1926

252
NEW CONSORTIUM AGREEMENT
not relate to agreements for loans to be floated in China. Existing agreements
relating to industrial undertakings upon which it can be shown that substantial
progress has been ma.de ma,y be omitted from the scope of this agreement.
3. —The existing agreements and any future loan agreements to which this
.agreement relates and any business arising out of such agreements respectively shall
be dealt with by the said groups in accordance with the provisions of this agreement.
4. —This agreement is made on the principle of complete equality in every respect
between the parties hereto and each of the parties hereto shall take an equal share in
all operations and sign all contracts and shall bear an equal share of all charges in
connexion with any business (except stamp duties and any charges of and in
connexion with the realization by the parties hereto in their respective markets of
their shares in the operations) and the parties hereto shall conclude all contracts
with equal rights and obligations as between themselves and each party shall have
the same rights, privileges, prerogatives, advantages, responsibilities and obligations
of every sort and kind. Acccordingiy preliminary advances on account of or in
connexion with business to which this agreement relates shall be borne by each of the
parties hereto in equal shares and each of the parties hereto shall be entitled to
participate equally in the existing agreement and will offer to the other parties hereto
an equal participation with itself in any future loan business falling within the
scope of this agreement. Should one or more of the parties hereto decline a
participation in the existing agreements or any of them or in any such future loan
business as aforesaid the party or parties accepting a participation therein shall be
free to undertake the same but shall issue on its or their markets only.
5. —All contracts shall so far as possible be made so as not to impose joint
liability on the parties hereto but each of the parties hereto shall severally liquidate
its own engagements or liabilities. The parties hereto will so far as possible come to
an understanding with regard to the realization of the operations but so that such
realization in whatever manner this may take place shall be for the separate benefit
of each of the parties hereto as regards their respective participations therein
and so that each of the parties hereto shall be entitled to realize its participation in
the operations only in its own market, it being understood that the issues in the
respective markets are to be made at substantial parity.
6. —Any one or more of the parties hereto who shall have accepted its or their
participation in any business hereunder shall be entitled by notice in writing to call
upon the other or others of the parties hereto who propose to issue their own
respective participations to issue for the account of the party or parties giving such
notice or notices either all or one-half of the amount which may constitute the
participation of the party or parties giving such notice or notices and the party or
parties so called upon shall issue the said amount or amounts (hereinafter called “ the
Eesiduary Participation”) specified in such notice or notices upon and subject to the
terms and conditions following, viz.:—
(1) Such notice or notices must be received by the other or others of the
parties hereto before the execution of the final agreement for the issue of the
loan or (in the case of an issue of a part only of the loan) of so much
thereof as the parties hereto may from time to time agree to issue.
(2) The party or parties to whom such notice or notices shall have been given
shall be entitled to decide among themselves and without reference to the
party or parties giving such notice or notices as to which one or more of
them shall issue the Eesiduary Participation but in default of any such
decision they shall issue the same equally between them.
(3) In issuing the Eesiduary Participation no distinction shall be made between
the Eesiduary Participation and the amount or amounts issued on its or
their own account by the party or parties issuing the Eesiduary
Participation which shall in all respects be subject to the conditions of the
respective Syndicates which may be formed for the purpose of effecting the
issue.