Document:

Exhibit 10.2

 

Exhibit B

 

OA Agreement

 

DEBT CANCELLATION AGREEMENT

 

This Debt Cancellation Agreement (this “
Agreement ”), is made as of August 19, 2016, among General Steel Holdings, Inc., a Nevada corporation (the “
Company ”), General Steel Investment Co., Ltd., a BVI company and wholly-owned subsidiary of the company (“GS
Investment”), and Oriental Ace Limited (the “ Creditor ”).

 

WHEREAS, as of August 19, 2016, the Company
has debt payable to the Creditor in an aggregate principal amount equivalent to USD$3,600,000 (together with all accrued but unpaid
interest and any other form of payment obligations related thereto, the “ Debt ”);

 

WHEREAS, the Company must increase its stockholders’
equity above $50,000,000 in order to meet the continued listing standards of the New York Stock Exchange, and in connection therewith,
the Board of Directors of the Company believe it’s in the best interests of the Company to convert the Debt into 3,272,727
shares (the “ Shares ”) of common stock, par value $0.001 per share (the “ Common Stock ”)
as consideration for the cancellation of the Debt;

 

NOW, THEREFORE, in connection with the conversion
and cancellation of the Debt, the Company, GS Investment and the Creditor, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, agree as follows:

 

1. Closing Date .

 

(a) The consummation of the transactions
contemplated herein (the “ Closing ”) shall take place remotely via the exchange of documents and signatures
or by other method as the parties may mutually agree upon the satisfaction or waiver of all conditions to closing set forth in
this Agreement (the “ Closing Date ”). Subject to the satisfaction or waiver of the terms and conditions of
this Agreement, on the Closing Date, the Creditor shall receive and the Company shall issue to the Creditor a certificate evidencing
the Shares, in the name of the Creditor, as shall be effective to vest in the Creditor all right, title and interest in the Shares
as consideration for the cancellation of the Debt due to the Creditor. The outstanding amount of the Debt shall thereby be extinguished
in full and be allocated to the Shares

 

(b) The obligation of the Company to issue
the Shares to the Creditor is subject to the satisfaction, at or before the Closing Date, of the following conditions (unless the
failure of such condition shall be due to the failure of the Company to perform or observe its covenants and agreements in this
Agreement):

 

(i) The Creditor shall have executed and
delivered this Agreement to the Company.

 

(c) The obligation of the Creditor to accept
the Shares upon cancellation of the Debt is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions (unless the failure of such condition shall be due to the failure of the Creditor to perform or observe their respective
covenants and agreements in this Agreement):

 

(i) the Company shall have executed and delivered
this Agreement to the Creditor; and

 

(ii) the Company shall have delivered a certificate
evidencing the Shares to the Creditor.

 

2. Creditor Representations and Warranties
..  The Creditor hereby represents and warrants to and agrees with the Company that:

 

(a) Organization and Standing .  The
Creditor is a corporation, partnership or other entity duly incorporated or organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or organization and has the requisite corporate power to own its assets and to
carry on its business.

 

    	 	1	 

     

    

 

(b) Authorization and
Power .  The Creditor has the requisite power and authority to enter into and perform this Agreement and to
acquire the Shares being issued to it hereunder. The execution, delivery and performance of this Agreement by the Creditor
and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate or
partnership actions, and no further consent or authorization of the Creditor or its board of directors, stockholders,
partners, or members, as the case may be, is required. This Agreement has been duly authorized, executed and delivered by the
Creditor and constitutes, or shall constitute when executed and delivered, a valid and binding obligation of the Creditor
enforceable against the Creditor in accordance with the terms hereof.

 

(c) No Conflicts .  The
execution, delivery and performance of this Agreement and the consummation by the Creditor of the transactions contemplated hereby
or relating hereto do not and will not (i) result in a violation of the Creditor’s charter documents or bylaws or other organizational
documents or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture
or instrument or obligation to which the Creditor is a party or by which its properties or assets are bound, or result in a violation
of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to the Creditor
or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material
adverse effect on the Creditor). The Creditor is not required to obtain any consent, authorization or order of, or make any filing
or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under
this Agreement or to acquire the Shares in accordance with the terms hereof, provided that for purposes of the representation made
in this sentence, the Creditor is assuming and relying upon the accuracy of the relevant representations and agreements of the
Company herein.

 

(d) Information on Company .  The
Creditor in making the decision to acquire the Shares, has relied upon an independent investigation of the Company and has not
relied upon any information or representations made by any third parties or upon any oral or written representations or assurances
from the Company, its officers, directors or employees or any other representatives or agents of the Company, other than as set
forth in this Agreement. The Creditor is familiar with the business, operations and financial condition of the Company and has
had an opportunity to ask questions of, and receive answers from, the Company’s officers and directors concerning the Company
and the terms and conditions of the offering of the Shares and has had full access to such other information concerning the Company
as the Creditor has requested.

 

(e) Information on Creditor .  The
Creditor is not a “U.S.” Person as defined in Rule 902 of Regulation S promulgated under the Securities Act of 1933,
as amended (the “ 1933 Act ”), was not organized under the laws of any United States jurisdiction, and was not
formed for the purpose of investing in securities not registered under the 1933 Act. At the time the purchase order for this transaction
was originated, the Creditor was outside the United States

 

(f) Issuance of Shares .  On
the Closing Date, the Creditor will acquire the Shares as principal for its own account for investment only and not with a view
toward, or for resale in connection with, the public sale or any distribution thereof.

 

(g) Compliance with Securities Act
..  The Creditor understands and agrees that the Shares have not been registered under the 1933 Act or any applicable
state securities laws, by reason of their issuance in a transaction that does not require registration under the 1933 Act (based
in part on the accuracy of the representations and warranties of the Creditor contained herein), and that the Shares must be held
indefinitely unless a subsequent disposition is registered under the 1933 Act or any applicable state securities laws or is exempt
from such registration.

 

(h) Legend .  The Shares
shall bear the following legend:

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR (B) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER HEREOF THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

    	 	2	 

     

    

 

(i) Financial Ability .  The
Creditor has the financial ability to bear the economic risk of loss of the Creditor’s investment, has adequate means for
providing for its current needs and contingencies, and currently has no need for liquidity with respect to an investment in the
company.

 

(j) Authority; Enforceability .  This
Agreement and any other agreementsor documents delivered together with this Agreement or in connection herewith have been duly
authorized, executed and delivered by the Creditor and are valid and binding agreements enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights generally and to general principles of equity; and the Creditor has full corporate power
and authority necessary to enter into this Agreement and such other agreements and to perform its obligations hereunder.

 

(k) Restricted Securities .  The
Creditor understands that the Shares are being offered in a transaction not involving a public offering in the United States within
the meaning of the 1933 Act. The Shares have not been and will not be registered under the 1933 Act, and, if in the future the
Creditor decides to offer, resell, pledge or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise
transferred only (A) pursuant to an effective registration statement filed under the 1933 Act, (B) to a non-U.S. person in an offshore
transaction in accordance with Rule 903 or Rule 904 of Regulation S of the 1933 Act, (C) pursuant to the resale limitations set
forth in Rule 905 of Regulation S, (D) pursuant to an exemption from registration under the 1933 Act provided by Rule 144 thereunder
(if available) or (E) pursuant to any other exemption from the registration requirements of the 1933 Act, and in each case in accordance
with any applicable securities laws of any state of the United States or any other jurisdiction. The Creditor agrees and covenants
that it will not engage in hedging transactions with regard to the Shares prior to the expiration of the distribution compliance
period specified in Rule 903 of Regulation S promulgated under the 1933 Act, unless in compliance with the 1933 Act. The Creditor
agrees that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent to any such
transfer, the transferor may be required to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration
or another exemption from registration, the Creditor agrees that it will not resell the Shares to U.S. Persons or within the United
States.

 

(l) The Creditor understands, acknowledges
and agrees that, except as expressly set forth herein, the Company makes no representation or warranty, express or implied, at
law or in equity, in respect of itself, its business, its operations, its assets, its projects, its prospects or the Shares.

 

(m) No Governmental Review .  The
Creditor understands that no United States federal or state agency or any other governmental or state agency has passed on or made
recommendations or endorsement of the Shares or the suitability of the investment in the Shares nor have such authorities passed
upon or endorsed the merits of the offering of the Shares.

 

(n) Correctness of Representations
..  The Creditor represents the foregoing representations and warranties are true and correct as of the date hereof and,
unless the Creditor otherwise notifies the Company prior to the Closing Date shall be true and correct as of the Closing Date.

 

(o) IRS Form W-8 or W-9 .  The
Creditor shall provide to the Company, upon request, an IRS Form W-8 or W-9, as applicable.

 

(p) Survival .  The foregoing
representations and warranties shall survive the Closing Date for a period of one year.

 

    	 	3	 

     

    

 

3. Company Representations and Warranties
..  The Company represents and warrants to the Creditor that:

 

(a) Due Incorporation .  The
Company is a corporation duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization and has the requisite corporate power to own its properties and to carry on its business as
presently conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction
where the nature of the business conducted or property owned by it makes such qualification necessary, other than those jurisdictions
in which the failure to so qualify would not have a Material Adverse Effect. For purposes of this Agreement, a “Material
Adverse Effect” shall mean a material adverse effect on the financial condition, results of operations, prospects, properties
or business of the Company taken as a whole.

 

(b) Authority; Enforceability .  This
Agreement to which the Company or a Subsidiary is a party has been duly authorized, executed and delivered by the Company and Subsidiaries
(as applicable) and are valid and binding agreements of the Company enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors' rights generally and to general principles of equity. The Company has full corporate power and authority necessary to
enter into and deliver this Agreement and to perform its obligations thereunder.

 

(c) Additional Issuances .  There
are no outstanding agreements or preemptive or similar rights affecting the Common Stock and no outstanding rights, warrants or
options to acquire, or instruments convertible into or exchangeable for, or agreements or understandings with respect to the sale
or issuance of any Common Stock of the Company.

 

(d) Consents .  No consent,
approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over the Company,
the New York Stock Exchange or the Company's shareholders is required for the execution by the Company of this Agreement and compliance
and performance by the Company of its obligations under this Agreement, including, without limitation, the issuance and sale of
the Shares, which consent has not been obtained as of the Closing Date. This Agreement and the Company’s performance of its
obligations hereunder has been approved by the Company’s Board of Directors in accordance with the Company’s Articles
of Incorporation.

 

(e) No Violation or Conflict .  To
the knowledge of the Company, the execution, delivery and performance of this Agreement and consummation of the transactions contemplated
hereunder by the Company will not: (i) violate any applicable state, federal or international laws, regulations, rules or decrees,
including any ruling of any competent court in any jurisdiction applicable to the Company I and its Subsidiaries, or any order
or statute of any court or government authority applicable to the Company or its Subsidiaries, affiliates or any of their properties
(except for such violations which would not, in the aggregate, result in a Material Adverse Effect on the Company and its Subsidiaries
taken as a whole); (ii) conflict with or result in the breach or termination of, constitute a default under or accelerate any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which the Company or any of its Subsidiaries
is a party or by which the Company, any of its Subsidiaries or any of their material property is bound; or (iii) will not result
in a breach or material violation under the articles of association, bylaws and other incorporation documents of the Company or
its Subsidiaries.

 

(f) The Shares .  The Shares
upon issuance:

 

(i) are, or will be, free and clear of any
security interests, Liens, claims or other encumbrances, subject to restrictions upon transfer under the 1933 Act and any applicable
state securities laws;

 

(ii) have been, or will be, duly and validly
authorized and on the date of issuance of the Shares, will be duly and validly issued, fully paid and non-assessable;

 

(iii) will not have been issued or sold in
violation of any pre-emptive or other similar rights of the holders of any securities of the Company;

 

    	 	4	 

     

    

 

(iv) will not subject the holders thereof
to personal liability by reason of being such holders provided Creditor’s representations herein are true and accurate and
the Creditor takes no actions contrary to, or fail to take, any actions required to be taken by the Creditor pursuant to this Agreement
for their purchase of the Shares to be in compliance with all applicable laws and regulations; and

 

(v) assuming the representations and warranties
of the Creditor as set forth in Section 2 hereof are true and correct and the Creditor takes no actions contrary to, or fail to
take, any actions required to be taken by the Creditor pursuant to this Agreement for their purchase of the Shares to be in compliance
with all applicable laws and regulations, will not result in a violation of Section 5 under the 1933 Act.

 

(g) Litigation .  There
is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, that would affect the execution by the Company
or the performance by the Company of its obligations under this Agreement. There is no pending or, to the best knowledge of the
Company, basis for or threatened action, suit, proceeding or investigation before any court, governmental agency or body, or arbitrator
having jurisdiction over the Company, which litigation if adversely determined would have a Material Adverse Effect.

 

(h) Defaults .  The Company
is not in violation of its Amended and Restated Articles of Incorporation. The Company is (i) not in default under or in violation
of any other material agreement or instrument to which it is a party or by which it or any of its properties are bound or affected,
which default or violation would have a Material Adverse Effect, (ii) not in default with respect to any order of any court, arbitrator
or governmental body or subject to or party to any order of any court or governmental authority arising out of any action, suit
or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade, unfair competition or similar
matters, or (iii) not in violation of any statute, rule or regulation of any governmental or regulatory authority which violation
would have a Material Adverse Effect.

 

(i) Investment Company .  The
Company is not an “investment company” required to register under the Investment Company Act of 1940, as amended.

 

(j) Reporting Company .  The
Company is a publicly-held company subject to reporting obligations pursuant to Section 13a-16 or 15d-16 of the Securities Exchange
Act of 1934, as amended (the “ 1934 Act ”) and has a class of Ordinary Shares registered pursuant to Section
12(g) of the 1934 Act.

 

(k) Correctness of Representations
..  The Company represents that the foregoing representations and warranties are true and correct as of the date hereof
in all material respects, and, unless the Company otherwise notifies the Creditor prior to the Closing Date, shall be true and
correct in all material respects as of the Closing Date; provided, that, if such representation or warranty is made as of a different
date in which case such representation or warranty shall be true as of such date.

 

(l) Survival .  The foregoing
representations and warranties shall survive the Closing Date for a period of one years.

 

4. Regulation S Offering .  The
offer and issuance of the Shares to the Creditor is being made pursuant to the exemption from the registration provisions of the
1933 Act afforded by Section 4(2) of the 1933 Act and/or Rule 903 of Regulation S promulgated thereunder.

 

5. Covenants of the Company Regarding
Indemnification .  The Company agrees to indemnify, hold harmless, reimburse and defend the Creditor, the Creditor’s
officers, directors, agents, affiliates, members, managers, control persons, and principal shareholders, against any claim, cost,
expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the
Creditor or any such person which results, arises out of or is based upon (i) any material misrepresentation by the Company or
breach of any representation or warranty by the Company in this Agreement; or (ii) after any applicable notice and/or cure periods,
any breach or default in performance by the Company of any covenant or undertaking to be performed by the Company hereunder.

 

    	 	5	 

     

    

 

6. Waivers and Modification; Termination
of Certain Agreements .  Anything to the contrary notwithstanding in any agreements, instruments or other documents
pursuant to which the Debt was incurred, the Creditor hereby:

 

(a) agree and to the extent same constitute
waivers under the foregoing, do hereby waive effective as of Closing any default or event of default with respect to the Debt,
if any; and

 

(b) agree that effective as of Closing that:

 

(i) the Creditor, GS Investment and the Company
hereby cancel the Debt; and

 

(ii) the Creditor hereby irrevocably discharge
the Company and GS Investment of all of the obligations of the Company and GS Investment relating to the Debt, and acknowledge
and agree that the Debt shall be deemed to have been repaid in full by GS Investment and the Company by virtue of the issuance
of the Shares.

 

7. Miscellaneous .

 

(a) Notices .  All notices,
demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless
otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt
requested, postage prepaid, (c) delivered by a reputable overnight courier service with charges prepaid, or (d) transmitted by
hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours), or the first business
day following such delivery (if delivered other than on a business day during normal business hours), (ii) on the first business
day following the date deposited with an overnight courier service with charges prepaid, or (iii) on the fifth business day following
the date of mailing pursuant to subpart (b) above, or upon actual receipt of such mailing, whichever shall first occur. The addresses
for such communications shall be: (i) if to the Company, to: General Steel Holdings, Inc., Level 2, Building G, No. 2A Chen Jia
Lin, Ba Li Zhuang, Chaoyang District, Beijing, China 100025 Attn: John Chen, CFO, e-mail: jchen@gshi-steel.com, with a copy by
fax only to: Loeb & Loeb LLP, 345 Park Avenue, New York, NY 10154, Attn: Mitchell S. Nussbaum, Esq., e-mail: mnussbaum@loeb.com,
and (ii) if to the Creditor, to the address and fax numbers indicated on the signature page hereto.

 

(b) Entire Agreement; Assignment .  This
Agreement and other documents delivered in connection herewith represent the entire agreement between the parties hereto with respect
to the subject matter hereof and may be amended only by a writing executed by the Company and the Creditor. Neither the Company
nor the Creditor has relied on any representations not contained or referred to in this Agreement and the documents delivered herewith.
No right or obligation of the Company shall be assigned without prior notice to and the written consent of the Creditor.

 

(c) Counterparts/Execution .  This
Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.
This Agreement may be executed by facsimile signature and delivered by facsimile transmission.

 

(d) Law Governing this Agreement
.  This Agreement shall be governed by and construed in accordance with the laws of Hong Kong without regard to
any conflicts of laws principles that would cause this Agreement to be interpreted by the laws of any other jurisdiction. Any
disputes, controversy or claim arising out of or relating to this Agreement shall be settled by binding arbitration in the Hong
Kong International Arbitration Centre (the “ HKIAC ”) and in accordance with the UNCITRAL Arbitration Rules
as at present in force and may be amended by the rest of this Clause. The arbitration shall be conducted in the English language
before a panel of three arbitrators, one chosen by each of the parties and the third chosen by the initial two arbitrators. If
the initial two arbitrators cannot agree on the identity of the third arbitrator, the third arbitrator shall be determined by
the HKIAC. The decision of the arbitrators, rendered in writing, shall be final and binding on the parties, and may be entered
and enforced in any court of competent jurisdiction. Each party shall bear its own costs of the arbitration with the arbitrator’s
fees to be borne equally by the parties. If any provision of this Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed modified to conform with such statute or rule of law. Any provision hereof
that may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provisions
hereof.

 

    	 	6	 

     

    

 

(e) Specific Enforcement, Consent to Jurisdiction
..  The Company and Creditor acknowledge and agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement
and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which any of them may
be entitled by law or equity. Subject to Section 7(d) hereof, each party hereby irrevocably waives, and agrees not to assert in
any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction in New York of such court,
that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is
improper. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law.

 

(g) Captions: Certain Definitions
..  The captions of the various sections and paragraphs of this Agreement have been inserted only for the purposes of
convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain, enlarge or
restrict any of the provisions of this Agreement. As used in this Agreement the term “person” shall mean and include
an individual, a partnership, a joint venture, a corporation, a limited liability company, a trust, an unincorporated organization
and a government or any department or agency thereof.

 

(h) Severability .  In the
event that any term or provision of this Agreement shall be finally determined to be superseded, invalid, illegal or otherwise
unenforceable pursuant to applicable law by an authority having jurisdiction and venue, that determination shall not impair or
otherwise affect the validity, legality or enforceability: (i) by or before that authority of the remaining terms and provisions
of this Agreement, which shall be enforced as if the unenforceable term or provision were deleted, or (ii) by or before any other
authority of any of the terms and provisions of this Agreement.

 

    	 	7	 

     

    

 

COMPANY SIGNATURE PAGE TO DEBT CANCELLATION
AGREEMENT

 

Please acknowledge your acceptance of the
foregoing Debt Cancellation Agreement by signing and returning a copy to the undersigned whereupon it shall become a binding agreement
between us.

 

	
        GENERAL STEEL HOLDINGS, INC.

        a Nevada company
	 	
        General Steel Investment Co., Ltd.

        a BVI company

	By:	/s/ Zuosheng Yu	 	By:	/s/ John Chen
	 	Name: Zuosheng Yu	 	 	Name: John Chen
	 	Title: CEO	 	 	Title:
	Dated: August 19, 2016	 	Dated: August 19, 2016

 

    	 	8	 

     

    

 

CREDITOR SIGNATURE PAGE TO DEBT CANCELLATION
AGREEMENT

 

Please acknowledge your acceptance of the
foregoing Debt Cancellation Agreement by signing and returning a copy to the undersigned whereupon it shall become a binding agreement
between us.

 

	 	 	AMOUNT OF
    DEBT:
	ORIENTAL
    ACE LIMITED	 	 
	 	 	$3,600,000.00
	By:	/s/
    Wei Lin	 	 
	 	 	 	 
	Name:	Wei Lin	 	 
	 	 	 	 
	Title:	Director	 	NUMBER OF SHARES
    OF
	 	 	 	COMMON STOCK
    

    ISSUABLE ON CLOSING 

    DATE:

    3,272,727

 

	Address:	 	 
	Rm. 704, Nam Wo Hong Building	 	 
	148 Wing Lok Street	 	 
	Sheung Wan Hong Kong	 	 
	Fax No.:	+852 - 25448335	 	 
	Email:	 	 	 

	Taxpayer ID# (if applicable):	 	 	 

 

    	 	9	 

     

    

 

SCHEDULE 1 –

 

	NAME OF CREDITOR	 	USD DEBT AMOUNT	 	 	SHARES OF
 COMMON STOCK
	 
	Oriental Ace Limited	 	$	3,600,000.00	 	 	 	3,272,727	 

 

    	 	10duonasleaseoneyear2016_2017.htm - Generated by SEC Publisher for SEC Filing

LEASE CONTRACT

 

 

This Lease Contract (Lease) is
entered into on this 19th day of May, 2016, by and
between Branko Markos (Landlord) and Duonas Corp. (Tenant).
Landlord makes available for lease an office, placed at str.
Osijek 50, Rijeka, Primorje-Gorski Kotar, Croatia, 51000 (Leased Premise).
Landlord desires to lease the Leased Premise to Tenant, and Tenant desires to
lease the Leased Premise from Landlord for the term, at the rental and upon the
provisions set forth herein.

 

Therefore, in consideration of
the mutual promises contained herein it is agreed:

 

Term: The
Initial Term of the Lease shall begin on the 1st day of June, 2016, and
end on the 1st day of July, 2017.
Landlord shall use its best efforts to put Tenant in possession of the Leased Premise
on the beginning of the Lease term. Tenant may renew the Lease. 

Tenant shall exercise such
renewal option, if at all, by providing written notice to Landlord not less
than twenty (20) days
prior to the expiration of the Initial Term. 

 

Rent: Tenant
shall pay to Landlord during the preliminary Term rent of 2,640 Dollars ($) per
year, payable in installments of 220 Dollars ($) per month.

 

Prohibited Uses: Despite
of missing, Tenant shall not use the Leased Premise for the purposes of
storing, manufacturing or selling any explosives, flammables or other
inherently dangerous substance, chemical, thing or device.

 

Repairs: During
the Lease term, Tenant shall make, at Tenant's expenditure, all essential
repairs to the Leased Premise. Repairs shall contain such items as routine
repairs of floors, walls, ceilings, and other parts of the Leased Premise
damaged or worn through normal occupancy, except for major mechanical systems
or the roof, subject to the obligations of the parties otherwise set forth in
this Lease.

 

Alterations and
Improvements:
Tenant, at Tenant's expenditure, shall have the right, upon getting Landlord's
permission, to alter, redecorate, and make additions, improvements and
replacements of and to all or any part of the Leased Premise from time to time
as Tenant may deem desirable, provided the same are made in a workmanlike
manner and utilizing good quality materials. Tenant shall have the right to
place and install personal property, trade fixtures, equipment and other
temporary installations in and upon the Leased Premise, and fasten the same to
the Premise. All personal property, equipment, machinery, trade fixtures and
temporary installations, whether acquired by Tenant at the commencement of the
Lease term or placed or installed on the Leased Premise by Tenant thereafter,
shall remain Tenant's property free and clear of any claim by Landlord. Tenant
shall have the right to remove the same at any time during the term of this
Lease provided that Tenant shall repair, at Tenant's expense, all damage to the
Leased Premise caused by such removal.

 

Utilities:
Tenant shall pay all accuses for water, gas, electricity, telephone and other
services and utilities used by Tenant on the Leased Premise during the term of
this Lease unless otherwise specifically agreed in writing by Landlord. Tenant
acknowledges that the Leased Premise is designed to provide standard office use
electrical facilities and standard office lighting.

 

Signs:
Following Landlord's permission, Tenant shall have the right to place on the
Leased Premise, at locations chosen by Tenant, any signs which are allowed by
appropriate zoning ordinances and private limitations. Landlord may refuse
consent to any proposed signage that is in Landlord's opinion too large,
deceptive, unappealing or otherwise conflicting with or unsuitable to the
Leased Premise or use of any other tenant. Landlord shall aid and cooperate
with Tenant in obtaining any essential permission from governmental authorities
or adjoining owners and occupants for Tenant to place or construct the
foregoing signs. Tenant shall repair all damage to the Leased Premise resulting
from the removal of signs installed by Tenant.

 

 

Waiver:
No
waiver of any default of Landlord or Tenant hereunder shall be indirect from
any lapse to take any action on account of such default if such default is
repeated, and no articulate waiver shall have an effect on any default other
than the default specified in the express waiver and that only for the time and
to the extent therein stated. One or more waivers by Landlord or Tenant shall not
be construed as a waiver of a subsequent breach of the same covenant, term or
condition.

 

Final
Contract: This
Lease terminates and supersedes all prior understandings or agreements on the
subject matter hereof. Only a further writing that is duly executed by both parties
may modify this Lease.

 

In
witness whereof, the parties have executed this Lease as of the day
and year first above written.

 

 

	
  Signature of
  Landlord:

   

   

   

  /s/Branko
  Markos

   

  Branko Markos

  Name of the
  Landlord:

  Branko Markos

  	
  Signature of Tenant:

   

   

   

  /s/ Vladyslav
  Beinars 

   

  Vladyslav
  Beinars 

  Name of the
  Tenant:

  Duonas Corp.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}]]