Sina Technology News on the evening of June 12th news, ZTE in A shares, Hong Kong shares issued a announcement that ZTE communications and wholly owned subsidiary of XXXXXXXXXXXX has reached the "alternative settlement agreement" with BIS to replace the "reconciliation agreement" between ZTE and BIS in March 2017. BIS has come into force in June 8, 2018 (American time) through the approval agreement on ZTE's alternative order (hereinafter referred to as "the June 8, 2018 order").
In accordance with the agreement, ZTE will pay a total of $1 billion 400 million in civil fines, including a one-time payment of $1 billion within 60 days after the issuance of the June 8, 2018 order by BIS, and for 90 days after the issuance of the June 8, 2018 order of June 8, 2018 to the US Bank trusteeship, approved by ZTE and BIS, and postponed during the monitoring period. The extra $400 million is fined (in the supervision period, if ZTE complying with the terms of supervision and the June 8, 2018 order and the June 8, 2018 order, a fine of $400 million will be exempted after the expiration of the monitoring period).
BIS will terminate the rejection order activated in April 15, 2018 (hereinafter referred to as "April 15, 2018 refusal") and ZTE communication from "Prohibition" on the agreement and the June 8, 2018 order and the June 8, 2018 order to pay the total amount of $400 million to the US bank trust account. The export staff list is removed. If all the above conditions are satisfied and ZTE has been removed from the list of export ban personnel, BIS will be announced.
The agreement also includes the following main provisions:
1, BIS will be a new refusal order (hereinafter referred to as "the new refusal order") for a period of ten years (hereinafter referred to as "the monitoring period") for the issuance of the June 8, 2018 order (hereinafter referred to as "the new refusal order"), including the restriction and prohibition of ZTE's application, acquisition, or use of any license, license exception, or export control documents, and in any way. Any goods, software, or technical transactions that are bound by the regulations of the United States Export Administration (hereinafter referred to as the "Regulations"), but under the agreement of ZTE and the order of June 8, 2018, the new refusal order will be suspended during the supervision period and exempted from the expiration of the inspection period.
2, ZTE will replace all the board members of ZTE and ZTE Hong Kong within 30 days after the BIS issue the June 8, 2018 order. Within 30 days after the change of board members, ZTE should set up a special audit / compliance committee composed of three or more new independent directors on the board. The chairman may serve as a member of the Committee but shall not serve as chairman of the Committee.
3, ZTE will be responsible for all the senior vice presidents and above senior vice presidents of ZTE and ZTE XXX within 30 days after the issuance of the June 8, 2018 order of BIS, as well as any involvement, supervision of the letter of advice issued by BIS in March 2017, or the act involved in the April 15, 2018 refusal order or other acts involved in this The responsible management or senior staff terminates the contract and prohibits ZTE and its subsidiaries or affiliated enterprises from hiring the above personnel. ZTE should inform BIS about the implementation of this provision in time, and BIS can freely decide whether to exempt the relevant personnel.
4, ZTE will hire an independent special compliance coordinator (hereinafter referred to as "coordinator") at BIS's June 8, 2018 order 30 days after the issuance of the June 8, 2018 order. The coordinator will be responsible for coordinating, monitoring, assessing and reporting ZTE and its global subsidiaries or associated enterprises in compliance with the 1979 "US export management" during the monitoring period. The bill, regulations, agreements and the order of June 8, 2018 are reported to the president and board of directors of ZTE and BIS.
5, ZTE will complete and submit nine audit reports of compliance with the U. S. export control law. After the expiry of the term of office of the independent compliance supervisor set up in accordance with the agreement between ZTE and the United States Department of Justice (see ZTE's bulletin issued in March 7, 2017) and any relevant court orders, the remaining six trials The report will be completed by the coordinator.
6, ZTE will provide extensive and applicable export control training for its leadership, management and employees, global subsidiaries, related enterprises and other entities of ZTE and other entities controlled by ZTE.
In addition, ZTE will resume the business activities which are affected by the April 15, 2018 refusal order when BIS terminates the April 15, 2018 refusal order. ZTE will fully assess the impact of the April 15, 2018 denial of order and agreement on the report of the third quarter of 2018, and reformulate and disclose the first quarter report of the 2018. After ZTE's application to Shenzhen stock exchange and related stock exchanges, ZTE A shares and Hong Kong stocks will resume trading on the morning of June 13, 2018.
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