Document:

Exhibit 10.3

 

EXECUTION VERSION

 

REDEMPTION AGREEMENT

This REDEMPTION AGREEMENT (this "Agreement") effective as of the 20th day of April, 2017 (the "Closing Date") is made by and between INTERSECTIONS INC., a Delaware corporation ("INTX") and PEAK6 Capital Management LLC, a Delaware limited liability company ("PEAK6").

RECITALS

A.            PEAK6 owns 419,498 shares of INTX common stock (the "PEAK6 Stock").

B.            INTX desires to purchase the PEAK6 Stock.

C.            The parties desire to provide for the terms and conditions governing such transaction.

NOW, THEREFORE, in consideration of the foregoing, and of the covenants, agreements, representations and warranties hereinafter contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.            REDEMPTION OF PEAK6 STOCK:  Subject to the terms, agreements, warranties, representations, covenants and conditions set forth in this agreement, the parties effect the following transactions:

1.1            Redemption of PEAK6 Stock.  PEAK6 hereby sells, conveys, transfers, assigns and delivers to INTX, and INTX hereby purchases and redeems the PEAK6 Stock for Three and 60/100ths Dollars ($3.60) per share of PEAK6 Stock for an aggregate purchase price of $1,510,192.80 (One Million Five Hundred Ten Thousand One Hundred Ninety Two and 80/100ths Dollars) (the "Purchase Price") to be paid as set forth in Section 1.3.

1.2            Deliveries by PEAK6.  As of the Closing Date, PEAK6 has provided irrevocable instructions to Goldman Sachs Execution & Clearing in the form of Exhibit A attached hereto providing for the transfer of ownership of all of the PEAK6 Stock.

1.3            Deliveries by INTX.  As of the Closing Date, INTX has delivered, or caused to be delivered, to PEAK6 the Purchase Price by wire to the wire instructions attached hereto as Exhibit B.

1.4            Acknowledgements.  The parties acknowledge and agree that the Purchase Price represents the "Fair Market Value" of the PEAK6 Stock.

2.            REPRESENTATIONS AND WARRANTIES OF PEAK6: PEAK6 hereby represents and warrants to INTX as follows:

2.1            Ownership of PEAK6 Stock.  PEAK6 is the sole and lawful owner of record and beneficiary of the PEAK6 Stock. The PEAK6 Stock is free and clear of all security interests, pledges, liens, encumbrances, claims and other charges of any kind.  PEAK6 has the full legal power, capacity and authority to transfer and deliver to INTX the PEAK6 Stock in accordance with this Agreement.

2.2            No Other Rights or Interests; Authorized and Issued Shares.  PEAK6 is not a party to, or bound by, any written or oral contract or agreement which grants to any individual or entity (each, a "Person") any option or right of first refusal or other right to purchase or acquire all or any portion of the PEAK6 Stock at any time, or upon the occurrence of any event. PEAK6 has not sold, transferred, granted, conveyed or assigned any right or interest in or to all or any portion of the PEAK6 Stock.  PEAK6 understands that, effective as of the Closing Date, any and all rights of PEAK6 as the owner of the PEAK6 Stock shall automatically terminate. There are no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments to purchase any portion of the PEAK6 Stock.

2.3            No Pending Transactions; No Consents.  Except for the transactions contemplated by this Agreement, PEAK6 is not a party to, or bound by, or the subject of any agreement, undertaking or commitment, to sell the PEAK6 Stock.  No notice to, filing with, or consent or approval of, or any other action by, any Person is necessary for the execution, delivery and performance by PEAK6 of this Agreement, except for any informational filing or other disclosure with or to the United States Securities and Exchange Commission required as a result of PEAK6's disposition of the PEAK6 Stock.

2.4            Authority; Binding Obligation.  This Agreement has been executed and delivered by PEAK6 and constitutes the valid and binding obligations of PEAK6 enforceable in accordance with its terms, except as the enforceability thereof may be subject to bankruptcy, insolvency, moratorium and other laws affecting the rights and remedies of creditors and secured parties and to the exercise of judicial discretion in accordance with general equitable principles.

2.5            Diligence.  PEAK6 has had the opportunity to ask questions and receive answers from INTX and obtain financial and other information relating to INTX and its business for PEAK6 to evaluate the Purchase Price and the other terms and conditions herein.

3.            REPRESENTATIONS AND WARRANTIES OF INTX: INTX hereby represents and warrants to PEAK6 as follows:

3.1            Corporate Existence; Corporate Power.  INTX is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware.  The execution, delivery and performance of this Agreement have been duly authorized by INTX and are within its corporate powers.

3.2            Authority; Binding Obligation.  This Agreement has been duly executed and delivered by INTX and constitutes the valid and binding obligations of INTX enforceable in accordance with its terms, except as the enforceability thereof may be subject to bankruptcy, insolvency, moratorium and other laws affecting the rights and remedies of creditors and secured parties and to the exercise of judicial discretion in accordance with general equitable principles.

4.            ADDITIONAL AGREEMENTS:

4.1            Further Assurances.  PEAK6 agrees to execute and deliver to INTX all such additional or confirmatory instruments, reports and acknowledgments as may be furnished for such purpose by INTX, and to take all such other actions as INTX may request, to evidence the sale, transfer, grant, conveyance, assignment and delivery of the PEAK6 Stock by PEAK6 to INTX.

4.2            Expenses.  Each of INTX and PEAK6 shall bear its respective fees, costs and expenses (including those of such party's attorneys, agents and representatives) incurred in connection with this Agreement and the transactions contemplated hereunder.

4.3            Indemnification.

(a)            PEAK6 hereby covenants and agrees to indemnify and hold harmless INTX and its affiliates from and against any and all damages, losses, claims, liabilities, deficiencies, costs and expenses (including, without limitation, reasonable attorneys' fees) (collectively, "Losses"), resulting from, arising out of, or incident or related to (i) any misrepresentation, omission, breach, inaccuracy or nonfulfillment of any of the representations, warranties, covenants or agreements of PEAK6 under this Agreement; and (ii) any suit, action, investigation or proceeding (each, an "Action") incident thereto; provided, however, that PEAK6's liability and/or obligation for Losses, or any claims or Actions related hereto shall not exceed, in the aggregate, the Purchase Price.

(b)            INTX hereby covenants and agrees to indemnify and hold harmless PEAK6 and its affiliates from and against any and all Losses resulting from, arising out of, or incident or related to (i) any misrepresentation, omission, breach, inaccuracy or nonfulfillment of any of the representations, warranties, covenants or agreements of INTX under this Agreement; and (iv) any Action incident thereto.

(c)            All representations, warranties, covenants and agreements set forth in this Agreement shall survive the Closing Date for a period of one year.

5.            ASSIGNMENT; BINDING EFFECT; THIRD PARTIES: This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their permitted successors and assigns as the case may be. This Agreement may not be assigned, including, without limitation, assignments by operation of law, by any party without the written consent of the other party hereto.  This Agreement shall not benefit or create any right of action in or on behalf of any Person other than the parties hereto.  This Agreement shall be governed by the laws of the State of Delaware without giving effect to laws governing conflict of laws.

6.            ENTIRE AGREEMENT; HEADINGS: This Agreement constitutes the entire agreement among the parties pertaining to the subject matter hereof, and may not be modified or waived except in writing. The headings are for convenience only and shall not bear upon the construction of this Agreement.

7.            COUNTERPART EXECUTION:  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

8.            SPECIFIC PERFORMANCE:  Each of INTX and PEAK6 agree that the remedies at law of any party for any actual or threatened breach of this Agreement would be inadequate and that the parties shall be entitled to specific performance of this Agreement, including entry of an ex parte, temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of any of the covenants in this Agreement, or both, in addition to any damages which a party may be legally entitled to recover.

9.            SEVERABILITY:  Each provision of this Agreement shall be considered separable and enforceable to the fullest extent allowed by law.  If any such provision is held by a court of competent jurisdiction to be invalid, void or unenforceable, such determination shall not affect, impair or invalidate the remaining provisions, all of which shall remain in full force and effect.  In addition, such invalid, void or unenforceable provision shall be deemed modified and revised with retroactive effect to render such provision valid and enforceable and such provision shall be enforced as modified and revised.  If the court having jurisdiction will not modify and revise such provision, the parties hereto shall mutually agree to a modification and revision having an effect as close as permitted by applicable law to the provision declared invalid, void or unenforceable.

10.            GOVERNING LAW; DISPUTES:  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York without regard to principles of conflicts of law other than the New York General Obligations Law §§5-1401, 5-1402.  The State or Federal Courts located within the State of New York shall have jurisdiction over any and all disputes between the parties hereto, whether in law or equity, arising out of or relating to this Agreement and the agreements, instruments and documents contemplated hereby, and the parties consent to and agree to submit to the jurisdiction of such courts.  Each of the parties hereby waives and agrees not to assert in any such dispute, to the fullest extent permitted by applicable law, any claim that (a) such party is not personally subject to the jurisdiction of such courts, (b) such party and such party's property is immune from any legal process issued by such courts, or (c) any litigation or other proceeding commenced in such courts is brought in an inconvenient forum.  The parties hereby agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 11 or in such other manner as may be permitted by law, shall be valid and sufficient service thereof and hereby waive any objections to service accomplished in the manner herein provided.  EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES, AND AGREES TO CAUSE ITS AFFILIATES TO WAIVE, ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

11.            NOTICE:  Any notices or other communications required or permitted hereunder shall be in writing and sent to the appropriate addresses and addressees designated below (or to such other address or addresses as may hereafter be furnished by one party to the other party in compliance with the terms hereof), by hand delivery, electronic mail, if indicated below, to the respective electronic mail addresses designated below (with electronic confirmation of delivery), by UPS or FedEx next-day service, or by registered or certified mail, return receipt requested, postage prepaid:

To INTX:

Intersections Inc.

3901 Stonecroft Boulevard

Chantilly, Virginia 20151

Attn: Ron Barden & Chief Legal Officer

Email:  rbarden@intersections.com

To PEAK6:

PEAK6 Investments, L.P.

141 W. Jackson Blvd. Suite 500

Chicago, IL 60604

Attn:  Matt Hulsizer & Chief Legal Officer

Email: mhulsizer@peak6.com & legal@peak6.com

12.            WAIVER AND AMENDMENT:  No waiver, amendment, modification or change of any provision of this Agreement shall be effective unless and until made in writing and signed by each party.  No waiver, forbearance or failure by any party of its rights to enforce any provision of this Agreement shall constitute a waiver or estoppel of such party's right to enforce any other provision of this Agreement or a continuing waiver by such party of compliance with any provision.

13.            CONSTRUCTION:  The parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

14.            REPRESENTATION BY COUNSEL:  Each party acknowledges that (a) such party has read this Agreement in its entirety and understands all of its terms and conditions, (b) such party has had the opportunity to consult with any individuals of such party's choice regarding such party's agreement to the provisions contained herein, including legal counsel of such party's choice, and any decision not to was such party's alone, (c) Venable LLP has acted as attorney to INTX in connection with this Agreement; and (d) such party is entering into this Agreement of such party's own free will, without coercion from any source.

Signatures appear on following page.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

	
INTX:

	 
	
INTERSECTIONS INC.

	 
	 
	
By:

	 
	 	
Name:

	
Ronald L. Barden

	 	
Title:

	
Chief Financial Officer

	
PEAK6:

	 
	
PEAK6 INVESTMENTS, L.P.

	 
	
By:

	
PEAK6 LLC, its general partner

	 
	 
	
By:

	 
	 	
Name:

	
Matthew Hulsizer

	 	
Title:

	
Manager

EXHIBIT A

(Form of Irrevocable Transfer Instructions)

 

 

EXHIBIT B

(PEAK6's Wire Instructions)

  

[Omitted]Exhibit 4.3

 

CONTRACT FOR COUNTER-GUARANTEE MORTGAGE

 

(LEGAL PERSON)

 

HEILONGJIANG PROVINCE AGRICULTURE CREDIT-GUARANTEE CO., LTD.

 

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Notices to clients:

 

To protect your interest, please pay attention to the following matters before you sign this Contract:

 

1.              You’ve read all terms of the Primary Contract and this Contract and understand the meaning thereof;

 

2.              You’ve become aware of the business scope and authorizations of our Company, and confirm that you fully know such information regarding the Borrower’s assets, debts, business and credit, and whether the Borrower has the capability and authorization to sign the Primary Contract;

 

3.              You’re reminded of paying special attention to the provisions of Clauses 1, 3, 5, 6, 8, 10, 12 and 15, which may affect your rights and obligations;

 

4.              You ensure that the certificates and materials which have been submitted are true, legal and valid;

 

5.              You’ve become aware of your rights, obligations as well as the legal liabilities which must be assumed;

 

6.              Please orderly fill in the contents required with a pen, brush pen or felt-tip pen.

 

I’ve read all aforesaid notices to clients and know all contents thereof.

 

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Party A: Heilongjiang Province Agriculture Credit-guarantee Co., Ltd.

Domicile: No. 609 Shimao Avenue, Songbei District, Harbin

Legal Representative (Principal): Tan Zhiqiang

 

Party B: Daqing Borun Biotechnology Co., Ltd.

Domicile: Jubao Village, Zhusan Township, Datong District, Daqing, Heilongjiang Province

Legal Representative (Principal): Wang Jinmiao

 

Whereas Daqing Borun Biotechnology Co., Ltd. (hereinafter referred to as the Borrower) has applied to Daqing Rural Commercial Bank Co., Ltd., Datong Sub-branch (hereinafter referred to as the Lender) for loan and has executed with the Lender a Contract for Working Capital Loan, No. 520011609200056 (hereinafter referred to as the Loan Contract). Party A has accepted the engagement by the Borrower to provide guarantee for such loan, and executed with the Lender a Contract for Guarantee, No. 520011609200056 (hereinafter referred to as the Guarantee Contract) to assume the liabilities for the joint and several guarantee, and executed with the Borrower a Contract for Engagement of Guarantee, No. 00DB16027/1-01 (the Guarantee Contract and Contract for Engagement of Guarantee are hereinafter collectively referred to as the Primary Contract). To protect the legal interests of Party A, Party B agrees to provide the counter-guarantee in favor of Party A for the account of the Borrower. Pursuant to the applicable laws and regulations and through the full consultation, Party A and Party B hereby agree upon as follows for joint performance:

 

Clause 1 Mortgaged Properties

 

(1)         Party B creates mortgage on the properties listed in the schedule hereto “List of Mortgaged Properties”.

 

(2)         The items newly added to the Mortgaged Properties as a result of adhesion, mixture, processing and etc. shall also be used to mortgage the creditor’s rights of Party A unless otherwise agreed by Party A and Party B or required by the law; Party B shall cooperate if it’s necessary to conduct any procedure for registration.

 

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(3)         If the List of Mortgaged Properties does not clearly define the Mortgaged Properties or the properties accepted by Party A to be mortgaged are different from the record in the List of Mortgaged Properties, then the properties accepted by Party A to be mortgaged shall be deemed as the Mortgaged Properties hereunder.

 

(4)         The “value of properties” as recorded in the List of Mortgaged Properties shall not be taken as the basis for determination of the “amount of guaranteed creditor’s rights”. If there is any discrepancy between the amount defined herein and the “amount of guaranteed creditor’s rights” filled in the documentation of application for registration of mortgage based on the “value of properties” as per the requirement of the registration authority of mortgage or the “amount of creditor’s rights”/ “amount of guarantee” recorded by the registration authority of mortgage on the other rights certificate based on the “value of properties”, the amount defined herein shall prevail.

 

(5)         The fruits accrued on the Mortgaged Properties may be received by Party A as a part of the Mortgaged Properties for guaranteeing Party A’s creditor’s rights, provided that such fruits shall be firstly used to pay the costs arising from receipt of such fruits.

 

Clause 2 Scope of Mortgage

 

All amounts for which Party A provides guarantee for the account of the Borrower under the Primary Contract (including but not limited to the principal and interests of loan, liquidated damages and indemnity under the Primary Contract), the costs incurred by Party A for realizing its creditor’s rights and guaranteed rights (including but not limited to the costs of insurance, notarization,  authentication, auction, litigation or arbitration, delivery, enforcement, lawyers service and traveling), and the losses and other costs payable incurred by Party A as a result of any breach of the Borrower.

 

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Clause 3 Undertakings of Party B

 

(1)         Party B shall have the full ownership of or right to dispose of the Mortgaged Properties provided by it and be obligated to furnish Party A with such original documents as all legal documents, documents for evidencing the titles and financial vouchers relevant to the Mortgaged Properties, on which there is no other rights, attachments or other dispute existing. If there is any lease of the Mortgaged Properties prior to the signature of this Contract, Party A shall be accurately informed of and provided with the contract for such lease.

 

(2)         During the Mortgage, Party B shall neither create any other mortgage on, nor lease out, transfer, donate or permit other person to use or otherwise dispose of the mortgaged Properties without any consent.

 

(3)         Party B has made full and reasonable explanations for the defects in the Mortgaged Properties hereunder.

 

(4)         The creation by Party B of the mortgage has been approved by the joint owners of the mortgaged Properties or the organ of the company having the power to make decisions, and the procedures are consistent with the provisions of the articles of association of the company.

 

(5)         In the event that the value of the Mortgaged Properties has been reduced or may be reduced and therefore affecting the realization of Party A’s creditor’s rights, Party B shall provide new guarantee as per the requirement of Party A.

 

(6)         Party B’s liabilities for guarantee hereunder shall not be relieved, and Party A may directly require Party B to bear the liabilities for guarantee within the scope of guarantee pursuant to the provisions hereof without objection of Party B, whether or not there is other counter-guarantee for the creditor’s rights held by Party A against the Borrower under the Primary Contract, or whether or not such other counter-guarantee is provided by the Borrower itself.

 

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Clause 4 Registration of Mortgage

 

(1)         If the registration of mortgage shall be conducted as required by the laws, regulations or agreed by the parties, Party A and Party B shall conduct such registration with the legal registration authority at the expense of Party B within 15 days from the date hereof.

 

(2)         If there is any change to the items registered, for which the registration of modification shall be conducted by law, Party A and Party B shall conduct such registration of modification with the original registration authority of mortgage at the expense of Party B within 10 days from the date when such change occurs to the registered items .

 

(3)         The originals of other right certificates, registration documents of mortgage and other relevant certificates of rights shall be under the custody of Party A, and Party A shall cooperate with Party B for conducting the procedures for registration of mortgage.

 

Clause 5 Insurance of Mortgaged Properties

 

(1)         Party B shall, at its own expense, conduct the insurance of the Mortgaged Properties covering such risks, terms and amounts as designated by Party A pursuant to the applicable law within 15 days after the signature of this Contract.

 

(2)         The policies of such insurance shall be consistent with the requirements of Party A and shall not contain any limited conditions impairing the interests of Party A. The policies shall specially indicate that: Party A has priority in compensation (the first beneficiary); any change to the policies shall obtain the writing consent of Party A; and the insurer shall directly transfer the insurance proceeds to the account designated by Party A in case of an insured event. If the Mortgaged Properties have been insured, but the policies do not indicate the aforesaid contents, the corresponding indication or modification shall be made to such policies.

 

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(3)         Party B shall ensure that the insurance is continuously valid and shall not cause the insurance to be interrupted, canceled or invalidated for any reason, or cause the insurer to be relieved from the liabilities for indemnity, or change the policies without Party A’s consent. If the creditor’s rights guaranteed by Party B have not been paid off when the insurance expires, Party B shall renew and accordingly extend the insurance.

 

(4)         Party B shall deliver the originals of the policies of the Mortgaged Properties to Party A within 15 business days from the date hereof (as to the renewal of the insurance of the Mortgaged Properties, the date when such renewal shall be completed), and reserve with Party A such documents as necessary for the insurance claim or assignment of insurance interests.

 

(5)         Party A shall be entitled to dispose of the insurance proceeds from the Mortgaged Properties and Party B shall assist in conducting the procedures related thereto.

 

Clause 6 Management of Mortgaged Properties

 

(1)         During the period of mortgage, Party B shall continue to take care of and use and concurrently be responsible for the maintenance of the Motgaged Properties at its own expense. Party A shall be entitled to at any time supervise and inspect the Mortgaged Properties under the custody and use of Party B, and Party B shall give assistance.

 

(2)         During the period of mortgage, Party B shall be obligated to ensure that the Mortgaged Properties are in sound conditions, and shall promptly take measures to prevent the expansion of loss and timely notify Party A in case of any damage or loss to the Mortgaged Properties.

 

(3)         During the period of mortgage, Party A may require Party B to cease its act which would devalue the Mortgaged Properties. Party A may require the recovery of the value of the Mortgaged Properties or the provision of guarantee in an amount corresponding to the reduced value in case of any devaluation of the Mortgaged Properties. Party A may realize its rights to the mortgage in advance or require the Borrower to pay off debts in advance, if Party B neither recovers the value of the Mortgaged Properties nor provides the guarantee.

 

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Clause 7 Prevention of the Third Parties

 

(1)         Party B shall, if required by Party A, provide new guarantee consistent with the requirement of Party A, should the Mortgaged Properties be expropriated, requisitioned, forfeited or taken back without compensation, or the Mortgaged Properties be attached, frozen, seized, supervised, taken under lien, sold at auction, deforced, damaged or otherwise disposed of by third parties.

 

(2)         In case of any of the foregoing circumstances, Party A may have priority to be paid with the insurance proceeds, indemnity or compensation available. Such insurance proceeds, indemnity or compensation may be drawn, if the term for the performance of the guaranteed debts does not expire. The part of the Mortgaged Properties remained after any of the foregoing circumstances shall still be under the mortgage for the counter-guaranteed debts.

 

Clause 8 Realization of Rights to Mortgage

 

(1)         Party A may take priority in compensation by the evaluation of the Mortgaged Properties in terms of money or with the proceeds from the auction or sale off of the Mortgaged Properties upon an agreement with Party B, if the Borrower fails to pay off its due debts .

 

(2)         Party A may reach an agreement with Party B in advance for the evaluation of the Mortgaged Properties in terms of money, or request for the compulsory enforcement of the Mortgaged Properties to protect Party A’s interests by the drawing of the proceeds from the auction or sale off of the Mortgaged Properties, if the Borrower breaches the Loan Contract or the Contract for Engagement of Guarantee, or Party B breaches the provisions hereof.

 

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(3)         The res accessoria attached to the Mortgaged Properties or the fruits accrued during the period of mortgage shall be sold at auction or sold off together with the Mortgaged Properties, and Party A shall take priority in compensation with the proceeds therefrom.

 

(4)         The proceeds from the disposal by Party A of the Mortgaged Properties, after the costs arising from the auction or sale off (including but not limited to the fees of custody, evaluation, auction and transfer of title, and taxes) have been paid therefrom, shall be firstly used to pay off the debts under the Primary Contract and the remainder will be refunded to Party B.

 

(5)         The value of Mortgaged Properties recorded in the List of Mortgaged Properties or agreed on by the parties (hereinafter referred to as the “Provisionally-determined Value”) shall not mean the final value of Mortgaged Properties, which shall be the amount of the proceeds from the disposal by Party A of the Mortgaged Properties net of all taxes.

 

If the Mortgaged Properties are used to compensate for the creditor’s rights of Party A, the aforesaid Provisionally-determined Value shall not be adopted as the basis for the compensation for the creditor’s rights of Party A, and the value of Mortgaged Properties then shall be determined by an agreement of Party A and Party B or a fair evaluation by law.

 

(6)         Party B’s liabilities for guarantee hereunder shall not be relieved, and Party A may directly require Party B to bear the liabilities for guarantee within the scope of guarantee pursuant to the provisions hereof without objection of Party B, whether or not there is other guarantee for the creditor’s rights of Party A under the Primary Contract (including but not limited to such methods of security as guarantee, pledge, letter of guarantee and stand-by letter of credit), or whenever such other guarantee is created, or whether or not such other guarantee is valid, or whether or not Party A asserts any claim against any other guarantor, or whether or not there is any third party agreeing to assume all or a part of the debts under the primary contract, or whether or not such other guarantee is provided by the Borrower itself.

 

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Clause 8 Release of Mortgage

 

(1)         The mortgage shall be released upon the Borrower paying off the loan and interest or the debts owed by the Borrower to the creditor being terminated due to other reasons.

 

(2)         The mortgage shall be released if the Guarantee Contract produced by Party A to the bank is invalid or terminated due to a reason attributable to the parties to the Loan Contract and Party A is not required to assume any liability for guarantee and indemnity.

 

(3)         The mortgage shall be released upon the realization of the rights to mortgage.

 

(4)         The mortgage shall be released between Party A and Party B if Party A legally assigns the rights to mortgage to a third party upon the consent of Party B.

 

(5)         Party A shall cooperate with Party B for conducting the deregistration with the original registration authority upon the release of the mortgage.

 

Clause 10 Liabilities for Breach

 

If breaching the provisions hereof, Party B shall, in addition to the liabilities for guarantee as set forth herein, pay Party A the liquidated damages amounting to 20% of the aggregate amount of the principal of the loan guaranteed under the Guarantee Contract, and if such liquidated damages are not sufficient to make up the actual loss of Party A, shall indemnify the actual loss.

 

Clause 11 Dispute Settlement

 

Any dispute arising from the performance of this Contract between Party A and Party B will be settled through the consultation of the parties; and if failing, either party may:

 

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x bring a lawsuit or request for compulsory enforcement to the people’s court where Party A is located.

 

o request  Arbitration Commission for arbitration.

 

Clause 12 Effectiveness and Notarization of the Contract

 

This Contract will become effective upon being signed by and affixed to the official seals of Party A and Party B. This Contract will be notarized by the notary  department designated by Party A at the expense of Party B, and Party B agrees that this Contract may be compulsorily enforced upon such notarization. Party B shall voluntarily accept the attachment and compulsory enforcement by the court, if breaching this Contract.

 

Clause 13 Notices and Service

 

The contact addresses and liaison methods of Party A and Party B are listed as follows:

 

Party A:

 

Contact Person: Li Wenchong

 

Correspondence Address: No. 609 Shimao Avenue, Songbei District, Harbin

 

Post Code: 150000            Email Address: 32141995@qq.com

 

Fax: 0451-58592960           Telephone: 15804609816

 

Party B:

 

Contact Person: Wang Jinmiao

 

Correspondence Address: Jubao Village, Zhusan Township, Datong District, Daqing, Heilongjiang Province

 

Post Code: 163515            Email Address: borunshiye@126.com

 

Fax: 0459-6989708            Telephone: 13806477901

 

(1)         If a party changes its correspondence address or liaison method, it shall notify the other party in writing within 15 days after such change.

 

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(2)         The party making such change (hereinafter referred to as the “Changing Party”) shall be liable for the effect and loss arising from its failure to timely notify the other party of such change unless otherwise provided by the law.

 

(3)         Any notice hereunder shall be made in writing and addressed as per the contact method as specified in this clause. Such notice shall be deemed to have been served when the fax machine of the addressor indicates that the fax has been sent out, if sent through fax; and shall be deemed to have been delivered on the third business day after the mail has been posted, if sent by a registered mail or through express courier.

 

Clause 14 This Contract shall be signed in triplicate with the same legal effect, Party A, Party B and the registration authority (if any) respectively holding one.

 

Clause 15 Miscellaneous

 

(1)         Party B shall not assign any of its rights or obligations hereunder to the third party without the written consent of Party A.

 

(2)         Unless there is reliable and conclusive evidence to the contrary, the documents and vouchers maintained by Party A which are formed during the Borrower handles such business as the drawing and repayment of the loan and the payment of the interest, and the records and vouchers formed when Party A collects the loan shall constitute the valid and conclusive evidence for the creditor’s rights and debts hereunder. Party B may not make objections only for the cause that such records, documents and vouchers are maintained by Party A unilaterally.

 

(3)         Party A and the Borrower and Lender may make any amendment to the Primary Contract without the consent of Party B, except for those aggravating Party B’s liabilities.

 

(4)         As a schedule attached hereto, the List of Mortgaged Properties shall have the same legal effect as this Contract.

 

(5)         More other provisions:

 

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--—There is no text on the remainder of this page—--

 

13

 

(This page bears no text and is only for the signatures of the Contract for Counter-guarantee Mortgage No.: 00DB16027/1-02)

 

Party A (Official Seal):

 

 

 

Heilongjiang Province Agriculture Credit-guarantee Co., Ltd.

Legal Representative / Principal (Seal / Signature):

(Authorized Agent)

 

 

Signed on: September 22nd, 2016

 

Party B (Official Seal):

 

 

Daqing Borun Biotechnology Co., Ltd.

Legal Representative / Principal (Seal /Signature):

(Authorized Agent)

 

 

Signed on: September 22nd, 2016

 

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List of Mortgaged Properties

 

This list is an attachment to the Contract for Counter-guarantee Mortgage No.: 00DB16027/1-02

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Book Value
    	
 
    	
Mortgaged
    	
 
    	
 
    
	
 
    	
 
    	
Description of
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(ten
    	
 
    	
Value (ten
    	
 
    	
 
    
	
 
    	
 
    	
Mortgaged
    	
 
    	
No. of Title
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
thousand
    	
 
    	
thousand
    	
 
    	
 
    
	
Serial No.
    	
 
    	
Properties
    	
 
    	
Certificate
    	
 
    	
Location
    	
 
    	
Usage
    	
 
    	
Unit
    	
 
    	
Area
    	
 
    	
Yuan)
    	
 
    	
Yuan)
    	
 
    	
Remarks
    
	
1
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA352402
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
2106.08
    	
 
    	
473.87
    	
 
    	
331.709
    	
 
    	
 
    
	
2
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA352411
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
1771.35
    	
 
    	
409.36
    	
 
    	
286.552
    	
 
    	
 
    
	
3
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA376587
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
1077.07
    	
 
    	
248.91
    	
 
    	
174.237
    	
 
    	
 
    
	
4
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA376588
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
254.04
    	
 
    	
55.61
    	
 
    	
38.927
    	
 
    	
 
    
	
5
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA376591
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
958.01
    	
 
    	
209.71
    	
 
    	
146.797
    	
 
    	
 
    
	
6
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA376595
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
1415.14
    	
 
    	
318.41
    	
 
    	
222.887
    	
 
    	
 
    
	
7
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA376606
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
391.03
    	
 
    	
85.6
    	
 
    	
59.92
    	
 
    	
 
    
	
8
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA539714
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
10432.89
    	
 
    	
1374.43
    	
 
    	
962.099
    	
 
    	
 
    
	
9
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA352401
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
2769.35
    	
 
    	
695.1
    	
 
    	
486.47
    	
 
    	
 
    
	
10
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA352405
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
3694.99
    	
 
    	
927.44
    	
 
    	
649.208
    	
 
    	
 
    
	
11
    	
 
    	
Ownership of Housing
    	
 
    	
Qing Fang Quan Zheng Datong District Zi   No. NA352413
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial factory
    	
 
    	
Square meter
    	
 
    	
4281.48
    	
 
    	
1074.65
    	
 
    	
752.255
    	
 
    	
 
    
	
In total
    	
 
    	
29151.43
    	
 
    	
5873.09
    	
 
    	
4111.161
    	
 
    	
 
    	
 
    	
 
    

 

15

 

	
Serial No.
    	
 
    	
Description of
   Hypothecated
   Properties
    	
 
    	
No. of Title
   Certificate
    	
 
    	
Location
    	
 
    	
Type of
   Right to
   Use
    	
 
    	
Unit
    	
 
    	
Area
    	
 
    	
Book Value
   (ten
   thousand
   Yuan)
    	
 
    	
Mortgaged
   Value (ten
   thousand
   Yuan)
    	
 
    	
Remarks
    
	
1
    	
 
    	
Right to use land
    	
 
    	
Da Qing Guo Yong 2009 No. 06-32617
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial land
    	
 
    	
Square meter
    	
 
    	
18404.6
    	
 
    	
230
    	
 
    	
161
    	
 
    	
 
    
	
2
    	
 
    	
Right to use land
    	
 
    	
Da Qing Guo Yong 2009 No. 06-01244
    	
 
    	
Jubao Village, Zhusan Township, Datong District,   Daqing
    	
 
    	
Industrial land
    	
 
    	
Square meter
    	
 
    	
61432.8
    	
 
    	
896.91
    	
 
    	
627.839
    	
 
    	
 
    
	
In total
    	
 
    	
79837.4
    	
 
    	
1126.91
    	
 
    	
788.839
    	
 
    	
 
    
	
Aggregate
    	
 
    	
108988.83
    	
 
    	
7000
    	
 
    	
4900
    	
 
    	
 
    

 

                             

 

	
Pledgee   (Official Seal):
    	
Pledgor (Official Seal):
    
	
 
    	
 
    
	
Heilongjiang   Province Agriculture Credit-guarantee Co., Ltd.
    	
Daqing Borun Biotechnology Co., Ltd.
    
	
 
    	
 
    
	
Date:   September 22nd,   2016
    	
Date: September 22nd, 2016
    

 

Notes:

1.              If any part of the description of a mortgaged property is omitted or is not complete or accurate, but such mortgaged property may be referred to on the basis of other part thereof not omitted or the complete and accurate description, then the mortgage validity of such mortgaged property shall not be affected.

2.              The determination on the value of mortgaged properties in this list shall neither be adopted as the basis for valuation when the mortgaged properties are disposed of, nor constitute the restriction on the pledge’s exercising its rights to mortgage. The final value of mortgaged properties shall be the value when the rights to mortgage are realized.

 

16

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