Document:

Exhibit 10.47

 

VEHICLE FINANCING BUSINESS COOPERATION AGREEMENT

 

Zhe Chou Yin Kai Feng No. 20161102

 

Party A: Zhejiang Chouzhou Commercial Bank Co., Ltd.

Residence (Address): East of Yiwu Leyuan, Jiangbin Road, Yiwu City, Zhejiang Province, China

Legal Representative (Person in Charge): Zijun Jin

Contact No.: 0571-87117763

 

Party B: Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Registration Address: Room 1501-11, North Building 1, YangGuang HuaCheng ChuangFu Center, No. 386 of Xuezheng St, Hangzhou Economic Technology Development District.

Contact Address: 2F, Tower E, Lei Shing Hong, Guang Shun South Avenue, Chaoyang District, Beijing

Legal Representative (Person in Charge): Zhen Zeng

Contact No.: 010-56545605

 

Party A is a joint-stock commercial bank officially established under the authorization of China Banking Regulatory Commission. Party B is a financial leasing company duly established in China. Upon friendly discussion, Party A and Party B have agreed to cooperate on vehicle financing business and reached the following terms for both sides to follow.

 

Part I Terms and Definitions

 

1.              Consumer: Refers to individual consumer who purchases vehicles.

2.              Dealer: Refers to individual or enterprises who sells vehicles.

3.              Settlement Account: Refers to the Settlement Account Party B opened at Party A (Account Number: *, Account Name: Kai Feng Finance Lease (Hangzhou) Co., Ltd.).

4.              Deposit Account: Refers to the Deposit Account Party B opened at Party A (Account Number: *, Account Name: Kai Feng Finance Lease (Hangzhou) Co., Ltd.)

 

Part II Contents of Cooperation

 

1.              Model of Cooperation

 

The purpose of the cooperation contemplated under this Agreement is to provide financing services for Consumers to make car purchase from Dealers. Consumers shall start a financing application through the mobile application when purchasing a car. After Consumer makes down payment for the car, Party A (by providing the loan) and Party B (by providing services pursuant to the Financial Lease Series Contract) shall collectively provide financing service for the vehicle purchase. Party B assumes joint guarantee obligation for all Consumer’s debts under this cooperation business.

 

* indicates the redacted confidential portions of  this exhibit for which the confidential treatment has been sought with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act. 

 

 

Party A provides a credit limit of RMB * for this business cooperation. Depending on business development situation, Party A and Party B shall sign supplemental agreement separately to make adjustments.

 

2.              Key Points of Business Cooperation

 

1)                     Party B independently handles with the financial leasing services, including obtaining the name, ID number, bank account number, and cellphone number in bank system from Consumers. Party B shall push the above consumer information to Party A, after obtaining electronic * from Consumers.

2)                     Party A shall make the following verifications: “4 Elements of Bank Account”, “Identity Cross-Network Public Security Verification”, “Chouzhou Bank Blacklist Verification” (Anti-Money Laundering Blacklist, Account Close-Down Blacklist, Poor Credit Blacklist, And Related Party Screening) on Consumers referred by Party B. Party A shall notice Party B’s risk control department head in advance before adding new verification rules, and verification rules can only be revised upon mutual consent from both parties.

3)                     ***

4)                     Party A and Party B shall sign “Loan Agreement” in the mobile application online with Consumer.

5)                     Party A is responsible for ensuring that Party A makes the loan on the same day of receiving the electronic receipt information of providing financial lease payment pushed by party B. Under Consumer’s entrustment, Party A shall pay to the Settlement Account of Party B for Consumers to return financial lease payment between Consumers and Party B. In the event that Party A faces system maintenance, emergency malfunction, or any other reasons resulting in failure to make loan on the same day, Party A shall notify Party B in time.

6)                     Party B is responsible for pushing electronic or video lending materials according to the lending materials list (see addendum) agreed upon by both parties within * days of Party A’s making the loan. In the event that Party B fails to push such information, Party B shall present explanation of specific situations. In the event that the push is not completed within * days, Party B shall supplement the full deposit of such loan, and Party A shall return the supplemented deposit upon the completion of the lending material push.

 

3.              Rules of Repayment on behalf of the Consumer

 

1)                     The agreed due date of the Consumer is marked as Day T. In the event that Consumer fails to pay back within * days, Party B is responsible for repaying Party A the overdue principal on behalf of the Consumer by authorizing Party A to deduct from Party B’s Settlement Account on the *. Payments within * days shall not be considered as delay.

 

 

2)                     In the event that Consumer repays within * days, Party A shall not charge any penalty from Consumer, and Party B has no obligation to repay on behalf of the Consumers for overdue principal. In the event that Party B repays on behalf of the Consumers for the overdue principal of Consumers at *, Party A shall not charge penalties from Consumers.

3)                     In the event that Consumer triggers the rules of repayment on behalf of the Consumers three times consecutively or six times in total, Party B shall bear the joint and several guarantee obligation and shall pay the outstanding amount of the loan. For detailed rules of repayment on behalf of the Consumers for remaining principal and interest, please refer to rules of principle collection and rule of interest collection.

 

4.              Rules of Principal Collection

 

1)                     In the event that Party B agrees Consumer to refund or early repayment: Party B shall agree and authorize Party A to deduct all outstanding loan principal from Party B’s Settlement Account.

2)                     Consumer regular repayment: Party A is responsible for deducting the principal payable for the current period from Consumer according to the repayment schedule or terms provided by Party B. Party B can also request and authorize Party A to directly deduct the principal payable for the current period from Party B’s Settlement Account.

3)                     Party B’s repayment on behalf of Customers: Party B authorizes Party A to deduct the principal payable for the current period from Party B’s Settlement Account.

4)                     Party B’s buy-back of loan: Party B authorizes Party A to deduct all outstanding loan principal from Party B’s Settlement Account.

 

5.              Rules of Interest Collection

 

1)                     Consumer refund, early repayment, Party B’s repayment on behalf of Consumer or Party B buy-back: outstanding interests are calculated by actual loan days. Party B shall agree and authorize Party A to deduct interest from Party B’s Deposit Account.

2)                     Consumer regular repayment: for Consumers who repay in installments, Party A shall calculate interests * days per month; for Consumers who repay the full loan principal at maturity, Party A shall calculate interests according to actual loan days. Party B shall agree and authorize Party A to deduct interest from Party B’s Deposit Account.

 

6.              Rules of Deposit Collection

 

1)                     Party B’s Deposit Account balance shall not be lower than *% of the total outstanding balance of the loans thereunder. Any difference shall be made up within * business days. Party B shall authorize Party A to transfer deposit from Party B’s Settlement Account to Party B’s Deposit Account.

 

 

7.              Term of Cooperation

 

1)                     The Term of Cooperation under this Agreement is 5 years from the day of signing this Agreement. All parties shall friendly negotiate future business plans before the Agreement expires.

2)                     In the event that this cooperation is terminated, the terms under this Agreement still apply to the existing Consumer loan under this cooperation, until all existing Consumer loan are settled.

 

Part III Rates

 

1.              Deposit and Loan Interest

 

1)                     Party B shall be responsible for assuming and paying to Party A the interest on the Consumers’ loans at an annual interest rate of *%. For Consumers who pay principal in installments, Party A shall calculate interest for * days per month. For early repayment, Party A shall calculate interests by day according to the actual loan days. For Consumer who pay loan principal in full at once, Party A shall calculate interests according to actual loan days. For loans made in the first half of the month (from day 1 to day 15), the interest due date is *; for loans made in the second half of the month (from day 16 to day 31), the interest due date is *. All interests shall be paid off by the due date.

2)                     Party A shall pay interest to Party B’s Deposit Account according to Agreed Savings Benchmark Interest Rate published by People’s Bank of China, plus *%, to Party B, interest calculated on a daily basis.

3)                     Party A shall supply Party B with loan interest invoice for last month by the * every month.

 

2.              Fees

 

1)                     Party A is responsible for **, *, and Four Basic Information Authentication fees.

2)                     Party A is responsible for deducting Consumer repayment principal and bearing corresponding fees.

3)                     Party A and Party B are each responsible for fees of one specific line (data line rented from the Carrier for data sharing and direct connection with system). Party A is responsible for the fee for the main specific line. Party B is responsible for back-up specific line fee. Party A is responsible for providing Value Added Tax invoice to Party B.

4)                     Party A and Party B are each responsible for its own text message fees.

5)                     Party B is responsible for the borrower’s loan stamp tax and Party B agrees and authorizes Party A to deduct last month’s total stamp tax payable from Party B’s Settlement Account before the * (subject to postpone in case of holidays) of each month. The loan stamp tax shall be paid by Party A on behalf of Party B.

 

 

Part IV Duties and Rights

 

1.              Party A shall provide loans in RMB to Consumers referred by Party B, according to this Agreement. In the event of system error, scale control, or other situations that would result in failure of providing the loan, Party A shall notice Party B in time.

2.              Party B is in charge of examining the authenticity of Consumer’s identity, car-purchase, and the borrowing. Party B shall not refer Consumers with false identity, false car-purchase, or beyond the scope of lending terms agreed upon by both parties to Party A.

3.              Party B is responsible for Consumer post-loan management, debt collection, and disposal. Party A shall cooperate in this regard.

4.              In the event that Party B makes change to company name, residence, registered capital, major shareholder, scope of business operation, type of business, or Articles of Association, Party B shall notify Party A with * business days in advance in writing, and report relevant materials to Party A for reference.

5.              Party B shall permanently keep and maintain the electronic data related to contract signing of the Consumers.

 

Part V. Default

 

1.              Event of Default

 

The following situations constitute defaults (the “Event of Default”) by the defaulting party:

 

1)                 The defaulting party defaults any provision, and such default has no available remedy, or the defaulting party fails to remedy such default within * calendar days of receiving the request to remedy in writing from the non-defaulting party.

2)                 The defaulting party violates any applicable laws, and the violation may directly affects this Agreement or result in damage for the non-defaulting party;

3)                 The defaulting party is incapable of or admits incapable of repaying matured debt or performing guarantee responsibility.

 

2.              Liability of Defaults

 

In the event of the above-mentioned Event of Default, the non-defaulting party has the right to demand in writing the defaulting party rectify within limited time. In the event that the defaulting party does not so rectify, the non-defaulting party is entitled to adopt one or more of the following measures:

 

1)                 Terminate this Agreement;

2)                 Request the defaulting party to compensate the non-defaulting party on the direct loss incurred during the business under this Agreement;

3)                 Any other remedy allowed by law and regulations.

 

 

Part VI. Termination

 

1.              Any party has the right to unilaterally terminate this Agreement in any the following event:

 

1)                     Supervisory authorities’ (China Banking Regulatory Commission or People’s Bank of China and its affiliated branches) policies are significantly changed related to this cooperation product;

2)                     Governmental authority or supervisory authorities published any new law or regulations applicable, or made new interpretation or amendment to existing law or regulations applicable, which results in failure to carry out this cooperation or failure of achieving full interests under any significant provision by either party;

3)                     Material adverse change occurs to any party, rendering it impossible to perform this Agreement or will result in significant damage to all parties involved.

 

2.              Within the duration of the cooperation, in the event that the non-performing loan ratio exceeds *% (the non-performing loan ratio = the aggregate amount Party B repays on behalf of the Consumers / the aggregate amount of the loans already provided), Party A has the right to reevaluate the cooperation business, and decide whether to modify the condition of cooperation based on the evaluation results.

 

Part VII. Confidentiality

 

1.              All parties shall keep all files, documents, materials (technical or business) received during the signing of the Agreement, the performance of the Agreement, or any agreement signed according to this Agreement strictly confidential. No party shall disclose the following materials to any third party except for Party A and Party B’s supervisory authorities.

 

1)                     This cooperation business.

2)                     Negotiation content related to this cooperation.

3)                     Credit data, Consumer’s information, and transaction information provided based on this cooperation.

4)                     All other parties’ business, finance, and other matters including future plans and goals.

 

2.              Exceptions

 

This confidentiality clause shall not ban the use or disclose of confidential materials in the following ways under the following scope:

 

1)                     Disclose or use confidential material according to Party A and Party B’s supervisory authorities’ requirement.

2)                     Disclose or use confidential material for the purpose of judicial, arbitration, and similar procedure related to this Agreement or any other agreement signed according to this Agreement.

 

3.              Duty of confidentiality shall start from the day of signing of this Agreement, and shall terminate when the information has been made public or disclosed, and shall not be affected by the termination of this Agreement.

 

 

Party VIII: Addendum

 

1.              All disputes incurred while performing this contract should be settled under all parties’ negotiation. In the case when disputes cannot be resolved, litigation can be brought to a People’s Court where the plaintiff is located at.

2.              This Agreement is governed by the law of People’s Republic of China.

3.              Unspecified matters of this Agreement shall be executed in accordance with relevant law and regulations. In the event where no relevant law and regulations are available, the parties herein shall reach supplemental agreement in writing. All addendums and supplemental agreement of this Agreement are integral parts of this Agreement and shall have equal effect as with this Agreement.

4.              This contract is effective upon the signing of the parties herein (shall be signed or stamped, and affix the official seal by authorized signatory).

5.              This contract is made of four original copies. Party A and Party B each holds two copies.

 

Party A (Stamp)

Zhejiang Chouzhou Commercial Bank Co., Ltd.

Legal Representative (Person in Charge) or Authorized Agent (Signature):

 

Date of Execution: 11/09/2016

 

Party B (Stamp)

Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Legal Representative (Person in Charge) or Authorized Agent (Signature):

 

Date of Execution: 11/09/2016

 

 

Addendum:

 

Loan Materials List

 

1.              Photocopy of Signature page of Financial Lease Series Contract

2.              Photocopy of Car Collateral Contract

3.              Photocopy of Driver’s License

4.              Photocopy of photo of Consumer’s on-site contract signing

5.              Photocopy of screenshot of identification verification by document scanner

6.              Photocopy of down payment transaction receipt

7.              Authorization Letter for credit inquiry (Authorized Electronically)

8.              Loan Agreement electronic signature

9.              Photocopy of Vehicle title transfer/transaction invoice

10.       Photocopy of Vehicle Driving Permit (for used cars)

11.       Photocopy of Vehicle Registration Certificate (for used cars)

12.       Photocopy of Insurance Policy (for used cars)

13.       Loan receipt (electronic data)

 

 

SUPPLEMENTAL AGREEMENT TO AUTO FINANCING BUSINESS COOPERATION AGREEMENT

 

CN. Zhe Chou Yin Kai Feng 201705

 

Party A: Zhejiang Chouzhou Commercial Bank Co., Ltd.

Domicile (Address): East Side of the Yiwu Park, Jiangbin Road, Yiwu City, Zhejiang Province

Legal Representative (Person-in-Charge): Zijun Jin

Contact No.: 0571-87117763

 

Party B: Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Registered Address: Room 1501-11, Building 1, Northern Yangguang Huacheng Chuangfu Center, No. 386 Xuezheng Street, Economic and Technological Development District, Hangzhou Province

Contact Address: Floor 2, Tower E, Lixingxing Center, Guangshunnan Street, Chaoyang District, Beijing City

Legal Representative (Person-in-Charge): Zhen Zeng

Contact No.: 010-56545605

 

WHEREAS, Party A and Party B have entered into a Vehicle Financing Business Cooperation Agreement (No. Zhe Chou Yin Kai Feng 20161102) dated November 9, 2016 (hereinafter referred to as “Original Agreement”). NOW, THEREFORE, based on the principle of mutual benefit, through friendly negotiations, the Parties desire to adjust and supplement part of the terms of the Original Agreement and hereby enter into this Supplementary Agreement as follows:

 

I                   The remaining sum of Party B’s deposit account shall be adjust to be no less than *% of the remaining sum of loans provided.

 

II              Commencing from the date this Agreement being signed, Party B undertakes * of the * charged by *, i.e. * per account. This fee settlement shall be conducted quarterly after the verification of the parties, Party B shall receive the equivalent value-added tax invoices issued by Party A before paying the consultation fee.

 

III         The Parties shall calculate loan quantity to be provided in the current month to ensure their promotion of operational progress and service efficiency of finance within the * business days of each month.

 

IV          The parties shall strengthen the communication and cooperation of risk management, inform each other about information and cases which may lead to the occurrence of risks. Party B shall give feedbacks to Party A’s customer services regarding the customers’ incoming messages or information received from other channels, and up-to-date risk management processes and measures, including but not limited to access and management of car dealer, customers access, review and approval, loan collection, in accordance with Party A’s requirements.

 

 

V               This Agreement shall become an integral part of the Original Agreement after entry into force and shall have the same legal effect as the Original Agreement. Where any provision in the Original Agreement conflicts with that hereof, the latter shall prevail.

 

VI          There are four (4) copies of this Agreement signed in all, Party A and Party B shall hold two (2) copies respectively. This Agreement shall become effective on such date when it has been signed.

 

Party A (seal)

Zhejiang Chouzhou Commercial Bank Co., Ltd.

Legal Representative (Person-in-Charge or Authorized Agent (signature):

 

Date of Execution: June 29, 2017

 

Party B (seal)

Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Legal Representative (Person-in-Charge) or Authorized Agent (signature):

 

Date of Execution: June 29, 2017

 

 

SUPPLEMENTAL AGREEMENT
 TO VEHICLE FINANCING BUSINESS COOPERATION

 

No.: Zhe Chou Yin Kai Feng 201707

 

Party A: Zhejiang Chouzhou Commercial Bank Co., Ltd.

Domicile (Address): East of Yiwu Leyuan, Jiangbin Road, Yiwu City, Zhejiang Province

Legal Representative (Person in Charge): Zijun Jin

Contact Number: 0571-87117763

 

Party B: Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Registered Address: Room 1501-11, North Building 1, Yang Guang Hua Cheng Chuang Fu Center, No. 386 Xuezheng Street, Hangzhou Economic and Technological Development Area

Contact Address: 2/F, Tower E, Lei Shing Hong, Guang Shun South Avenue, Chaoyang District, Beijing

Legal Representative (Person in Charge): Zhen Zeng

Contact Number: 010-56545605

 

WHEREAS, Party A and Party B have entered into a Vehicle Financing Business Cooperation Agreement numbered Zhe Chou Yin Kai Feng 20161102 (the “Original Agreement”) on November 9, 2016.  NOW, THEREFORE, based on the principle of mutual benefit, through friendly negotiations, the Parties desire to adjust and supplement part of the terms of the Original Agreement and hereby enter into this Supplementary Agreement as follows:

 

I                       Paragraph 3) of Section 4 (Rules of Principal Repayment) of Part II of the Original Agreement shall be amended to read as follows:

 

Party B’s repayment on behalf of Customers: Party B authorizes Party A to deduct and transfer the current outstanding loan principal from Party B’s Settlement Account, and if the balance of Party B’s Settlement Account is not adequate, Party A shall have the right to make such deduction from the Deposit Account of Party B.

 

II                  Paragraph 4) of Section 4 (Rules of Principal Repayment) of Part II of the Original Agreement shall be amended to read as follows:

 

Party B’s buy-back of loan: Party B authorizes Party A to deduct all outstanding loan principal from Party B’s Settlement Account, and if the balance of Party B’s Settlement Account is not adequate, Party A shall have the right to make such deduction from the Deposit Account of Party B.

 

III             If Party A assigns part of the debts owed to it under the Original Agreement, Party A may still deduct, on behalf of the assignee, the funds in the Settlement Account and Deposit Account as a service provider or agent after such assignment.

 

IV              If Party A assigns any debts owed to it under the Original Agreement to a third party, Party B agrees to continue to assume the joint and several guarantee obligations under the Original Agreement to the new creditor, and shall still assume joint and several guarantee obligations with respect to the debts not assigned by Party A pursuant to the Original Agreement.  With respect to the deposit kept by Party B in the Deposit Account pursuant to the Original Agreement in an amount not less than *% of the outstanding balance of the loans thereunder, if Party A assigns any debts owed to it, Party B shall perform the agreed obligations pursuant to the Original Agreement towards the new creditor in proportion to the amount of the debts so assigned.

 

 

Within * days after Party B repays the loan the new creditor on behalf of a Consumer, Party A shall issue a certificate of repayment on behalf of consume and other documents required by Party B to Party B, evidencing the relevant amount Party B has so repaid and that Party B has paid such amount to the new creditor as required by Party A.

 

V                   This Agreement shall become integral part of, and have equal legal force and effect with, the Original Agreement immediately after this Agreement becomes effective.  In case of any conflict between this Agreement and the Original Agreement, this Agreement shall prevail.

 

VI              This Agreement is made in duplicate, of which Party A and Party B shall each hold one copy, and this Agreement shall become effective as of the date on which it is signed by and affixed with the seals of the Parties.

 

Party A (seal)

Zhejiang Chouzhou Commercial Bank Co., Ltd.

Legal Representative (Person in Charge) or Authorized Agent (Signature):

Date of Execution: August 17, 2017

 

Party B (seal)

Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Legal Representative or Authorized Agent (Signature):

Date of Execution: August 17, 2017

 

 

SUPPLEMENTAL AGREEMENT
 TO VEHICLE FINANCING BUSINESS COOPERATION

 

No.: Zhe Chou Yin Kai Feng 201710

 

Party A: Zhejiang Chouzhou Commercial Bank Co., Ltd.

Domicile (Address): East of Yiwu Leyuan, Jiangbin Road, Yiwu City, Zhejiang Province

Legal Representative (Person in Charge): Zijun Jin

Contact Number: 0571-87117763

 

Party B: Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Registered Address: Room 1501-11, North Building 1, Yang Guang Hua Cheng Chuang Fu Center, No. 386 Xuezheng Street, Hangzhou Economic and Technological Development Area

Contact Address: 2/F, Tower E, Lei Shing Hong, Guang Shun South Avenue, Chaoyang District, Beijing

Legal Representative (Person in Charge): Zhen Zeng

Contact Number: 010-56545605

 

WHEREAS, Party A and Party B have entered into a Vehicle Financing Business Cooperation Agreement numbered Zhe Chou Yin Kai Feng 20161102 on November 9, 2016 and a Supplemental Agreement to Vehicle Financing Business Cooperation numbered Zhe Chou Yin Kai Feng 201705 on June 29, 2017 (collectively, the “Original Agreement”).  NOW, THEREFORE, based on the principle of mutual benefit, through friendly negotiations, the Parties desire to adjust and supplement part of the terms of the Original Agreement and hereby enter into this Supplemental Agreement as follows:

 

I.                    The sentence in Section 1 of Part III of the Original Agreement providing that “Party B shall be responsible for assuming and paying to Party A the interest on the Consumers’ loans at an annual interest rate of *%” shall be amended to read that “Party B shall be responsible for assuming and paying to Party A the interest on the Consumers’ loans at an annual interest rate of *%”.

 

II.               The adjusted annual interest rate shall apply to the new loans provided on and after January 1, 2018 by Party A to the Consumers, and the original annual interest rate shall apply to those outstanding loans already provided by Party A to the Consumers before January 1, 2018.

 

III.          This Agreement shall become integral part of, and have equal legal force and effect with, the Original Agreement immediately after this Agreement becomes effective.  In case of any conflict between this Agreement and the Original Agreement, this Agreement shall prevail.

 

IV.           This Agreement is made in duplicate, of which Party A and Party B shall each hold one copy, and this Agreement shall become effective as of the date on which it is signed by and affixed with the seals of the Parties.

 

(Remainder of page intentionally left blank)

 

 

Party A (seal)

Zhejiang Chouzhou Commercial Bank Co., Ltd.

Legal Representative (Person in Charge) or Authorized Agent (Signature):

Date of Execution: November 28, 2017

 

Party B (seal)

Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Legal Representative or Authorized Agent (Signature):

Date of Execution: November 28, 2017Exhibit 10.48

 

VEHICLE FINANCING BUSINESS COOPERATION AGREEMENT

 

Contract No.: XWKF2017He001

 

Party A: Sichuan XW Bank Co., Ltd.

Domicile: 26/F, Unit 1, Building 1, 8 Third Jitai Road, Chengdu High-tech Zone

Legal Representative: Liu Yonghao

 

Party B: Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Contact Address: 2/F, Tower E, Lei Shing Hong, Guang Shun South Avenue, Chaoyang District, Beijing

Legal Representative: Zeng Zhen

 

Party A is a privately-owned bank established with the official approval by the China Banking Regulatory Commission, and Party B is a financial lease company lawfully established in China.  Through friendly negotiations, the Parties desire to cooperate with each other in the vehicle financing business and have agreed on the following terms for mutual observance.

 

Article I                Meanings of Terms

 

1.                  “Consumer” shall refer to a natural person consumer purchasing a vehicle.

 

2.                  “Settlement Account” shall refer to the settlement account opened by Party B at Party A (Account No.: *, and Account Name: Kai Feng Finance Lease (Hangzhou) Co., Ltd.).

 

3.                  “Deposit Account” shall refer to the deposit account opened by Party B at Party A (Account No.: *, and Account Name: Deposit of Kai Feng Finance Lease (Hangzhou) Co., Ltd.).

 

4.                  “APP” shall refer to the mobile device client through which Consumers can, inter alia, shop for vehicles and apply for financing.

 

5.                  “Loan Agreement” shall refer to a contract in the form of data message executed online by and among the borrower thereto, Party A and Party B on the APP that provides for, inter alia, borrowing and services, without regard to the actual name of such contract.

 

Article II           Contents of Cooperation

 

1.                  Model of Cooperation

 

The purpose of the cooperation under this Agreement is to provide financing services for Consumers in relation to their purchase of vehicles.  The cooperation between the Parties will be that Party B (by providing the services under the Financial Lease Series Contract) and Party A (by providing loans) will jointly provide financing services for Consumers to purchase vehicles and Party B shall pledge its deposit in favor of Party A to secure all debts of the Consumers under the cooperation hereunder.

 

* indicates the redacted confidential portions of  this exhibit for which the confidential treatment has been sought with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act. 

 

1

 

Party A shall make available facilities in a total amount of RMB * for the cooperation hereunder, and the Parties may adjust the total amount of such facilities through separate negotiation in light of the conduct of the business.

 

2.                  Key Points of Cooperation

 

(1)             Party B shall be solely responsible for the conduct of the financial lease service, including obtaining the Consumers’ names, identity card numbers, bank card numbers, and mobile phone numbers registered with the applicable banks, and shall transmit such Consumer information to Party A after obtaining the electronic versions of the Letters of Authorization * from the Consumers.

 

(2)             The Parties will carry out the business cooperation on the basis of a white list, Party A will put forward an explicit consumer selection policy, and Party B shall select and refer qualified Consumers to Party A based on such policy.  With respect to each Consumer recommended by Party B, Party A shall be responsible for conducting, in order, an verification of the four key items of bank card information (including name, identity card number, bank card number, and mobile phone number registered with the applicable bank counter in respect of the bank card), an verification through the citizen identity information online verification system, and an verification against the black list of XW Bank and provide Party B with the results of such verifications.  If Party A desires to add any consumer selection condition or verification rule, Party A shall give a prior notice to the personnel of Party B’s risk control department at or above the level of director, and amendments may be made after the Parties have reached agreement on such amendments.

 

(3)             **

 

(4)             Party A and Party B shall execute tri-party Loan Agreements with the Consumers online through Uxin Mobile Application.

 

(5)             In relation to a loan to be provided for a Consumer, Party B shall be responsible to transmit the application for provision of the loan, the signature page(s) of financial lease series contracts, photos of the front and back of the Consumer’s identity card, and electronic receipt information (payment voucher(s)) to Party A, Party A shall provide the loan on the same day, and materials mentioned above may be transmitted in the form of images or electronic format.  Under the Consumer’s entrustment, Party A shall pay the loan proceeds to the Settlement Account that Party B has opened at Party A to return the financial lease payments between the Consumer and Party B.  In case of any system maintenance, unexpected malfunction or other event resulting in the inability of Party A to provide the loan on the same day, Party A shall notify Party B in time.

 

(6)             Party B shall be responsible to transmit the images or electronic versions of the loan documents to Party A based on the list of loan documents determined by both Parties through negotiation by the deadline for each city provided by Party B (which shall at the latest be within * days (with N meaning the date of loan provision) after Party A provides the loans.  If Party B fails to complete the transmission of such documents within the time determined by the Parties through negotiation, Party B shall issue a detailed explanation to Party A, specifying the time for transmission.

 

2

 

3.                  Elements of the Loan

 

(1)             Amount of Loan: the amount of a loan to be provided to a borrower under this cooperation project will be agreed on by Party A, Party B and the borrower in the Loan Agreement, the principal of the loan will be repaid by the borrower to Party A, and the interest on the loan will be repaid by Party B to Party A.

 

(2)             Term of Loan: the term of a loan shall commence from the date on which the loan is successfully provided, the loan provision date shall be the date commencing from which interest shall accrue on the loan, and the means of repayment and the dates of repayment of the principal of and interest on the loan shall be as set forth in the repayment schedule.

 

(3)             Interest Rate of Loan: the interest rates of the loans are set forth in Article III (Fee Rates) hereof, and the interest on a loan shall accrue and be collected by Party A for the period from the date on which the loan is successfully provided to the agreed repayment date.  The interest payable on a loan = the principal then outstanding × daily interest rate × number of days elapsed, monthly interest rate = annual interest rate / 12, and daily interest rate = annual interest rate / 360.

 

(4)             Repayment Account: the account from which the interest payments will be made shall be the Settlement Account opened by Party B at Party A.

 

4.                  Guarantee

 

(1)             Security in the Form of Pledge over Deposit

 

In order to secure the performance of the Loan Agreements (the “Master Contracts”) described in this Article that are entered into by and among the borrowers, Party A and Party B under this project and ensure the discharge of the debts, Party B is willing to pledge the deposit to secure the debts arising under the Master Contracts.  When providing a particular loan under the Master Contract described in this Article, Party B shall confirm to Party A in the Loan Agreement entered into by and among Party A, Party B and the borrower that the Loan Agreement executed by and among Party A, Party B and the borrower shall be a particular Master Contract secured by the pledge over the deposit hereunder.

 

(i)                           Deposit Account.

 

A.                 Party B shall open a deposit account at Party A pursuant to the relevant laws, regulations and regulatory provisions and the business rules of Party A regarding the opening of deposit accounts, the pledged assets shall be the funds in the deposit account opened by Party B at Party A, and Party A shall have the right to monitor the account and the funds therein.

 

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B.                 A deposit shall be paid by Party B into the deposit account in an amount not less than *% of the total outstanding balance of the loans if repaid in equal installments of principal, plus *% of the total outstanding balance of the loans if repaid in equal installments of principal and interest.  Before the first loan provided, Party B shall pay *as the initial deposit (the “Base Deposit”) to the Deposit Account in a lump sum.

 

C.                 Party B shall timely top the deposit up based on the increase in the total outstanding balance of the loans under this project, in order to ensure that the amount of the deposit in the Deposit Account is at any time not lower than *% of the total outstanding balance of the loans**.  Party B also authorizes Party A to deduct relevant amounts from any account opened by Party B at Party A to top the deposit up**.

 

D.                 When the deposit amount is lower than *% of the total outstanding balance of the loans, Party A shall have the right to re-evaluate the cooperation between the Parties and decide whether to modify the conditions for cooperation or cease the cooperation based on the results of such evaluation. If the amount of the deposit is lower than *% of the total outstanding balance of the loans due to the system-related reasons of Party A while the balance in the Settlement Account of Party B is sufficient to pay the deposit agreed herein, Party A may not modify the conditions for cooperation or cease the cooperation.

 

E.                  Before the debts secured by the deposit are fully discharged, without the written consent of Party A, the Deposit Account pledged hereunder shall not be modified and Party B may not withdraw or request the return of the deposit the possession of which has been delivered up to Party A or create any other security over any amount of the deposit hereunder.  If Party B is involved in any other dispute and as a result any third party claims any right in and to the deposit or any judicial authority desires to freeze or deduct and transfer the deposit, Party A shall have the right to defend on the basis of the pledge.  Party B shall top the deposit up or provide other security approved by Party A.  Party B also authorizes Party A to deduct and transfer relevant amounts from any account or accounts opened by Party B at Party A to top the deposit up.

 

(ii)                        Scope of Guarantee.

 

The scope of the guarantee hereunder shall be the debts under the Master Contracts, including all the principal, interest and penalty interest.

 

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(iii)                     Enforcement of Pledge.

 

No matter whether the debts owed to Party A under the Master Contracts are otherwise secured (including but not limited to guarantee, collateral, pledge, letter of guarantee and standby letter of credit), no matter when such other security is created, whether it is valid, and whether Party A makes any claim, no matter whether any third party agrees to bear all or part of the debts under the Master Contracts, and no matter whether such other security is provided by Party B, the debtor or a third party, the guarantee obligations of Party B hereunder shall not be thus relieved or released, and rights or the exercise of rights hereunder shall not be affected, and Party A may directly require Party B to assume its guarantee obligations within the scope of guarantee pursuant to this Agreement and have the right to determine the order in which it will exercise its security rights, and Party B shall not raise any objection or make any defense against the creditor on the grounds of the existence of any other security or order of exercise.

 

5.                  Guarantee Rule

 

(1)             The agreed-on due date for Consumer repayment will be marked as Day T, and if the Consumer repays the installment of loan principal then due and repayable within * days**.

 

(2)             If the Consumer repays the installment of loan principal then due and repayable between Day * and Day *, Party A will collect the loan principal and penalty interest from Day T to the date of repayment.

 

(3)             If the Consumer fails to make the repayment within * days, Party B shall be responsible to fully repay on behalf of the Consumer to Party A on the *day of the overdue installment of principal, interest and penalty interest on the overdue principal between Day T and Day *, and authorize Party A to deduct relevant amounts from the Deposit Account of Party B.

 

(4)             With respect a particular loan, if Party B has borne its guarantee obligations for two consecutive installments of repayment, but the Consumer fails to repay the immediately following installment within *days, or Party B has borne its security liabilities for a total of five installments, but the Consumer fails to repay another installment within * days, Party B shall fully pay the principal of, interest and penalty interest on, and all other amounts payable in respect of, the loan to Party A.

 

(5)             The rates of penalty interest collected by Party A from the Consumers shall be consistent with the rates of interest on their loans.

 

6.                  Principal Repayment Rules

 

(1)             Regular Repayment by Consumer: Party A shall be responsible for deducting the installments of loan principal then due from the Consumer pursuant to the repayment schedule, and may also directly deduct and collect the installments of principal then due from Party B’s Settlement Account at Party B’s request.

 

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(2)             Full early repayment by Consumer: if both Parties agree that a loan may be prepaid by the Consumer in full, then Party A may deduct an amount equal to the entire outstanding principal of the loan from the Consumer’s repayment account, and may also deduct an amount equal to the entire outstanding principal of the loan from Party B’s Settlement Account at Party B’s request.

 

(3)             Request of Consumer for early repayment of Then-current Installment: Party A may deduct the then current installment of principal early repayment from the Consumer’s repayment account, and may also directly deduct the then current installment of principal early repayment from Party B’s Settlement Account at Party B’s request.

 

7.                  Interest Payment Rules

 

(1)             Normal Repayment by Consumer: in case of repayment by the Consumer of the principal of his/her loan in installments, Party A will calculate the interest based on the actual number of days elapsed from the last repayment date of the installment to the date of repayment of the current instalment, provided, however, that the first interest calculation period shall be from the date on which the loan is actually provided (inclusive) to the repayment date of the first installment.  In case of repayment by the Consumer of the entire principal of his/her loan in a lump sum at the maturity thereof, Party A will calculate the interest on a daily basis based on the actual number of days elapsed.  Party B agrees and authorizes Party A to deduct the interest payments from the Settlement Account of Party B.

 

(2)             Full early repayment by Consumer: the interest payable shall be calculated * on the basis of the actual number of days elapsed in relation to the outstanding balance of the loan.  Party B agrees and authorizes Party A to deduct the interest payment from the Settlement Account of Party B in case of full early repayment by the Consumer.

 

(3)             Request of Consumer for early repayment of Then-current Installment: in case of early repayment by the Consumer of the then-current installment, Party A will still calculate the interest in full based on the number of days elapsed from the last repayment date to the date on which the then-current installment is due to be repaid, and the excess of the interest so calculated over the interest calculated based on the number of days actually elapsed shall be deemed to be the early repayment fees receivable by Party A.

 

8.                  Term of Cooperation

 

(1)             Term of cooperation between the Parties under this Agreement shall be 3 years from the execution date of this Agreement, and the Parties shall friendly negotiate the subsequent business plan before the Agreement expires.  This Agreement shall be extended automatically for 1 year if the Parties reach agreement and shall terminate upon expiration if not.

 

(2)             If this Cooperation Agreement is terminated, the loan agreements and security agreements with respect to the still existing loans to the Consumers under this Cooperation Agreement shall not be terminated until all such loans are fully discharged.

 

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Article III      Fee Rates

 

1.                  Rates of Interest on Deposits and Loans

 

(1)             Party B shall be responsible for assuming and paying on behalf the Consumers to Party A the interest on their loans, of which, the annual rate of interest on those fixed principal loans shall be equal to *% of the base interest rate for loans having a tenor * published by the People’s Bank of China (i.e., *%), and the annual rate of interest on those fixed installment loans will be repaid in equal installments of principal and interest shall be equal to *% of the base interest rate for loans having a tenor between one year and five years published by the People’s Bank of China (i.e., *%).  In case of adjustments to the base interest rates for loans published by the People’s Bank of China, the annual rates of interest on such loans shall be adjusted accordingly.

 

(2)             Party A shall pay interest on the funds in the Deposit Account to Party B at the rate *.

 

(3)             Party A shall, by the * of each month, provide Party B with the loan interest invoice for the immediately preceding month.

 

2.                  Fees

 

(1)             Party A shall be responsible for the inquiry fees of the citizen identity information online verification system and the fees of verification of four basic items of information of the Consumers.  Party B shall bear a service fee equal to RMB * /person with respect to the Consumers recommended by Party B, and the Parties shall, within the* of each month, check the service fee payable for the immediately preceding month, and if correct, Party A shall issue and serve on Party B a Special Value-added Tax Invoice bearing an amount equal to the service fee payable for the immediately preceding month within* after the check is completed by the Parties.

 

(2)             Party A shall be responsible for deducting the principal repayments of the Consumers and bear the payment and settlement fees, etc. incurred in connection with such deduction.

 

(3)             The Parties shall conduct a data transmission evaluation based on their business needs, and if data needs to be transmitted between the Parties through dedicated lines, Party A and Party B shall each be responsible for the fees of one dedicated line (meaning the dedicated data line rented from the applicable carrier for data sharing and direct system connection), of which, Party A shall be responsible for the fees of the main dedicated line, while Party B shall be responsible for the fees of the back-up dedicated line.

 

(4)             Party A and Party B shall be responsible for the expenses incurred by them respectively in sending text messages.

 

(5)             Party B shall bear the stamp duty payable on the loans provided to the borrowers, and if Party A offers the service of paying stamp duty on behalf of its clients, Party B agrees and authorizes Party A to deduct by the * day of each month (which will be extended in case of holidays), the total amount of the stamp duty payable for the immediately preceding month from Party B’s Settlement Account and pay such stamp duty on behalf of Party B.

 

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Article IV       Duties and Rights

 

1.                  Subject to the credit policies of Party A, Party A shall provide the Consumers recommended by Party B with loans in RMB pursuant to this Agreement.  In case of any system malfunction or scale control resulting in its inability to normally provide a loan, Party A shall notify Party B in time (or * business days in advance in case of scale control).

 

2.                  Party A agrees that the annualized rates of interest for the loans to be repaid in equal installments of principal and loans to be repaid in equal installments of principal and interest that are offered during its business cooperation in vehicle loans with other companies shall at least be * base points higher than the annualized rates of interest for the loans to be repaid in equal installments of principal and loans to be repaid in equal installments of principal and interest that are offered during its cooperation with Party B.

 

3.                  In the cooperation hereunder, the loans will be provided by Party A and/or its financial institution partners to the borrowers, and the Loan Agreements thereunder will be executed by Party A on behalf of all lenders.  The relationship between the lenders in respect of their rights and obligations will be determined by the lenders through separate negotiation and relevant contracts will be entered into by the lenders.  The relationship between the lenders in respect of their rights and obligations under the cooperation hereunder and the Loan Agreements shall not involve Party B, and Party B will only bear the agreed-upon liabilities and provide security for the debts arising under the Master Contracts pursuant to this Agreement.

 

4.                  Party B shall be responsible for reviewing whether a Consumer’s identity and his/her acts of vehicle purchase and financing are genuine, and shall not willfully recommend any Consumer whose identity is unreal, who does not make a genuine vehicle purchase or who does not satisfy the financing conditions agreed by the Parties, or collude with the Consumer or any third party maliciously to make such recommendation, to Party A.

 

5.                  Party B shall be responsible for the post-borrowing management, collection and disposal in relation to the loans borrowed by the Consumers, and Party A shall provide cooperation therefor properly.

 

6.                  In case of any change in the company name, domicile, registered capital, major shareholder, scope of business or type of company of either Party or amendment to its articles of association, such Party shall give a *-business-day prior written notice to the other Party and file relevant materials with the other Party for record.

 

7.                  The Parties shall properly keep the electronic data related to contract signing by the Consumers pursuant to the requirements of the regulatory authorities.

 

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8.                  None of the representations and warranties made by the Parties herein shall be false or incorrect or contain any omission.

 

Article V            Events of Default and Countermeasures

 

1.                  Events of Default

 

The following events (each, an “Event of Default”) shall constitute the defaults of the defaulting Party:

 

(1)             if the defaulting Party breaches any of the provisions of this Agreement, and such breach is incapable of remedy or the defaulting Party fails to rectify the breach within * calendar days after the non-defaulting Party delivers a written rectification notice to the defaulting Party; or

 

(2)             if the defaulting Party violates any applicable law or regulatory provision, and such violation will directly affect this Agreement or cause losses to the other Party.

 

2.                  Liabilities for Default

 

After an Event of Default set forth above occurs, the non-defaulting Party shall have the right to require in writing the defaulting Party to rectify the default within the specified time limit, and if the defaulting Party fails to rectify the default within the time limit specified in writing by the non-defaulting Party, the non-defaulting Party shall have the right to take any one or more of the following measures:

 

(1)             to terminate this Agreement;

 

(2)             to require the defaulting Party to indemnify the non-defaulting Party for the direct losses to the business of such non-defaulting Party under this Cooperation Agreement;

 

(3)             to exercise the other remedies permitted by the laws and regulations.

 

Article VI       Termination

 

1.                  Either Party shall have the right to unilaterally terminate this Agreement if any of the following events occurs:

 

(1)             if any policy of any regulatory authority of either Party (specifically, the China Banking Regulatory Commission or the People’s Bank of China and the branches thereof) has undergone any major changes with respect to the cooperation hereunder;

 

(2)             if any new applicable law or regulatory document is promulgated, or any existing applicable law or regulatory document is interpreted in a new way or is amended, by any governmental or regulatory authority, as a result of which it is impossible to carry out the cooperation hereunder or it is impossible for either Party to obtain all of its benefits under any important terms hereof in accordance with such terms; or

 

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(3)             if either Party undergoes any material adverse change which renders it impossible to continue to perform this Agreement or will cause significant damage to both Parties.

 

2.                  Each Party shall have the right to vary this Cooperation Agreement or suspend or terminate the cooperation hereunder based on the regulatory requirements for rectification, changes in market conditions, fluctuations in the prices of funds and adjustment of business strategies by giving an* prior notice to the other Party, and if a specific timing requirement is imposed by the competent regulatory authority, the Parties shall negotiate separately.

 

3.                  During the term of cooperation, if the non-performing loan ratio exceeds *% (the non-performing loan ratio = the aggregate amount Party B repays on behalf of the Consumers / the aggregate amount of the loans already provided), Party A shall have the right to re-evaluate the cooperation hereunder and decide whether to vary the conditions for cooperation or cease the cooperation based on the results of such evaluation.

 

Article VII          Confidentiality

 

1.                  Each Party shall keep strictly confidential any document, material and other information (whether technical or commercial) of any form relating to the following matters that are received or obtained by it from the other Party due to the execution and performance of this Agreement (or any other agreement entered into pursuant to this Agreement), and neither Party shall disclose to any third party other than the regulatory authorities of Party A and Party B, or use, any such information:

 

(1)             the cooperation hereunder;

 

(2)             any negotiations conducted in relation to the cooperation hereunder;

 

(3)             relevant credit reference data, Consumer information and transaction information provided based on the cooperation hereunder;

 

(4)             the business, financial and other matters (including future plans and targets) of the other Party.

 

2.                  Exceptions

 

This confidentiality clause shall not prohibit the disclosure or use of confidential business information:

 

(1)             pursuant to the regulations or requirements of the regulatory authorities of Party A and Party B; or

 

(2)             as required to conduct any judicial, arbitration or other similar proceedings relating to this Agreement or any other agreement entered into pursuant to this Agreement.

 

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3.                  The confidentiality obligations shall persist from the date of this Agreement till the publication of such information or publication of such information as permitted by the disclosing Party, and shall survive the termination of this Agreement.

 

Article VIII     Service

 

1.                  The Parties hereto agree as follows with respect to the addresses for service of the notices connected with or relating to this Agreement and relevant documents and legal process in connection with any dispute arising out of this Agreement as well as the legal consequences of the service thereof:

 

Party A confirms that its valid address for service shall be as follows: 25/F, Unit 1, Building 1, 8 Third Jitai Road, Chengdu High-tech Zone, attention: *.

 

Party B confirms that its valid address for service shall be as follows: 2/F, Tower E, Lei Shing Hong, Guang Shun South Avenue, Chaoyang District, Beijing, attention: Yuzhe Li, contact phone: 18510029386, and email: liyuzhe@xin.com.

 

2.                  The scope of application of the Parties’ addresses for service as set forth above shall include the service of the notices, agreements and other documents of the Parties while there are no legal proceedings between the Parties and the service of relevant documents and legal process in connection with any dispute arising out of this Agreement, as well as the arbitration and civil proceedings of the dispute (including the first instance, appeal, retrial and enforcement proceedings).

 

3.                  If either Party desires to change its address for service, it shall perform the obligation to give a written notice to the other Party.  If a Party fails to so perform its notification obligation, its notice for service as confirmed above shall still be deemed valid, and if any legal process fails to be actually received by the intended receiving Party because the address for service provided or confirmed by it is inaccurate, it fails to timely notify as required the other Party and the relevant court of any change in its address for service after such change is made, or it or the recipient designated by it refuses to sign for such legal process, the service of such legal process shall be deemed accomplished at law:

 

(1)             if the address for service provided or confirmed by the intended receiving Party is inaccurate;

 

(2)             if the intended receiving Party fails to timely notify the other Party and the relevant arbitration institution or court in writing of any change in its address for service after such change is made; or

 

(3)             if the intended receiving Party or the authorized recipient refuses to sign for such legal process.

 

4.                  Under any of the circumstances set forth above, if the relevant legal process is sent by mail, the date on which the legal process is returned shall be the date of service of such legal process, and if such legal process is sent directly, the date on which the person serving the legal process specifies the relevant circumstance on the acknowledge of service shall be the date of service of such legal process.  If a Party has performed its notification obligation with respect to a change in its address for service, the amended address for service shall be the valid address for service.  With respect to the addresses for service of the Parties expressly set forth herein, a court may accomplish the service of legal process directly by mail, and the relevant legal process mailed by the court shall be deemed to have been served even if the intended receiving Party fails to receive the legal process.

 

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5.                  After arbitration or civil proceedings are instituted with respect to a dispute, if a Party responds and directly submits a letter of confirmation of address for service to the relevant arbitration institution or court, but the address confirmed therein is not consistent with the address for service confirmed before the proceedings are instituted, the address for service set forth in the letter of confirmation submitted to the relevant arbitration institution or court shall control.  If the address for service specified in the letter of confirmation of address for service submitted by a Party is the address of its legal counsel or authorized agent, the address for service confirmed before the proceedings are instituted shall also be valid.

 

6.                  The service clause hereof shall be independent and not be affected by the validity of the entire Agreement or any other clause hereof.

 

Article IX              Miscellaneous

 

1.                  Any dispute arising between the Parties in the course of performance of this Agreement shall be resolved by the Parties through negotiation, failing which, either Party may commence an action before the people’s court having jurisdiction at the domicile of the plaintiff.

 

2.                  This Agreement shall be governed by the laws of the People’s Republic of China.

 

3.                  Matters not covered herein shall be handled pursuant to the relevant laws and regulations, and if there are no relevant laws and regulations, the Parties may enter into a written supplementary agreement, and the appendices and supplementary agreements to this Agreement shall be integral part of, and have equal legal force and effect with, this Agreement.

 

4.                  This Agreement shall become effective upon execution by the Parties (which shall be signed by or affixed with the seal of the authorized signatory of each Party and affixed with the common seal of each Party).

 

5.                  This Agreement is executed in four originals, with each Party holding two originals.

 

(Remainder of page intentionally left blank)

 

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Party A (common seal):

Sichuan XW Bank Co., Ltd.

Signature (or Seal) of Legal Representative or Authorized Agent:

 

Date of Execution: June 8, 2017

 

Party B (common seal):

Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Signature (or Seal) of Legal Representative or Authorized Agent:

 

Date of Execution: June 8, 2017

 

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SUPPLEMENTAL AGREEMENT
 TO VEHICLE FINANCING BUSINESS COOPERATION AGREEMENT

 

Party A:   Sichuan XW Bank Co., Ltd.

Domicile: 26/F, Unit 1, Building 1, 8 Third Jitai Road, Chengdu High-tech Zone

Legal Representative: Hang Wang

 

Party B: Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Contact Address: 2/F, Tower E, Lei Shing Hong, Guang Shun South Avenue, Chaoyang District, Beijing

Legal Representative: Zhen Zeng

 

In order to develop a friendly and reciprocal cooperation relationship between the Parties, based on the principles of free will, equality, mutual benefit and honesty, through full negotiations, Party A and Party B hereby enter into this Supplemental Agreement as follows with respect to the Vehicle Financing Business Cooperation Agreement between the Parties with the contract number XWKF2017He001 (the “Original Agreement”), which shall be integral part of, and have equal legal force and effect with, the Original Agreement.

 

Article I        Commencing from July 1, 2017, with respect to the new loans provided by Party A, Party B shall be responsible for assuming and paying on behalf the Consumers to Party A the interest of the loans, of which, the annual rate of interest shall be equal to *% of the base interest rate for loans having a tenor * published by the People’s Bank of China (i.e. *%), if repaid in equal installments of principal, and the annual rate of interest shall be equal to *% of the base interest rate for loans having a tenor * published by the People’s Bank of China (i.e. *%), if repaid in equal installments of principal and interest.  In case of adjustments to the base interest rates for loans published by the People’s Bank of China, the annual rates of interest on such loans shall be adjusted accordingly.

 

Article II       Commencing from July 1, 2017, the deposit that shall be paid by Party B to Party A shall be adjusted as follows:

 

1.      A deposit shall be paid by Party B into the Deposit Account in an amount not less than *% of the total outstanding balance of the loans provided under this project if repaid in equal installments of principal, plus *% of the total outstanding balance of the loans provided under this project if repaid in equal installments of principal and interest.

 

2.      Party B shall timely top the deposit up based on the increase in the total outstanding balance of the loans under this project, in order to ensure that the amount of the deposit in the Deposit Account is at any time not lower than *% of the total outstanding balance of the loans, provided that if the amount so calculated is lower than the Base Deposit, the deposit remaining in the Deposit Account shall not be lower than the Base Deposit.  Party B also authorizes Party A to deduct relevant amounts from any account opened by Party B at Party A to top the deposit up, and if Party B fails to top the amount of the deposit up to the level agreed upon by the Parties within * working days after Party A gives a written notice to the staff of Party B’ funding department at or above the level of director, Party A shall have the right to suspend the cooperation.

 

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3.      When the deposit amount is lower than *% of the total outstanding balance of the loans, Party A shall have the right to re-evaluate the cooperation between the Parties and decide whether to modify the conditions for cooperation or cease the cooperation based on the results of such evaluation. If the amount of the deposit is lower than *% of the total outstanding balance of the loans due to the system-related reasons of Party A while the balance in the Settlement Account of Party B is sufficient to pay the deposit agreed herein, Party A may not modify the conditions for cooperation or cease the cooperation.

 

Article III     With respect a particular loan, if Party B has borne its guarantee liabilities for two consecutive installments of repayment, and the Consumer fails to repay the immediately following installment within * days, or Party B has borne its guarantee liabilities for a total of five installments, and the Consumer fails to repay another installment within * days, Party B shall repay on behalf of the Consumer all outstanding principal of, and interest and penalty interest on, the loan to Party A in full.  Such repayment shall not be limited by the deposit amount, and if the deposit amount is not sufficient for deduction, Party B shall pay Party A separately.

 

Article IV     In case of any discrepancy between this Supplemental Agreement and the Original Agreement, this Supplemental Agreement shall prevail, and the matters not covered herein shall be executed pursuant to the Original Agreement.

 

Article V  This Supplemental Agreement shall become effective as of the date on which it is signed by (or affixed with the seals of) the legal representatives or persons-in-charge of the Parties or their authorized signatories and affixed with the common seals of the Parties.

 

Article VI     This Supplemental Agreement is executed in four originals, of which, each Party shall hold two originals, and which shall have equal legal force and effect.

 

Party A (common seal):

Sichuan XW Bank Co., Ltd.

Signature (or Seal) of Legal Representative or Authorized Agent:

 

Party B (common seal):

Kai Feng Finance Lease (Hangzhou) Co., Ltd.

Signature (or Seal) of Legal Representative or Authorized Agent:

 

Date of Execution: June 30, 2017

Venue of Execution: Chengdu High-tech Zone

 

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