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Chapter IV Separate Agreement Between Creditor
Financial Institutions
Article 15 (Board of Creditor Financial Institution)
15.1 When, in connection with the Workout, assistance between
the Creditor Financial Institutions is necessary, the Board of
Creditor Financial Institutions (the "Board") shall be composed
of the Creditor Financial Institutions of the Related Company.
15.2 The major creditor bank (or bank which lent the largest
amount of money, if there is no major creditor bank) (the "Supervisory
Bank") shall manage the organization and operation of the Board.
15.3 A Creditor Financial Institution other than the Supervisory
Bank may, on its own or together with other Creditor Financial
Institutions, request the Supervisory Bank to convene a meeting
of the Board. Upon such request of the Supervisory Bank a meeting
of the Board shall be convened without delay; provided, however,
that the meeting of the Board shall be convened to only if the
Creditor Financial Institution requesting the meeting has a Claim
Amount exceeding one-fourth of the total Claim Amount of all the
Creditor Financial Institutions against the Related Company. In
that case notwithstanding item 5 of Article 2, such Claim Amount
may be the Claim Amount on the current date as proven by the Company
Credit Information of the Korea Federation of Banks.
15.4 The Supervisory Bank shall convene the first meeting of
the Board within ten (10) days of notice therefor.
15.5 The Supervisory Bank may decide whether the recovery of
the Related Company is possible. They also determine the Workout
promotion plan for companies with the possibility of being salvaged
and other matters in connection therewith (i.e. the decision on
the period in which the right to exercise a claim is suspended,
as described in Article 18.4). (amended on August 14, 1998)
15.6 When necessary for smooth discussions between the Creditor
Financial Institutions, the Supervisory Bank may ask the Committee
for advice.
15.7 The Creditor Financial Institution may request the Related
Company's collect a letter of commitment for the extended maturity
date of a credit held by a financial institution that has not
entered into this Agreement. Such financial institution shall
be deemed to be the Creditor Financial Institution which is party
hereto.
15.8 Resolutions of the Board shall be adopted by the affirmative
vote of the Creditor Financial Institutions having three-fourths
or more of the Claim on the basis of the Claim Amount.
15.9 In case a guaranty is included in the Claim under the proviso
of item 4 of Article 2, the financial institution holding the
guaranty shall be deemed, as the Creditor Financial Institution
of the Related Company, to agree with these matters resolved by
the Board.
Article 16 (Operation Committee)
16.1 The Supervisory Bank, under the consent of the Board, may
establish an Operations Committee composed of the representatives
of the Creditor Financial Institutions.
16.2 The Operations Committee shall determine the number of its
committee members.
16.3 The Operations Committee shall do all items in connection
with the matters decided by the Board and other matters assigned
from the Board.
16.4 Resolutions of the Operations Committee shall be adopted
by an affirmative vote of two-thirds or more of the committee
members present at a meeting where two-thirds or more of the total
number of the members are in attendance.
Article 17 (Application to other Affiliate Company)
17.1 When deemed necessary to determine whether another affiliate
company of the Related Company shall be subject to the Workout,
a Board may be established for each such affiliate company.
17.2 The major creditor bank of an affiliate company group shall
supervise the Board referred to the above paragraph.
17.3 The major creditor banks shall manage each Board for an
affiliate company, and the major creditor bank of the affiliate
company group shall administer the overall affairs thereof.
17.4 The matters referred to in Article 17.1 above shall be determined
by the affirmative vote of the Creditor Financial Institution
holding a majority of the Claims against the related affiliate
company.
17.5 In an event where the affiliate company is determined to
be subject to the Workout, then the Supervisory Bank over the
Board for the Related Company shall convene the first meeting
of the Board within ten (10) days of the determinate date.
Article 18 (Suspension of Claim Exercise)
18.1 Upon notice of the convening of a meeting of the Board
under Article 15.4, the Creditor Financial Institution shall suspend
exercise of its claim, including the demand of repayment and its
right to demand performance of guaranties against the Related
Company, except regarding the restoration of notes exchange for
interrupting prescription or the set-off against a collateral
deposit that the Creditor Financial Institution acquired prior
to such notice.
18.2 In the period in which the right to exercise a claim is
suspended, as described in Article 18.1 above, even if the notes
and checks issued for financing by the Related Company are not
honored, suspension of the transaction as provided for under Article
78 (Disposition of Transaction Suspension) of the Clearing-House
Regulation shall not be made.
18.3 In the period in which the right to exercise a claim is
suspended, as described in Article 18.1 above, the Related Company
whose transaction is not suspended in accordance with Article
18.2 above shall have its suspended registration under Article
10 (Person of Bad Credit Information) of the Credit Information
Exchange Management Regulation of Financial Institution, and even
if interest is unpaid, the unpaid interest shall not be deemed
to be default interest.
18.4 In consideration of the scale of the Related Company and
the number of the Creditor Financial Institutions, etc., the Board,
at its first meeting thereof, shall determine the period for which
the claim exercise shall be suspended, such period shall not exceed
one (1) month (or three (3) months, if due diligence is necessary)
from the beginning date of the suspension period, and such period
may be extended up to one (1) month only, and only one time.
18.5 In the period in which the right to exercise a claim is
suspended, as described in preceding paragraph, should the Committee
receive a request for mediation, such suspension period shall
be deemed to be extended up to the date of notice of the mediation
decision under Article 12.1.
18.6 In the event that notice for convening meetings of the Board
is given as set forth in Article 17.5, the provisions of Paragraph
1 to 5 in this Article shall apply: provided, however, that if
a company is determined not to be subject to the Workout, the
foregoing provisions shall apply.
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