shares set forth on such letter to be redeemed is not greater than the number of ordinary shares held by the applicable Public Shareholder. Solely if the Company cannot confirm the requirements of clauses (i) through (iii) of this Section 3(j), but not for any other reason, then within two days of the Company’s receipt of the applicable copy of the irrevocable written instruction letter in the form of Exhibit E (such time period, the “Objection Period”), the Company will notify the applicable Public Shareholder and the Trustee in writing that such irrevocable written instruction letter is a “Non-Compliant Instruction Letter” and that the Trustee shall not comply with such letter.
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(k) [deleted];
(l) [deleted].
(m) Unless otherwise agreed between the Company and the Representative, ensure that any Instruction Letter (as defined in Exhibit A) delivered in connection with a Termination Letter in the form of Exhibit A expressly provides that the Deferred Underwriting Fees is paid directly to the account or accounts directed by the Representative on behalf of the Underwriters prior to any transfer of the funds held in the Trust Account to the Company or any other person.
- Limitations of Liability. The Trustee shall have no responsibility or liability to:
(a) Take any action with respect to the Property, other than as directed in Sections 1 and 2 hereof and the Trustee shall have no liability to any party except for liability arising out of its own gross negligence, fraud or willful misconduct;
(b) Institute any proceeding for the collection of any principal and income arising from, or institute, appear in or defend any proceeding of any kind with respect to, any of the Property unless and until it shall have received instructions from the Company given as provided herein to do so and the Company shall have advanced or guaranteed to it funds sufficient to pay any expenses incident thereto;
(c) Change the investment of any Property, other than in compliance with Section 1(c);
(d) Refund any depreciation in principal of any Property;
(e) Assume that the authority of any person designated by the Company to give instructions hereunder shall not be continuing unless provided otherwise in such designation, or unless the Company shall have delivered a written revocation of such authority to the Trustee;
(f) The other parties hereto or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith and in the exercise of its own best judgment, except for its gross negligence, fraud or willful misconduct. The Trustee may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Trustee), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Trustee, in good faith, to be genuine and to be signed or presented by the proper person or persons. The Trustee shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement or any of the terms hereof, unless evidenced by a written instrument delivered to the Trustee signed by the proper party or parties and, if the duties or rights of the Trustee are affected, unless it shall give its prior written consent thereto;
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(g) Verify the correctness of the information set forth in the Registration Statement or to confirm or assure that any acquisition made by the Company or any other action taken by it is as contemplated by the Registration Statement;
(h) File local, state and/or federal tax returns or information returns with any taxing authority on behalf of the Trust Account and payee statements with the Company documenting the taxes, if any, payable by the Company or the Trust Account, relating to the income earned on the Property;
(i) Pay any taxes on behalf of the Trust Account (it being expressly understood that the Property shall not be used to pay any such taxes and that such taxes, if any, shall be paid by the Company from funds not held in the Trust Account or released to it under Section 2(a) hereof);
(j) Imply obligations, perform duties, inquire or otherwise be subject to the provisions of any agreement or document other than this agreement and that which is expressly set forth herein; and
(k) Verify calculations, qualify or otherwise approve Company requests for distributions pursuant to Section 1(i), 2(a) or 2(b) above.
Trust Account Waiver. The Trustee has no right of set-off or any right, title, interest or claim of any kind (“Claim”) to, or to any monies in, the Trust Account, and hereby irrevocably waives any Claim to, or to any monies in, the Trust Account that it may have now or in the future. In the event the Trustee has any Claim against the Company under this Agreement, including, without limitation, under Section 3(b) or Section 3(c) hereof, the Trustee shall pursue such Claim solely against the Company and its assets outside the Trust Account and not against the Property or any monies in the Trust Account.
Termination. This Agreement shall terminate as follows:
(a) If the Trustee gives written notice to the Company that it desires to resign under this Agreement, the Company shall use its reasonable efforts to locate a successor trustee during which time the Trustee shall act in accordance with this Agreement. At such time that the Company notifies the Trustee that a successor trustee has been appointed by the Company and has agreed to become subject to the terms of this Agreement, the Trustee shall transfer the management of the Trust Account to the successor trustee, including but not limited to the transfer of copies of the reports and statements relating to the Trust Account, whereupon this Agreement shall terminate; provided, however, that, in the event that the Company does not locate a successor trustee within ninety days of receipt of the resignation notice from the Trustee, the Trustee may submit an application to have the Property deposited with any court in the State of New York or with the United States District Court for the Southern District of New York and upon such deposit, the Trustee shall be immune from any liability whatsoever; or
(b) At such time that the Trustee has completed the liquidation of the Trust Account in accordance with the provisions of Section 1(i) hereof, and distributed the Property in accordance with the provisions of the Termination Letter, this Agreement shall terminate except with respect to Section 3(b).
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- Miscellaneous.
(a) The Company and the Trustee each acknowledge that the Trustee will follow the security procedures set forth below with respect to funds transferred from the Trust Account. The Company and the Trustee will each restrict access to confidential information relating to such security procedures to authorized persons. Each party must notify the other party immediately if it has reason to believe unauthorized persons may have obtained access to such information, or of any change in its authorized personnel. In executing funds transfers, the Trustee will rely upon all information supplied to it by the Company, including account names, account numbers and all other identifying information relating to a beneficiary, beneficiary’s bank or intermediary bank. Except for any liability arising out of the Trustee’s gross negligence, fraud or willful misconduct, the Trustee shall not be liable for any loss, liability or expense resulting from any error in the information or transmission of the wire.
(b) This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. It may be executed in several original or facsimile counterparts, each one of which shall constitute an original, and together shall constitute but one instrument.
(c) This Agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter hereof. Except for Sections 1(i), 1(k), 1(l), 1(m), 3(i), 3(j), 7(c) and 7(h) (which may only be amended with the approval of the holders of at least 50% or more of the ordinary shares present or represented at the meeting, no par value, of the Company voting together as a single class, provided that all Public Shareholders must be given the right to receive a pro-rata portion of the trust account (no less than $10.05 per share) in connection with any such amendment), this Agreement or any provision hereof may only be changed, amended or modified by a writing signed by each of the parties hereto; provided, however, that no such change, amendment or modification may be made without the prior written consent of Lucid Capital Markets. As to any claim, cross-claim or counterclaim in any way relating to this Agreement, each party waives the right to trial by jury. The Trustee may require from Company counsel an opinion as to the propriety of any proposed amendment.
(d) The parties hereto consent to the jurisdiction and venue of any state or federal court located in the City of New York, Borough of Manhattan, for purposes of resolving any disputes hereunder.
(e) Any notice, consent or request to be given in connection with any of the terms or provisions of this Agreement shall be in writing and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery, by electronic mail or by facsimile transmission:
if to the Trustee, to:
Continental Stock Transfer & Trust Company
One State Street, 30th Floor
New York, New York 10004
Attn: Francis Wolf & Celeste Gonzalez
Email: fwolf@continentalstock.com
Email: cgonzalez@continentalstock.com
8
if to the Company, to:
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai, Hong Kong
Attn: Satoshi Tominaga, Chief Executive Officer
E-mail: stominaga8@outlook.com
in either case with a copy (which copy shall not constitute notice) to:
Lucid Capital Markets, LLC
570 Lexington Avenue, 40^th^Floor
New York, NY 10022
Attn: Jeffrey Caliva
E-mail: JCaliva@lucidcm.com
and
Loeb & Loeb LLP
2206-19 Jardine House
1 Connaught Place
Central Hong Kong SAR
Attn: Lawrence Venick, Esq.
E-mail: lvenick@loeb.com
and
Blank Rome LLP
1271 Avenue of the Americas
New York, New York 10020
Attn: Brad L. Shiffman
E-mail: brad.shiffman@blankrome.com
(f) This Agreement may not be assigned by either party without the prior written consent of other party.
(g) Each of the Trustee and the Company hereby represents that it has the full right and power and has been duly authorized to enter into this Agreement and to perform its respective obligations as contemplated hereunder.
(h) Each of the Company and the Trustee hereby acknowledge that Lucid Capital Markets is a third-party beneficiary of this Agreement.
[signature page follows]
9
IN WITNESS WHEREOF, the parties have duly executed this Investment Management Trust Agreement as of the date first written above.
| Continental Stock Transfer & Trust Company, as Trustee | ||
|---|---|---|
| By: | /s/ Francis Wolf | |
| Name: | Francis Wolf | |
| Title: | Vice President | |
| YHN ACQUISITION I LIMITED | ||
| By: | /s/ Satoshi Tominaga | |
| Name: | Satoshi Tominaga | |
| Title: | Chief Executive Officer |
SCHEDULE A
| Fee Item | Time and method of payment | Amount |
|---|---|---|
| Initial acceptance fee | Initial closing of IPO by wire transfer | $3,500 |
| Annual fee | Initial closing of IPO by wire transfer; thereafter on the anniversary of the effective date of the IPO by wire transfer or check | $10,000 |
| Transaction processing fee for disbursements to Company under Section 2 | Deduction by Trustee from accumulated income following disbursement made to Company under Section 2 | $250 |
| Paying Agent services as required pursuant to section 1(i) | Billed to Company upon delivery of service pursuant to section 1(i) | Prevailing rates |
EXHIBIT A
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
One State Street, 30th Floor
New York, New York 10004
Attn: Francis Wolf & Celeste Gonzalez
| Re: | Trust Account - Termination Letter |
|---|
Dear Mr. Wolf and Ms. Gonzalez::
Pursuant to Section 1(i) of the Investment Management Trust Agreement between YHN Acquisition I Limited (“Company”) and Continental Stock Transfer & Trust Company (“Trustee”), dated as of September 17, 2024 (“Trust Agreement”), this is to advise you that the Company has entered into an agreement with [__________________] (“Target Business”) to consummate a business combination with Target Business (“Business Combination”) on or about [insert date]. The Company shall notify you at least (72) hours in advance of the actual date of the consummation of the Business Combination (“Consummation Date”). Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Trust Agreement.
In accordance with the terms of the Trust Agreement, we hereby authorize you to liquidate the Trust Account investments and to transfer the proceeds to the above-referenced account at JP Morgan Chase Bank, N.A., to the effect that, on the Consummation Date, all of funds held in the Trust Account will be immediately available for transfer to the account or accounts that the Company shall direct on the Consummation Date (including as directed to it by the Representative on behalf of the Underwriters (with respect to the Deferred Underwriting Fees)). It is acknowledged and agreed that while the funds are on deposit in the trust account awaiting distribution, the Company will not earn any interest or dividends.
On the Consummation Date (i) counsel for the Company shall deliver to you written notification that the Business Combination has been consummated, and (ii) the Company shall deliver to you an affidavit of the Chief Executive Officer, which verifies the vote of the Company’s shareholders in connection with the Business Combination if a vote is held and (b) joint written instructions from the Company and Lucid Capital Markets, LLC with respect to the transfer of the funds held in the Trust Account, including payment of the Deferred Underwriting Fees to the Representative, and which must provide for the disbursement of no less than $10.05 per share to redeeming Public Shareholders (“Instruction Letter”). You are hereby directed and authorized to transfer the funds held in the Trust Account immediately upon your receipt of the counsel’s letter and the Instruction Letter, in accordance with the terms of the Instruction Letter. In the event that certain deposits held in the Trust Account may not be liquidated by the Consummation Date without penalty, you will notify the Company of the same and the Company shall direct you as to whether such funds should remain in the Trust Account and distributed after the Consummation Date to the Company. Upon the distribution of all the funds in the Trust Account pursuant to the terms hereof, the Trust Agreement shall be terminated.
A-1
In the event that the Business Combination is not consummated on the Consummation Date described in the notice thereof and we have not notified you on or before the original Consummation Date of a new Consummation Date, then upon receipt by the Trustee of written instructions from the Company, the funds held in the Trust Account shall be reinvested as provided in the Trust Agreement on the business day immediately following the Consummation Date as set forth in the notice.
| Very truly yours, |
|---|
| YHN ACQUISITION I LIMITED |
| By: |
| Name: |
| Title: |
| Acknowledged and Agreed: |
| --- |
| Lucid Capital Markets, LLC |
| By: |
| Name: |
| Title: |
A-2
EXHIBIT B
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
One State Street, 30th Floor
New York, New York 10004
Attn: Francis Wolf & Celeste Gonzalez
Re: Trust Account - Termination Letter
Dear Mr. Wolf and Ms. Gonzalez:
Pursuant to Section 1(i) of the Investment Management Trust Agreement between YHN Acquisition I Limited (“Company”) and Continental Stock Transfer & Trust Company (“Trustee”), dated as of September 17, 2024 (“Trust Agreement”), this is to advise you that the Company has been unable to effect a Business Combination with a Target Company within the time frame specified in the Company’s Amended and Restated Memorandum and Articles of Association, as described in the Company’s prospectus relating to its IPO. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Trust Agreement.
In accordance with the terms of the Trust Agreement, we hereby authorize you to liquidate all the Trust Account investments and to transfer the total proceeds to the Trust Operating Account at JP Morgan Chase Bank, N.A. to await distribution to the Public Shareholders. The Company has selected [____________, 20__] as the effective date for the purpose of determining when the Public Shareholders will be entitled to receive their share of the liquidation proceeds. It is acknowledged that no interest will be earned by the Company on the liquidation proceeds while on deposit in the Trust Operating Account. You agree to be the Paying Agent of record and in your separate capacity as Paying Agent, to distribute the said funds directly to the Public Shareholders in accordance with the terms of the Trust Agreement and the Amended and Restated Memorandum and Articles of Association of the Company. Upon the distribution of all the funds in the Trust Account, your obligations under the Trust Agreement shall be terminated.
| Very truly yours, | |
|---|---|
| YHN Acquisition I Limited | |
| By: | |
| Name: | |
| Title: | |
| cc: Lucid Capital Markets, LLC |
B-1
EXHIBIT C
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
Attn: One State Street, 30th Floor
New York, New York 10004
Attn: Francis Wolf & Celeste Gonzalez
Re: Trust Account - Tax Payment Withdrawal Instruction
Dear Mr. Wolf and Ms. Gonzalez:
Pursuant to Section 1(j) and 2(a) of the Investment Management Trust Agreement between YHN Acquisition I Limited (“Company”) and Continental Stock Transfer & Trust Company (“Trustee”), dated as of September 17, 2024 (“Trust Agreement”), the Company hereby requests that you deliver to the Company [$_______] of the interest income earned on the Property as of the date hereof. The Company needs such funds to pay for its tax obligations. In accordance with the terms of the Trust Agreement, you are hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of this letter to the Company’s operating account at:
[WIRE INSTRUCTION INFORMATION]
| YHN Acquisition I Limited | |
|---|---|
| By: | |
| Name: | |
| Title: | |
| cc: Lucid Capital Markets, LLC |
C-1
EXHIBIT D
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
One State Street, 30th Floor
New York, New York 10004
Attn: Francis Wolf & Celeste Gonzalez
| Re: | Trust Account - Irrevocable Instruction in Connection with Business Combination |
|---|
Dear Mr. Wolf and Ms. Gonzalez :
Pursuant to Sections 1(k) and 3(i) of the Investment Management Trust Agreement between YHN Acquisition I Limited (“Company”) and Continental Stock Transfer & Trust Company (“Trustee”), dated as of September 17, 2024 (“Trust Agreement”), this constitutes our irrevocable instruction to you to (i) in conjunction with the Business Combination (as defined in the Trust Agreement), disburse a per share amount of $______, for a total disbursement of $__________________which is not less than $10.05 to ________________ (the “Shareholder”) for the _____________________ shares of the Company’s ordinary shares delivered to you prior to or concurrently herewith for redemption in connection with the Business Combination, and (ii) deliver to the Shareholder the amounts specified in clause (i) prior to making disbursements to the Depository Trust Company, the Company, or any person. The Shareholder wire instructions are attached. A share advice or DWAC instruction from our broker is also attached.
The Company shall indemnify you and your officers, directors, principals, partners, agents and representatives, and hold each of them harmless from and against any and all loss, liability, damage, claim or expense (including the reasonable fees and disbursements of its attorneys) incurred by or asserted against you or any of them arising out of or in connection with the instructions set forth herein, the performance of your duties hereunder and otherwise in respect hereof, including the costs and expenses of defending yourself or themselves against any claim or liability hereunder, except that the Company shall not be liable hereunder as to matters in respect of which it is determined that you have acted with gross negligence .. You shall have no liability to the Company in respect to any action taken or any failure to act in respect of this if such action was taken or omitted to be taken in good faith, and you shall be entitled to rely in this regard on the advice of counsel.
The Board of Directors of the Company has approved the foregoing irrevocable instructions and does hereby extend the Company’s irrevocable agreement to indemnify your firm for all loss, liability or expense in carrying out the authority and direction herein contained on the terms herein set forth.
The Shareholder is intended to be and is a third party beneficiary of this letter and the irrevocable instructions set forth herein, and no amendment or modification to the instructions set forth herein may be made without the prior written consent of the Shareholder.
[remainder of page intentionally left blank]
D-1
By signing below, the person executing this letter certifies that they are duly authorized to execute this letter on behalf of the Company and to bind the Company to all of the terms and conditions contained herein.
| Very truly yours, |
|---|
| YHN Acquisition I Limited |
| By: |
| Name: |
| Title: |
| Acknowledged and Agreed: |
| --- |
| Continental Stock Transfer & Trust Company, as Trustee |
| Name: |
| Title: |
Cc: [SHAREHOLDER].
Attachments:
Shareholder Wire Instructions
Share advice or instruction
D-2
EXHIBIT E
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
Attn: One State Street, 30th Floor
New York, New York 10004
Attn: Francis Wolf & Celeste Gonzalez
| Re: | Trust Account - Irrevocable Instruction in Connection with Business Combination |
|---|
Dear Mr. Wolf and Ms. Gonzalez:
Pursuant to Sections 1(m) and 3(j) of the Investment Management Trust Agreement between YHN Acquisition I Limited (“Company”) and Continental Stock Transfer & Trust Company (“Trustee”), dated as of September 17, 2024 (“Trust Agreement”), this constitutes our irrevocable instruction to you to (i) in conjunction with the Business Combination (as defined in the Trust Agreement), disburse a per share amount of $______, for a total disbursement of $_________________which is not less than $10.05 per share to ________________ (the “Shareholder”) for the _____________________ shares of the Company’s ordinary shares delivered to you prior to or concurrently herewith for redemption in connection with the Business Combination, and (ii) deliver to the Shareholder the amounts specified in clause (i) prior to making disbursements to the Depository Trust Company, the Company, or any person. Our wire instructions are attached. We understand that a servicing fee of $[*] will deducted from our payment. A share advice or DWAC instruction from our broker is attached.
The Company shall indemnify you and your officers, directors, principals, partners, agents and representatives, and hold each of them harmless from and against any and all loss, liability, damage, claim or expense (including the reasonable fees and disbursements of its attorneys) incurred by or asserted against you or any of them arising out of or in connection with the instructions set forth herein, the performance of your duties hereunder and otherwise in respect hereof, including the costs and expenses of defending yourself or themselves against any claim or liability hereunder, except that the Company shall not be liable hereunder as to matters in respect of which it is determined that you have acted with gross negligence .. You shall have no liability to the Company in respect to any action taken or any failure to act in respect of this if such action was taken or omitted to be taken in good faith, and you shall be entitled to rely in this regard on the advice of counsel.
The Board of Directors of the Company does hereby extend the Company’s irrevocable agreement to indemnify your firm for all loss, liability or expense in carrying out the authority and direction herein contained on the terms herein set forth.
No amendment or modification to the instructions set forth herein may be made without the prior written consent of the Shareholder.
[remainder of page intentionally left blank]
E-1
By signing below, the person executing this letter certifies that they are duly authorized to execute this letter on behalf of the Shareholder and to bind the Shareholder to all of the terms and conditions contained herein.
| Very truly yours, |
|---|
| [SHAREHOLDER] |
| By: |
| Name: |
| Title: |
| Acknowledged and Agreed: |
| --- |
| Continental Stock Transfer & Trust Company, as Trustee |
| Name: |
| Title: |
Cc: YHN Acquisition I Limited 2/F, Hang Seng Building 200 Hennessy Road, Wanchai Hong Kong **** Attn: Satoshi Tominaga, Chief Executive Officer
Attachments:
Shareholder Wire Instructions
Share advice or instruction
E-2
EXHIBIT F
[Letterhead of Company]
[Insert date]
Continental Stock Transfer & Trust Company
One State Street, 30th Floor
New York, New York 10004
Attn: Francis Wolf & Celeste Gonzalez
Re: Trust Account – Shareholder Redemption Withdrawal Instruction
Dear Mr. Wolf and Ms. Gonzalez:
YHN Acquisition I Limited (the “Company”) hereby requests that you deliver to the redeeming Public Shareholders on behalf of the Company $___________ of the principal and interest income earned on the Property as of the date hereof. Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.
The funds as described above are needed to pay the Public Shareholders who have properly elected to have their ordinary shares redeemed by the Company in connection with a shareholder vote to approve an amendment to the Company’s amended and restated memorandum and articles of association (A) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with its initial Business Combination or to redeem 100% of the Company’s public ordinary shares if the Company does not complete its initial Business Combination within the time period set forth therein or (B) with respect to any other provision relating to the Company’s shareholders’ rights or pre-initial Business Combination activity. As such, you are hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of this letter to the redeeming Public Shareholders in accordance with your customary procedures.
| Very truly yours, | ||
|---|---|---|
| YHN Acquisition I Limited | ||
| By: | ||
| Name: | ||
| Title: | ||
| cc: Lucid Capital Markets, LLC |
F-1
Exhibit 10.4
STOCK ESCROW AGREEMENT
STOCK ESCROW AGREEMENT, dated as of September 17, 2024 (“Agreement”), by and among YHN ACQUISITION I LIMITED, a British Virgin Islands Company (the “Company”), the initial shareholders listed on Exhibit A attached hereto (each, an “Initial Shareholder” and collectively the “Initial Shareholders”) and Continental Stock Transfer & Trust Company, a New York limited liability trust company (the “Escrow Agent”).
WHEREAS, the Company has entered into an Underwriting Agreement, dated as of September 17, 2024 (“Underwriting Agreement”), with Lucid Capital Markets, LLC, (“Lucid”), acting as the representative of the underwriter (the “Underwriter”), pursuant to which, among other matters, the Underwriters have agreed to purchase 6,000,000 units (“Units”) of the Company, plus an additional 900,000 Units if the Underwriters exercise their over-allotment option in full. Each Unit consists of one ordinary share of the Company with no par value (an “Ordinary Share”), and one right to receive one-tenth (1/10) of one Ordinary Share upon the consummation of an initial business combination, all as more fully described in the Company’s final Prospectus, dated on or around September 17, 2024 (“Prospectus”), comprising part of the Company’s Registration Statement on Form S-1 (File No. 333-279308) under the Securities Act of 1933, as amended (“Registration Statement”), declared effective on September 17, 2024 (“Effective Date”).
WHEREAS, the Initial Shareholders have agreed as a condition of the sale of the Units to deposit their Insider Shares (as defined in the Prospectus), as set forth opposite their respective names in Exhibit A attached hereto (collectively “Escrow Shares”), in escrow as hereinafter provided.
WHEREAS, the Company and the Initial Shareholders desire that the Escrow Agent accept the Escrow Shares, in escrow, to be held and disbursed as hereinafter provided.
IT IS AGREED:
1. Appointment of Escrow Agent. The Company and the Initial Shareholders hereby appoint the Escrow Agent to act in accordance with and subject to the terms of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance with and subject to such terms.
2. Deposit of Escrow Shares. On or prior to the date hereof, each of the Initial Shareholders delivers to the Escrow Agent certificates representing such Initial Shareholder’s respective Escrow Shares, together with applicable share powers, to be held and disbursed subject to the terms and conditions of this Agreement. Each of the Initial Shareholders acknowledges that the certificate representing such Initial Shareholder’s Escrow Shares is legended to reflect the deposit of such Escrow Shares under this Agreement.
3. Disbursement of the Escrow Shares.
3.1 The Escrow Agent shall hold the Escrow Shares during the period (the “Escrow Period”) commencing on the date hereof and ending on the earlier of (x) 150 days after the date of the consummation of the Company’s initial business combination if the closing price of the Ordinary Share equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing after the Company’s initial business combination (as described in the Registration Statement, hereinafter a “Business Combination”), (y) 180 days after the date of the consummation of an initial Business Combination, or (z) after the date of the consummation of our initial business combination, and subsequently, we consummate a liquidation, merger, share exchange or other similar transaction which results in all of our shareholders having the right to exchange their shares for cash, securities or other property. The Company shall promptly provide written notice of the consummation of an initial Business Combination and the completion of the Escrow Period to the Escrow Agent. Upon completion of the Escrow Period, the Escrow Agent shall disburse such amount of each Initial Shareholder’s Escrow Shares (and any applicable share power) to such Initial Shareholder; provided, however, that if the Escrow Agent is notified by the Company pursuant to Section 6.7 hereof that the Company is being liquidated at any time during the Escrow Period, then the Escrow Agent shall promptly destroy the certificates representing the Escrow Shares; provided further, however, that if, any time after the Company consummates an initial Business Combination, the Company (or the surviving entity) subsequently consummates a liquidation, merger, stock exchange or other similar transaction which results in all of the shareholders of such entity having the right to exchange their Ordinary Shares for cash, securities or other property, then the Escrow Agent will, upon receipt of a written notice executed by the Chairman of the Board, Chief Executive Officer or other authorized officer of the Company, in form reasonably acceptable to the Escrow Agent, certifying that such transaction is then being consummated or such conditions have been achieved, as applicable, release the Escrow Shares to the Initial Shareholders. The Escrow Agent shall have no further duties hereunder after the disbursement or destruction of the Escrow Shares in accordance with this Section 3.
3.2 Notwithstanding Section 3.1, if the Underwriters do not exercise their over-allotment option to purchase an additional 900,000 Units of the Company in full within 45 days of the date of the Prospectus (as described in the Underwriting Agreement), the Initial Shareholders agree that the Escrow Agent shall return to the Company for cancellation, at no cost, the number of Escrow Shares held by each such holder determined by multiplying (a) the product of (i) 900,000 multiplied by (ii) a fraction, (x) the numerator of which is the number of Escrow Shares held by each such holder, and (y) the denominator of which is the total number of Escrow Shares, by (b) a fraction, (i) the numerator of which is 900,000 minus the number of Ordinary Shares purchased by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator of which is 900,000. The Company shall promptly provide written notice to the Escrow Agent of the expiration or termination of the Underwriters’ over-allotment option and the number of Units, if any, purchased by the Underwriters in connection with their exercise thereof.
4. Rights of Initial Shareholders in Escrow Shares.
4.1 Voting Rights as a Shareholder. Subject to the terms of the Insider Letters described in Section 4.4 hereof and except as herein provided, the Initial Shareholders shall retain all of their rights as shareholders of the Company during the Escrow Period, including, without limitation, the right to vote such shares.
4.2 Dividends and Other Distributions in Respect of the Escrow Shares. During the Escrow Period, all dividends payable in cash with respect to the Escrow Shares shall be paid to the Initial Shareholders, but all dividends payable in shares or other non-cash property (“Non-Cash Dividends”) shall be delivered to the Escrow Agent to hold in accordance with the terms hereof. As used herein, the term “Escrow Shares” shall be deemed to include the Non-Cash Dividends distributed thereon, if any.
4.3 Restrictions on Transfer. During the Escrow Period, the only permitted transfers of the Escrow Shares will be (i) to the Company’s pre-IPO shareholders, Lucid Capital Markets, LLC, or to the Company’s officers, directors, advisors and employees, (ii) if the Initial Shareholder is an entity, as a distribution to partners, members or shareholders of the Initial Shareholder upon the liquidation and dissolution of the Initial Shareholder, (iii) by bona fide gift to a member of the Initial Shareholder’s immediate family or to a trust, the beneficiary of which is the Initial Shareholder or a member of the Initial Shareholder’s immediate family for estate planning purposes, (iv) by virtue of the laws of descent and distribution upon death of the Initial Shareholder, (v) pursuant to a qualified domestic relations order, (vi) by certain pledges to secure obligations incurred in connection with purchases of the Company’s securities, (vii) by private sales made in connection with the consummation of a Business Combination at prices no greater than the price at which the shares were originally purchased or (viii) to the Company for cancellation in accordance with Section 3.2 above or in connection with the consummation of a Business Combination, in each case, except for clause (vii), on the condition that such transfers may be implemented only upon the respective transferee’s written agreement to be bound by the terms and conditions of this Agreement and of the Insider Letter (as defined below) signed by the Initial Shareholder transferring the Escrow Shares.
4.4 Insider Letters. Each of the Initial Shareholders has executed a letter agreement with Lucid and the Company, dated as indicated on Exhibit A hereto, and the form of which is filed as an exhibit to the Registration Statement (“Insider Letter”), respecting the rights and obligations of such Initial Shareholder in certain events, including but not limited to the liquidation of the Company.
5. Concerning the Escrow Agent.
5.1 Good Faith Reliance. The Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons. The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall have given its prior written consent thereto.
2
5.2 Indemnification. The Escrow Agent shall be indemnified and held harmless by the Company from and against any expenses, including reasonable counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, or the Escrow Shares held by it hereunder, other than expenses or losses arising from the gross negligence or willful misconduct of the Escrow Agent. Promptly after the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent shall notify the other parties hereto in writing. In the event of the receipt of such notice, the Escrow Agent, in its sole discretion, may commence an action in the nature of interpleader in an appropriate court to determine ownership or disposition of the Escrow Shares or it may deposit the Escrow Shares with the clerk of any appropriate court or it may retain the Escrow Shares pending receipt of a final, non-appealable order of a court having jurisdiction over all of the parties hereto directing to whom and under what circumstances the Escrow Shares are to be disbursed and delivered. The provisions of this Section 5.2 shall survive in the event the Escrow Agent resigns or is discharged pursuant to Sections 5.5 or 5.6 below.
5.3 Compensation. The Escrow Agent shall be entitled to reasonable compensation from the Company for all services rendered by it hereunder. The Escrow Agent shall also be entitled to reimbursement from the Company for all expenses paid or incurred by it in the administration of its duties hereunder including, but not limited to, all counsel, advisors’ and agents’ fees and disbursements and all taxes or other governmental charges.
5.4 Further Assurances. From time to time on and after the date hereof, the Company and the Initial Shareholders shall deliver or cause to be delivered to the Escrow Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall reasonably request to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.
5.5 Resignation. The Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto written notice and such resignation shall become effective as hereinafter provided. Such resignation shall become effective at such time that the Escrow Agent shall turn over to a successor escrow agent appointed by the Company, the Escrow Shares held hereunder. If no new escrow agent is so appointed within the 60 day period following the giving of such notice of resignation, the Escrow Agent may deposit the Escrow Shares with any court it reasonably deems appropriate.
5.6 Discharge of Escrow Agent. The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing at any time by the other parties hereto, jointly, provided, however, that such resignation shall become effective only upon acceptance of appointment by a successor escrow agent as provided in Section 5.5.
5.7 Liability. Notwithstanding anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder for its own gross negligence or its own willful misconduct.
5.8 Waiver. The Escrow Agent hereby waives any right of set-off or any other right, title, interest or claim of any kind (“Claim”) in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by and between the Company and the Escrow Agent as trustee thereunder) and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever.
6. Miscellaneous.
6.1 Governing Law. This Agreement shall for all purposes be deemed to be made under and shall be construed in accordance with the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction.
3
6.2 Third Party Beneficiaries. Each of the Initial Shareholders hereby acknowledges that Lucid is a third party beneficiary of this Agreement and this Agreement may not be modified or changed without the prior written consent of Lucid.
6.3 Entire Agreement. This Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and, except as expressly provided herein, may not be changed or modified except by an instrument in writing signed by the party to the charged.
6.4 Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation thereof.
6.5 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors and assigns.
6.6 Notices. Any notice or other communication required or which may be given hereunder shall be in writing and either be delivered personally or be mailed, certified or registered mail, or by private national courier service, return receipt requested, postage prepaid, by electronic mail or by facsimile transmission and shall be deemed given when so delivered personally or, if mailed, two days after the date of mailing, as follows:
If to the Company, to:
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Attn: Satoshi Tominaga
E-mail: stominaga8@outlook.com
If to an Initial Shareholder, to his address set forth in Exhibit A.
and if to the Escrow Agent, to:
Continental Stock Transfer & Trust Company
1 State Street, 30th Floor
New York, NY 10004-1561
Attn: Reorg Department
A copy (which copy shall not constitute notice) sent hereunder shall be sent to:
Lucid Capital Markets, LLC
570 Lexington Avenue, 40th Floor
New York, NY 10022
Attn: Jeffrey Caliva
E-mail: JCaliva@lucidcm.com
and:
Loeb & Loeb LLP
345 Park Avenue
New York, New York 10154
Attn: Lawrence Venick, Esq.
E-mail: lvenick@loeb.com
and:
Blank Rome LLP
1271 Avenue of the Americas
New York, New York 10020
Attn: Brad L. Shiffman, Esq.
E-mail: brad.shiffman@blankrome.com
The parties may change the persons and addresses to which the notices or other communications are to be sent by giving written notice to any such change in the manner provided herein for giving notice.
6.7 Liquidation of the Company. The Company shall give the Escrow Agent written notification of the liquidation and dissolution of the Company in the event that the Company fails to consummate a Business Combination within the time period specified in the Prospectus.
[Signature Page Follows]
4
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first written above.
| COMPANY: | ||
|---|---|---|
| YHN ACQUISITION I LIMITED | ||
| By: | /s/ Satoshi Tominaga | |
| Name: Satoshi Tominaga | ||
| Title: Chief Executive Officer | ||
| INITIAL SHAREHOLDERS: | ||
| --- | --- | |
| /s/ Satoshi Tominaga | ||
| Satoshi Tominaga | ||
| /s/ Yangyujia An | ||
| Yangyujia An | ||
| /s/ Zhengming Feng | ||
| Zhengming Feng | ||
| /s/ Donghui Xu | ||
| Donghui Xu | ||
| /s/ Min Zhang | ||
| Min Zhang | ||
| YHN Partners I Limited | ||
| --- | --- | |
| By: | /s/ Pui Chun Wong | |
| Name: | Pui Chun Wong | |
| Title: | Director | |
| CONTINENTAL STOCK TRANSFER & TRUST COMPANY | ||
| --- | --- | --- |
| By: | /s/ Leicia Savinetti | |
| Name: | Leicia Savinetti | |
| Title: | Vice President |
Signature Page to YHN Stock Escrow Agreement
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EXHIBIT A
| Name and Address of Initial Shareholder^1^ | Number<br> of Shares | Date of Insider Letter | |
|---|---|---|---|
| YHN Partners I Limited | 1,600,000 | September 17, 2024 | |
| Satoshi Tominaga | 30,000 | September 17, 2024 | |
| Yangyujia An | 30,000 | September 17, 2024 | |
| Zhengming Feng | 25,000 | September 17, 2024 | |
| Donghui Xu | 20,000 | September 17, 2024 | |
| Min Zhang | 20,000 | September 17, 2024 | |
| ^1^ | The address of each of the individuals is c/o YHN Acquisition<br>I Limited, 2/F, Hang Seng Building, 200 Hennessy Road, Wanchai, Hong Kong. | ||
| --- | --- |
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Exhibit 10.5
REGISTRATION RIGHTS AGREEMENT
THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered into as of the September 17, 2024, by and among YHN Acquisition I Limited, a British Virgin Islands company (the “Company”) and the undersigned parties listed under Investor on the signature page hereto (each, an “Investor” and collectively, the “Investors”).
WHEREAS, the Investors and the Company desire to enter into this Agreement to provide the Investors with certain rights relating to the registration of the securities held by them as of the date hereof;
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
- DEFINITIONS. The following capitalized terms used herein have the following meanings:
“Agreement” means this Agreement, as amended, restated, supplemented, or otherwise modified from time to time.
“Business Combination” means the acquisition of direct or indirect ownership through a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar type of transaction, of one or more businesses or entities.
“Commission” means the Securities and Exchange Commission, or any other Federal agency then administering the Securities Act or the Exchange Act.
“Company” is defined in the preamble to this Agreement.
“Demand Registration” is defined in Section 2.1.1.
“Demanding Holder” is defined in Section 2.1.1.
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the time.
“Form S-3” is defined in Section 2.3.
“Indemnified Party” is defined in Section 4.3.
“IndemnifyingParty” is defined in Section 4.3.
“Initial Shares” means all of the outstanding Ordinary Shares issued prior to the consummation of the Company’s initial public offering.
“Investor” is defined in the preamble to this Agreement.
“Investor IndemnifiedParty” is defined in Section 4.1.
“Maximum Numberof Shares” is defined in Section 2.1.4.
“Notices” is defined in Section 6.3.
“Piggy-Back Registration” is defined in Section 2.2.1.
“Ordinary Shares” means the ordinary shares of the Company, with no par value.
“Over-AllotmentUnits” means the additional number of Private Units the Sponsor will be required to purchase in the event that the underwriters in the Company’s initial public offering exercise their over-allotment option, as described in the prospectus relating to the Company’s initial public offering.
“Private Units” means up to 268,900 Units, 250,000 of which the Sponsor is privately purchasing simultaneously with the consummation of the Company’s initial public offering and up to 18,900 Units that the Sponsor has agreed to purchase if the underwriter exercises its over-allotment option.
“Registration” mean a registration effected by preparing and filing a registration statement or similar document in compliance with the requirements of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such registration statement becoming effective.
“Registrable Securities” means (i) the Initial Shares, (ii) the Private Units (and underlying securities), (iii) the Over-Allotment Units (and underlying securities), if any, and (iv) any securities issuable upon conversion of loans from Investors to the Company for the Company’s payment of its working capital, if any (the “Working Capital Loan Securities”). Registrable Securities include any shares of capital stock or other securities of the Company issued as a dividend or other distribution with respect to or in exchange for or in replacement of such Initial Shares, Private Units (and underlying securities), Over-Allotment Units (and underlying securities) and Working Capital Loan Securities. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when: (a) a Registration Statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have been sold, transferred, disposed of or exchanged in accordance with such Registration Statement; (b) such securities shall have been otherwise transferred, new certificates for them not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent public distribution of them shall not require registration under the Securities Act; (c) such securities shall have ceased to be outstanding, or (d) the Registrable Securities are freely saleable under Rule 144 without volume limitations.
“RegistrationStatement” means a registration statement filed by the Company with the Commission in compliance with the Securities Act and the rules and regulations promulgated thereunder for a public offering and sale of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into, equity securities (other than a registration statement on Form S-4 or Form S-8, or their successors, or any registration statement covering only securities proposed to be issued in exchange for securities or assets of another entity).
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“Release Date” means the date on which the Initial Shares are disbursed from escrow pursuant to Section 3 of that certain Stock Escrow Agreement dated as of September 17, 2024 by and among the Investors and Continental Stock Transfer & Trust Company.
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the time.
“Sponsor” means YHN Partners I Limited, a British Virgin Islands company.
“Underwriter” means a securities dealer who purchases any Registrable Securities as principal in an underwritten offering and not as part of such dealer’s market-making activities.
“Units” means the units of the Company, each comprised of one Ordinary Share and one right to receive one-tenth (1/10) of one Ordinary Share.
- REGISTRATION RIGHTS.
2.1 Demand Registration.
2.1.1 Request for Registration. At any time and from time to time on or after (i) the date that the Company consummates a Business Combination with respect to the Private Units (or underlying securities), Over-Allotment Units (or underlying securities) and Working Capital Loan Securities or (ii) three months prior to the Release Date with respect to all other Registrable Securities, the holders of a majority-in-interest of the Registrable Securities, as the case may be, held by the Investors, officers or directors of the Company or their affiliates, or the transferees of the Investors, may make a written demand, on no more than three occasions, for registration under the Securities Act of all or part of their Registrable Securities, as the case may be (a “Demand Registration”). Any demand for a Demand Registration shall specify the number of shares of Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. The Company will notify, in writing, all holders of Registrable Securities of the demand, with ten (10) days of the Company’s receipt of such demand, and each holder of Registrable Securities who wishes to include all or a portion of such holder’s Registrable Securities in the Demand Registration (each such holder including shares of Registrable Securities in such registration, a “Demanding Holder”) shall so notify the Company within fifteen (15) days after the receipt by the holder of the notice from the Company. Upon any such request, the Demanding Holders shall be entitled to have their Registrable Securities included in the Demand Registration, subject to Section 2.1.4 and the provisions set forth in Section 3.1.1. The Company shall not be obligated to effect more than an aggregate of three (3) Demand Registrations under this Section 2.1.1 in respect of all Registrable Securities.
2.1.2 Effective Registration. A registration will not count as a Demand Registration until the Registration Statement filed with the Commission with respect to such Demand Registration has been declared effective and the Company has complied with all of its obligations under this Agreement with respect thereto; provided, however, that if, after such Registration Statement has been declared effective, the offering of Registrable Securities pursuant to a Demand Registration is interfered with by any stop order or injunction of the Commission or any other governmental agency or court, the Registration Statement with respect to such Demand Registration will be deemed not to have been declared effective, unless and until, (i) such stop order or injunction is removed, rescinded or otherwise terminated, and (ii) a majority-in-interest of the Demanding Holders thereafter elect to continue the offering; provided, further, that the Company shall not be obligated to file a second Registration Statement until a Registration Statement that has been filed is counted as a Demand Registration or is terminated.
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2.1.3 Underwritten Offering. If a majority-in-interest of the Demanding Holders so elect and such holders so advise the Company as part of their written demand for a Demand Registration, the offering of such Registrable Securities pursuant to such Demand Registration shall be in the form of an underwritten offering. In such event, the right of any holder to include its Registrable Securities in such registration shall be conditioned upon such holder’s participation in such underwriting and the inclusion of such holder’s Registrable Securities in the underwriting to the extent provided herein. All Demanding Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the Underwriter or Underwriters selected for such underwriting by a majority-in-interest of the holders initiating the Demand Registration.
2.1.4 Reduction of Offering. If the managing Underwriter or Underwriters for a Demand Registration that is to be an underwritten offering advises the Company and the Demanding Holders in writing that the dollar amount or number of shares of Registrable Securities which the Demanding Holders desire to sell, taken together with all other Ordinary Shares or other securities which the Company desires to sell and the Ordinary Shares, if any, as to which registration has been requested pursuant to written contractual piggy-back registration rights held by other shareholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum number of shares that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution method, or the probability of success of such offering (such maximum dollar amount or maximum number of shares, as applicable, the “Maximum Number of Shares”), then the Company shall include in such registration: (i) first, the Registrable Securities as to which Demand Registration has been requested by the Demanding Holders (pro rata in accordance with the number of shares that each such Person has requested be included in such registration, regardless of the number of shares held by each such Person (such proportion is referred to herein as “Pro Rata”)) that can be sold without exceeding the Maximum Number of Shares; (ii) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (i), the Ordinary Shares or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; and (iii) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (i) and (ii), the Ordinary Shares or other securities for the account of other persons that the Company is obligated to register pursuant to written contractual arrangements with such persons and that can be sold without exceeding the Maximum Number of Shares.
2.1.5 Withdrawal. If a majority-in-interest of the Demanding Holders disapprove of the terms of any underwriting or are not entitled to include all of their Registrable Securities in any offering, such majority-in-interest of the Demanding Holders may elect to withdraw from such offering by giving written notice to the Company and the Underwriter or Underwriters of their request to withdraw prior to the effectiveness of the Registration Statement filed with the Commission with respect to such Demand Registration. If the majority-in-interest of the Demanding Holders withdraws from a proposed offering relating to a Demand Registration, then such registration shall not count as a Demand Registration provided for in Section 2.1. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders of Registrable Securities in connection with such Demand Registration as provided in Section 3.3.
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2.2 Piggy-Back Registration.
2.2.1 Piggy-Back Rights. If at any time on or after the date the Company consummates a Business Combination the Company proposes to file a Registration Statement under the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into, equity securities, by the Company for its own account or for shareholders of the Company for their account (or by the Company and by shareholders of the Company including, without limitation, pursuant to Section 2.1), other than a Registration Statement (i) filed in connection with any employee stock option or other benefit plan, (ii) for an exchange offer or offering of securities solely to the Company’s existing shareholders, (iii) for an offering of debt that is convertible into equity securities of the Company or (iv) for a dividend reinvestment plan, then the Company shall (x) give written notice of such proposed filing to the holders of Registrable Securities as soon as practicable but in no event less than ten (10) days before the anticipated filing date, which notice shall describe the amount and type of securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing Underwriter or Underwriters, if any, of the offering, and (y) offer to the holders of Registrable Securities in such notice the opportunity to register the sale of such number of shares of Registrable Securities as such holders may request in writing within five (5) days following receipt of such notice (a “Piggy-Back Registration”). The Company shall cause such Registrable Securities to be included in such registration and shall use its best efforts to cause the managing Underwriter or Underwriters of a proposed underwritten offering to permit the Registrable Securities requested to be included in a Piggy-Back Registration on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution thereof. All holders of Registrable Securities proposing to distribute their securities through a Piggy-Back Registration that involves an Underwriter or Underwriters shall enter into an underwriting agreement in customary form with the Underwriter or Underwriters selected for such Piggy-Back Registration.
2.2.2 Reduction of Offering. If the managing Underwriter or Underwriters for a Piggy-Back Registration that is to be an underwritten offering advises the Company and the holders of Registrable Securities in writing that the dollar amount or number of Ordinary Shares which the Company desires to sell, taken together with the Ordinary Shares, if any, as to which registration has been demanded pursuant to written contractual arrangements with persons other than the holders of Registrable Securities hereunder, the Registrable Securities as to which registration has been requested under this Section 2.2, and the Ordinary Shares, if any, as to which registration has been requested pursuant to the written contractual piggy-back registration rights of other shareholders of the Company, exceeds the Maximum Number of Shares, then the Company shall include in any such registration:
a) If the registration is undertaken for the Company’s account: (A) first, the Ordinary Shares or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), the Ordinary Shares or other securities, if any, comprised of Registrable Securities, as to which registration has been requested pursuant to the applicable written contractual piggy-back registration rights of such security holders, Pro Rata, that can be sold without exceeding the Maximum Number of Shares; and (C) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A) and (B), the Ordinary Shares or other securities for the account of other persons that the Company is obligated to register pursuant to written contractual piggy-back registration rights with such persons and that can be sold without exceeding the Maximum Number of Shares;
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b) If the registration is a “demand” registration undertaken at the demand of persons other than either the holders of Registrable Securities, (A) first, the Ordinary Shares or other securities for the account of the demanding persons that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), the Ordinary Shares or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; (C) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A) and (B), collectively the Ordinary Shares or other securities comprised of Registrable Securities, Pro Rata, as to which registration has been requested pursuant to the terms hereof, that can be sold without exceeding the Maximum Number of Shares; and (D) fourth, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A), (B) and (C), the Ordinary Shares or other securities for the account of other persons that the Company is obligated to register pursuant to written contractual arrangements with such persons, that can be sold without exceeding the Maximum Number of Shares.
2.2.3 Withdrawal. Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable Securities in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness of the Registration Statement. The Company (whether on its own determination or as the result of a withdrawal by persons making a demand pursuant to written contractual obligations) may withdraw a Registration Statement at any time prior to the effectiveness of such Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders of Registrable Securities in connection with such Piggy-Back Registration as provided in Section 3.3.
2.3 Registrations on Form S-3. The holders of Registrable Securities may at any time and from time to time, request in writing that the Company register the resale of any or all of such Registrable Securities on Form S-3 or any similar short-form registration which may be available at such time (“Form S-3”); provided, however, that the Company shall not be obligated to effect such request through an underwritten offering. Upon receipt of such written request, the Company will promptly give written notice of the proposed registration to all other holders of Registrable Securities, and, as soon as practicable thereafter, effect the registration of all or such portion of such holder’s or holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities or other securities of the Company, if any, of any other holder or holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any such registration pursuant to this Section 2.3: (i) if Form S-3 is not available for such offering; or (ii) if the holders of the Registrable Securities, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at any aggregate price to the public of less than $500,000. Registrations effected pursuant to this Section 2.3 shall not be counted as Demand Registrations effected pursuant to Section 2.1.
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- REGISTRATION PROCEDURES.
3.1 Filings; Information. Whenever the Company is required to effect the registration of any Registrable Securities pursuant to Section 2, the Company shall use its best efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method(s) of distribution thereof as expeditiously as practicable, and in connection with any such request:
3.1.1 Filing Registration Statement. The Company shall use its best efforts to, as expeditiously as possible after receipt of a request for a Demand Registration pursuant to Section 2.1, prepare and file with the Commission a Registration Statement on any form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for the sale of all Registrable Securities to be registered thereunder in accordance with the intended method(s) of distribution thereof, and shall use its best efforts to cause such Registration Statement to become effective and use its best efforts to keep it effective for the period required by Section 3.1.3; provided, however, that the Company shall have the right to defer any Demand Registration for up to thirty (30) days, and any Piggy-Back Registration for such period as may be applicable to deferment of any demand registration to which such Piggy-Back Registration relates, in each case if the Company shall furnish to the holders a certificate signed by Chief Executive Officer or Chairman of the Company stating that, in the good faith judgment of the Board of Directors of the Company, it would be materially detrimental to the Company and its shareholders for such Registration Statement to be effected at such time; provided further, however, that the Company shall not have the right to exercise the right set forth in this provision more than once in any 365-day period in respect of a Demand Registration hereunder.
3.1.2 Copies. The Company shall, prior to filing a Registration Statement or prospectus, or any amendment or supplement thereto, furnish without charge to the holders of Registrable Securities included in such registration, and such holders’ legal counsel, copies of such Registration Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in each case including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such Registration Statement (including each preliminary prospectus), and such other documents as the holders of Registrable Securities included in such registration or legal counsel for any such holders may request in order to facilitate the disposition of the Registrable Securities owned by such holders.
3.1.3 Amendments and Supplements. The Company shall prepare and file with the Commission such amendments, including post-effective amendments, and supplements to such Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective and in compliance with the provisions of the Securities Act until all Registrable Securities and other securities covered by such Registration Statement have been disposed of in accordance with the intended method(s) of distribution set forth in such Registration Statement or such securities have been withdrawn.
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3.1.4 Notification. After the filing of a Registration Statement, the Company shall promptly, and in no event more than two (2) business days after such filing, notify the holders of Registrable Securities included in such Registration Statement of such filing, and shall further notify such holders promptly and confirm such advice in writing in all events within two (2) business days of the occurrence of any of the following: (i) when such Registration Statement becomes effective; (ii) when any post-effective amendment to such Registration Statement becomes effective; (iii) the issuance or threatened issuance by the Commission of any stop order (and the Company shall take all actions required to prevent the entry of such stop order or to remove it if entered); and (iv) any request by the Commission for any amendment or supplement to such Registration Statement or any prospectus relating thereto or for additional information or of the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of the securities covered by such Registration Statement, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the case of the prospectus, in the light of the circumstances under which they were made), not misleading, and promptly make available to the holders of Registrable Securities included in such Registration Statement any such supplement or amendment; except that before filing with the Commission a Registration Statement or prospectus or any amendment or supplement thereto, including documents incorporated by reference, the Company shall furnish to the holders of Registrable Securities included in such Registration Statement and to the legal counsel for any such holders, copies of all such documents proposed to be filed sufficiently in advance of filing to provide such holders and legal counsel with a reasonable opportunity to review such documents and comment thereon, and the Company shall not file any Registration Statement or prospectus or amendment or supplement thereto, including documents incorporated by reference, to which such holders or their legal counsel shall object.
3.1.5 State Securities Laws Compliance. The Company shall use its best efforts to (i) register or qualify the Registrable Securities covered by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in the United States as the holders of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution) may request and (ii) take such action necessary to cause such Registrable Securities covered by the Registration Statement to be registered with or approved by such other governmental authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts and things that may be necessary or advisable to enable the holders of Registrable Securities included in such Registration Statement to consummate the disposition of such Registrable Securities in such jurisdictions; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph or subject itself to taxation in any such jurisdiction.
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3.1.6 Agreements for Disposition. The Company shall enter into customary agreements (including, if applicable, an underwriting agreement in customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities. The representations, warranties and covenants of the Company in any underwriting agreement which are made to or for the benefit of any Underwriters, to the extent applicable, shall also be made to and for the benefit of the holders of Registrable Securities included in such registration statement. No holder of Registrable Securities included in such registration statement shall be required to make any representations or warranties in the underwriting agreement except, if applicable, with respect to such holder’s organization, good standing, authority, title to Registrable Securities, lack of conflict of such sale with such holder’s material agreements and organizational documents, and with respect to written information relating to such holder that such holder has furnished in writing expressly for inclusion in such Registration Statement.
3.1.7 Cooperation. The principal executive officer of the Company, the principal financial officer of the Company, the principal accounting officer of the Company and all other officers and members of the management of the Company shall cooperate fully in any offering of Registrable Securities hereunder, which cooperation shall include, without limitation, the preparation of the Registration Statement with respect to such offering and all other offering materials and related documents, and participation in meetings with Underwriters, attorneys, accountants and potential investors.
3.1.8 Records. The Company shall make available for inspection by the holders of Registrable Securities included in such Registration Statement, any Underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other professional retained by any holder of Registrable Securities included in such Registration Statement or any Underwriter, all financial and other records, pertinent corporate documents and properties of the Company, as shall be necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors and employees to supply all information requested by any of them in connection with such Registration Statement.
3.1.9 Opinions and Comfort Letters. In the case of any underwritten offering or if reasonably requested by any participant in any other offering pursuant to a Registration Statement filed pursuant to this Agreement, the Company shall obtain opinions of counsel representing the Company for the purposes of a registration pursuant to this Agreement, addressed to the holders participating in such registration, the placement agent or sales agent, if any, and the Underwriters, if any, covering such legal matters with respect to such registration in respect of which such opinion is being given as such holders, placement agent, sales agent, or Underwriter may reasonably request and as are customarily included in such opinions and negative assurance letters, and reasonably satisfactory to a holders of a majority-in-interest of the Registrable Securities included in such registration. In the case of any underwritten offering or if reasonably requested by any participant in any other offering pursuant to a Registration Statement filed pursuant to this Agreement, the Company shall obtain a “cold comfort” letters from the Company’s independent registered public accountants in the event of an underwritten public offering pursuant to this Agreement, in customary form and covering such matters of the type customarily covered by “cold comfort” letters as the managing Underwriter may reasonably request, and reasonably satisfactory to a holders of a majority-in-interest of the Registrable Securities included in such registration. The Company shall furnish to each holder of Registrable Securities included in any Registration Statement a signed counterpart, addressed to such holder, of (i) any opinion of counsel to the Company delivered to any Underwriter and (ii) any comfort letter from the Company’s independent public accountants delivered to any Underwriter.
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3.1.10 Earnings Statement. The Company shall comply with all applicable rules and regulations of the Commission and the Securities Act, and make available to its shareholders, as soon as practicable, an earnings statement covering a period of twelve (12) months, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.
3.1.11 Listing. The Company shall use its best efforts to cause all Registrable Securities included in any registration to be listed on such exchanges or otherwise designated for trading in the same manner as similar securities issued by the Company are then listed or designated or, if no such similar securities are then listed or designated, in a manner satisfactory to the holders of a majority of the Registrable Securities included in such registration.
3.1.12 Road Show. If the registration involves the registration of Registrable Securities involving gross proceeds in excess of 5,000,000, the Company shall use its reasonable efforts to make available senior executives of the Company to participate in customary “road show” presentations that may be reasonably requested by the Underwriter in any underwritten offering.
3.2 Obligation to Suspend Distribution. Upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3.1.4(iv), or, in the case of a resale registration on Form S-3 pursuant to Section 2.3 hereof, upon any suspension by the Company, pursuant to a written insider trading compliance program adopted by the Company’s Board of Directors, of the ability of all “insiders” covered by such program to transact in the Company’s securities because of the existence of material non-public information, each holder of Registrable Securities included in any registration shall immediately discontinue disposition of such Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such holder receives the supplemented or amended prospectus contemplated by Section 3.1.4(iv) or the restriction on the ability of “insiders” to transact in the Company’s securities is removed, as applicable, and, if so directed by the Company, each such holder will deliver to the Company all copies, other than permanent file copies then in such holder’s possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice.
3.3 Registration Expenses. The Company shall bear all costs and expenses incurred in connection with any Demand Registration pursuant to Section 2.1, any Piggy-Back Registration pursuant to Section 2.2, and any registration on Form S-3 effected pursuant to Section 2.3, and all expenses incurred in performing or complying with its other obligations under this Agreement, whether or not the Registration Statement becomes effective, including, without limitation: (i) all registration and filing fees; (ii) fees and expenses of compliance with securities or “blue sky” laws (including fees and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities); (iii) printing expenses; (iv) the Company’s internal expenses (including, without limitation, all salaries and expenses of its officers and employees); (v) the fees and expenses incurred in connection with the listing of the Registrable Securities as required by Section 3.1.11; (vi) Financial Industry Regulatory Authority fees; (vii) fees and disbursements of counsel for the Company and fees and expenses for independent certified public accountants retained by the Company (including the expenses or costs associated with the delivery of any opinions or comfort letters requested pursuant to Section 3.1.9); (viii) the reasonable fees and expenses of any special experts retained by the Company in connection with such registration and (ix) the reasonable fees and expenses of one legal counsel selected by the holders of a majority-in-interest of the Registrable Securities included in such registration. The Company shall have no obligation to pay any underwriting discounts or selling commissions attributable to the Registrable Securities being sold by the holders thereof, which underwriting discounts or selling commissions shall be borne by such holders. Additionally, in an underwritten offering, all selling shareholders and the Company shall bear the expenses of the Underwriter pro rata in proportion to the respective amount of shares each is selling in such offering.
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3.4 Information. The holders of Registrable Securities shall provide such information as may reasonably be requested by the Company, or the managing Underwriter, if any, in connection with the preparation of any Registration Statement, including amendments and supplements thereto, in order to effect the registration of any Registrable Securities under the Securities Act pursuant to Section 2 and in connection with the Company’s obligation to comply with Federal and applicable state securities laws.
- INDEMNIFICATION AND CONTRIBUTION.
4.1 Indemnification by the Company. The Company agrees to indemnify and hold harmless each Investor and each other holder of Registrable Securities, and each of their respective officers, employees, affiliates, directors, partners, members, attorneys and agents, and each person, if any, who controls an Investor and each other holder of Registrable Securities (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) (each, an “Investor Indemnified Party”), from and against any expenses, losses, judgments, claims, damages or liabilities, whether joint or several, arising out of or based upon any untrue statement (or allegedly untrue statement) of a material fact contained in any Registration Statement under which the sale of such Registrable Securities was registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any amendment or supplement to such Registration Statement, or arising out of or based upon any omission (or alleged omission) to state a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act or any rule or regulation promulgated thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration; and the Company shall promptly reimburse the Investor Indemnified Party for any legal and any other expenses reasonably incurred by such Investor Indemnified Party in connection with investigating and defending any such expense, loss, judgment, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such expense, loss, claim, damage or liability arises out of or is based upon any untrue statement or allegedly untrue statement or omission or alleged omission made in such Registration Statement, preliminary prospectus, final prospectus, or summary prospectus, or any such amendment or supplement, in reliance upon and in conformity with information furnished to the Company, in writing, by such selling holder expressly for use therein. The Company also shall indemnify any Underwriter of the Registrable Securities, their officers, affiliates, directors, partners, members and agents and each person who controls such Underwriter on substantially the same basis as that of the indemnification provided above in this Section 4.1.
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4.2 Indemnification by Holders of Registrable Securities. Each selling holder of Registrable Securities will, in the event that any registration is being effected under the Securities Act pursuant to this Agreement of any Registrable Securities held by such selling holder, indemnify and hold harmless the Company, each of its directors and officers and each Underwriter (if any), and each other selling holder and each other person, if any, who controls another selling holder or such Underwriter within the meaning of the Securities Act, against any losses, claims, judgments, damages or liabilities, whether joint or several, insofar as such losses, claims, judgments, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or allegedly untrue statement of a material fact contained in any Registration Statement under which the sale of such Registrable Securities was registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any amendment or supplement to the Registration Statement, or arise out of or are based upon any omission or the alleged omission to state a material fact required to be stated therein or necessary to make the statement therein not misleading, if the statement or omission was made in reliance upon and in conformity with information furnished in writing to the Company by such selling holder expressly for use therein, and shall reimburse the Company, its directors and officers, and each other selling holder or controlling person for any legal or other expenses reasonably incurred by any of them in connection with investigation or defending any such loss, claim, damage, liability or action. Each selling holder’s indemnification obligations hereunder shall be several and not joint and shall be limited to the amount of any net proceeds actually received by such selling holder.
4.3 Conduct of Indemnification Proceedings. Promptly after receipt by any person of any notice of any loss, claim, damage or liability or any action in respect of which indemnity may be sought pursuant to Section 4.1 or 4.2, such person (the “Indemnified Party”) shall, if a claim in respect thereof is to be made against any other person for indemnification hereunder, notify such other person (the “Indemnifying Party”) in writing of the loss, claim, judgment, damage, liability or action; provided, however, that the failure by the Indemnified Party to notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability which the Indemnifying Party may have to such Indemnified Party hereunder, except and solely to the extent the Indemnifying Party is actually prejudiced by such failure. If the Indemnified Party is seeking indemnification with respect to any claim or action brought against the Indemnified Party, then the Indemnifying Party shall be entitled to participate in such claim or action, and, to the extent that it wishes, jointly with all other Indemnifying Parties, to assume control of the defense thereof with counsel satisfactory to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume control of the defense of such claim or action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that in any action in which both the Indemnified Party and the Indemnifying Party are named as defendants, the Indemnified Party shall have the right to employ separate counsel (but no more than one such separate counsel) to represent the Indemnified Party and its controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Indemnified Party against the Indemnifying Party, with the fees and expenses of such counsel to be paid by such Indemnifying Party if, based upon the written opinion of counsel of such Indemnified Party, representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, consent to entry of judgment or effect any settlement of any claim or pending or threatened proceeding in respect of which the Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such judgment or settlement includes an unconditional release of such Indemnified Party from all liability arising out of such claim or proceeding.
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4.4 Contribution.
4.4.1 If the indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is unavailable to any Indemnified Party in respect of any loss, claim, damage, liability or action referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the Indemnified Parties and the Indemnifying Parties in connection with the actions or omissions which resulted in such loss, claim, damage, liability or action, as well as any other relevant equitable considerations. The relative fault of any Indemnified Party and any Indemnifying Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such Indemnified Party or such Indemnifying Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
4.4.2 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4.4 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding Section 4.4.1.
4.4.3 The amount paid or payable by an Indemnified Party as a result of any loss, claim, damage, liability or action referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 4.4, no holder of Registrable Securities shall be required to contribute any amount in excess of the dollar amount of the net proceeds (after payment of any underwriting fees, discounts, commissions or taxes) actually received by such holder from the sale of Registrable Securities which gave rise to such contribution obligation. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
- RULE
5.1 Rule 144. The Company covenants that it shall file any reports required to be filed by it under the Securities Act and the Exchange Act and shall take such further action as the holders of Registrable Securities may reasonably request, all to the extent required from time to time to enable such holders to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 under the Securities Act, as such Rules may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission. Upon the request of any holder of Registrable Securities, the Company shall deliver to such Holder a written certification of a duly authorized officer as to (A) whether the Company has filed (i) all reports and other materials required to be filed pursuant to Sections 13(a) or 15(d) of the Exchange Act, as applicable, during the preceding 12 months (or for such shorter period that the Company was required to file such reports and materials), other than Current Reports on Form 8-K and (ii) current “Form 10 information” (within the meaning of Rule 144 under the Securities Act) with the Commission reflecting the Company’s status as an entity that is no longer an issuer described in paragraph (i)(1)(i) of Rule 144 under the Securities Act and (B) the first date that the Company filed “Form 10 information” (within the meaning of Rule 144 under the Securities Act) with the Commission.
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- MISCELLANEOUS.
6.1 Other Registration Rights. The Company represents and warrants that, except as disclosed in the Company’s registration statement on Form S-1 (File No. 333-279308), no person, other than the holders of the Registrable Securities, has any right to require the Company to register any of the Company’s share capital for sale or to include the Company’s share capital in any registration filed by the Company for the sale of share capital for its own account or for the account of any other person.
6.2 Assignment; No Third Party Beneficiaries. This Agreement and the rights, duties and obligations of the Company hereunder may not be assigned or delegated by the Company in whole or in part. This Agreement and the rights, duties and obligations of the holders of Registrable Securities hereunder may be freely assigned or delegated by such holder of Registrable Securities in conjunction with and to the extent of any transfer of Registrable Securities by any such holder. This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties, to the permitted assigns of the Investors or holder of Registrable Securities or of any assignee of the Investors or holder of Registrable Securities. This Agreement is not intended to confer any rights or benefits on any persons that are not party hereto other than as expressly set forth in Section 4 and this Section 6.2. Any additional holder of Registrable Securities may become party to this Agreement by executing and delivering a joinder to the Company and the Sponsor in form and substance reasonably satisfactory to the Company.
6.3 Notices. All notices, demands, requests, consents, approvals or other communications (collectively, “Notices”) required or permitted to be given hereunder or which are given with respect to this Agreement shall be in writing and shall be personally served, delivered by reputable air courier service with charges prepaid, or transmitted by hand delivery, electronic transmission, telegram, telex or facsimile, addressed as set forth below, or to such other address as such party shall have specified most recently by written notice. Notice shall be deemed given on the date of service or transmission if personally served or transmitted by electronic transmission, telegram, telex or facsimile; provided, that if such service or transmission is not on a business day or is after normal business hours, then such notice shall be deemed given on the next business day. Notice otherwise sent as provided herein shall be deemed given on the next business day following timely delivery of such notice to a reputable air courier service with an order for next-day delivery.
To the Company:
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai,
Hong Kong
Attn: Satoshi Tominaga
E-mail: stominaga8@outlook.com
with a copy to:
Loeb & Loeb LLP
345 Park Avenue
New York, NY 10154
Attn: Lawrence Venick, Esq.
E-mail: lvenick@loeb.com
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To an Investor, to the address set forth below such Investor’s name on Exhibit A hereto.
6.4 Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible that is valid and enforceable.
6.5 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument.
6.6 Entire Agreement. This Agreement (including all agreements entered into pursuant hereto and all certificates and instruments delivered pursuant hereto and thereto) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede all prior and contemporaneous agreements, representations, understandings, negotiations and discussions between the parties, whether oral or written.
6.7 Modifications and Amendments. No amendment, modification or termination of this Agreement shall be binding upon the Company unless executed in writing by the Company. No amendment, modification or termination of this Agreement shall be binding upon the holders of the Registrable Securities unless executed in writing by the holders of the majority Registrable Securities.
6.8 Titles and Headings. Titles and headings of sections of this Agreement are for convenience only and shall not affect the construction of any provision of this Agreement.
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6.9 Waivers and Extensions. Any party to this Agreement may waive any right, breach or default which such party has the right to waive, provided that such waiver will not be effective against the waiving party unless it is in writing, is signed by such party, and specifically refers to this Agreement. Waivers may be made in advance or after the right waived has arisen or the breach or default waived has occurred. Any waiver may be conditional. No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof nor of any other agreement or provision herein contained. No waiver or extension of time for performance of any obligations or acts shall be deemed a waiver or extension of the time for performance of any other obligations or acts.
6.10 Remedies Cumulative. In the event that the Company fails to observe or perform any covenant or agreement to be observed or performed under this Agreement, the Investor or any other holder of Registrable Securities may proceed to protect and enforce its rights by suit in equity or action at law, whether for specific performance of any term contained in this Agreement or for an injunction against the breach of any such term or in aid of the exercise of any power granted in this Agreement or to enforce any other legal or equitable right, or to take any one or more of such actions, without being required to post a bond. None of the rights, powers or remedies conferred under this Agreement shall be mutually exclusive, and each such right, power or remedy shall be cumulative and in addition to any other right, power or remedy, whether conferred by this Agreement or now or hereafter available at law, in equity, by statute or otherwise.
6.11 Governing Law. This Agreement shall be governed by, interpreted under, and construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed within the State of New York, without giving effect to any choice-of-law provisions thereof that would compel the application of the substantive laws of any other jurisdiction. The venue for any action taken with respect to the Agreement shall be any state or federal court in New York County in the State of New York.
6.12 Waiver of Trial by Jury. Each party hereby irrevocably and unconditionally waives the right to a trial by jury in any action, suit, counterclaim or other proceeding (whether based on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the transactions contemplated hereby, or the actions of the Investor in the negotiation, administration, performance or enforcement hereof.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be executed and delivered by their duly authorized representatives as of the date first written above.
| COMPANY: | ||
|---|---|---|
| YHN ACQUISITION I LIMITED | ||
| By: | /s/ Satoshi Tominaga | |
| Name: | Satoshi Tominaga | |
| Title: | Chief Executive Officer | |
| INITIAL SHAREHOLDERS: | ||
| --- | --- | --- |
| YHN Partners I Limited | ||
| By: | /s/ Pui Chun Wong | |
| Name: | Pui Chun Wong | |
| Title: | Director | |
| /s/ Satoshi Tominaga | ||
| Satoshi Tominaga | ||
| /s/ Yangyujia An | ||
| Yangyujia An | ||
| /s/ Zhengming Feng | ||
| Zhengming Feng | ||
| /s/ Donghui Xu | ||
| Donghui Xu | ||
| /s/ Min Zhang | ||
| Min Zhang |
17
EXHIBIT A
Name and Address of Initial Shareholders
To all Initial Shareholders:
c/o YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Attn: Satoshi Tominaga
Exhibit 10.6
YHN ACQUISITION I LIMITED
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
September 17, 2024
Ladies and Gentlemen:
YHN Acquisition I Limited (the “Company”), a blank check company formed for the purpose of acquiring one or more businesses or entities (a “Business Combination”), intends to register its securities under the Securities Act of 1933, as amended (“Securities Act”), in connection with its initial public offering (“IPO”), pursuant to a registration statement on Form S-1 (“Registration Statement”).
The undersigned hereby commits that it will purchase 250,000 units of the Company (“Private Units”), each Private Unit consisting of one ordinary share of the Company, no par value (the “Ordinary Shares”) and one right to receive one-tenth (1/10) of one Ordinary Share upon the consummation of an initial business combination, at $10.00 per Private Unit, for a purchase price of $2,500,000 (the “Private Unit Purchase Price”).
The undersigned hereby agrees that it will purchase an additional amount of units of the Company (“Over-Allotment Units”), up to a maximum of 18,900 Over-Allotment Units, or a maximum purchase price of $189,000 (“Over-Allotment Unit Purchase Price”, together with the Private Unit Purchase Price, the “Purchase Price”), in the event Lucid Capital Markets, LLC (“Lucid”) exercises its over-allotment option, such that the amount held in the trust account (as described in the Registration Statement) does not fall below $10.05 per share for each Ordinary Share sold in the IPO.
At least twenty-four (24) hours prior to the effective date of the Registration Statement, the undersigned will cause the Private Unit Purchase Price to be delivered to Loeb & Loeb LLP (“Loeb”), counsel for the Company, by wire transfer as set forth in the instructions attached as Exhibit A to hold in a non-interest bearing account until the Company consummates the IPO.
The consummation of the purchase and issuance of the Private Units shall occur simultaneously with the consummation of the IPO and the consummation of the purchase and issuance of the Over-Allotment Units shall occur simultaneously with the closing of any exercise of the over-allotment option related to the IPO. Simultaneously with the consummation of the IPO, Loeb shall deposit the Private Unit Purchase Price, without interest or deduction, into the trust fund (“Trust Fund”) established by the Company for the benefit of the Company’s public shareholders as described in the Registration Statement. If the Company does not complete the IPO within ten (10) days from the date of this letter, the Private Unit Purchase Price (without interest or deduction) will be returned to the undersigned.
Each of the Company, and the undersigned acknowledges and agrees that Loeb is serving hereunder solely as a convenience to the parties to facilitate the purchase of the Private Units and the Over-Allotment Units and Loeb’s sole obligation under this letter agreement is to act with respect to holding and disbursing the Purchase Price as described above. Loeb shall not be liable to the Company, Lucid or the undersigned or any other person or entity in respect of any act or failure to act hereunder or otherwise in connection with performing its services hereunder unless Loeb has acted in a manner constituting gross negligence or willful misconduct. The Company and the undersigned shall indemnify Loeb against any claim made against it (including reasonable attorney’s fees) by reason of it acting or failing to act in connection with this letter agreement except as a result of its gross negligence or willful misconduct. Loeb may rely and shall be protected in acting or refraining from acting upon any written notice, instruction or request furnished to it hereunder and believed by it to be genuine and to have been signed or presented by the proper party or parties.
The Private Units and Over-Allotment Units will be identical to the units to be sold by the Company in the IPO. Additionally, the undersigned agrees:
| ● | to vote the Ordinary Shares included in the Private Units and Over-Allotment Units in favor of any proposed<br>Business Combination; |
|---|---|
| ● | not to propose, or vote in favor of, an amendment to the Company’s Amended and Restated Memorandum<br>and Articles of Association that would affect the substance or timing of the Company’s obligation to redeem 100% of the Company’s<br>Ordinary Shares sold in the IPO if the Company does not complete an initial Business Combination within 15 months from the closing of<br>the IPO, unless the Company provides the holders of Ordinary Shares sold in the IPO with the opportunity to redeem their Ordinary Shares<br>upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount of the Trust Fund, including<br>interest earned on Trust Fund and not previously released to the Company to pay the Company’s income taxes, divided by the number<br>of then outstanding Ordinary Shares sold in the IPO; |
| --- | --- |
| ● | not to convert any Ordinary Shares included in the Private Units and Over-Allotment Units into the right<br>to receive cash from the Trust Fund in connection with a shareholder vote to approve either a Business Combination or an amendment to<br>the provisions of the Company’s Amended and Restated Memorandum and Articles of Association, and not to tender the Private Units<br>and Over-Allotment Units in connection with a tender offer conducted prior to the closing of a Business Combination; |
| --- | --- |
| ● | not to participate in any liquidation distribution with respect to the Private Units, the Over-Allotment<br>Units and any Ordinary Shares acquired prior to the IPO (but will participate in liquidation distributions with respect to any units or<br>Ordinary Shares purchased by the undersigned in the IPO or in the open market) if the Company fails to consummate a Business Combination; |
| --- | --- |
| ● | that the Private Units, Over-Allotment Units and underlying securities will not be transferable until<br>180 days after the consummation of a Business Combination except (i) to the Company’s pre-IPO shareholders, Lucid Capital Markets,<br>LLC or to the Company’s officers, directors, advisors and employees, (ii) transfers to the undersigned’s affiliates or its<br>members upon its liquidation, (iii) to relatives and trusts for estate planning purposes, (iv) by virtue of the laws of descent and distribution<br>upon death, (v) pursuant to a qualified domestic relations order, (vi) by certain pledges to secure obligations incurred in connection<br>with purchases of the Company’s securities, (vii) by private sales made in connection with the consummation of a Business Combination<br>at prices no greater than the price at which the Private Units were originally purchased or (viii) to the Company for cancellation in<br>connection with the consummation of a Business Combination, in each case (except for clause viii) where the transferee agrees to the terms<br>of the transfer restrictions; and |
| --- | --- |
| ● | the Private Units and Over-Allotment Units will include any additional terms or restrictions as is customary<br>in other similarly structured blank check company offerings or as may be reasonably required by the underwriters in the IPO in order to<br>consummate the IPO, each of which will be set forth in the Registration Statement. |
| --- | --- |
The undersigned acknowledges and agrees that the purchaser of the Private Units and Over-Allotment Units will execute agreements in form and substance typical for transactions of this nature necessary to effectuate the foregoing agreements and obligations prior to the consummation of the IPO as are reasonably acceptable to the undersigned, including but not limited to an insider letter.
The undersigned hereby represents and warrants that:
| (a) | it has been advised that the Private Units and Over-Allotment Units have not been registered under the<br>Securities Act; |
|---|
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| (b) | it will be acquiring the Private Units and Over-Allotment Units for its account for investment purposes<br>only; |
|---|---|
| (c) | it has no present intention of selling or otherwise disposing of the Private Units and Over-Allotment<br>Units in violation of the securities laws of the United States; |
| --- | --- |
| (d) | it is an “accredited investor” as defined by Rule 501 of Regulation D promulgated under the<br>Securities Act of 1933, as amended; |
| --- | --- |
| (e) | it has had both the opportunity to ask questions and receive answers from the officers and directors of<br>the Company and all persons acting on its behalf concerning the terms and conditions of the offer made hereunder; |
| --- | --- |
| (f) | it is familiar with the proposed business, management, financial condition and affairs of the Company; |
| --- | --- |
| (g) | it has full power, authority and legal capacity to execute and deliver this letter and any documents contemplated<br>herein or needed to consummate the transactions contemplated in this letter; and |
| --- | --- |
| (h) | this letter constitutes its legal, valid and binding obligation, and is enforceable against it. |
| --- | --- |
This letter agreement constitutes the entire agreement between the undersigned and the Company with respect to the purchase of the Private Units and Over-Allotment Units, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to the same.
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| Very truly yours, | ||
|---|---|---|
| YHN Partners I Limited | ||
| By: | /s/ Pui Chun Wong | |
| Name: | Pui Chun Wong | |
| Title: | Director | |
| Accepted and Agreed: | ||
| --- | --- | --- |
| YHN Acquisition I Limited | ||
| By: | /s/ Satoshi Tominaga | |
| Name: | Satoshi Tominaga | |
| Title: | Chief Executive Officer |
4
Exhibit A
Wire Instructions
Bank Name: Citigroup Private Bank
Bank Address: 153 East 53rd Street
New York, NY 10022
Account Name: Loeb & Loeb LLP – Trust Account
Account Number: 24576266
Routing/ABA Number (Domestic Wires): 021000089
Swift Code (Foreign Wire): CITIUS33
Note: YHN 243485/10001
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Exhibit 10.7
INDEMNIFICATION AGREEMENT
This Indemnification Agreement, is made and entered into effective as of September 17, 2024 (“Agreement”), by and between YHN Acquisition I Limited, a British Virgin Islands company (“Company”), and the undersigned indemnitee (“Indemnitee”).
WHEREAS, the adoption of the Sarbanes-Oxley Act of 2002 and other laws, rules and regulations being promulgated have increased the potential for liability of officers and directors; and
WHEREAS, the Board of Directors of the Company (“Board”) has determined that the ability to attract and retain such persons is in the best interests of the Company’s shareholders; and
WHEREAS, it is reasonable, prudent and necessary for the Company to obligate itself contractually to indemnify, hold harmless, exonerate and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that such persons will serve or continue to serve the Company free from undue concern that they will not be adequately indemnified; and
WHEREAS, this Agreement is a supplement to and in furtherance of the Company’s Second Amended and Restated Memorandum and Articles of Association and any resolutions adopted pursuant thereto and shall neither be deemed to be a substitute therefor nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee is willing to serve on behalf of the Company on the condition that he be indemnified according to the terms of this Agreement;
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, and subject to the provisions of the letter agreement dated as of September 17, 2024, the Company and Indemnitee do hereby covenant and agree as follows:
- Definitions. For purposes of this Agreement:
1.1 “Change in Control” means a change in control of the Company occurring after the date hereof of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”), whether or not the Company is then subject to such reporting requirement provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if after the date hereof (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a person who is an officer or director of the Company on the date hereof (and any of such person’s affiliates), is or becomes “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the then outstanding securities of the Company without the prior approval of at least two-thirds of the members of the Board in office immediately prior to such person attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which (A) members of the Board in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter or (B) the voting securities of the Company outstanding immediately prior to such transaction do not continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such transaction with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least a majority of the Board.
1.2 “Corporate Status” means the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company. In addition, service at the actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be serving or to have served at the request of the Company as a director, officer, employee, agent or fiduciary of any other enterprise if Indemnitee is or was serving as a director, officer, employee, agent or fiduciary of such enterprise and (A) such enterprise is or at the time of such service was an affiliate of the Company, (B) such enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or an affiliate of the Company or (C) the Company or an affiliate of the Company directly or indirectly caused Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity
1.3 “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.
1.4 “Expenses” means all reasonable attorneys’ fees, retainers, court costs (including trial and appeals), transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.
Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the principal, premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
1.5 “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any other matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. Except as provided in the first sentence of Section 9.3 hereof, Independent Counsel shall be selected by (a) the Disinterested Directors or (b) a committee of the Board consisting of two or more Disinterested Directors or if (a) and (b) above are not possible, then by a majority of the full Board.
1.6 “Proceeding” means any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether conducted by or on behalf of the Company or any other party, whether civil, criminal, administrative or investigative, except one initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce his rights under this Agreement.
- Services by Indemnitee.
Indemnitee agrees to serve as a director, officer or employee of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law).
- Indemnification - General.
Except with respect to actions finally adjudicated to be a result of actual fraud or intentional misconduct of the Indemnitee, the Company shall indemnify, and, subject to Section 26 hereof, advance Expenses to, Indemnitee as provided in this Agreement to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as any amendment to or interpretation of applicable law may thereafter from time to time permit. The rights of Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other Sections of this Agreement.
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- Proceedings Other Than Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he is, was or is threatened to be made, a party to any threatened, pending or completed Proceeding, other than a Proceeding by or in the right of the Company. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with any such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful; provided, in no event shall Indemnitee be entitled to be indemnified, held harmless or advanced any amounts hereunder in respect of any Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (if any) that Indemnitee may incur by reason of his or her own actual fraud or intentional misconduct. Indemnitee shall not be found to have committed actual fraud or intentional misconduct for any purpose of this Agreement unless or until a court of competent jurisdiction shall have made a finding to that effect.
- Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he was or is threatened to be made, a party to any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against amounts paid in settlement and Expenses actually and reasonably incurred by him or on his behalf in connection with the defense or settlement of any such Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Notwithstanding the foregoing, no indemnification under this paragraph shall be made in respect of (1) a threatened or pending Proceeding which is settled or otherwise disposed of, or (2) any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company, unless and only to the extent that the court in which such Proceeding shall have been brought, was brought or is pending, shall determine, upon application, that Indemnitee is fairly and reasonably entitled to indemnity for such portion of the settlement amount and Expenses as the court deems proper.
- Indemnification for Expenses of Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified against all Expenses (and, when eligible hereunder, amounts paid in settlement) actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses (and, when eligible hereunder, amount paid in settlement) actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Agreement, the term “successful, on the merits or otherwise,” includes, but is not limited to, (i) any termination, withdrawal, or dismissal (with or without prejudice) of any Proceeding against the Indemnitee without any express finding of liability or guilt against him, and (ii) the expiration of 90 days after the making of any claim or threat of a Proceeding without the institution of the same and without any promise or payment made to induce a settlement.
- Indemnification for Expenses as a Witness.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
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- Advancement of Expenses and Other Amounts.
Subject to Section 26 hereof, the Company shall advance all Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement, incurred by or on behalf of Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses, judgments, penalties, fines and amounts paid in settlement, incurred by Indemnitee and shall include or be preceded or accompanied by an agreement by or on behalf of Indemnitee to repay any Expenses, judgments, penalties, fines and amounts paid in settlement advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement. In connection with any request for advancement of Expenses, judgments, penalties, fines and amounts paid in settlement, Indemnitee shall not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. The Company’s obligation in respect of the advancement of Expenses, judgments, penalties, fines and amounts paid in settlement in connection with a criminal Proceeding in which Indemnitee is a defendant shall terminate at such time as Indemnitee pleads guilty or is convicted after trial and such conviction becomes final and no longer subject to appeal. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.
- Procedure for Determination of Entitlement to Indemnification.
9.1 To obtain indemnification under this Agreement in connection with any Proceeding, and for the duration thereof, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The officer of the Company shall, promptly upon receipt of any such request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
9.2 Upon written request by Indemnitee for indemnification pursuant to Section 9.1 hereof, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in such case: (i) if a Change in Control shall have occurred, by Independent Counsel (unless Indemnitee shall request that such determination be made by the Board or the shareholders, in which case in the manner provided for in clauses (ii) or (iii) of this Section 9.2) in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; (ii) if a Change of Control shall not have occurred, at the election of the Company, (A) by the Board by a majority vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board consisting of Disinterested Directors is not obtainable, by a majority of a committee of the Board consisting of two or more Disinterested Directors, or (C) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) by the shareholders of the Company, by a majority vote of a quorum consisting of shareholders who are not parties to the proceeding, or if no such quorum is obtainable, by a majority vote of shareholders who are not parties to such proceeding; or (iii) as provided in Section 10.2 of this Agreement. The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
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9.3 If a Change of Control shall have occurred, Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board), and Indemnitee (or the Board, as the case may be) shall give written notice to the other party advising it of the identity of Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within seven days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection. Such objection may be asserted only on the ground that Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. If such written objection is made, Independent Counsel so selected may not serve as Independent Counsel unless and until a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 9.1 hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction, for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom an objection is so resolved or the person so appointed shall act as Independent Counsel under Section 9.2 hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with its actions pursuant to this Agreement, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 9.3, regardless of the manner in which such Independent Counsel was selected or appointed. Upon the due commencement date of any judicial proceeding pursuant to Section 11.1(iii) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
- Presumptions and Effects of Certain Proceedings.
10.1 In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9.1 of this Agreement, and the Company shall have the burden of proof to overcome that presumption by clear and convincing evidence in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by the Disinterested Directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by the Disinterested Directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
10.2 If the person, persons or entity empowered or selected under Section 9 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith require(s) such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, however, that the foregoing provisions of this Section 10.2 shall not apply (i) if the determination of entitlement to indemnification is to be made by the shareholders pursuant to Section 9.2 of this Agreement and if (A) within 15 days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the shareholders for their consideration at an annual meeting thereof to be held within 75 days after such receipt and such determination is made thereat, or (B) a special meeting of shareholders is called within 15 days after such receipt for the purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement. In connection with each meeting at which a shareholder determination will be made, the Company shall solicit proxies that expressly include a proposal to indemnify or reimburse the Indemnitee. The Company shall afford the Indemnitee ample opportunity to present evidence of the facts upon which the Indemnitee relies for indemnification in any Company proxy statement relating to such shareholder determination. Subject to the fiduciary duties of its members under applicable law, the Board will not recommend against indemnification or reimbursement in any proxy statement relating to the proposal to indemnify or reimburse the Indemnitee.
10.3 The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.
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10.4 For purposes of this Agreement, the Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe his conduct was unlawful, if his action is based on (i) the records or books of account of the Company, or another enterprise, including financial statements, (ii) information supplied to him by the officers of the Company or another enterprise in the course of their duties, (iii) the advice of legal counsel for the Company or another enterprise, or of an independent certified public accountant or an appraiser or other expert selected with reasonable care by the Company or another enterprise. The term “another enterprise” as used in this Section shall mean any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise of which the Indemnitee is or was serving at the request of the Company as a director, officer, partner, trustee, employee or agent. The provisions of this Section shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth herein. Whether or not the foregoing provisions of this Section 10.4 are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe Indemnitee’s conduct was unlawful. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
10.5 The knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, manager, managing member, fiduciary, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
- Remedies of Indemnitee.
11.1 In the event that (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) the determination of indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement and such determination shall not have been made and delivered in a written opinion within sixty (60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within thirty (30) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 9 or 10 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of New York, or in any other court of competent jurisdiction, of his entitlement to such indemnification or advancement of Expenses, judgments, penalties, fines or, when eligible hereunder, amounts paid in settlement. The Company shall not oppose Indemnitee’s right to seek any such adjudication.
11.2 In the event that a determination shall have been made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section shall be conducted in all respects as a de novo trial on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.
11.3 If a determination shall have been made or deemed to have been made pursuant to Section 9 or 10 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law.
11.4 The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.
11.5 In the event that Indemnitee, pursuant to this Section, seeks a judicial adjudication of his rights under, or to recover damages for breach of, this Agreement or any other agreement, including any other indemnification, contribution or advancement agreement, or any provision of the Company’s Second Amended and Restated Memorandum and Articles of Association now or hereafter in effect, or for recovery under directors’ and officers’ liability insurance policies maintained by the Company, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all expenses (of the kinds described in the definition of Expenses) actually and reasonably incurred by him in such judicial adjudication, but only if he prevails therein. If it shall be determined in such judicial adjudication that Indemnitee is entitled to receive less than all of the indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated. In addition, the Company shall, if so requested by Indemnitee, advance the foregoing expenses to Indemnitee, subject to and in accordance with Section 8.
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- Procedure Regarding Indemnification.
With respect to any Proceedings, the Indemnitee, prior to taking any action with respect to such Proceeding, shall consult with the Company as to the procedure to be followed in defending, settling, or compromising the Proceeding and may not consent to any settlement or compromise of the Proceeding without the written consent of the Company (which consent may not be unreasonably withheld or delayed). The Company shall be entitled to participate in defending, settling or compromising any Proceeding and to assume the defense of such Proceeding with counsel of its choice and shall assume such defense if requested by the Indemnitee. Notwithstanding the election by, or obligation of, the Company to assume the defense of a Proceeding, the Indemnitee shall have the right to participate in the defense of such Proceeding and to employ counsel of Indemnitee’s choice, but the fees and expenses of such counsel shall be at the expense of the Indemnitee unless (i) the employment of such counsel has been authorized in writing by the Company, or (ii) the Indemnitee has reasonably concluded that there may be defenses available to him which are different from or additional to those available to the Company (in which latter case the Company shall not have the right to direct the defense of such Proceeding on behalf of the Indemnitee), in either of which events the fees and expenses of not more than one additional firm of attorneys selected by the Indemnitee shall be borne by the Company. If the Company assumes the defense of a Proceeding, then counsel for the Company and Indemnitee shall keep Indemnitee reasonably informed of the status of the Proceeding and promptly send to Indemnitee copies of all documents filed or produced in the Proceeding, and the Company shall not compromise or settle any such Proceeding without the written consent of the Indemnitee (which consent may not be unreasonably withheld or delayed) if the relief provided shall be other than monetary damages and shall promptly notify the Indemnitee of any settlement and the amount thereof.
- Non-Exclusivity; Survival of Rights; Insurance; Subrogation; Contribution.
13.1 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, any agreement, a vote of shareholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or any provision hereof shall be effective as to any Indemnitee with respect to any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association, whether by statute or judicial decision, permits greater indemnification, hold harmless or exoneration rights or advancement of Expenses than would be afforded currently under the Company’s Second Amended and Restated Memorandum and Articles of Association or this Agreement, then this Agreement (without any further action by the parties hereto) shall automatically be deemed to be amended to require that the Company indemnifies the Indemnitee to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
13.2 To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee, agent or fiduciary under such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness, deponent or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter use commercially reasonable efforts to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.
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13.3 In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are reasonably necessary to enable the Company to bring suit to enforce such rights.
13.4 The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
13.5 If a determination is made that Indemnitee is not entitled to indemnification, after Indemnitee submits a written request therefor, under this Agreement, then in respect of any threatened, pending or completed Proceeding in which the Company is jointly liability with the Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement by the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnitee on the other hand from the transaction from which Proceeding arose, and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events that resulted in such Expenses, judgments, fines or amounts paid in settlement, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments, fines or amounts paid in settlement. The Company agrees that it would not be just and equitable if contribution pursuant to this Section were determined by pro rata allocation or any other method of allocation that does not take into account the foregoing equitable considerations. The determination as to the amount of the contribution, if any, shall be made by: (i) a court of competent jurisdiction upon the application of both the Indemnitee and the Company (if the Proceeding had been brought in, and final determination had been rendered by such court); (ii) the Board by a majority vote of a quorum consisting of Disinterested Directors; or (iii) Independent Counsel, if a quorum is not obtainable for purpose of (ii) above, or, even if obtainable, a quorum of Disinterested Directors so directs.
- Duration of Agreement.
This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director and/or officer of the Company, or (b) the final termination of all pending Proceedings in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement hereunder and or any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his spouse, heirs, executors, personal representatives and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.
- Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.
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- Entire Agreement.
This Agreement constitutes the entire agreement between the Company and the Indemnitee with respect to the subject matter hereof and supersedes all prior agreements, understanding, negotiations and discussion, both written and oral, between the parties hereto with respect to such subject matter (the “Prior Agreements”); provided, however, that if this Agreement shall ever be held void or unenforceable for any reasons whatsoever, and is not reformed pursuant to Section 15 hereof, then (i) this Agreement shall not be deemed to have superseded any Prior Agreements; (ii) all of such Prior Agreements shall be deemed to be in full force and effect notwithstanding the execution of this Agreement; and (iii) the Indemnitee shall be entitled to maximum indemnification benefits provided under any Prior Agreements, as well as those provided under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, a vote of shareholders or resolution of directors.
- Exception to Right of Indemnification or Advancement of Expenses.
17.1 Except as provided in Section 11.5, Indemnitee shall not be entitled to indemnification or advancement of Expenses, judgments, penalties, fines and amounts paid in settlement under this Agreement with respect to any Proceeding, or any claim therein, brought or made by him against the Company.
17.2 Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding, or any claim therein, arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Exchange Act or Company similar successor statute.
- Covenant Not to Sue; Limitation of Actions; Release of Claims.
No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company (or any of its subsidiaries) against the Indemnitee, his spouse, heirs, executors, personal representatives or administrators after the expiration of two (2) years from the date of accrual of such cause of action and any claim or cause of action of the Company (or any of its subsidiaries) shall be extinguished and deemed released unless asserted by the filing of a legal action within such two (2) year period; provided, however, that if any shorter period of limitation is otherwise applicable to any such cause of action, such shorter period shall govern.
- Identical Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.
- Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
- Modification and Waiver.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.
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- Notice by Indemnitee.
Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating any Proceeding or matter which may be subject to indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement covered hereunder. The failure to notify the Company on a timely basis shall not constitute a waiver of Indemnitee’s rights under this Agreement, except to the extent that such failure or delay (i) causes the amounts paid or to be paid by the Company to be greater than they otherwise would have been, (ii) adversely affects the Company’s ability to obtain for itself or Indemnitee coverage or proceeds under any insurance policy available to the Company or Indemnitee, or (iii) otherwise results in prejudice to the Company.
- Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by electronic transmission or hand and receipted for by the party to whom such notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
If to Indemnitee, to:
Donghui XU
[ADDRESS]
If to the Company, to:
YHN Acquisition I Limited
2/F, Hang Seng Building,
200 Hennessy Road, Wanchai
Hong Kong
or to such other address or such other person as Indemnitee or the Company shall designate in writing in accordance with this Section, except that notices regarding changes in notices shall be effective only upon receipt.
- Governing Law.
The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts made and performed in that state without giving effect to the principles of conflicts of laws. The Company and Indemnitee each hereby irrevocably consents to the jurisdiction of the courts of the State of New York and the federal courts within the State for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agrees that any action instituted under this Agreement shall be brought only in the United States District Court for the Southern District of New York and any New York State court within that District.
- Mutual Acknowledgment.
Both the Company and Indemnitee acknowledge that, in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future in certain circumstances to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court for a determination of the Company’s right under public policy to indemnify Indemnitee.
- Waiver of Claims to Trust Account.
Notwithstanding anything herein to the contrary, Indemnitee hereby agrees that it does not have any right, title, interest or claim of any kind (each, a “Claim”) in or to any monies in the trust account established in connection with the Company’s initial public offering for the benefit of the Company and holders of shares issued in such offering, and hereby waives any Claim it may have in the future as a result of, or arising out of, any services provided to the Company and will not seek recourse against such trust account for any reason whatsoever. Accordingly, Indemnitee acknowledges and agrees that any indemnification provided hereto will only be able to be satisfied by the Company if (i) the Company has sufficient funds outside of the Trust Account to satisfy its obligations hereunder or (ii) the Company consummates a Business Combination.
- Miscellaneous.
Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.
| YHN ACQUISITION I LIMITED | |
|---|---|
| By: | /s/ Satoshi Tominaga |
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
| INDEMNITEE | |
| /s/ Donghui Xu | |
| Name: | Donghui Xu |
[Signature Page to Indemnification Agreement]
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INDEMNIFICATION AGREEMENT
This Indemnification Agreement, is made and entered into effective as of September 17, 2024 (“Agreement”), by and between YHN Acquisition I Limited, a British Virgin Islands company (“Company”), and the undersigned indemnitee (“Indemnitee”).
WHEREAS, the adoption of the Sarbanes-Oxley Act of 2002 and other laws, rules and regulations being promulgated have increased the potential for liability of officers and directors; and
WHEREAS, the Board of Directors of the Company (“Board”) has determined that the ability to attract and retain such persons is in the best interests of the Company’s shareholders; and
WHEREAS, it is reasonable, prudent and necessary for the Company to obligate itself contractually to indemnify, hold harmless, exonerate and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that such persons will serve or continue to serve the Company free from undue concern that they will not be adequately indemnified; and
WHEREAS, this Agreement is a supplement to and in furtherance of the Company’s Second Amended and Restated Memorandum and Articles of Association and any resolutions adopted pursuant thereto and shall neither be deemed to be a substitute therefor nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee is willing to serve on behalf of the Company on the condition that he be indemnified according to the terms of this Agreement;
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, and subject to the provisions of the letter agreement dated as of September 17, 2024, the Company and Indemnitee do hereby covenant and agree as follows:
- Definitions. For purposes of this Agreement:
1.1 “Change in Control” means a change in control of the Company occurring after the date hereof of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”), whether or not the Company is then subject to such reporting requirement provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if after the date hereof (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a person who is an officer or director of the Company on the date hereof (and any of such person’s affiliates), is or becomes “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the then outstanding securities of the Company without the prior approval of at least two-thirds of the members of the Board in office immediately prior to such person attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which (A) members of the Board in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter or (B) the voting securities of the Company outstanding immediately prior to such transaction do not continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such transaction with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least a majority of the Board.
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1.2 “Corporate Status” means the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company. In addition, service at the actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be serving or to have served at the request of the Company as a director, officer, employee, agent or fiduciary of any other enterprise if Indemnitee is or was serving as a director, officer, employee, agent or fiduciary of such enterprise and (A) such enterprise is or at the time of such service was an affiliate of the Company, (B) such enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or an affiliate of the Company or (C) the Company or an affiliate of the Company directly or indirectly caused Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity
1.3 “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.
1.4 “Expenses” means all reasonable attorneys’ fees, retainers, court costs (including trial and appeals), transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.
Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the principal, premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
1.5 “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any other matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. Except as provided in the first sentence of Section 9.3 hereof, Independent Counsel shall be selected by (a) the Disinterested Directors or (b) a committee of the Board consisting of two or more Disinterested Directors or if (a) and (b) above are not possible, then by a majority of the full Board.
1.6 “Proceeding” means any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether conducted by or on behalf of the Company or any other party, whether civil, criminal, administrative or investigative, except one initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce his rights under this Agreement.
- Services by Indemnitee.
Indemnitee agrees to serve as a director, officer or employee of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law).
- Indemnification - General.
Except with respect to actions finally adjudicated to be a result of actual fraud or intentional misconduct of the Indemnitee, the Company shall indemnify, and, subject to Section 26 hereof, advance Expenses to, Indemnitee as provided in this Agreement to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as any amendment to or interpretation of applicable law may thereafter from time to time permit. The rights of Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other Sections of this Agreement.
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- Proceedings Other Than Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he is, was or is threatened to be made, a party to any threatened, pending or completed Proceeding, other than a Proceeding by or in the right of the Company. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with any such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful; provided, in no event shall Indemnitee be entitled to be indemnified, held harmless or advanced any amounts hereunder in respect of any Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (if any) that Indemnitee may incur by reason of his or her own actual fraud or intentional misconduct. Indemnitee shall not be found to have committed actual fraud or intentional misconduct for any purpose of this Agreement unless or until a court of competent jurisdiction shall have made a finding to that effect.
- Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he was or is threatened to be made, a party to any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against amounts paid in settlement and Expenses actually and reasonably incurred by him or on his behalf in connection with the defense or settlement of any such Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Notwithstanding the foregoing, no indemnification under this paragraph shall be made in respect of (1) a threatened or pending Proceeding which is settled or otherwise disposed of, or (2) any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company, unless and only to the extent that the court in which such Proceeding shall have been brought, was brought or is pending, shall determine, upon application, that Indemnitee is fairly and reasonably entitled to indemnity for such portion of the settlement amount and Expenses as the court deems proper.
- Indemnification for Expenses of Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified against all Expenses (and, when eligible hereunder, amounts paid in settlement) actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses (and, when eligible hereunder, amount paid in settlement) actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Agreement, the term “successful, on the merits or otherwise,” includes, but is not limited to, (i) any termination, withdrawal, or dismissal (with or without prejudice) of any Proceeding against the Indemnitee without any express finding of liability or guilt against him, and (ii) the expiration of 90 days after the making of any claim or threat of a Proceeding without the institution of the same and without any promise or payment made to induce a settlement.
- Indemnification for Expenses as a Witness.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
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- Advancement of Expenses and Other Amounts.
Subject to Section 26 hereof, the Company shall advance all Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement, incurred by or on behalf of Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses, judgments, penalties, fines and amounts paid in settlement, incurred by Indemnitee and shall include or be preceded or accompanied by an agreement by or on behalf of Indemnitee to repay any Expenses, judgments, penalties, fines and amounts paid in settlement advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement. In connection with any request for advancement of Expenses, judgments, penalties, fines and amounts paid in settlement, Indemnitee shall not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. The Company’s obligation in respect of the advancement of Expenses, judgments, penalties, fines and amounts paid in settlement in connection with a criminal Proceeding in which Indemnitee is a defendant shall terminate at such time as Indemnitee pleads guilty or is convicted after trial and such conviction becomes final and no longer subject to appeal. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.
- Procedure for Determination of Entitlement to Indemnification.
9.1 To obtain indemnification under this Agreement in connection with any Proceeding, and for the duration thereof, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The officer of the Company shall, promptly upon receipt of any such request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
9.2 Upon written request by Indemnitee for indemnification pursuant to Section 9.1 hereof, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in such case: (i) if a Change in Control shall have occurred, by Independent Counsel (unless Indemnitee shall request that such determination be made by the Board or the shareholders, in which case in the manner provided for in clauses (ii) or (iii) of this Section 9.2) in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; (ii) if a Change of Control shall not have occurred, at the election of the Company, (A) by the Board by a majority vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board consisting of Disinterested Directors is not obtainable, by a majority of a committee of the Board consisting of two or more Disinterested Directors, or (C) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) by the shareholders of the Company, by a majority vote of a quorum consisting of shareholders who are not parties to the proceeding, or if no such quorum is obtainable, by a majority vote of shareholders who are not parties to such proceeding; or (iii) as provided in Section 10.2 of this Agreement. The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
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9.3 If a Change of Control shall have occurred, Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board), and Indemnitee (or the Board, as the case may be) shall give written notice to the other party advising it of the identity of Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within seven days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection. Such objection may be asserted only on the ground that Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. If such written objection is made, Independent Counsel so selected may not serve as Independent Counsel unless and until a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 9.1 hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction, for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom an objection is so resolved or the person so appointed shall act as Independent Counsel under Section 9.2 hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with its actions pursuant to this Agreement, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 9.3, regardless of the manner in which such Independent Counsel was selected or appointed. Upon the due commencement date of any judicial proceeding pursuant to Section 11.1(iii) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
- Presumptions and Effects of Certain Proceedings.
10.1 In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9.1 of this Agreement, and the Company shall have the burden of proof to overcome that presumption by clear and convincing evidence in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by the Disinterested Directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by the Disinterested Directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
10.2 If the person, persons or entity empowered or selected under Section 9 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith require(s) such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, however, that the foregoing provisions of this Section 10.2 shall not apply (i) if the determination of entitlement to indemnification is to be made by the shareholders pursuant to Section 9.2 of this Agreement and if (A) within 15 days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the shareholders for their consideration at an annual meeting thereof to be held within 75 days after such receipt and such determination is made thereat, or (B) a special meeting of shareholders is called within 15 days after such receipt for the purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement. In connection with each meeting at which a shareholder determination will be made, the Company shall solicit proxies that expressly include a proposal to indemnify or reimburse the Indemnitee. The Company shall afford the Indemnitee ample opportunity to present evidence of the facts upon which the Indemnitee relies for indemnification in any Company proxy statement relating to such shareholder determination. Subject to the fiduciary duties of its members under applicable law, the Board will not recommend against indemnification or reimbursement in any proxy statement relating to the proposal to indemnify or reimburse the Indemnitee.
10.3 The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.
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10.4 For purposes of this Agreement, the Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe his conduct was unlawful, if his action is based on (i) the records or books of account of the Company, or another enterprise, including financial statements, (ii) information supplied to him by the officers of the Company or another enterprise in the course of their duties, (iii) the advice of legal counsel for the Company or another enterprise, or of an independent certified public accountant or an appraiser or other expert selected with reasonable care by the Company or another enterprise. The term “another enterprise” as used in this Section shall mean any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise of which the Indemnitee is or was serving at the request of the Company as a director, officer, partner, trustee, employee or agent. The provisions of this Section shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth herein. Whether or not the foregoing provisions of this Section 10.4 are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe Indemnitee’s conduct was unlawful. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
10.5 The knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, manager, managing member, fiduciary, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
- Remedies of Indemnitee.
11.1 In the event that (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) the determination of indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement and such determination shall not have been made and delivered in a written opinion within sixty (60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within thirty (30) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 9 or 10 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of New York, or in any other court of competent jurisdiction, of his entitlement to such indemnification or advancement of Expenses, judgments, penalties, fines or, when eligible hereunder, amounts paid in settlement. The Company shall not oppose Indemnitee’s right to seek any such adjudication.
11.2 In the event that a determination shall have been made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section shall be conducted in all respects as a de novo trial on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.
11.3 If a determination shall have been made or deemed to have been made pursuant to Section 9 or 10 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law.
11.4 The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.
11.5 In the event that Indemnitee, pursuant to this Section, seeks a judicial adjudication of his rights under, or to recover damages for breach of, this Agreement or any other agreement, including any other indemnification, contribution or advancement agreement, or any provision of the Company’s Second Amended and Restated Memorandum and Articles of Association now or hereafter in effect, or for recovery under directors’ and officers’ liability insurance policies maintained by the Company, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all expenses (of the kinds described in the definition of Expenses) actually and reasonably incurred by him in such judicial adjudication, but only if he prevails therein. If it shall be determined in such judicial adjudication that Indemnitee is entitled to receive less than all of the indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated. In addition, the Company shall, if so requested by Indemnitee, advance the foregoing expenses to Indemnitee, subject to and in accordance with Section 8.
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- Procedure Regarding Indemnification.
With respect to any Proceedings, the Indemnitee, prior to taking any action with respect to such Proceeding, shall consult with the Company as to the procedure to be followed in defending, settling, or compromising the Proceeding and may not consent to any settlement or compromise of the Proceeding without the written consent of the Company (which consent may not be unreasonably withheld or delayed). The Company shall be entitled to participate in defending, settling or compromising any Proceeding and to assume the defense of such Proceeding with counsel of its choice and shall assume such defense if requested by the Indemnitee. Notwithstanding the election by, or obligation of, the Company to assume the defense of a Proceeding, the Indemnitee shall have the right to participate in the defense of such Proceeding and to employ counsel of Indemnitee’s choice, but the fees and expenses of such counsel shall be at the expense of the Indemnitee unless (i) the employment of such counsel has been authorized in writing by the Company, or (ii) the Indemnitee has reasonably concluded that there may be defenses available to him which are different from or additional to those available to the Company (in which latter case the Company shall not have the right to direct the defense of such Proceeding on behalf of the Indemnitee), in either of which events the fees and expenses of not more than one additional firm of attorneys selected by the Indemnitee shall be borne by the Company. If the Company assumes the defense of a Proceeding, then counsel for the Company and Indemnitee shall keep Indemnitee reasonably informed of the status of the Proceeding and promptly send to Indemnitee copies of all documents filed or produced in the Proceeding, and the Company shall not compromise or settle any such Proceeding without the written consent of the Indemnitee (which consent may not be unreasonably withheld or delayed) if the relief provided shall be other than monetary damages and shall promptly notify the Indemnitee of any settlement and the amount thereof.
- Non-Exclusivity; Survival of Rights; Insurance; Subrogation; Contribution.
13.1 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, any agreement, a vote of shareholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or any provision hereof shall be effective as to any Indemnitee with respect to any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association, whether by statute or judicial decision, permits greater indemnification, hold harmless or exoneration rights or advancement of Expenses than would be afforded currently under the Company’s Second Amended and Restated Memorandum and Articles of Association or this Agreement, then this Agreement (without any further action by the parties hereto) shall automatically be deemed to be amended to require that the Company indemnifies the Indemnitee to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
13.2 To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee, agent or fiduciary under such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness, deponent or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter use commercially reasonable efforts to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.
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13.3 In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are reasonably necessary to enable the Company to bring suit to enforce such rights.
13.4 The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
13.5 If a determination is made that Indemnitee is not entitled to indemnification, after Indemnitee submits a written request therefor, under this Agreement, then in respect of any threatened, pending or completed Proceeding in which the Company is jointly liability with the Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement by the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnitee on the other hand from the transaction from which Proceeding arose, and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events that resulted in such Expenses, judgments, fines or amounts paid in settlement, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments, fines or amounts paid in settlement. The Company agrees that it would not be just and equitable if contribution pursuant to this Section were determined by pro rata allocation or any other method of allocation that does not take into account the foregoing equitable considerations. The determination as to the amount of the contribution, if any, shall be made by: (i) a court of competent jurisdiction upon the application of both the Indemnitee and the Company (if the Proceeding had been brought in, and final determination had been rendered by such court); (ii) the Board by a majority vote of a quorum consisting of Disinterested Directors; or (iii) Independent Counsel, if a quorum is not obtainable for purpose of (ii) above, or, even if obtainable, a quorum of Disinterested Directors so directs.
- Duration of Agreement.
This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director and/or officer of the Company, or (b) the final termination of all pending Proceedings in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement hereunder and or any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his spouse, heirs, executors, personal representatives and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.
- Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.
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- Entire Agreement.
This Agreement constitutes the entire agreement between the Company and the Indemnitee with respect to the subject matter hereof and supersedes all prior agreements, understanding, negotiations and discussion, both written and oral, between the parties hereto with respect to such subject matter (the “Prior Agreements”); provided, however, that if this Agreement shall ever be held void or unenforceable for any reasons whatsoever, and is not reformed pursuant to Section 15 hereof, then (i) this Agreement shall not be deemed to have superseded any Prior Agreements; (ii) all of such Prior Agreements shall be deemed to be in full force and effect notwithstanding the execution of this Agreement; and (iii) the Indemnitee shall be entitled to maximum indemnification benefits provided under any Prior Agreements, as well as those provided under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, a vote of shareholders or resolution of directors.
- Exception to Right of Indemnification or Advancement of Expenses.
17.1 Except as provided in Section 11.5, Indemnitee shall not be entitled to indemnification or advancement of Expenses, judgments, penalties, fines and amounts paid in settlement under this Agreement with respect to any Proceeding, or any claim therein, brought or made by him against the Company.
17.2 Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding, or any claim therein, arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Exchange Act or Company similar successor statute.
- Covenant Not to Sue; Limitation of Actions; Release of Claims.
No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company (or any of its subsidiaries) against the Indemnitee, his spouse, heirs, executors, personal representatives or administrators after the expiration of two (2) years from the date of accrual of such cause of action and any claim or cause of action of the Company (or any of its subsidiaries) shall be extinguished and deemed released unless asserted by the filing of a legal action within such two (2) year period; provided, however, that if any shorter period of limitation is otherwise applicable to any such cause of action, such shorter period shall govern.
- Identical Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.
- Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
- Modification and Waiver.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.
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- Notice by Indemnitee.
Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating any Proceeding or matter which may be subject to indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement covered hereunder. The failure to notify the Company on a timely basis shall not constitute a waiver of Indemnitee’s rights under this Agreement, except to the extent that such failure or delay (i) causes the amounts paid or to be paid by the Company to be greater than they otherwise would have been, (ii) adversely affects the Company’s ability to obtain for itself or Indemnitee coverage or proceeds under any insurance policy available to the Company or Indemnitee, or (iii) otherwise results in prejudice to the Company.
- Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by electronic transmission or hand and receipted for by the party to whom such notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
If to Indemnitee, to:
Min ZHANG
[ADDRESS]
If to the Company, to:
YHN Acquisition I Limited
2/F, Hang Seng Building,
200 Hennessy Road, Wanchai
Hong Kong
or to such other address or such other person as Indemnitee or the Company shall designate in writing in accordance with this Section, except that notices regarding changes in notices shall be effective only upon receipt.
- Governing Law.
The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts made and performed in that state without giving effect to the principles of conflicts of laws. The Company and Indemnitee each hereby irrevocably consents to the jurisdiction of the courts of the State of New York and the federal courts within the State for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agrees that any action instituted under this Agreement shall be brought only in the United States District Court for the Southern District of New York and any New York State court within that District.
- Mutual Acknowledgment.
Both the Company and Indemnitee acknowledge that, in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future in certain circumstances to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court for a determination of the Company’s right under public policy to indemnify Indemnitee.
- Waiver of Claims to Trust Account.
Notwithstanding anything herein to the contrary, Indemnitee hereby agrees that it does not have any right, title, interest or claim of any kind (each, a “Claim”) in or to any monies in the trust account established in connection with the Company’s initial public offering for the benefit of the Company and holders of shares issued in such offering, and hereby waives any Claim it may have in the future as a result of, or arising out of, any services provided to the Company and will not seek recourse against such trust account for any reason whatsoever. Accordingly, Indemnitee acknowledges and agrees that any indemnification provided hereto will only be able to be satisfied by the Company if (i) the Company has sufficient funds outside of the Trust Account to satisfy its obligations hereunder or (ii) the Company consummates a Business Combination.
- Miscellaneous.
Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.
| YHN ACQUISITION I LIMITED | |
|---|---|
| By: | /s/ Satoshi Tominaga |
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
| INDEMNITEE | |
| /s/ Min Zhang | |
| Name: | Min Zhang |
[Signature Page to Indemnification Agreement]
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INDEMNIFICATION AGREEMENT
This Indemnification Agreement, is made and entered into effective as of September 17, 2024 (“Agreement”), by and between YHN Acquisition I Limited, a British Virgin Islands company (“Company”), and the undersigned indemnitee (“Indemnitee”).
WHEREAS, the adoption of the Sarbanes-Oxley Act of 2002 and other laws, rules and regulations being promulgated have increased the potential for liability of officers and directors; and
WHEREAS, the Board of Directors of the Company (“Board”) has determined that the ability to attract and retain such persons is in the best interests of the Company’s shareholders; and
WHEREAS, it is reasonable, prudent and necessary for the Company to obligate itself contractually to indemnify, hold harmless, exonerate and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that such persons will serve or continue to serve the Company free from undue concern that they will not be adequately indemnified; and
WHEREAS, this Agreement is a supplement to and in furtherance of the Company’s Second Amended and Restated Memorandum and Articles of Association and any resolutions adopted pursuant thereto and shall neither be deemed to be a substitute therefor nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee is willing to serve on behalf of the Company on the condition that he be indemnified according to the terms of this Agreement;
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, and subject to the provisions of the letter agreement dated as of September 17, 2024, the Company and Indemnitee do hereby covenant and agree as follows:
- Definitions. For purposes of this Agreement:
1.1 “Change in Control” means a change in control of the Company occurring after the date hereof of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”), whether or not the Company is then subject to such reporting requirement provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if after the date hereof (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a person who is an officer or director of the Company on the date hereof (and any of such person’s affiliates), is or becomes “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the then outstanding securities of the Company without the prior approval of at least two-thirds of the members of the Board in office immediately prior to such person attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which (A) members of the Board in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter or (B) the voting securities of the Company outstanding immediately prior to such transaction do not continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such transaction with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least a majority of the Board.
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1.2 “Corporate Status” means the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company. In addition, service at the actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be serving or to have served at the request of the Company as a director, officer, employee, agent or fiduciary of any other enterprise if Indemnitee is or was serving as a director, officer, employee, agent or fiduciary of such enterprise and (A) such enterprise is or at the time of such service was an affiliate of the Company, (B) such enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or an affiliate of the Company or (C) the Company or an affiliate of the Company directly or indirectly caused Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity
1.3 “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.
1.4 “Expenses” means all reasonable attorneys’ fees, retainers, court costs (including trial and appeals), transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.
Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the principal, premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
1.5 “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any other matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. Except as provided in the first sentence of Section 9.3 hereof, Independent Counsel shall be selected by (a) the Disinterested Directors or (b) a committee of the Board consisting of two or more Disinterested Directors or if (a) and (b) above are not possible, then by a majority of the full Board.
1.6 “Proceeding” means any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether conducted by or on behalf of the Company or any other party, whether civil, criminal, administrative or investigative, except one initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce his rights under this Agreement.
- Services by Indemnitee.
Indemnitee agrees to serve as a director, officer or employee of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law).
- Indemnification - General.
Except with respect to actions finally adjudicated to be a result of actual fraud or intentional misconduct of the Indemnitee, the Company shall indemnify, and, subject to Section 26 hereof, advance Expenses to, Indemnitee as provided in this Agreement to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as any amendment to or interpretation of applicable law may thereafter from time to time permit. The rights of Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other Sections of this Agreement.
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- Proceedings Other Than Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he is, was or is threatened to be made, a party to any threatened, pending or completed Proceeding, other than a Proceeding by or in the right of the Company. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with any such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful; provided, in no event shall Indemnitee be entitled to be indemnified, held harmless or advanced any amounts hereunder in respect of any Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (if any) that Indemnitee may incur by reason of his or her own actual fraud or intentional misconduct. Indemnitee shall not be found to have committed actual fraud or intentional misconduct for any purpose of this Agreement unless or until a court of competent jurisdiction shall have made a finding to that effect.
- Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he was or is threatened to be made, a party to any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against amounts paid in settlement and Expenses actually and reasonably incurred by him or on his behalf in connection with the defense or settlement of any such Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Notwithstanding the foregoing, no indemnification under this paragraph shall be made in respect of (1) a threatened or pending Proceeding which is settled or otherwise disposed of, or (2) any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company, unless and only to the extent that the court in which such Proceeding shall have been brought, was brought or is pending, shall determine, upon application, that Indemnitee is fairly and reasonably entitled to indemnity for such portion of the settlement amount and Expenses as the court deems proper.
- Indemnification for Expenses of Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified against all Expenses (and, when eligible hereunder, amounts paid in settlement) actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses (and, when eligible hereunder, amount paid in settlement) actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Agreement, the term “successful, on the merits or otherwise,” includes, but is not limited to, (i) any termination, withdrawal, or dismissal (with or without prejudice) of any Proceeding against the Indemnitee without any express finding of liability or guilt against him, and (ii) the expiration of 90 days after the making of any claim or threat of a Proceeding without the institution of the same and without any promise or payment made to induce a settlement.
- Indemnification for Expenses as a Witness.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
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- Advancement of Expenses and Other Amounts.
Subject to Section 26 hereof, the Company shall advance all Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement, incurred by or on behalf of Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses, judgments, penalties, fines and amounts paid in settlement, incurred by Indemnitee and shall include or be preceded or accompanied by an agreement by or on behalf of Indemnitee to repay any Expenses, judgments, penalties, fines and amounts paid in settlement advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement. In connection with any request for advancement of Expenses, judgments, penalties, fines and amounts paid in settlement, Indemnitee shall not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. The Company’s obligation in respect of the advancement of Expenses, judgments, penalties, fines and amounts paid in settlement in connection with a criminal Proceeding in which Indemnitee is a defendant shall terminate at such time as Indemnitee pleads guilty or is convicted after trial and such conviction becomes final and no longer subject to appeal. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.
- Procedure for Determination of Entitlement to Indemnification.
9.1 To obtain indemnification under this Agreement in connection with any Proceeding, and for the duration thereof, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The officer of the Company shall, promptly upon receipt of any such request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
9.2 Upon written request by Indemnitee for indemnification pursuant to Section 9.1 hereof, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in such case: (i) if a Change in Control shall have occurred, by Independent Counsel (unless Indemnitee shall request that such determination be made by the Board or the shareholders, in which case in the manner provided for in clauses (ii) or (iii) of this Section 9.2) in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; (ii) if a Change of Control shall not have occurred, at the election of the Company, (A) by the Board by a majority vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board consisting of Disinterested Directors is not obtainable, by a majority of a committee of the Board consisting of two or more Disinterested Directors, or (C) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) by the shareholders of the Company, by a majority vote of a quorum consisting of shareholders who are not parties to the proceeding, or if no such quorum is obtainable, by a majority vote of shareholders who are not parties to such proceeding; or (iii) as provided in Section 10.2 of this Agreement. The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
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9.3 If a Change of Control shall have occurred, Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board), and Indemnitee (or the Board, as the case may be) shall give written notice to the other party advising it of the identity of Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within seven days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection. Such objection may be asserted only on the ground that Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. If such written objection is made, Independent Counsel so selected may not serve as Independent Counsel unless and until a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 9.1 hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction, for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom an objection is so resolved or the person so appointed shall act as Independent Counsel under Section 9.2 hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with its actions pursuant to this Agreement, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 9.3, regardless of the manner in which such Independent Counsel was selected or appointed. Upon the due commencement date of any judicial proceeding pursuant to Section 11.1(iii) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
- Presumptions and Effects of Certain Proceedings.
10.1 In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9.1 of this Agreement, and the Company shall have the burden of proof to overcome that presumption by clear and convincing evidence in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by the Disinterested Directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by the Disinterested Directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
10.2 If the person, persons or entity empowered or selected under Section 9 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith require(s) such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, however, that the foregoing provisions of this Section 10.2 shall not apply (i) if the determination of entitlement to indemnification is to be made by the shareholders pursuant to Section 9.2 of this Agreement and if (A) within 15 days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the shareholders for their consideration at an annual meeting thereof to be held within 75 days after such receipt and such determination is made thereat, or (B) a special meeting of shareholders is called within 15 days after such receipt for the purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement. In connection with each meeting at which a shareholder determination will be made, the Company shall solicit proxies that expressly include a proposal to indemnify or reimburse the Indemnitee. The Company shall afford the Indemnitee ample opportunity to present evidence of the facts upon which the Indemnitee relies for indemnification in any Company proxy statement relating to such shareholder determination. Subject to the fiduciary duties of its members under applicable law, the Board will not recommend against indemnification or reimbursement in any proxy statement relating to the proposal to indemnify or reimburse the Indemnitee.
10.3 The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.
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10.4 For purposes of this Agreement, the Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe his conduct was unlawful, if his action is based on (i) the records or books of account of the Company, or another enterprise, including financial statements, (ii) information supplied to him by the officers of the Company or another enterprise in the course of their duties, (iii) the advice of legal counsel for the Company or another enterprise, or of an independent certified public accountant or an appraiser or other expert selected with reasonable care by the Company or another enterprise. The term “another enterprise” as used in this Section shall mean any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise of which the Indemnitee is or was serving at the request of the Company as a director, officer, partner, trustee, employee or agent. The provisions of this Section shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth herein. Whether or not the foregoing provisions of this Section 10.4 are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe Indemnitee’s conduct was unlawful. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
10.5 The knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, manager, managing member, fiduciary, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
- Remedies of Indemnitee.
11.1 In the event that (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) the determination of indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement and such determination shall not have been made and delivered in a written opinion within sixty (60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within thirty (30) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 9 or 10 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of New York, or in any other court of competent jurisdiction, of his entitlement to such indemnification or advancement of Expenses, judgments, penalties, fines or, when eligible hereunder, amounts paid in settlement. The Company shall not oppose Indemnitee’s right to seek any such adjudication.
11.2 In the event that a determination shall have been made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section shall be conducted in all respects as a de novo trial on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.
11.3 If a determination shall have been made or deemed to have been made pursuant to Section 9 or 10 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law.
11.4 The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.
11.5 In the event that Indemnitee, pursuant to this Section, seeks a judicial adjudication of his rights under, or to recover damages for breach of, this Agreement or any other agreement, including any other indemnification, contribution or advancement agreement, or any provision of the Company’s Second Amended and Restated Memorandum and Articles of Association now or hereafter in effect, or for recovery under directors’ and officers’ liability insurance policies maintained by the Company, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all expenses (of the kinds described in the definition of Expenses) actually and reasonably incurred by him in such judicial adjudication, but only if he prevails therein. If it shall be determined in such judicial adjudication that Indemnitee is entitled to receive less than all of the indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated. In addition, the Company shall, if so requested by Indemnitee, advance the foregoing expenses to Indemnitee, subject to and in accordance with Section 8.
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- Procedure Regarding Indemnification.
With respect to any Proceedings, the Indemnitee, prior to taking any action with respect to such Proceeding, shall consult with the Company as to the procedure to be followed in defending, settling, or compromising the Proceeding and may not consent to any settlement or compromise of the Proceeding without the written consent of the Company (which consent may not be unreasonably withheld or delayed). The Company shall be entitled to participate in defending, settling or compromising any Proceeding and to assume the defense of such Proceeding with counsel of its choice and shall assume such defense if requested by the Indemnitee. Notwithstanding the election by, or obligation of, the Company to assume the defense of a Proceeding, the Indemnitee shall have the right to participate in the defense of such Proceeding and to employ counsel of Indemnitee’s choice, but the fees and expenses of such counsel shall be at the expense of the Indemnitee unless (i) the employment of such counsel has been authorized in writing by the Company, or (ii) the Indemnitee has reasonably concluded that there may be defenses available to him which are different from or additional to those available to the Company (in which latter case the Company shall not have the right to direct the defense of such Proceeding on behalf of the Indemnitee), in either of which events the fees and expenses of not more than one additional firm of attorneys selected by the Indemnitee shall be borne by the Company. If the Company assumes the defense of a Proceeding, then counsel for the Company and Indemnitee shall keep Indemnitee reasonably informed of the status of the Proceeding and promptly send to Indemnitee copies of all documents filed or produced in the Proceeding, and the Company shall not compromise or settle any such Proceeding without the written consent of the Indemnitee (which consent may not be unreasonably withheld or delayed) if the relief provided shall be other than monetary damages and shall promptly notify the Indemnitee of any settlement and the amount thereof.
- Non-Exclusivity; Survival of Rights; Insurance; Subrogation; Contribution.
13.1 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, any agreement, a vote of shareholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or any provision hereof shall be effective as to any Indemnitee with respect to any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association, whether by statute or judicial decision, permits greater indemnification, hold harmless or exoneration rights or advancement of Expenses than would be afforded currently under the Company’s Second Amended and Restated Memorandum and Articles of Association or this Agreement, then this Agreement (without any further action by the parties hereto) shall automatically be deemed to be amended to require that the Company indemnifies the Indemnitee to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
13.2 To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee, agent or fiduciary under such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness, deponent or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter use commercially reasonable efforts to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.
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13.3 In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are reasonably necessary to enable the Company to bring suit to enforce such rights.
13.4 The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
13.5 If a determination is made that Indemnitee is not entitled to indemnification, after Indemnitee submits a written request therefor, under this Agreement, then in respect of any threatened, pending or completed Proceeding in which the Company is jointly liability with the Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement by the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnitee on the other hand from the transaction from which Proceeding arose, and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events that resulted in such Expenses, judgments, fines or amounts paid in settlement, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments, fines or amounts paid in settlement. The Company agrees that it would not be just and equitable if contribution pursuant to this Section were determined by pro rata allocation or any other method of allocation that does not take into account the foregoing equitable considerations. The determination as to the amount of the contribution, if any, shall be made by: (i) a court of competent jurisdiction upon the application of both the Indemnitee and the Company (if the Proceeding had been brought in, and final determination had been rendered by such court); (ii) the Board by a majority vote of a quorum consisting of Disinterested Directors; or (iii) Independent Counsel, if a quorum is not obtainable for purpose of (ii) above, or, even if obtainable, a quorum of Disinterested Directors so directs.
- Duration of Agreement.
This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director and/or officer of the Company, or (b) the final termination of all pending Proceedings in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement hereunder and or any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his spouse, heirs, executors, personal representatives and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.
- Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.
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- Entire Agreement.
This Agreement constitutes the entire agreement between the Company and the Indemnitee with respect to the subject matter hereof and supersedes all prior agreements, understanding, negotiations and discussion, both written and oral, between the parties hereto with respect to such subject matter (the “Prior Agreements”); provided, however, that if this Agreement shall ever be held void or unenforceable for any reasons whatsoever, and is not reformed pursuant to Section 15 hereof, then (i) this Agreement shall not be deemed to have superseded any Prior Agreements; (ii) all of such Prior Agreements shall be deemed to be in full force and effect notwithstanding the execution of this Agreement; and (iii) the Indemnitee shall be entitled to maximum indemnification benefits provided under any Prior Agreements, as well as those provided under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, a vote of shareholders or resolution of directors.
- Exception to Right of Indemnification or Advancement of Expenses.
17.1 Except as provided in Section 11.5, Indemnitee shall not be entitled to indemnification or advancement of Expenses, judgments, penalties, fines and amounts paid in settlement under this Agreement with respect to any Proceeding, or any claim therein, brought or made by him against the Company.
17.2 Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding, or any claim therein, arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Exchange Act or Company similar successor statute.
- Covenant Not to Sue; Limitation of Actions; Release of Claims.
No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company (or any of its subsidiaries) against the Indemnitee, his spouse, heirs, executors, personal representatives or administrators after the expiration of two (2) years from the date of accrual of such cause of action and any claim or cause of action of the Company (or any of its subsidiaries) shall be extinguished and deemed released unless asserted by the filing of a legal action within such two (2) year period; provided, however, that if any shorter period of limitation is otherwise applicable to any such cause of action, such shorter period shall govern.
- Identical Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.
- Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
- Modification and Waiver.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.
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- Notice by Indemnitee.
Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating any Proceeding or matter which may be subject to indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement covered hereunder. The failure to notify the Company on a timely basis shall not constitute a waiver of Indemnitee’s rights under this Agreement, except to the extent that such failure or delay (i) causes the amounts paid or to be paid by the Company to be greater than they otherwise would have been, (ii) adversely affects the Company’s ability to obtain for itself or Indemnitee coverage or proceeds under any insurance policy available to the Company or Indemnitee, or (iii) otherwise results in prejudice to the Company.
- Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by electronic transmission or hand and receipted for by the party to whom such notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
If to Indemnitee, to:
Satoshi TOMINAGA
[ADDRESS]
If to the Company, to:
YHN Acquisition I Limited
2/F, Hang Seng Building,
200 Hennessy Road, Wanchai
Hong Kong
or to such other address or such other person as Indemnitee or the Company shall designate in writing in accordance with this Section, except that notices regarding changes in notices shall be effective only upon receipt.
- Governing Law.
The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts made and performed in that state without giving effect to the principles of conflicts of laws. The Company and Indemnitee each hereby irrevocably consents to the jurisdiction of the courts of the State of New York and the federal courts within the State for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agrees that any action instituted under this Agreement shall be brought only in the United States District Court for the Southern District of New York and any New York State court within that District.
- Mutual Acknowledgment.
Both the Company and Indemnitee acknowledge that, in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future in certain circumstances to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court for a determination of the Company’s right under public policy to indemnify Indemnitee.
- Waiver of Claims to Trust Account.
Notwithstanding anything herein to the contrary, Indemnitee hereby agrees that it does not have any right, title, interest or claim of any kind (each, a “Claim”) in or to any monies in the trust account established in connection with the Company’s initial public offering for the benefit of the Company and holders of shares issued in such offering, and hereby waives any Claim it may have in the future as a result of, or arising out of, any services provided to the Company and will not seek recourse against such trust account for any reason whatsoever. Accordingly, Indemnitee acknowledges and agrees that any indemnification provided hereto will only be able to be satisfied by the Company if (i) the Company has sufficient funds outside of the Trust Account to satisfy its obligations hereunder or (ii) the Company consummates a Business Combination.
- Miscellaneous.
Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.
| YHN ACQUISITION I LIMITED | |
|---|---|
| By: | /s/ Satoshi Tominaga |
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
| INDEMNITEE | |
| /s/ Satoshi Tominaga | |
| Name: | Satoshi Tominaga |
[Signature Page to Indemnification Agreement]
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INDEMNIFICATION AGREEMENT
This Indemnification Agreement, is made and entered into effective as of September 17, 2024 (“Agreement”), by and between YHN Acquisition I Limited, a British Virgin Islands company (“Company”), and the undersigned indemnitee (“Indemnitee”).
WHEREAS, the adoption of the Sarbanes-Oxley Act of 2002 and other laws, rules and regulations being promulgated have increased the potential for liability of officers and directors; and
WHEREAS, the Board of Directors of the Company (“Board”) has determined that the ability to attract and retain such persons is in the best interests of the Company’s shareholders; and
WHEREAS, it is reasonable, prudent and necessary for the Company to obligate itself contractually to indemnify, hold harmless, exonerate and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that such persons will serve or continue to serve the Company free from undue concern that they will not be adequately indemnified; and
WHEREAS, this Agreement is a supplement to and in furtherance of the Company’s Second Amended and Restated Memorandum and Articles of Association and any resolutions adopted pursuant thereto and shall neither be deemed to be a substitute therefor nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee is willing to serve on behalf of the Company on the condition that he be indemnified according to the terms of this Agreement;
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, and subject to the provisions of the letter agreement dated as of September 17, 2024, the Company and Indemnitee do hereby covenant and agree as follows:
- Definitions. For purposes of this Agreement:
1.1 “Change in Control” means a change in control of the Company occurring after the date hereof of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”), whether or not the Company is then subject to such reporting requirement provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if after the date hereof (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a person who is an officer or director of the Company on the date hereof (and any of such person’s affiliates), is or becomes “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the then outstanding securities of the Company without the prior approval of at least two-thirds of the members of the Board in office immediately prior to such person attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which (A) members of the Board in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter or (B) the voting securities of the Company outstanding immediately prior to such transaction do not continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such transaction with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least a majority of the Board.
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1.2 “Corporate Status” means the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company. In addition, service at the actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be serving or to have served at the request of the Company as a director, officer, employee, agent or fiduciary of any other enterprise if Indemnitee is or was serving as a director, officer, employee, agent or fiduciary of such enterprise and (A) such enterprise is or at the time of such service was an affiliate of the Company, (B) such enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or an affiliate of the Company or (C) the Company or an affiliate of the Company directly or indirectly caused Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity
1.3 “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.
1.4 “Expenses” means all reasonable attorneys’ fees, retainers, court costs (including trial and appeals), transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.
Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the principal, premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
1.5 “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any other matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. Except as provided in the first sentence of Section 9.3 hereof, Independent Counsel shall be selected by (a) the Disinterested Directors or (b) a committee of the Board consisting of two or more Disinterested Directors or if (a) and (b) above are not possible, then by a majority of the full Board.
1.6 “Proceeding” means any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether conducted by or on behalf of the Company or any other party, whether civil, criminal, administrative or investigative, except one initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce his rights under this Agreement.
- Services by Indemnitee.
Indemnitee agrees to serve as a director, officer or employee of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law).
- Indemnification - General.
Except with respect to actions finally adjudicated to be a result of actual fraud or intentional misconduct of the Indemnitee, the Company shall indemnify, and, subject to Section 26 hereof, advance Expenses to, Indemnitee as provided in this Agreement to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as any amendment to or interpretation of applicable law may thereafter from time to time permit. The rights of Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other Sections of this Agreement.
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- Proceedings Other Than Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he is, was or is threatened to be made, a party to any threatened, pending or completed Proceeding, other than a Proceeding by or in the right of the Company. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with any such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful; provided, in no event shall Indemnitee be entitled to be indemnified, held harmless or advanced any amounts hereunder in respect of any Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (if any) that Indemnitee may incur by reason of his or her own actual fraud or intentional misconduct. Indemnitee shall not be found to have committed actual fraud or intentional misconduct for any purpose of this Agreement unless or until a court of competent jurisdiction shall have made a finding to that effect.
- Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he was or is threatened to be made, a party to any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against amounts paid in settlement and Expenses actually and reasonably incurred by him or on his behalf in connection with the defense or settlement of any such Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Notwithstanding the foregoing, no indemnification under this paragraph shall be made in respect of (1) a threatened or pending Proceeding which is settled or otherwise disposed of, or (2) any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company, unless and only to the extent that the court in which such Proceeding shall have been brought, was brought or is pending, shall determine, upon application, that Indemnitee is fairly and reasonably entitled to indemnity for such portion of the settlement amount and Expenses as the court deems proper.
- Indemnification for Expenses of Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified against all Expenses (and, when eligible hereunder, amounts paid in settlement) actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses (and, when eligible hereunder, amount paid in settlement) actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Agreement, the term “successful, on the merits or otherwise,” includes, but is not limited to, (i) any termination, withdrawal, or dismissal (with or without prejudice) of any Proceeding against the Indemnitee without any express finding of liability or guilt against him, and (ii) the expiration of 90 days after the making of any claim or threat of a Proceeding without the institution of the same and without any promise or payment made to induce a settlement.
- Indemnification for Expenses as a Witness.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
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- Advancement of Expenses and Other Amounts.
Subject to Section 26 hereof, the Company shall advance all Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement, incurred by or on behalf of Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses, judgments, penalties, fines and amounts paid in settlement, incurred by Indemnitee and shall include or be preceded or accompanied by an agreement by or on behalf of Indemnitee to repay any Expenses, judgments, penalties, fines and amounts paid in settlement advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement. In connection with any request for advancement of Expenses, judgments, penalties, fines and amounts paid in settlement, Indemnitee shall not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. The Company’s obligation in respect of the advancement of Expenses, judgments, penalties, fines and amounts paid in settlement in connection with a criminal Proceeding in which Indemnitee is a defendant shall terminate at such time as Indemnitee pleads guilty or is convicted after trial and such conviction becomes final and no longer subject to appeal. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.
- Procedure for Determination of Entitlement to Indemnification.
9.1 To obtain indemnification under this Agreement in connection with any Proceeding, and for the duration thereof, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The officer of the Company shall, promptly upon receipt of any such request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
9.2 Upon written request by Indemnitee for indemnification pursuant to Section 9.1 hereof, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in such case: (i) if a Change in Control shall have occurred, by Independent Counsel (unless Indemnitee shall request that such determination be made by the Board or the shareholders, in which case in the manner provided for in clauses (ii) or (iii) of this Section 9.2) in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; (ii) if a Change of Control shall not have occurred, at the election of the Company, (A) by the Board by a majority vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board consisting of Disinterested Directors is not obtainable, by a majority of a committee of the Board consisting of two or more Disinterested Directors, or (C) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) by the shareholders of the Company, by a majority vote of a quorum consisting of shareholders who are not parties to the proceeding, or if no such quorum is obtainable, by a majority vote of shareholders who are not parties to such proceeding; or (iii) as provided in Section 10.2 of this Agreement. The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
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9.3 If a Change of Control shall have occurred, Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board), and Indemnitee (or the Board, as the case may be) shall give written notice to the other party advising it of the identity of Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within seven days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection. Such objection may be asserted only on the ground that Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. If such written objection is made, Independent Counsel so selected may not serve as Independent Counsel unless and until a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 9.1 hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction, for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom an objection is so resolved or the person so appointed shall act as Independent Counsel under Section 9.2 hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with its actions pursuant to this Agreement, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 9.3, regardless of the manner in which such Independent Counsel was selected or appointed. Upon the due commencement date of any judicial proceeding pursuant to Section 11.1(iii) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
- Presumptions and Effects of Certain Proceedings.
10.1 In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9.1 of this Agreement, and the Company shall have the burden of proof to overcome that presumption by clear and convincing evidence in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by the Disinterested Directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by the Disinterested Directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
10.2 If the person, persons or entity empowered or selected under Section 9 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith require(s) such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, however, that the foregoing provisions of this Section 10.2 shall not apply (i) if the determination of entitlement to indemnification is to be made by the shareholders pursuant to Section 9.2 of this Agreement and if (A) within 15 days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the shareholders for their consideration at an annual meeting thereof to be held within 75 days after such receipt and such determination is made thereat, or (B) a special meeting of shareholders is called within 15 days after such receipt for the purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement. In connection with each meeting at which a shareholder determination will be made, the Company shall solicit proxies that expressly include a proposal to indemnify or reimburse the Indemnitee. The Company shall afford the Indemnitee ample opportunity to present evidence of the facts upon which the Indemnitee relies for indemnification in any Company proxy statement relating to such shareholder determination. Subject to the fiduciary duties of its members under applicable law, the Board will not recommend against indemnification or reimbursement in any proxy statement relating to the proposal to indemnify or reimburse the Indemnitee.
10.3 The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.
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10.4 For purposes of this Agreement, the Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe his conduct was unlawful, if his action is based on (i) the records or books of account of the Company, or another enterprise, including financial statements, (ii) information supplied to him by the officers of the Company or another enterprise in the course of their duties, (iii) the advice of legal counsel for the Company or another enterprise, or of an independent certified public accountant or an appraiser or other expert selected with reasonable care by the Company or another enterprise. The term “another enterprise” as used in this Section shall mean any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise of which the Indemnitee is or was serving at the request of the Company as a director, officer, partner, trustee, employee or agent. The provisions of this Section shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth herein. Whether or not the foregoing provisions of this Section 10.4 are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe Indemnitee’s conduct was unlawful. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
10.5 The knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, manager, managing member, fiduciary, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
- Remedies of Indemnitee.
11.1 In the event that (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) the determination of indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement and such determination shall not have been made and delivered in a written opinion within sixty (60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within thirty (30) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 9 or 10 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of New York, or in any other court of competent jurisdiction, of his entitlement to such indemnification or advancement of Expenses, judgments, penalties, fines or, when eligible hereunder, amounts paid in settlement. The Company shall not oppose Indemnitee’s right to seek any such adjudication.
11.2 In the event that a determination shall have been made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section shall be conducted in all respects as a de novo trial on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.
11.3 If a determination shall have been made or deemed to have been made pursuant to Section 9 or 10 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law.
11.4 The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.
11.5 In the event that Indemnitee, pursuant to this Section, seeks a judicial adjudication of his rights under, or to recover damages for breach of, this Agreement or any other agreement, including any other indemnification, contribution or advancement agreement, or any provision of the Company’s Second Amended and Restated Memorandum and Articles of Association now or hereafter in effect, or for recovery under directors’ and officers’ liability insurance policies maintained by the Company, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all expenses (of the kinds described in the definition of Expenses) actually and reasonably incurred by him in such judicial adjudication, but only if he prevails therein. If it shall be determined in such judicial adjudication that Indemnitee is entitled to receive less than all of the indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated. In addition, the Company shall, if so requested by Indemnitee, advance the foregoing expenses to Indemnitee, subject to and in accordance with Section 8.
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- Procedure Regarding Indemnification.
With respect to any Proceedings, the Indemnitee, prior to taking any action with respect to such Proceeding, shall consult with the Company as to the procedure to be followed in defending, settling, or compromising the Proceeding and may not consent to any settlement or compromise of the Proceeding without the written consent of the Company (which consent may not be unreasonably withheld or delayed). The Company shall be entitled to participate in defending, settling or compromising any Proceeding and to assume the defense of such Proceeding with counsel of its choice and shall assume such defense if requested by the Indemnitee. Notwithstanding the election by, or obligation of, the Company to assume the defense of a Proceeding, the Indemnitee shall have the right to participate in the defense of such Proceeding and to employ counsel of Indemnitee’s choice, but the fees and expenses of such counsel shall be at the expense of the Indemnitee unless (i) the employment of such counsel has been authorized in writing by the Company, or (ii) the Indemnitee has reasonably concluded that there may be defenses available to him which are different from or additional to those available to the Company (in which latter case the Company shall not have the right to direct the defense of such Proceeding on behalf of the Indemnitee), in either of which events the fees and expenses of not more than one additional firm of attorneys selected by the Indemnitee shall be borne by the Company. If the Company assumes the defense of a Proceeding, then counsel for the Company and Indemnitee shall keep Indemnitee reasonably informed of the status of the Proceeding and promptly send to Indemnitee copies of all documents filed or produced in the Proceeding, and the Company shall not compromise or settle any such Proceeding without the written consent of the Indemnitee (which consent may not be unreasonably withheld or delayed) if the relief provided shall be other than monetary damages and shall promptly notify the Indemnitee of any settlement and the amount thereof.
- Non-Exclusivity; Survival of Rights; Insurance; Subrogation; Contribution.
13.1 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, any agreement, a vote of shareholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or any provision hereof shall be effective as to any Indemnitee with respect to any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association, whether by statute or judicial decision, permits greater indemnification, hold harmless or exoneration rights or advancement of Expenses than would be afforded currently under the Company’s Second Amended and Restated Memorandum and Articles of Association or this Agreement, then this Agreement (without any further action by the parties hereto) shall automatically be deemed to be amended to require that the Company indemnifies the Indemnitee to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
13.2 To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee, agent or fiduciary under such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness, deponent or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter use commercially reasonable efforts to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.
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13.3 In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are reasonably necessary to enable the Company to bring suit to enforce such rights.
13.4 The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
13.5 If a determination is made that Indemnitee is not entitled to indemnification, after Indemnitee submits a written request therefor, under this Agreement, then in respect of any threatened, pending or completed Proceeding in which the Company is jointly liability with the Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement by the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnitee on the other hand from the transaction from which Proceeding arose, and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events that resulted in such Expenses, judgments, fines or amounts paid in settlement, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments, fines or amounts paid in settlement. The Company agrees that it would not be just and equitable if contribution pursuant to this Section were determined by pro rata allocation or any other method of allocation that does not take into account the foregoing equitable considerations. The determination as to the amount of the contribution, if any, shall be made by: (i) a court of competent jurisdiction upon the application of both the Indemnitee and the Company (if the Proceeding had been brought in, and final determination had been rendered by such court); (ii) the Board by a majority vote of a quorum consisting of Disinterested Directors; or (iii) Independent Counsel, if a quorum is not obtainable for purpose of (ii) above, or, even if obtainable, a quorum of Disinterested Directors so directs.
- Duration of Agreement.
This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director and/or officer of the Company, or (b) the final termination of all pending Proceedings in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement hereunder and or any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his spouse, heirs, executors, personal representatives and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.
- Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.
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- Entire Agreement.
This Agreement constitutes the entire agreement between the Company and the Indemnitee with respect to the subject matter hereof and supersedes all prior agreements, understanding, negotiations and discussion, both written and oral, between the parties hereto with respect to such subject matter (the “Prior Agreements”); provided, however, that if this Agreement shall ever be held void or unenforceable for any reasons whatsoever, and is not reformed pursuant to Section 15 hereof, then (i) this Agreement shall not be deemed to have superseded any Prior Agreements; (ii) all of such Prior Agreements shall be deemed to be in full force and effect notwithstanding the execution of this Agreement; and (iii) the Indemnitee shall be entitled to maximum indemnification benefits provided under any Prior Agreements, as well as those provided under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, a vote of shareholders or resolution of directors.
- Exception to Right of Indemnification or Advancement of Expenses.
17.1 Except as provided in Section 11.5, Indemnitee shall not be entitled to indemnification or advancement of Expenses, judgments, penalties, fines and amounts paid in settlement under this Agreement with respect to any Proceeding, or any claim therein, brought or made by him against the Company.
17.2 Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding, or any claim therein, arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Exchange Act or Company similar successor statute.
- Covenant Not to Sue; Limitation of Actions; Release of Claims.
No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company (or any of its subsidiaries) against the Indemnitee, his spouse, heirs, executors, personal representatives or administrators after the expiration of two (2) years from the date of accrual of such cause of action and any claim or cause of action of the Company (or any of its subsidiaries) shall be extinguished and deemed released unless asserted by the filing of a legal action within such two (2) year period; provided, however, that if any shorter period of limitation is otherwise applicable to any such cause of action, such shorter period shall govern.
- Identical Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.
- Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
- Modification and Waiver.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.
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- Notice by Indemnitee.
Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating any Proceeding or matter which may be subject to indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement covered hereunder. The failure to notify the Company on a timely basis shall not constitute a waiver of Indemnitee’s rights under this Agreement, except to the extent that such failure or delay (i) causes the amounts paid or to be paid by the Company to be greater than they otherwise would have been, (ii) adversely affects the Company’s ability to obtain for itself or Indemnitee coverage or proceeds under any insurance policy available to the Company or Indemnitee, or (iii) otherwise results in prejudice to the Company.
- Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by electronic transmission or hand and receipted for by the party to whom such notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
If to Indemnitee, to:
Yangyujia AN
[ADDRESS]
If to the Company, to:
YHN Acquisition I Limited
2/F, Hang Seng Building,
200 Hennessy Road, Wanchai
Hong Kong
or to such other address or such other person as Indemnitee or the Company shall designate in writing in accordance with this Section, except that notices regarding changes in notices shall be effective only upon receipt.
- Governing Law.
The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts made and performed in that state without giving effect to the principles of conflicts of laws. The Company and Indemnitee each hereby irrevocably consents to the jurisdiction of the courts of the State of New York and the federal courts within the State for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agrees that any action instituted under this Agreement shall be brought only in the United States District Court for the Southern District of New York and any New York State court within that District.
- Mutual Acknowledgment.
Both the Company and Indemnitee acknowledge that, in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future in certain circumstances to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court for a determination of the Company’s right under public policy to indemnify Indemnitee.
- Waiver of Claims to Trust Account.
Notwithstanding anything herein to the contrary, Indemnitee hereby agrees that it does not have any right, title, interest or claim of any kind (each, a “Claim”) in or to any monies in the trust account established in connection with the Company’s initial public offering for the benefit of the Company and holders of shares issued in such offering, and hereby waives any Claim it may have in the future as a result of, or arising out of, any services provided to the Company and will not seek recourse against such trust account for any reason whatsoever. Accordingly, Indemnitee acknowledges and agrees that any indemnification provided hereto will only be able to be satisfied by the Company if (i) the Company has sufficient funds outside of the Trust Account to satisfy its obligations hereunder or (ii) the Company consummates a Business Combination.
- Miscellaneous.
Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.
| YHN ACQUISITION I LIMITED | |
|---|---|
| By: | /s/ Satoshi Tominaga |
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
| INDEMNITEE | |
| /s/ Yangyujia An | |
| Name: | Yangyujia An |
[Signature Page to Indemnification Agreement]
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INDEMNIFICATION AGREEMENT
This Indemnification Agreement, is made and entered into effective as of September 17, 2024 (“Agreement”), by and between YHN Acquisition I Limited, a British Virgin Islands company (“Company”), and the undersigned indemnitee (“Indemnitee”).
WHEREAS, the adoption of the Sarbanes-Oxley Act of 2002 and other laws, rules and regulations being promulgated have increased the potential for liability of officers and directors; and
WHEREAS, the Board of Directors of the Company (“Board”) has determined that the ability to attract and retain such persons is in the best interests of the Company’s shareholders; and
WHEREAS, it is reasonable, prudent and necessary for the Company to obligate itself contractually to indemnify, hold harmless, exonerate and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that such persons will serve or continue to serve the Company free from undue concern that they will not be adequately indemnified; and
WHEREAS, this Agreement is a supplement to and in furtherance of the Company’s Second Amended and Restated Memorandum and Articles of Association and any resolutions adopted pursuant thereto and shall neither be deemed to be a substitute therefor nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee is willing to serve on behalf of the Company on the condition that he be indemnified according to the terms of this Agreement;
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, and subject to the provisions of the letter agreement dated as of September 17, 2024, the Company and Indemnitee do hereby covenant and agree as follows:
- Definitions. For purposes of this Agreement:
1.1 “Change in Control” means a change in control of the Company occurring after the date hereof of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”), whether or not the Company is then subject to such reporting requirement provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if after the date hereof (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a person who is an officer or director of the Company on the date hereof (and any of such person’s affiliates), is or becomes “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the then outstanding securities of the Company without the prior approval of at least two-thirds of the members of the Board in office immediately prior to such person attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which (A) members of the Board in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter or (B) the voting securities of the Company outstanding immediately prior to such transaction do not continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such transaction with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least a majority of the Board.
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1.2 “Corporate Status” means the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company. In addition, service at the actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be serving or to have served at the request of the Company as a director, officer, employee, agent or fiduciary of any other enterprise if Indemnitee is or was serving as a director, officer, employee, agent or fiduciary of such enterprise and (A) such enterprise is or at the time of such service was an affiliate of the Company, (B) such enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or an affiliate of the Company or (C) the Company or an affiliate of the Company directly or indirectly caused Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity
1.3 “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.
1.4 “Expenses” means all reasonable attorneys’ fees, retainers, court costs (including trial and appeals), transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.
Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the principal, premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
1.5 “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any other matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. Except as provided in the first sentence of Section 9.3 hereof, Independent Counsel shall be selected by (a) the Disinterested Directors or (b) a committee of the Board consisting of two or more Disinterested Directors or if (a) and (b) above are not possible, then by a majority of the full Board.
1.6 “Proceeding” means any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether conducted by or on behalf of the Company or any other party, whether civil, criminal, administrative or investigative, except one initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce his rights under this Agreement.
- Services by Indemnitee.
Indemnitee agrees to serve as a director, officer or employee of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law).
- Indemnification - General.
Except with respect to actions finally adjudicated to be a result of actual fraud or intentional misconduct of the Indemnitee, the Company shall indemnify, and, subject to Section 26 hereof, advance Expenses to, Indemnitee as provided in this Agreement to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as any amendment to or interpretation of applicable law may thereafter from time to time permit. The rights of Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other Sections of this Agreement.
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- Proceedings Other Than Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he is, was or is threatened to be made, a party to any threatened, pending or completed Proceeding, other than a Proceeding by or in the right of the Company. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with any such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful; provided, in no event shall Indemnitee be entitled to be indemnified, held harmless or advanced any amounts hereunder in respect of any Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (if any) that Indemnitee may incur by reason of his or her own actual fraud or intentional misconduct. Indemnitee shall not be found to have committed actual fraud or intentional misconduct for any purpose of this Agreement unless or until a court of competent jurisdiction shall have made a finding to that effect.
- Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he was or is threatened to be made, a party to any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against amounts paid in settlement and Expenses actually and reasonably incurred by him or on his behalf in connection with the defense or settlement of any such Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Notwithstanding the foregoing, no indemnification under this paragraph shall be made in respect of (1) a threatened or pending Proceeding which is settled or otherwise disposed of, or (2) any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company, unless and only to the extent that the court in which such Proceeding shall have been brought, was brought or is pending, shall determine, upon application, that Indemnitee is fairly and reasonably entitled to indemnity for such portion of the settlement amount and Expenses as the court deems proper.
- Indemnification for Expenses of Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified against all Expenses (and, when eligible hereunder, amounts paid in settlement) actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses (and, when eligible hereunder, amount paid in settlement) actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Agreement, the term “successful, on the merits or otherwise,” includes, but is not limited to, (i) any termination, withdrawal, or dismissal (with or without prejudice) of any Proceeding against the Indemnitee without any express finding of liability or guilt against him, and (ii) the expiration of 90 days after the making of any claim or threat of a Proceeding without the institution of the same and without any promise or payment made to induce a settlement.
- Indemnification for Expenses as a Witness.
Notwithstanding any other provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
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- Advancement of Expenses and Other Amounts.
Subject to Section 26 hereof, the Company shall advance all Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement, incurred by or on behalf of Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses, judgments, penalties, fines and amounts paid in settlement, incurred by Indemnitee and shall include or be preceded or accompanied by an agreement by or on behalf of Indemnitee to repay any Expenses, judgments, penalties, fines and amounts paid in settlement advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement. In connection with any request for advancement of Expenses, judgments, penalties, fines and amounts paid in settlement, Indemnitee shall not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. The Company’s obligation in respect of the advancement of Expenses, judgments, penalties, fines and amounts paid in settlement in connection with a criminal Proceeding in which Indemnitee is a defendant shall terminate at such time as Indemnitee pleads guilty or is convicted after trial and such conviction becomes final and no longer subject to appeal. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.
- Procedure for Determination of Entitlement to Indemnification.
9.1 To obtain indemnification under this Agreement in connection with any Proceeding, and for the duration thereof, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The officer of the Company shall, promptly upon receipt of any such request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
9.2 Upon written request by Indemnitee for indemnification pursuant to Section 9.1 hereof, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in such case: (i) if a Change in Control shall have occurred, by Independent Counsel (unless Indemnitee shall request that such determination be made by the Board or the shareholders, in which case in the manner provided for in clauses (ii) or (iii) of this Section 9.2) in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; (ii) if a Change of Control shall not have occurred, at the election of the Company, (A) by the Board by a majority vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board consisting of Disinterested Directors is not obtainable, by a majority of a committee of the Board consisting of two or more Disinterested Directors, or (C) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) by the shareholders of the Company, by a majority vote of a quorum consisting of shareholders who are not parties to the proceeding, or if no such quorum is obtainable, by a majority vote of shareholders who are not parties to such proceeding; or (iii) as provided in Section 10.2 of this Agreement. The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
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9.3 If a Change of Control shall have occurred, Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board), and Indemnitee (or the Board, as the case may be) shall give written notice to the other party advising it of the identity of Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within seven days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection. Such objection may be asserted only on the ground that Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. If such written objection is made, Independent Counsel so selected may not serve as Independent Counsel unless and until a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 9.1 hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction, for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom an objection is so resolved or the person so appointed shall act as Independent Counsel under Section 9.2 hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with its actions pursuant to this Agreement, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 9.3, regardless of the manner in which such Independent Counsel was selected or appointed. Upon the due commencement date of any judicial proceeding pursuant to Section 11.1(iii) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
- Presumptions and Effects of Certain Proceedings.
10.1 In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9.1 of this Agreement, and the Company shall have the burden of proof to overcome that presumption by clear and convincing evidence in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by the Disinterested Directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by the Disinterested Directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
10.2 If the person, persons or entity empowered or selected under Section 9 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith require(s) such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, however, that the foregoing provisions of this Section 10.2 shall not apply (i) if the determination of entitlement to indemnification is to be made by the shareholders pursuant to Section 9.2 of this Agreement and if (A) within 15 days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the shareholders for their consideration at an annual meeting thereof to be held within 75 days after such receipt and such determination is made thereat, or (B) a special meeting of shareholders is called within 15 days after such receipt for the purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement. In connection with each meeting at which a shareholder determination will be made, the Company shall solicit proxies that expressly include a proposal to indemnify or reimburse the Indemnitee. The Company shall afford the Indemnitee ample opportunity to present evidence of the facts upon which the Indemnitee relies for indemnification in any Company proxy statement relating to such shareholder determination. Subject to the fiduciary duties of its members under applicable law, the Board will not recommend against indemnification or reimbursement in any proxy statement relating to the proposal to indemnify or reimburse the Indemnitee.
10.3 The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.
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10.4 For purposes of this Agreement, the Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe his conduct was unlawful, if his action is based on (i) the records or books of account of the Company, or another enterprise, including financial statements, (ii) information supplied to him by the officers of the Company or another enterprise in the course of their duties, (iii) the advice of legal counsel for the Company or another enterprise, or of an independent certified public accountant or an appraiser or other expert selected with reasonable care by the Company or another enterprise. The term “another enterprise” as used in this Section shall mean any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise of which the Indemnitee is or was serving at the request of the Company as a director, officer, partner, trustee, employee or agent. The provisions of this Section shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth herein. Whether or not the foregoing provisions of this Section 10.4 are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe Indemnitee’s conduct was unlawful. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
10.5 The knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, manager, managing member, fiduciary, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
- Remedies of Indemnitee.
11.1 In the event that (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) the determination of indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement and such determination shall not have been made and delivered in a written opinion within sixty (60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within thirty (30) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 9 or 10 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of New York, or in any other court of competent jurisdiction, of his entitlement to such indemnification or advancement of Expenses, judgments, penalties, fines or, when eligible hereunder, amounts paid in settlement. The Company shall not oppose Indemnitee’s right to seek any such adjudication.
11.2 In the event that a determination shall have been made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section shall be conducted in all respects as a de novo trial on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.
11.3 If a determination shall have been made or deemed to have been made pursuant to Section 9 or 10 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law.
11.4 The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.
11.5 In the event that Indemnitee, pursuant to this Section, seeks a judicial adjudication of his rights under, or to recover damages for breach of, this Agreement or any other agreement, including any other indemnification, contribution or advancement agreement, or any provision of the Company’s Second Amended and Restated Memorandum and Articles of Association now or hereafter in effect, or for recovery under directors’ and officers’ liability insurance policies maintained by the Company, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all expenses (of the kinds described in the definition of Expenses) actually and reasonably incurred by him in such judicial adjudication, but only if he prevails therein. If it shall be determined in such judicial adjudication that Indemnitee is entitled to receive less than all of the indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated. In addition, the Company shall, if so requested by Indemnitee, advance the foregoing expenses to Indemnitee, subject to and in accordance with Section 8.
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- Procedure Regarding Indemnification.
With respect to any Proceedings, the Indemnitee, prior to taking any action with respect to such Proceeding, shall consult with the Company as to the procedure to be followed in defending, settling, or compromising the Proceeding and may not consent to any settlement or compromise of the Proceeding without the written consent of the Company (which consent may not be unreasonably withheld or delayed). The Company shall be entitled to participate in defending, settling or compromising any Proceeding and to assume the defense of such Proceeding with counsel of its choice and shall assume such defense if requested by the Indemnitee. Notwithstanding the election by, or obligation of, the Company to assume the defense of a Proceeding, the Indemnitee shall have the right to participate in the defense of such Proceeding and to employ counsel of Indemnitee’s choice, but the fees and expenses of such counsel shall be at the expense of the Indemnitee unless (i) the employment of such counsel has been authorized in writing by the Company, or (ii) the Indemnitee has reasonably concluded that there may be defenses available to him which are different from or additional to those available to the Company (in which latter case the Company shall not have the right to direct the defense of such Proceeding on behalf of the Indemnitee), in either of which events the fees and expenses of not more than one additional firm of attorneys selected by the Indemnitee shall be borne by the Company. If the Company assumes the defense of a Proceeding, then counsel for the Company and Indemnitee shall keep Indemnitee reasonably informed of the status of the Proceeding and promptly send to Indemnitee copies of all documents filed or produced in the Proceeding, and the Company shall not compromise or settle any such Proceeding without the written consent of the Indemnitee (which consent may not be unreasonably withheld or delayed) if the relief provided shall be other than monetary damages and shall promptly notify the Indemnitee of any settlement and the amount thereof.
- Non-Exclusivity; Survival of Rights; Insurance; Subrogation; Contribution.
13.1 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, any agreement, a vote of shareholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or any provision hereof shall be effective as to any Indemnitee with respect to any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association, whether by statute or judicial decision, permits greater indemnification, hold harmless or exoneration rights or advancement of Expenses than would be afforded currently under the Company’s Second Amended and Restated Memorandum and Articles of Association or this Agreement, then this Agreement (without any further action by the parties hereto) shall automatically be deemed to be amended to require that the Company indemnifies the Indemnitee to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
13.2 To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee, agent or fiduciary under such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness, deponent or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter use commercially reasonable efforts to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.
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13.3 In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are reasonably necessary to enable the Company to bring suit to enforce such rights.
13.4 The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
13.5 If a determination is made that Indemnitee is not entitled to indemnification, after Indemnitee submits a written request therefor, under this Agreement, then in respect of any threatened, pending or completed Proceeding in which the Company is jointly liability with the Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement by the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnitee on the other hand from the transaction from which Proceeding arose, and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events that resulted in such Expenses, judgments, fines or amounts paid in settlement, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses, judgments, fines or amounts paid in settlement. The Company agrees that it would not be just and equitable if contribution pursuant to this Section were determined by pro rata allocation or any other method of allocation that does not take into account the foregoing equitable considerations. The determination as to the amount of the contribution, if any, shall be made by: (i) a court of competent jurisdiction upon the application of both the Indemnitee and the Company (if the Proceeding had been brought in, and final determination had been rendered by such court); (ii) the Board by a majority vote of a quorum consisting of Disinterested Directors; or (iii) Independent Counsel, if a quorum is not obtainable for purpose of (ii) above, or, even if obtainable, a quorum of Disinterested Directors so directs.
- Duration of Agreement.
This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director and/or officer of the Company, or (b) the final termination of all pending Proceedings in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement hereunder and or any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his spouse, heirs, executors, personal representatives and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.
- Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and the Company’s Second Amended and Restated Memorandum and Articles of Association and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.
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- Entire Agreement.
This Agreement constitutes the entire agreement between the Company and the Indemnitee with respect to the subject matter hereof and supersedes all prior agreements, understanding, negotiations and discussion, both written and oral, between the parties hereto with respect to such subject matter (the “Prior Agreements”); provided, however, that if this Agreement shall ever be held void or unenforceable for any reasons whatsoever, and is not reformed pursuant to Section 15 hereof, then (i) this Agreement shall not be deemed to have superseded any Prior Agreements; (ii) all of such Prior Agreements shall be deemed to be in full force and effect notwithstanding the execution of this Agreement; and (iii) the Indemnitee shall be entitled to maximum indemnification benefits provided under any Prior Agreements, as well as those provided under applicable law, the Company’s Second Amended and Restated Memorandum and Articles of Association, a vote of shareholders or resolution of directors.
- Exception to Right of Indemnification or Advancement of Expenses.
17.1 Except as provided in Section 11.5, Indemnitee shall not be entitled to indemnification or advancement of Expenses, judgments, penalties, fines and amounts paid in settlement under this Agreement with respect to any Proceeding, or any claim therein, brought or made by him against the Company.
17.2 Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding, or any claim therein, arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Exchange Act or Company similar successor statute.
- Covenant Not to Sue; Limitation of Actions; Release of Claims.
No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company (or any of its subsidiaries) against the Indemnitee, his spouse, heirs, executors, personal representatives or administrators after the expiration of two (2) years from the date of accrual of such cause of action and any claim or cause of action of the Company (or any of its subsidiaries) shall be extinguished and deemed released unless asserted by the filing of a legal action within such two (2) year period; provided, however, that if any shorter period of limitation is otherwise applicable to any such cause of action, such shorter period shall govern.
- Identical Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.
- Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
- Modification and Waiver.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.
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- Notice by Indemnitee.
Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating any Proceeding or matter which may be subject to indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement covered hereunder. The failure to notify the Company on a timely basis shall not constitute a waiver of Indemnitee’s rights under this Agreement, except to the extent that such failure or delay (i) causes the amounts paid or to be paid by the Company to be greater than they otherwise would have been, (ii) adversely affects the Company’s ability to obtain for itself or Indemnitee coverage or proceeds under any insurance policy available to the Company or Indemnitee, or (iii) otherwise results in prejudice to the Company.
- Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by electronic transmission or hand and receipted for by the party to whom such notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
If to Indemnitee, to:
Zhengming FENG
[ADDRESS]
If to the Company, to:
YHN Acquisition I Limited
2/F, Hang Seng Building,
200 Hennessy Road, Wanchai
Hong Kong
or to such other address or such other person as Indemnitee or the Company shall designate in writing in accordance with this Section, except that notices regarding changes in notices shall be effective only upon receipt.
- Governing Law.
The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts made and performed in that state without giving effect to the principles of conflicts of laws. The Company and Indemnitee each hereby irrevocably consents to the jurisdiction of the courts of the State of New York and the federal courts within the State for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agrees that any action instituted under this Agreement shall be brought only in the United States District Court for the Southern District of New York and any New York State court within that District.
- Mutual Acknowledgment.
Both the Company and Indemnitee acknowledge that, in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future in certain circumstances to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court for a determination of the Company’s right under public policy to indemnify Indemnitee.
- Waiver of Claims to Trust Account.
Notwithstanding anything herein to the contrary, Indemnitee hereby agrees that it does not have any right, title, interest or claim of any kind (each, a “Claim”) in or to any monies in the trust account established in connection with the Company’s initial public offering for the benefit of the Company and holders of shares issued in such offering, and hereby waives any Claim it may have in the future as a result of, or arising out of, any services provided to the Company and will not seek recourse against such trust account for any reason whatsoever. Accordingly, Indemnitee acknowledges and agrees that any indemnification provided hereto will only be able to be satisfied by the Company if (i) the Company has sufficient funds outside of the Trust Account to satisfy its obligations hereunder or (ii) the Company consummates a Business Combination.
- Miscellaneous.
Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.
| YHN ACQUISITION I LIMITED | |
|---|---|
| By: | /s/ Satoshi Tominaga |
| Name: | Satoshi Tominaga |
| Title: | Chief Executive Officer |
| INDEMNITEE | |
| /s/ Zhengming Feng | |
| Name: | Zhengming Feng |
[Signature Page to Indemnification Agreement]
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Exhibit 99.1
YHN Acquisition I Limited Announces Pricing of $60,000,000 Initial Public Offering
New York, NY, Sept. 17, 2024 (GLOBE NEWSWIRE) -- YHN Acquisition I Limited (the “Company”) announced today that it priced its initial public offering of 6,000,000 units at $10.00 per unit. The units will be listed on the Nasdaq Global Market (“Nasdaq”) and are expected to begin trading tomorrow, Wednesday, September 18, 2024, under the ticker symbol “YHNAU”. Each unit consists of one ordinary share and one right to receive one-tenth of one ordinary share upon the consummation of an initial business combination. Once the securities comprising the units begin separate trading, the ordinary shares and rights are expected to be listed on Nasdaq under the symbols “YHNA” and “YHNAR” respectively.
The Company is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. The Company has not selected a business combination target and has not, nor has anyone on its behalf, initiated any substantive discussions, directly or indirectly, with any business combination target. The Company’s efforts to identify a prospective target business will not be limited to a particular industry or geographic location. The Company is led by its Chief Executive Officer, Mr. Satoshi Tominaga.
Lucid Capital Markets, LLC is acting as the sole book-running manager for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 900,000 units at the initial public offering price to cover over-allotments, if any. The offering is expected to close on September 19, 2024, subject to customary closing conditions.
The offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from Lucid Capital Markets, LLC, 570 Lexington Avenue, 40th Floor, New York, New York 10022.
A registration statement on Form S-1 (File No. 333-279308) relating to these securities, as amended, has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on September 17, 2024. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering and the anticipated use of the net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and preliminary prospectus for the offering filed with the SEC. Copies are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Contact
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Attn: Satoshi Tominaga, Chief Executive Officer
Email: stominaga8@outlook.com
Exhibit 99.2
YHN Acquisition I Limited Announces Closingof $60,000,000 Initial Public Offering
New York, NY, Sept. 19, 2024 (GLOBE NEWSWIRE)-- YHN Acquisition I Limited (the “Company”) announced today the closing of its initial public offering of 6,000,000 units at $10.00 per unit (the “Offering”). The aggregate gross proceeds of the Offering are $60 million, prior to deducting underwriting discounts, commissions, and other Offering expenses.
The units are listed on the Nasdaq Global Market (“Nasdaq”) and began trading on Wednesday, September 18, 2024, under the ticker symbol “YHNAU”. Each unit consists of one ordinary share and one right to receive one-tenth of one ordinary share upon the consummation of an initial business combination. Once the securities comprising the units begin separate trading, the ordinary shares and rights are expected to be listed on Nasdaq under the symbols “YHNA” and “YHNAR” respectively.
The Company is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. The Company has not selected a business combination target and has not, nor has anyone on its behalf, initiated any substantive discussions, directly or indirectly, with any business combination target. The Company’s efforts to identify a prospective target business will not be limited to a particular industry or geographic location. The Company is led by its Chief Executive Officer, Mr. Satoshi Tominaga.
Lucid Capital Markets, LLC is acting as the sole book-running manager for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 900,000 units at the initial public offering price to cover over-allotments, if any.
The offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from Lucid Capital Markets, LLC, 570 Lexington Avenue, 40th Floor, New York, New York 10022.
A registration statement on Form S-1 (File No. 333-279308) relating to these securities, as amended, has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on September 17, 2024. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering and the anticipated use of the net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and preliminary prospectus for the offering filed with the SEC. Copies are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Contact
YHN Acquisition I Limited
2/F, Hang Seng Building
200 Hennessy Road, Wanchai
Hong Kong
Attn: Satoshi Tominaga, Chief Executive Officer
Email: stominaga8@outlook.com