Document:

solarmax_ex1053.htm

 
EXHIBIT 10.53
 
 
Claims Repurchase Agreement
 
No.: HXZL-Zz-【20191661-003
 
Party A (Lessor): Huaxia Financial Leasing Co., Ltd. (seal)
 
Address: 15/F, Tower A, International Enterprise Building, No. 35, Financial Street, Xicheng District, Beijing
 
Legal representative: Ren Yongguang
 
Contact: Tian Jun
 
Contact number: 010-88091443
 
 
Party B (Repurchaser): State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd.
 
Contact address: Weishuang Avenue, Caohai Town, Weining County, Bijie City, Guizhou Province
 
Legal representative: Zheng Fasong
 
Contact: Li Dan
 
Contact number: 15186958266
 
 
Party C (Lessee): Xingren County Almaden New Energy Co., Ltd.
 
Contact address: 3-4, Unit 20, Chengbei Renhe Homeland, Xingren County, Southwest Guizhou Autonomous Prefecture, Guizhou Province
 
Legal representative: Zhou Feng
 
Contact: Zhou Feng
 
Contact number: 13636304829
 
 
Whereas:
 
1. Party A has signed the “Financial Leasing Contract” (No.: HXZL-Z2-2019 [166]) and associated schedules and annexes (hereinafter referred to as “Financial Leasing Contract”) with the Lessee (Party C), and signed the Agreement on the Transfer of Rights and Obligations (No.: HXZL-Z-2019166-006) and associated annexes (hereinafter referred to as “Agreement on the Transfer of Rights and Obligations”) with the Seller and Party C according to Party C’s selection of the Lease Items and the Seller (Solarmax Technology (Jiangsu) Co., Ltd.). According to the Agreement on the Transfer of Rights and Obligations, Party A purchases the relevant Lease Items under the Agreement on the Transfer of Rights and Obligations from the Seller, and obtains the ownership thereof and leases them to Party C for use;
 
2. In order to support Party C in carrying out the financial leasing business with Party A, in accordance with this Agreement, Party B agrees to bear the repurchase obligations to Party A in respect of the “Financial Leasing Contract” signed by Party C and Party A.
 
	 
	
	
 
	 

 
To this end, Party A, Party B and Party C have reached the following agreement through negotiation on an equal basis in Xicheng District, Beijing.
 
Unless otherwise expressly provided in this Agreement, the terms defined in the Financial Leasing Contract shall have the same meaning when used in this Agreement.
 
Clause 1 Repurchase Object
 
1. The repurchase object under this Agreement is the Lease Items and leasing claims under the “Financial Leasing Contract” signed by Party C and Party A.
 
“Lease Item” means all the power plant assets purchased by Party A from the Seller according to Party C's selection and leased to Party C and used in the Xingren County Luchuying 30MWP Agricultural PV Power Plant Project located in Southwest Guizhou Autonomous Prefecture, Guizhou Province under the Financial Leasing Contract, including PV power plant facilities and structures.
 
Leasing claim means all the claims that Party A has against Party C under the "Financial Leasing Contract", including but not limited to claims arising from all outstanding and due Pre-lease Interest, Grace Period Interest, Rent and Late Penalty, all immature Lease Loan Principal, Commission Fee, Lease Security Deposit, early termination fee, Retention Price and other amount that Party A may require Party C to pay
 
2. Ownership of Lease Items Each party agrees and confirms that the ownership of the Lease Items shall be held by Party A before Party C repays all debts under the Financial Leasing Contract or, under the circumstances that Party A requires Party B to fulfill its repurchase obligations in accordance with the provisions of this Agreement, before Party B performs the repurchase obligations in accordance with the provisions of this Agreement.
 
3. Party C is aware of the “Financial Leasing Contract” and the repurchase arrangement under this Agreement, and agrees that Party B shall perform the repurchase obligations in accordance with this Agreement.
 
Clause 2 Repurchase
 
1. Party A, Party B and Party C confirms that Party B's repurchase commitment under this Agreement is unconditional and irrevocable, and the occurrence of any of the following events shall not affect Party B's performance of its repurchase obligations under this Agreement:
 
(1) Party C and/or the actual user of the Lease Items cannot survive according to law:
 
(2) The “Financial Leasing Contract” and “Agreement on the Transfer of Rights and Obligations” are invalidated or other circumstances occur that may affect the validity, legality, or enforceability of the “Financial Leasing Contract” and “Agreement on the Transfer of Rights and Obligations” or make them defective.
 
(3) The Lease Items are lost, damaged, unrecoverable or significantly degraded in value.
 
2. Under any of the following circumstances, regardless of whether the dispute between Party A and Party C has entered the litigation or arbitration proceedings, the repurchase conditions are satisfied:
 
(1) Circumstances specified in Clause 16, paragraph 2 of the Financial Leasing Contract occur to Party C;
 
(2) Party C fails to pay all debts under the “Financial Leasing Contract” to Party A in full and on time upon expiration or early termination of performance term under the “Financial Leasing Contract”;
 
(3) The “Financial Leasing Contract” is invalid or is canceled or terminated early for any reason or is deemed not to constitute a legal relationship of financial leasing;
 
(4) Any of the following events occurs to Party B:
 
	 
	
	
 
	 

 
1) Serious deterioration in business or financial situation:
 
2) Failure to repay the due debt to any financial institution;
 
3) Party B is involved in major litigation or arbitration, or its major assets are subject to property preservation or other enforcement measures;
 
4) Party B ceases production, suspends business, is dissolved, ceases operation for rectification, is canceled, files (or is filed) for bankruptcy, goes bankrupt, or its business license is revoked;
 
(5) Party A has clear evidence proving that other circumstances occur to Party B that cause it or may cause it to lose the ability to perform the repurchase. Party C breaches the Financial Leasing Contract and/or this Agreement, or Party B breaches any commitments, representations or warranties under this Agreement.
 
Article 3 State of the Lease Items
 
1. Party A does not make any representation or warranty, expressly or explicitly, regarding the description, durability, quality, specifications, condition, marketability or suitability of the Lease Items. Party A shall not be liable for any defects (including defect of right) of the Lease Items at the time of repurchase.
 
2. Party B is aware that the Lease Items under this Agreement is controlled and used by Party C and is aware of the operating area of the Lease Items. Party B agrees to repurchase the Lease Items in an "As-Is" condition upon receipt of Party A’s “Notice of Repurchase Payment” (see Schedule 1 for details). Party B agrees that Party A shall not be liable for any defect and structural integrity problem related to the Lease Items, damage to the use or performance of the Lease Items caused by Party C's failure to repair or maintain the Lease Items as required, or any liability, claim, loss, damage or expenses incurred thereby directly or indirectly in any kind or nature, and any such circumstances shall not affect Party B’s repurchase obligations to Party A under this Agreement.
 
3. Party B further agrees that regardless of whether the Lease Items are transferred or Party C subleases the Lease Items or otherwise sets any form of third party rights or interests on the Lease Items, or the Lease Items are detained, seized, or expropriated, Party A shall not bear any responsibility arising therefrom, and Party B's repurchase obligations to Party A under this Agreement shall not be affected.
 
4. After Party B receives Party A's "Notice of Repurchase Payment ", if the Lease Items are damaged or lost, Party B and Party C shall negotiate with and claim against the relevant insurance institution and bear the corresponding consequences. In any case, Party A shall not be liable for any risks or liabilities arising from the loss or damage to the Lease Items, but before Party B pays Party A the repurchase price in accordance with Clause 4 of this Agreement, the insurance indemnity under the “Financial Leasing Contract” shall still be owned by Party A.
 
Article 4 Repurchase Price and Payment
 
1. The repurchase price under this Agreement is the sum of all the claims that Party A has against Party C under the Financial Leasing Contract at the repurchase date determined by Party A in the “Notice of Repurchase Payment ”, including all outstanding and due Pre-lease Interest, Grace Period Interest, Rent and Late Penalty, all immature Lease Loan Principal, Commission Fee, Lease Security Deposit, early termination fee, and Retention Price, as well as all direct costs incurred by Party A to realize the creditor's rights, mortgagee's rights and rights under this Agreement, including but not limited to litigation fees, property preservation fees, notary fees, travel expenses, attorney fees, execution fees, appraisal fees, auction fees, etc. Unless there is calculation error, the repurchase price shall be subject to the amount specified in the Notice of Repurchase Payment issued by Party A to Party B.
 
	 
	
	
 
	 

 
2. Party B confirms that at the time of signing this Agreement, it has fully understood the terms of this Agreement and is willing to assume the repurchase obligations and responsibilities as stipulated in this Agreement. Party B unconditionally and irrevocably undertakes that it will pay the repurchase price to the following accounts of Party A in a lump sum according to the repurchase price, payment time and method as stated in the Notice of Repurchase Payment within 10 working days after receiving the Notice of Repurchase Payment from Party A.
 
Bank name: Huaxia Financial Leasing Co., Ltd.
 
Bank of deposit: Huaxia Bank, Beijing Changan Sub-branch
 
Account No.: 10253000000525904
 
3. If this Agreement is invalidated or revoked due to the fault not attributable to Party A and thus Party A suffers losses, Party B shall be liable for compensation.
 
4. Party B and Party C confirm that the amount of the repurchase price paid by Party B to Party A shall be determined only based on the provision of paragraph 1 of this Clause, and has nothing to do with the state of the Lease Items or the fair market price at the time of the repurchase (if the repurchase price is obviously higher than the market fair value of the Lease Items at the time of repurchase, and the relevant right holder claims the right arising therefrom and thus causes loss to Party A, Party B shall bear the responsibility or Party B and Party C shall bear the joint liability for compensation; if the repurchase price is significantly lower than the fair market price of the Lease Items at the time of the repurchase, Party C requires the return of the difference, Party B shall bear the responsibility).
 
Clause 5 Delivery of Lease Items and Documents
 
1. After Party B has paid all the repurchase price to Party A in accordance with the provisions of this Agreement, the ownership of the Lease Items and Party A's leasing claims against Party C under the “Financial Leasing Contract” shall be transferred from Party A to Party B. Party A shall transfer the relevant contract documents to Party B within 10 working days after receiving all the repurchase price paid by Party B, and assist Party B to go through necessary procedures for the transfer of the leasing claims according to Party B's requirements
 
2. After receiving all the repurchase price, Party A shall notify Party C in writing of the transfer of the Lease Items and the leasing claims in the form of the Notice of Transfer of Leasing Claims (Annex 2) and request Party C to deliver the Lease Items directly to Party B and fulfill obligations and liabilities under the Financial Leasing Contract to Party B. If Party C fails to perform the delivery of the Lease Items and the repayment of the leasing claims and other related obligations under the Financial Leasing Contract, Party B shall directly file a claim against Party C, and Party A shall not bear any responsibility for any dispute arising therefrom.
 
Clause 6 Commitments and Statements
 
1. Party B hereby makes the following commitments and statements to Party A:
 
(1) It is a legal person legally established and validly existing and legally operating under the law of the People's Republic of China;
 
(2) It legally owns assets, conducts business, enters into and fulfills this Agreement, and has obtained the approvals, permits, consents, registrations and filings necessary for the signing and performance of this Agreement, and has obtained the authority authorized by the internal organ necessary for signing this Agreement;
 
(3) Its signing of this Agreement or fulfillment of obligations under this Agreement neither violates the law or any other agreement entered into by it or its articles of association, nor causes any legal conflict or conflict in commercial interests with any other agreements entered by it or its articles of association;
 
	 
	
	
 
	 

 
(4) It is not directly or indirectly involved in or will be involved in any litigation, arbitration, administrative proceedings or claims that have a material adverse effect on it, nor enters into any suspension, dissolution, liquidation, bankruptcy, restructuring, reconciliation, reorganization or similar legal proceedings;
 
(5) No rights and obligations under this Agreement may be transferred without the prior written consent of Party A;
 
(6) The validity of this Agreement shall not be affected by the "Financial Leasing Contract", "Agreement on the Transfer of Rights and Obligations" or any other agreement, and the invalidity or revokability or defects of the "Financial Leasing Contract", relevant "Agreement on the Transfer of Rights and Obligations" and any other agreement shall not affect the validity of this Agreement. The parties shall continue to perform their obligations and assume responsibilities in accordance with the provisions of this Agreement;
 
(7) Regardless of whether Party C or any third party provides Party A with any other form of guarantee, if Party C fails to pay off the debts as stipulated in the Financial Leasing Contract, Party A has the right to request Party B to perform repurchase obligations and pay Party A the repurchase price in accordance with this Agreement;
 
(8) After fulfilling the repurchase obligations, Party B shall negotiate with Party C on the recovery and disposal of the Lease Items and the leasing claims. Party A shall not bear any responsibility arising therefrom, and Party B shall not file any claim against Party A.
 
9) Party B undertakes to bear all taxes and expenses incurred for the performance of the provisions of this Agreement (including aircraft transfer, registration, etc.)
 
2. Party C hereby makes the following commitments and statements to Party A:
 
(1) It is a legal person legally established and validly existing and legally operating under the law of the People's Republic of China;
 
(2) It legally owns assets, conducts business, enters into and fulfills this Agreement, and has obtained the approvals, permits, consents, registrations and filings necessary for the signing and performance of this Agreement, and has obtained the authority authorized by the internal organ necessary for signing this Agreement;
 
(3) Its signing of this Agreement or fulfillment of obligations under this Agreement neither violates the law or any other agreement entered into by it or its articles of association, nor causes any legal conflict or conflict in commercial interests with any other agreements entered by it or its articles of association;
 
(4) It is not directly or indirectly involved in or will be involved in any litigation, arbitration, administrative proceedings or claims that have a material adverse effect on it, nor enters into any suspension, dissolution, liquidation, bankruptcy, restructuring, reconciliation, reorganization or similar legal proceedings;
 
(5) Party C shall, after receiving the “Notice of Transfer of Leasing Claims” sent by Party A, negotiate with Party B on the disposal of the Lease Items and the leasing claims. Party A shall not bear any responsibility arising therefrom, and Party C shall not file any claim against Party A.
 
Clause 7 Liability for Breach of Contract
 
1. If Party B fails to pay the repurchase price in accordance with the date specified in Party A's “Notice of Repurchase Payment”, it shall pay Party A a penalty at five ten thousandths of the amount in arrear for each day of delay, until the repurchase price is paid in full. For the avoidance of doubt, Party B shall continue to perform the obligation to pay the repurchase price under this Agreement to Party A after paying the Late Penalty.
 
2. Without prejudice to the provisions of paragraph 1 above, if another breach of contract occurs under this Agreement, the breaching party shall compensate the other party for all losses suffered thereby.
 
	 
	
	
 
	 

 
VIII. Settlement of Disputes
 
Any disputes arising out of or in connection with this Agreement shall be settled through negotiation; if the negotiation fails, either party shall have the right to submit the dispute to a court with jurisdiction over the place where this Agreement is signed.
 
Clause 9 Notice
 
1. The notices, requests or other communications under this Agreement shall be made in writing and sent to the following address, email address or fax number of the relevant party (or other address, email address or fax number the recipient may notify the relevant party at least [seven] days in advance):
 
To Party A: Huaxia Financial Leasing Co., Ltd.
 
Attn: [Tian Jun]
 
Address: 15/F, Tower A, International Enterprise Building, No. 35, Financial Street, Xicheng District, Beijing
 
Postal code: 100033
 
Email: tianjun@hxfl.com.cn
 
Fax:【010-88093447】
 
Tel: [010-88091443]
 
 
To Party B: State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd.
 
Attn: [Li Dan]
 
Address: [State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd., Health Care Base, Weishuang Avenue, Caohai Town, Weining County, Bijie City, Guizhou Province]
 
Postal code: [553100]
 
Email: [none]
 
Fax: [none]
 
Contact number: [15186958266]
 
 
To Party C: Xingren County Almaden New Energy Co., Ltd.
 
Attn: [Zhou Feng]
 
Address: [3-4, Unit 20, Chengbei Renhe Homeland, Xingren County, Southwest Guizhou Autonomous Prefecture, Guizhou Province]
 
Postal code: [ - ]
 
Email: [none]
 
Fax: [none]
 
Tel:【13636304829】
 
	 
	
	
 
	 

 
2. Any notice, request or other communication under this Agreement shall be deemed to be served if:
 
(1) If delivered by hand or by letter, it shall be deemed to be served on the date of receipt by the relevant party's staff;
 
(2) If sent by e-mail or fax, it shall be deemed to have been served when the transmission is completed and the receipt confirmation is received.
 
3. If Party A, Party B or Party C changes the contact address, it shall promptly notify the other parties; otherwise it shall bear the consequences and losses arising therefrom.
 
Clause 10 Miscellaneous
 
1. The validity of this Agreement is independent of the Financial Leasing Contract” and relevant “Agreement on the Transfer of Rights and Obligations”; if the “Financial Leasing Contract” and relevant “Agreement on the Transfer of Rights and Obligations” are invalidated or other circumstances occur that may affect the validity, legality, or enforceability of the “Financial Leasing Contract” and relevant “Agreement on the Transfer of Rights and Obligations”, it shall not affect the validity of this Agreement. The invalidity of any provision of this Agreement shall not affect the validity of other provisions of this Agreement.
 
2. Regardless of whether there is any form of guarantee or repurchase agreement under the “Financial Leasing Contract” or the “Agreement on the Transfer of Rights and Obligations”, Party A does not need to first recover from such guarantor or compensator or repurchaser. It may directly request Party B to perform the repurchase obligations in accordance with the provisions of this Agreement, and Party B shall not propose any defense on the grounds that there are other forms of guarantee, compensation or repurchase agreement.
 
3. The taxes and expenses (if any) arising from the repurchase or the change of ownership due to the repurchase under this Agreement shall be borne by the incurring party in accordance with the relevant laws and regulations.
 
4. When Party A transfers the rights and obligations under the “Financial Leasing Contract”, Party B shall perform the obligations stipulated in this Agreement to the transferee.
 
5. When there is any change to the provisions of the "Financial Leasing Contract", if the repurchase price is reduced, Party B shall still bear the repurchase obligations stipulated in this Agreement. If the repurchase price increases, where Party B agrees to the increase, it shall still bear the repurchase obligations stipulated in this Agreement; where Party B does not agree to the increase, it shall bear the repurchase obligations according to the repurchase price before the change, and shall not be responsible for the increase. However, the change of other provisions of the "Financial Leasing Contract" shall not affect Party B's repurchase obligations under this Agreement.
 
6. Matters not covered in this Agreement shall be settled through a supplemetnal agreement signed by the parties upon negotiation;
 
7. The annexes to this Agreement and the supplemental agreements subsequently reached by the parties are an integral part of this Agreement and have the same legal effect as this Agreement.
 
8. This Agreement is made in [six] copies, with Party A holding [three] copies, Party B holding [two] copies, and Party C holding [one] copies, which shall have the same legal effect.
 
Clause 11 Effectiveness of the Agreement
 
This Agreement shall become effective after it has been signed by the legal representatives or authorized representatives of Party A, Party B and Party C and affixed with their respective official seals.
 
(Signature Page Below)
  	 
	
	
 
	 

 
(Signature Page)
 
This Agreement was signed by the following parties in [Xicheng] District, Beijing on October, 2019:
 
 
Party A: Huaxia Financial Leasing Co., Ltd. (seal)
 
Legal representative / authorized representative:
 
 
Party B: State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd. (seal)
 
Legal representative / authorized representative:
 
 
 
Party C: Xingren County Almaden New Energy Co., Ltd. (seal)
 
Xingren County Almaden New Energy Co., Ltd. (seal)
 
Legal representative / authorized representative: Zhou Fengsolarmax_ex1054.htm

EXHIBIT 10.54
 
 
Electricity Fee Charging Right and Accounts Receivable
 
Pledge Agreement
 
No.: HXZL-ZZ-2019166-001
 
Party A/Pledgee: Huaxia Financial Leasing Co., Ltd.
 
Registered address: Room A-413, Financial Center, No. 36 Changhong Road, Kunming Economic and Technological Development Zone, Yunnan Province
 
Address: 15/F, Tower A, International Enterprise Building, No. 35, Financial Street, Xicheng District, Beijing
 
Legal representative: Ren Yongguang
 
Attn: [Tian Jun]
 
Tel: [010-88091443]
 
Fax: [010-88093447]
 
 
Party B/Pledgor: Xingren County Almaden New Energy Co., Ltd.
 
Registered address: [3-4, Unit 20, Chengbei Renhe Homeland, Xingren County, Southwest Guizhou Autonomous Prefecture, Guizhou Province]
 
Contact address: [3-4, Unit 20, Chengbei Renhe Homeland, Xingren County, Southwest Guizhou Autonomous Prefecture, Guizhou Province]
 
Legal representative: Zhou Feng
 
Contact: [Zhou Feng]
 
Contact number: [13636304829]
 
Fax: [none]
 
	 
	 
	
 
	 

   
Whereas:
 
I. Party B entered into the Financial Leasing Contract numbered HXZL-ZZ-2019166 and its schedules, annexes and other related documents (hereinafter referred to as the “Master Contract”) with Party A for the purpose of financing.
 
II. The Pledgor agrees to pledge the electricity fee charging right and the accounts receivable incurred based thereon of the 30MW agricultural PV plant (hereinafter referred to as the “Project”) located in Luchuying Township, Xingren County, Qianxinan Buyei and Miao Autonomous Prefecture, Guizhou to the Pledgor of this agreement, as a guarantee for its repayment of the debts and performance of other obligations under the Master Contract.
 
Therefore, the following agreement is reached by and between the two parties through friendly negotiation:
 
Article 1 Definition
 
1.1 Master Contract meas the Financial Leasing Contract numbered HXZL-ZZ-2019166 and its schedules, annexes and other related documents concluded between the Pledgee as Party A (Lessor) and the Pledgor as Party B (Lessee).
 
1.2 Pledge registration procedures mean the pledge registration and publicity procedures, handled for the pledged collateral hereunder, in the accounts receivable pledge registration and publicity system for online registration with the Credit Reference Center of the People’s Bank of China, by the Pledgee mentioned herein in accordance with related regulations.
 
Article 2 Pledged Collateral and Registration
 
2.1 Pledged collateral means the electricity fee charging right enjoyed by Party B to the Project because of its conclusion of the Agreement for Grid Connection, Agreement for Scheduling of Grid Connection, Contract for Purchasing & Selling of Electricity and related power supply contracts, as well as their amendments, supplements, changes or renewals made by the two parties thereafter (hereinafter referred to as the “Power Supply Contract”), and all the accounts receivable and related interests incurred by such electricity fee charging right, which the Pledgor regards as its guarantee for all the debts under the Master Contract.
 
2.2 The Pledgee enjoys the priority of compensation to the pledged collateral. The Pledgee may directly exercise the pledge right hereunder without first exercising other security rights (if any) to the Lessee. The Pledgor agrees that under any circumstances, if the Pledgee fails to exercise or timely exercise any of its rights under any other documents, including but not limited to claims, security interests, and remedy for breach of contract, it shall not be deemed the Pledgee’s indolence in exercising or waiver of rights, not shall it affect its full exercise of the rights hereunder. In the event that the Pledgee waives other mortgage or pledge guarantee as provided by Party B itself under the Master Contract, or changes the order of other mortgage or pledge guarantee as provided by Party B itself under the Master Contract, the Pledgor will not be exempt from any liability for guarantee hereunder or affected in any other aspect.
 
Article 3 Period of Pledge Guarantee
 
The period of pledge guarantee hereunder starts from the execution date of this agreement to the date when Party B makes full repayment in a timely manner or the Pledgee realizes the pledge right and is fully repaid, whichever is earlier.
 
	 
	 
	
 
	 

    
Article 4 Scope of Pledge Guarantee
 
4.1 The principal claim guaranteed by the pledged collateral includes all the grace period Interest due and payable by Party B under the Master Contract, pre-lease interest due, grace period interest not yet due, pre-lease interest not yet due, rent due, all the rent not yet due, late penalty, commission fee and other payables, the expenses incurred by the Pledgee to realize its claim and right of pledge (including but not limited to legal cost, arbitration fee, preservation fee, announcement fee, evaluation fee, appraisal fee, auction fee, travel expense and attorney’s fee), and all the other payments under the Master Contract which shall be made by Party B according to law. The lease loan principal for finance lease under the Master Contract is RMB 93,000,000.00 (in words: RMB NINETY THREE MILLION YUAN ONLY) and other relevant payables shall be calculated in accordance with the provisions of the Master Contract.
       
4.2 The Pledgor has fully recognized the interest rate risk. During the period of pledge, the Pledgee shall adjust the level of lease loan interest rate and the method of rent payment based on the Master Contract or the changes of national policy on interest rate. If any debt to be paid by Party B under the Master Contract increases therefor, the additional part shall be included in the scope of the principal claim as mentioned in the preceding paragraph automatically.
 
4.3 During the period of pledge, where the Pledgor losses the pledged collateral or the accounts receivable are affected due to adjustment in national policies, natural disaster and other force majeure or the reason of the third party, the compensations or damages received by the Pledgor shall be first used to repay the principal claim, and the Pledgee is entitled to demand payment of the shortage separately. In addition, the Pledgee is entitled to request the Pledgor to provide new guarantee recognized by the Pledgee or pay off the secured claims.
 
Article 5 Pledge Registration of Accounts Receivable
 
5.1 The pledge registration hereunder shall be handled by the Pledgee. The Pledgee shall go through the pledge registration procedures of the accounts receivable with the Credit Reference Center of the People’s Bank of China in one month after the Pledgor signs the Contract for Purchasing & Selling of Electricity (no later than June 30, 2020). The Pledgor shall sign the Agreement for Pledge Registration of Accounts Receivable with the Pledgee.
 
5.2 The Pledgor shall give cooperation and assistance in handling the procedures of pledge registration by the Pledgee.
 
5.3 Where the registered content has any omission and mistake, etc., or it is changed, the Pledgor shall handle the change registration procedures based on the actual circumstance and the situation after change.
 
5.4 Where the legal name of the Pledgor is changed, the Pledgor shall notify the Pledgee in written form in 10 days from the date of obtaining the formal document and/or certificate, submit the originals and duplicates of the document/certificate after change for inspection by the Pledgee, and handle change registration procedures via the publicity system in 4 months from the date of such change as required by the registration authority. If the pledge registration becomes ineffective due to failure to handle the change registration procedures, the Pledgor is obligatory to enable the pledge hereunder to be re-registered, or provide other means of guarantee accepted by the Pledgee. At the same time, if any losses are incurred to the Pledgee, the Pledgor shall compensate the Pledgee accordingly.
 
5.5 For the purpose of pledge registration for the accounts receivable with the Credit Reference Center of the People’s Bank of China, the parties hereto agree that the period of the first pledge registration is [15] years; the Pledgee is entitled to continue to apply for extension (if necessary) in 90 days upon expiry of the registration period, until all the debts under the Master Contract are fulfilled. Where the pledge registration becomes ineffective due to any reason, the Pledgor is obligatory to enable the pledge hereunder to be re-registered, or provide other means of guarantee accepted by the Pledgee.
 
5.6 During the lease term of the Master Contract, upon expiry of the charging period of the pledged collateral, the Pledgor shall handle renewal procedures in advance, and shall deliver the new accounts receivable or right of charge in 10 workings days upon receipt or permission to the Pledgee for handling of pledge registration procedures.
 
	 
	 
	
 
	 

   
Article 6 Exercise of Pledge Right
 
6.1 Where Party B to the Master Contract fails to repay the debt due thereunder as agreed (including that the Pledgee declares early termination or expiry of the contract in accordance with the provisions thereof) or violates other provisions thereof, or the Pledgor violates the provisions hereof, or the Pledgor is declared bankrupt, cancelled or dissolved according to law, the Pledgee is entitled to exercise the pledge right by the following methods for the priority of compensation:
     
6.1.1 Request the bank opening the account for settlement of electric charge under the Contract for Purchasing & Selling of Electricity signed by Party B, to use existing and future funds for repayment of the debt payable under the Master Contract (the Pledgor hereby irrevocably authorizes the Pledgee to exercise the rights mentioned above).
 
6.1.2 Auction/transfer the pledged collateral according to law:
 
a) When the Pledgee auctions/transfers the pledged collateral in accordance with this agreement, the Pledgor shall give cooperation without setting up any obstacles, until all the procedures on transfer are completed;
 
b) The Pledgee has the priority of compensation for the gains from the auction/transfer;
 
c) The reasonable expense incurred by auction/transfer shall be paid with the gains from the auction/transfer;
 
d) The gains from the auction/transfer less the expense mentioned above are used to repay all the debts guaranteed to the Pledgee.
 
6.2 The Pledgee is entitled to file a lawsuit or arbitration according to law so as to exercise the pledge right through the judicial process.
 
Article 7 Representations and Warranties of the Pledgor
 
7.1 The Pledgor legally owns the rights under the pledged collateral, which has no dispute on ownership, and has been approved by the decision-making department of the Pledgor to provide guarantee with such rights.
 
7.2 Except for the pledge set up herein and that disclosed to the Pledgee by the Pledgor prior to execution of this agreement, the pledged collateral hereunder doesn’t set up any other guarantees; the pledged collateral must be undisputed, and the Pledgor needs to provide the Pledgee with the original of the document which proves the Pledgor enjoys the claim or right to earnings.
 
7.3 The Pledgor has completed the internal authorization procedures necessary to execute this agreement, which are legitimate and effective.
 
7.4 The right of charge hereunder will not expire prior to the maturity date of the lease term as provided in the Master Contract, and the accounts receivable, if pledged, shall not be transferred without the consent of the Pledgee.
 
7.5 All the documents and materials provided by the Pledgor to the Pledgee are real, accurate and complete;
 
7.6 The Pledgor warrants that it has established an effective management organization and improved related management system for the purpose of managing charge of the pledged collateral, and that the work in relation to fund remittance and transfer has been completed.
 
	 
	 
	
 
	 

    
7.7 During the period of pledge as provided herein, where the pledge needs change registration or pledge registration needs to be rehandled, the Pledgor shall cooperate with the Pledgee in accordance with related provisions.
 
7.8 During the period of pledge as provided herein, without prior written consent of the Pledgee, the Pledgor shall not set up any other guarantee or encumbrance on the pledged collateral separately.
 
7.9 When the Pledgee and the Pledgor change the Master Contract by reaching an agreement, the Pledgor undertakes to continue to perform the liability to guarantee unconditionally with the pledged collateral herein to the extent of its obligations under the Master Contract after change. When the Pledgee transfers the claim under the Master Contract to the third party, the Pledgor undertakes to continue to perform the liability to pledge guarantee subject to the provisions of this agreement.
 
Article 8 Change of the Agreement
 
During performance of this agreement, neither party may change this agreement without permission. If it needs to be changed, a written agreement shall be concluded between the parties through negotiation.
 
Article 9 Early Termination of the Master Contract
 
9.1 During the pledge period as agreed herein, in any one of the following circumstances, the Pledgee is entitled to require the Pledgor to provide or add way of guarantee as accepted by the Pledgee. If the Pledgor fails to do so, the Pledgee is entitled to terminate the Master Contract in advance and perform in accordance with related provisions or exercise in advance in accordance with this agreement the pledge right:
 
9.1.1 The charging period of the pledged collateral is expired;
 
9.1.2 The pledged collateral becomes invalid or cannot be realized;
 
9.1.3 Except for the prior Pledgee already disclosed, the Pledgee finds there is other person with priority claim over the pledged collateral.
 
Article 10 The Pledgor’s Event of Default and Settlement
 
10.1 The occurrence of any of the following circumstances shall constitute a breach of contract by the Pledgor:
 
10.1.1 The Pledgor fails to perform any representation, explanation or warranty made herein, or any notice, authorization, approval, consent, certificate and other documents made by the Pledgor in accordance with this agreement are incorrect or misleading at the time of being made, or proven to be incorrect or misleading, or proven to be invalid or revoked or of no legal effect;
 
10.1.2 Upon expiry of the pledge registration period, if the Pledgee requires extension of the registration, the Pledgor refuses to cooperate with the Pledgee in handling registration of pledge extension;
 
10.1.3 Where any of the circumstances mentioned in Article 9.1 hereof occurs;
 
10.1.4 The Pledgor performs other act which violates the provisions hereof so that this agreement cannot be performed under normal conditions.
 
10.2 If any of the event of default mentioned in the preceding paragraph occurs, and the Pledgor fails to rectify within the reasonable period as specified by the Pledgee, the Pledgee is entitled to terminate the Master Contract in advance and to dispose of the pledged collateral as agreed herein.
 
	 
	 
	
 
	 

    
Article 11 Applicable Law and Settlement of Dispute
 
This agreement shall be governed by and construed in accordance with the laws of the People’s Republic of China. In the event of any dispute arising out of this agreement or its performance, the two parties shall settle it through friendly negotiation; if the negotiation fails, the two parties agree to submit it to the court with jurisdiction of the place where the contract is signed.
 
Article 12 Communication
 
12.1 Either party hereto shall send any notice, letter or data message to the address, handler and communication terminal of the other party mentioned on the first page of this agreement. Where either party changes its name, address, contact person or communication terminal, it shall timely notify the other party thereof in written form.
 
12.2 The letter sent by either party to the other party shall be deemed to have been served on the 10th day of delivery; the fax shall be deemed to have been served when it enters into the other party’s receiving system of data message. If the date of delivery falls on a non-working day, it will be deemed to have been served on the next working day.
 
Article 13 Notarization and Enforcement
 
13.1 The Pledgee has the right to notarize this pledge agreement with the notary organ as prescribed by the competent government department. Upon notarization, this pledge agreement shall be enforceable. If the Pledgor fails to perform or fails to properly perform the obligations as stipulated herein, the Pledgee has the right to apply directly to the competent people’s court for enforcement without a litigation, and the Pledgor shall ensure that they actively cooperate in and accept the enforcement of the people’s court without a litigation.
 
13.2 The Pledgor confirms that it has a complete and clear understanding of the meaning, content, procedures, and effectiveness of the enforcement notarizationthe specified in relevant laws and regulations; upon notarization, this pledge agreement shall become an enforceable debt instrument.
 
13.3 The scope of debt which the Pledgor undertakes to accept enforcement of the people’s court includes but not limited to pre-lease interest, grace period interest, all the rent, overdue interest, penalty, damages, retention price, various expenses paid by the Lessor for the purpose of realizing the claim (including but not limited to legal cost, arbitration fee, notarial fee, attorney’s fee, travel expense, auction fee and evaluation fee), and other payables hereunder, as well as other obligations of the Lessee under the Master Contract other than the payment or compensation obligations mentioned above.
 
13.4 Execution object verification and confirmation. The Pledgor agrees that the notary public office shall verify the performance of the debt by any of the following verification methods to determine the execution object: (1) telephone (including SMS) verification, subject to contact number stated in this pledge agreement and reserved in the notary public office; (2) mailing verification, subject to communication address stated in this Contract and reserved in the notary public office; (3) email verification, subject to email address stated in this pledge agreement and reserved in the notary public office. The Lessee undertakes that it will notify the responsible notary of the notary public office in writing if there is any change to the above-mentioned contact number, communication address and email address. Otherwise, the contact information shall be subject to the statement of this Clause, and the Lessee shall bear the liability for failure to notify. The Lessee agrees that under the following circumstances, the notary public office may issue an “Executiion Certificate” according to the unilateral request of the Lessor and supporting materials provided by the Lessor: (1) the notary public office fails to contact the Lesssee using all the above-mentioned contact information; (2) the Lessee raises an objection to the request of the Lessor and supporting materials provided by the Lessor, but fails to provide contrary evidence or sufficient contrary evidence within three working days after receiving the verification notice from the notary public office; (3) the Lessee raises no objection to the request of the Lessor and supporting materials provided by the Lessor.
  
	 
	 
	
 
	 

 
13.5 The notarial fee and the cost of applying for enforcement shall be borne by the Pledgor.
 
13.6 This article applies in preference to the terms of this Contract regarding dispute settlement.
    
Article 14 Other Provisions
 
14.1 This agreement shall become effective after it has been signed by the legal representatives or authorized representatives of both parties and affixed with their respective official seal. The pledge right shall take effect from completing the pledge registration procedures with the Credit Reference Center of the People’s Bank of China.
 
14.2 For the matters that are not covered in this agreement, the parties hereto shall settle it through negotiation and sign a supplemental agreement. The supplemental agreement is an integral part of this agreement and has the same legal effect as this agreement.
 
14.3 This agreement shall be made in six originals, with the Pledgee holding three copies, the Pledgor holding one copy, and the other two copies used for pledge registration, which shall have the same legal effect.
 
(Signature Page Below)
 
	 
	 
	
 
	 

  
(Signature Page)
 
This agreement was signed by the following parties in Xicheng District, Beijing in October 2019:
 
 
Party A/Pledgee: Huaxia Financial Leasing Co., Ltd. (seal)
 
Legal representative 
 
or authorized representative (signature):
 
 
Party B/Pledgor: Xingren County Almaden New Energy Co., Ltd. (seal)
 
Xingren County Almaden New Energy Co., Ltd. (seal)
 
Legal representative 
 
or authorized representative (signature): Zhou Feng

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