Document:

ex_149268.htm

Exhibit 10.1

 

NOTE PURCHASE AGREEMENT

 

This Note Purchase Agreement, dated as of July 5, 2019 (this “Agreement”), is entered into by and among BioCardia, Inc., a Delaware corporation (the “Company”), and the persons and entities listed on the schedule of investors attached hereto as Schedule I (each an “Investor” and, collectively, the “Investors”).

 

RECITALS 

 

A.     On the terms and subject to the conditions set forth herein, each Investor is willing to purchase from the Company, and the Company is willing to sell to such Investor, a convertible promissory note in the principal amount set forth opposite such Investor’s name on Schedule I hereto.

 

B.     Capitalized terms not otherwise defined herein shall have the meaning set forth in the form of Note (as defined below) attached hereto as Exhibit A.

 

AGREEMENT 

 

NOW THEREFORE, in consideration of the foregoing, and the representations, warranties, and conditions set forth below, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.     The Notes.

 

(a)     Issuance of Notes. Subject to all of the terms and conditions hereof, the Company agrees to issue and sell to each of the Investors, and each of the Investors severally agrees to purchase, a convertible promissory note in the form of Exhibit A hereto (each, a “Note” and, collectively, the “Notes”) in the principal amount set forth opposite the respective Investor’s name on Schedule I hereto. The obligations of the Investors to purchase Notes are several and not joint. The aggregate principal amount for all Notes issued hereunder shall not exceed $625,000.

 

(b)     Delivery. The sale and purchase of the Notes shall take place at a closing (the “Closing”) to be held at such place and time as the Company and the Investors may determine (the “Closing Date”). At the Closing, the Company will deliver to each of the Investors the Note to be purchased by such Investor, against receipt by the Company of the corresponding purchase price set forth on Schedule I hereto (the “Purchase Price”). Each of the Notes will be registered in such Investor’s name in the Company’s records.

 

(c)     Use of Proceeds. The proceeds of the sale and issuance of the Notes shall be used for general corporate purposes.

 

(d)     Payments. The Company will make all cash payments due under the Notes in immediately available funds by 1:00 p.m. pacific time on the date such payment is due at the address for such purpose specified below each Investor’s name on Schedule I hereto, or at such other address, or in such other manner, as an Investor or other registered holder of a Note may from time to time direct in writing.

 

 

 

 

2.     Representations and Warranties of the Company. The Company represents and warrants to each Investor that:

 

(a)     Due Incorporation, Qualification, etc. The Company (i) is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware; (ii) has the power and authority to own, lease and operate its properties and carry on its business as now conducted; and (iii) is duly qualified, licensed to do business and in good standing as a foreign corporation in each jurisdiction where the failure to be so qualified or licensed could reasonably be expected to have a material adverse effect on the Company.

 

(b)     Authority. The execution, delivery and performance by the Company of each Transaction Document to be executed by the Company and the consummation of the transactions contemplated thereby (i) are within the power of the Company and (ii) have been duly authorized by all necessary actions on the part of the Company.

 

(c)     Enforceability. Each Transaction Document executed, or to be executed, by the Company has been, or will be, duly executed and delivered by the Company and constitutes, or will constitute, a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and general principles of equity.

 

(d)     Non-Contravention. The execution and delivery by the Company of the Transaction Documents executed by the Company and the performance and consummation of the transactions contemplated thereby do not and will not (i) violate the Company’s Certificate of Incorporation or Bylaws (as amended, the “Charter Documents”) or any material judgment, order, writ, decree, statute, rule or regulation applicable to the Company; (ii) violate any provision of, or result in the breach or the acceleration of, or entitle any other Person to accelerate (whether after the giving of notice or lapse of time or both), any material mortgage, indenture, agreement, instrument or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any Lien upon any property, asset or revenue of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.

 

(e)     Approvals. No consent, approval, order or authorization of, or registration, declaration or filing with, any governmental authority or other Person (including, without limitation, the shareholders of any Person) is required in connection with the execution and delivery of the Transaction Documents executed by the Company and the performance and consummation of the transactions contemplated thereby, other than such as have been obtained and remain in full force and effect and other than such qualifications or filings under applicable securities laws as may be required in connection with the transactions contemplated by this Agreement.

 

(f)     No Violation or Default. The Company is not in violation of or in default with respect to (i) its Charter Documents or any material judgment, order, writ, decree, statute, rule or regulation applicable to such Person; or (ii) any material mortgage, indenture, agreement, instrument or contract to which such Person is a party or by which it is bound (nor is there any waiver in effect which, if not in effect, would result in such a violation or default).

 

3.     Representations and Warranties of Investors. Each Investor, for that Investor alone, represents and warrants to the Company upon the acquisition of a Note as follows:

 

(a)     Binding Obligation. Such Investor has full legal capacity, power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement and the Transaction Documents constitute valid and binding obligations of such Investor, enforceable in accordance with their terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and general principles of equity.

 

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(b)     Securities Law Compliance.

 

(i)     Such Investor has been advised that the Notes and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. Such Investor is aware that the Company is under no obligation to effect any such registration with respect to the Notes or the underlying securities or to file for or comply with any exemption from registration. Such Investor has not been formed solely for the purpose of making this investment and is purchasing the Notes to be acquired by such Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. Such Investor has such knowledge and experience in financial and business matters that such Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing such Investor’s financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

 

(ii)     Such Investor is an Accredited Investor. Such Investor has furnished or made available any and all information requested by the Company or otherwise necessary to satisfy any applicable verification requirements as to Accredited Investor status and shall submit to the Company such further assurances of such status as may be reasonably requested by the Company. Any such information is true, correct, timely and complete. The residency of the Investor (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly set forth beneath such Investor’s name on Schedule I hereto.

 

(iii)     As used herein, “Accredited Investor” shall mean any of the following: (i) an individual (i.e., not a partnership, corporation, limited liability company or similar entity) whose individual net worth, or joint net worth with his or her spouse, in each case, excluding the value of such persons primary residence, presently exceeds $1,000,000; (ii) an individual (i.e., not a partnership, corporation, limited liability company or similar entity) who reasonably expects an individual income in excess of $200,000 in the current year and had an individual income in excess of $200,000 in each of the last two years (including foreign income, tax exempt income and the full amount of capital gains and losses but excluding any income of the undersigned’s spouse or other family members and any unrealized capital appreciation); (iii) an individual (i.e., not a partnership, corporation, limited liability company or similar entity) who, together with his or her spouse, reasonably expects joint income in excess of $300,000 for the current year and had joint income in excess of $300,000 in each of the last two years (including foreign income, tax exempt income and the full amount of realized capital gains and losses); (iv) a director or executive officer of the Company or (v) an entity in which all of the equity owners are “accredited investors” within one or more of (i) through (iv).

 

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(c)     Access to Information. Such Investor acknowledges and agrees that (a) the Investor has been furnished with all materials it considers relevant to making an investment decision with respect to the purchase of the Notes and has had the opportunity to review (and has carefully reviewed) (i) the Company’s filings and submissions with the Securities and Exchange Commission (the “SEC”), including, without limitation, all information filed or furnished pursuant to the Securities Exchange Act of 1934, as amended (collectively, the “Public Filings”), and (ii) the Transaction Documents (including the exhibits thereto) (the “Materials”), (b) the Investor has had an opportunity to ask questions of the Company concerning the Company, its business, operations, financial performance, financial condition and prospects, and the terms and conditions related to the transactions contemplated under the Transaction Documents, and to obtain from the Company any information that it considers necessary in making an informed investment decision and to verify the accuracy of the information set forth in the Public Filings and the Materials, (c) the Investor has had the opportunity to consult with its accounting, tax, financial and legal advisors to be able to evaluate the risks involved with respect to the purchase of the Notes and to make an informed investment decision with respect to such purchase, (d) the Investor is not relying, and has not relied, upon any statement, advice (whether accounting, tax, financial, legal or other), representation or warranty made by the Company or any of its affiliates or representatives or any other entity or person, (e) no statement or written material contrary to the Public Filings or the Materials has been made or given to the Investor by or on behalf of the Company, and (f) the Investor is able to fend for itself in the transactions contemplated under the Transaction Documents, including with respect to the purchase of the Notes, has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the prospective investment in the Notes and has the ability to bear the economic risks of its investment and can afford the complete loss of such investment.

 

(d)     Tax Advisors. Such Investor has reviewed with its own tax advisors the U.S. federal, state and local and non-U.S. tax consequences of this investment and the transactions contemplated by this Agreement. With respect to such matters, such Investor relies solely on any such advisors and not on any statements or representations of the Company or any of its agents, written or oral. Such Investor understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment and the transactions contemplated by this Agreement.

 

(e)     No “Bad Actor”. Neither (i) such Investor, (ii) any of its directors, executive officers, other officers that may serve as a director or officer of any company in which it invests, general partners or managing members, nor (iii) any beneficial owner of any of the Company’s voting equity securities held by such Investor is, in each case, is a Bad Actor. As used herein, a Person shall be deemed a “Bad Actor” if any of the following are true: (i) the Person has been convicted, within the last ten years, of any felony or misdemeanor (A) in connection with the purchase or sale of any security; (B) involving the making of any false filing with the SEC; or (C) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities; (ii) the Person is subject to any order, judgment or decree of any court of competent jurisdiction, entered within the last five years, that restrains or enjoins the undersigned from engaging or continuing to engage in any conduct or practice (A) in connection with the purchase or sale of any security; (B) involving the making of any false filing with the Securities and Exchange Commission; or (C) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities; (iii) the Person is subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission; or the National Credit Union Administration that: (A) bars such Person from: (1) association with an entity regulated by such commission, authority, agency or officer; (2) engaging in the business of securities, insurance or banking; or (3) engaging in savings association or credit union activities; or (B) constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct entered within the last ten years; (iv) the Person is subject to an SEC order that: (A) suspends or revokes such Person’s registration as a broker, dealer, municipal securities dealer or investment adviser; (B) places limitations on the activities, functions or operations of the undersigned; or (C) bars the undersigned from being associated with any entity or from participating in the offering of any penny stock; (v) the Person is subject to any SEC order entered within the last five years that orders the undersigned to cease and desist from committing or causing a violation or future violation of any scienter-based anti-fraud provision of the federal securities laws; (vi) the Person has been suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade; (vii) the undersigned filed (as a registrant or issuer), or was the undersigned or was the undersigned named as an underwriter in, any registration statement or Regulation A offering statement filed with the SEC that, within the last five years, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued; or (viii) the Person is subject to a United States Postal Service false representation order entered within the last five years, or subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations.

 

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4.     Conditions to Closing of the Investors. Each Investor’s obligations at the Closing are subject to the fulfillment, on or prior to the Closing Date, of all of the following conditions, any of which may be waived in whole or in part by all of the Investors:

 

(a)     Representations and Warranties. The representations and warranties made by the Company in Section 2 hereof shall have been true and correct when made, and shall be true and correct on the Closing Date.

 

(b)     Governmental Approvals and Filings. Except for any notices required or permitted to be filed after the Closing Date with certain federal and state securities commissions, the Company shall have obtained all governmental approvals required in connection with the lawful sale and issuance of the Notes.

 

(c)     Legal Requirements. At the Closing, the sale and issuance by the Company, and the purchase by the Investors, of the Notes shall be legally permitted by all laws and regulations to which the Investors or the Company are subject.

 

(d)     Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing and all documents and instruments incident to such transactions shall be reasonably satisfactory in substance and form to the Investors.

 

(e)     Transaction Documents. The Company shall have duly executed and delivered to the Investors the following documents:

 

(i)     This Agreement; and

 

(ii)     Each Note issued hereunder.

 

(f)     Good Standing Certificate. The Company shall have delivered to the Investors a Certificate of Good Standing or comparable certificate as to the Company, certified as of a recent date prior to the Closing Date by the Secretary of State of Delaware.

 

5.     Conditions to Obligations of the Company. The Company’s obligation to issue and sell the Notes at the Closing is subject to the fulfillment, on or prior to the Closing Date, of the following conditions, any of which may be waived in whole or in part by the Company:

 

(a)     Representations and Warranties. The representations and warranties made by the applicable Investors in Section 3 hereof shall be true and correct when made, and shall be true and correct on the Closing Date.

 

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(b)     Governmental Approvals and Filings. Except for any notices required or permitted to be filed after the Closing Date with certain federal and state securities commissions, the Company shall have obtained all governmental approvals required in connection with the lawful sale and issuance of the Notes.

 

(c)     Legal Requirements. At the Closing, the sale and issuance by the Company, and the purchase by the applicable Investors, of the Notes shall be legally permitted by all laws and regulations to which such Investors or the Company are subject.

 

(d)     Purchase Price. Each Investor shall have delivered to the Company the Purchase Price in respect of the Note being purchased by such Investor referenced in Section 1(b) hereof.

 

6.     Negative Covenants. Until the termination of the commitment to purchase Notes under this Purchase Agreement and the satisfaction in full by Company of all Obligations, Company shall comply, and shall cause compliance, with the following negative covenants unless Investors holding a Majority in Interest shall otherwise consent in writing:

 

(a)     Indebtedness. The Company shall not create, incur, assume or permit to exist any Indebtedness except for Permitted Indebtedness.

 

(b)     Liens. The Company shall not create, incur, assume or permit to exist any Lien on or with respect to any of its assets or property of any character, whether now owned or hereafter acquired, except for Permitted Liens.

 

(c)     Asset Dispositions. The Company shall not sell, lease, transfer, license, assign or otherwise dispose of (collectively, a “Transfer”) any of its assets or property, whether now owned or hereafter acquired, except: (i) Transfers consisting of sales of worn-out, unneeded or obsolete equipment and other sales of tangible assets not material to the business of Company, (ii) Transfers of non-exclusive licenses and similar arrangements for the use of property of Company; provided, such Transfer is not with respect to material intellectual property rights of the Company, (iii) Transfers of Inventory in the ordinary course of business, and (iv) Transfers of cash in the ordinary course of business.

 

7.     Miscellaneous.

 

(a)     Waivers and Amendments. Any provision of this Agreement, and the Notes may be amended, waived or modified only upon the written consent of the Company and a Majority in Interest of Investors; provided however, that no such amendment, waiver or consent shall: (i) reduce the principal amount of any Note without the affected Investor’s written consent, or (ii) reduce the rate of interest of any Note without the affected Investor’s written consent. Any amendment or waiver effected in accordance with this paragraph shall be binding upon all of the parties hereto.

 

(b)     Governing Law. This Agreement and all actions arising out of or in connection with this Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflicts of law provisions of the State of California or of any other state. Notwithstanding any provision of this Agreement to the contrary, this Agreement shall be (to the extent necessary to satisfy the requirements of Section 22062(b)(3)(D) of the California Financial Code) subject to the implied covenant of good faith and fair dealing arising under Section 1655 of the California Civil Code.

 

(c)     Survival. The representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this Agreement.

 

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(d)     Successors and Assigns. Subject to the restrictions on transfer described in Sections 7(e) and 7(f) below, the rights and obligations of the Company and the Investors shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

(e)     Registration, Transfer and Replacement of the Notes. The Notes issuable under this Agreement shall be registered notes. The Company will keep, at its principal executive office, books for the registration and registration of transfer of the Notes. Prior to presentation of any Note for registration of transfer, the Company shall treat the Person in whose name such Note is registered as the owner and holder of such Note for all purposes whatsoever, whether or not such Note shall be overdue, and the Company shall not be affected by notice to the contrary. Subject to any restrictions on or conditions to transfer set forth in any Note, the holder of any Note, at its option, may in person or by duly authorized attorney surrender the same for exchange at the Company’s chief executive office, and promptly thereafter and at the Company’s expense, except as provided below, receive in exchange therefor one or more new Note(s), each in the principal requested by such holder, dated the date to which interest shall have been paid on the Note so surrendered or, if no interest shall have yet been so paid, dated the date of the Note so surrendered and registered in the name of such Person or Persons as shall have been designated in writing by such holder or its attorney for the same principal amount as the then unpaid principal amount of the Note so surrendered. Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it; or (b) in the case of mutilation, upon surrender thereof, the Company, at its expense, will execute and deliver in lieu thereof a new Note executed in the same manner as the Note being replaced, in the same principal amount as the unpaid principal amount of such Note and dated the date to which interest shall have been paid on such Note or, if no interest shall have yet been so paid, dated the date of such Note.

 

(f)     Assignment by the Company. The rights, interests or obligations hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of a Majority in Interest of Investors.

 

(g)     Entire Agreement. This Agreement together with the other Transaction Documents constitute and contain the entire agreement among the Company and Investors and supersede any and all prior agreements, negotiations, correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof.

 

(h)     Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall in writing and faxed, mailed or delivered to each party as follows: (i) if to a Investor, at such Investor’s address, facsimile number or electronic mail address set forth in the Schedule of Investors attached as Schedule I, or at such other address as such Investor shall have furnished the Company in writing, or (ii) if to the Company, at the address, facsimile number or electronic mail address set forth on its signature page to this Agreement or at such other address, facsimile number or electronic mail address as the Company shall have furnished to the Investors in writing. All such notices and communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one business day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one business day after being deposited with an overnight courier service of recognized standing or (v) four days after being deposited in the U.S. mail, first class with postage prepaid.

 

(i)     Expenses. The Company shall pay all expenses in connection with the transactions contemplated by this Agreement; provided, such expenses for the Investors shall not exceed $25,000 in the aggregate.

 

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(j)     Separability of Agreements; Severability of this Agreement. The Company’s agreement with each of the Investors is a separate agreement and the sale of the Notes to each of the Investors is a separate sale. Unless otherwise expressly provided herein, the rights of each Investor hereunder are several rights, not rights jointly held with any of the other Investors. Any invalidity, illegality or limitation on the enforceability of the Agreement or any part thereof, by any Investor whether arising by reason of the law of the respective Investor’s domicile or otherwise, shall in no way affect or impair the validity, legality or enforceability of this Agreement with respect to other Investors. If any provision of this Agreement shall be judicially determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

(k)     Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages will be deemed binding originals.

 

[Signature Page Follows]

 

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The parties have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the date and year first written above.

 

	 	
			COMPANY:

			 

			BIOCARDIA, INC.

			a Delaware corporation

			 

			By:     /s/ Peter Altman                                                                                           

			Name: Peter Altman

			Title: Chief Executive Officer

			 

			 

			BioCardia, Inc.

			125 Shoreway Road, Suite B

			San Carlos, California 94070

			

 

 

 

 

 

 

[Signature page to Note Purchase Agreement]Exhibit 10.30 

 

 

Financial Leasing Contract

 

Contract Number: ____________

 

Party A (Lessor): Hunan Ruixi Financial Leasing
Co., Ltd.

 

Social Credit Unicode: 91430100MA4PDEM573

 

Address: Rm. 723, Bldg. 3A, Jinke Times Center,
Xiangyang Road, Economic and Technological Development Zone, Changsha

 

Tel.:

 

E-mail:

 

Party B (Lessee):

 

Address:

 

ID Number:

 

Tel.:

 

E-mail:

 

Party C (Guarantor):

 

Address:

 

ID Number:

 

Tel.:

 

E-mail:

 

Article 1 General

 

In accordance with the relevant laws and regulations
of the Contract Law of the People's Republic of China, in the principle of honesty and trustworthiness, and on the basis
of equality and voluntary consultation, Party A, Party B and Party C hereby voluntarily enter into this Contract so that Party
A shall provide the vehicle leased under this Contract for Party B and Party C shall render joint liability guarantee to Party
A for the financial leasing of Party B.

 

    	 	1	 

     

    

 

 

Article
2 Representation and Warranty

 

Party A, Party B and Party C respectively make
the following representations and warranties, which remain valid for the duration of this Contract.

 

(I) Representations and Warranties of Party A:

 

1. Party A is a company legally established
and validly existing under the Chinese law. It has an independent legal person status and has the right to engage in the business
it is currently engaged in and to own its property.

 

2. Party A has the right to execute and perform
this Contract and other related documents to which it is a party, and has obtained internal authorization and approval for the
execution and performance.

 

3. After this Contract and other related documents
to which it is a party are signed by Party A, they are legally binding on Party A and may be enforced in accordance with their
terms.

 

4. The execution and performance of this Contract
by Party A will not conflict with any agreement or document to which Party A acts as a party.

 

(II) Representations and Warranties of Party B
and Party C:

 

1. If Party B and Party C are enterprises or
public institutions, they represent and warrant as follows:

 

(1) Party B and Party C are legal organizations
registered and established and valid existing in accordance with the laws of China and have independent legal status. They have
the right to engage in the business they are currently engaged in and to own their property;

 

(2) Party B and Party C have the right to execute
and perform this Contract and other related documents to which they are a party and have obtained internal authorization and approval
for the execution and performance;

 

(3) Party B and Party C warrant that all financial
statements issued by them are in compliance with relevant Chinese laws and regulations and truly and objectively indicate the financial
status of Party B and Party C and that all documents and information provided by Party B and Party C are true, valid, complete
and accurate, without any concealment;

 

(4) Party B and Party C promise that they will
notify Party A in writing three days in advance before subcontracting, leasing, joint-stock reform, merger, joint venture (cooperation),
separation and establishment of branches and subsidiaries, transfer of property rights, substantial increase of debt, external
guarantees, change of business registration information and other acts that may have possible influence on the rights of Party
A;

 

(5) Party B and Party C agree to engage other
guarantors according to the requirements of Party A;

 

(6) During the term of lease, Party B and Party
C shall strictly observe all laws and regulations of the nation and be liable for all liabilities and economic losses arising from
traffic accidents, violations of regulations and illegal activities.

 

    	 	2	 

     

    

 

 

2.
If Party B and Party C are natural persons, they represent and warrant as follows:

 

(1) They have full capacity for civil conduct;

 

(2) They have the ability to enter into this
Contract and perform the obligations under this Contract;

 

(3) They agree to engage other guarantors according
to the requirements of Party A;

 

(4) During the lease period, they will strictly
follow all laws and regulations of the nation and bear all liabilities and economic losses arising from acts such as traffic accidents,
violations of regulations and illegal activities.

 

3. After the Contract and transaction documents
are signed by Party B and Party C, they shall be legally binding on Party B and Party C and may be enforced in accordance with
their terms.

 

4. The signing and performance of this Contract
by Party B and Party C will not conflict with any agreement or document to which Party B or Party C is a party. In case of conflict,
regardless of the time of signing, this Contract and its supplement agreements shall prevail.

 

5. If above representations and warranties
are materially inconsistent with the actual situation, they will be treated as material breach of contract.

 

Article 3 Vehicle Information, Lease Term
and Rent

 

Party A shall provide the leased vehicle selected
and confirmed by Party B to Party B for use according to Party B's selection of the leased vehicle. Party B independently selects
the leased vehicle hereunder without relying on Party A's skills or Party A's intervention. Party B independently confirms the
brand, model, configuration, color and price of the leased vehicle. The vehicle information, lease term and rent are as follows:

 

	Item	 	Content of Agreement
	Vehicle make 	 	 
	Vehicle model and configuration	 	 
	Vehicle color	 	 
	Vehicle frame number	 	 
	Engine number	 	 
	Term of lease	 	From                    to                       
	Months of lease term	 	______months
	Total tax-included contract amount	 	RMB_________ (in words: RMB_____________________________________YUAN)
	Total contract amount (tax-excluded)	 	RMB_________ (in words: RMB_____________________________________YUAN)
	Down payment 	 	RMB_________ (in words: RMB_____________________________________YUAN)

 

    	 	3	 

     

    

 

 

	Item	 	Content of Agreement
	Rent for each period 	 	RMB_________ (in words: RMB_____________________________________YUAN)
	Date of payment for rent of each period 	 	Vehicle delivery ̈ Current month / ̈ From next month, paid before the  ̈ 3rd/  ̈18th day each month
	Lease deposit	 	RMB_________ (in word: RMB_____________________________________YUAN)
	Party A collects special account information for rent and other expenses	 	
        Company Name: Hunan Ruixi Financial Leasing
        Co., Ltd.

         

        Bank of Deposit: Bank of Changsha Co., Ltd.
        Liuyang Economic Development Zone Sub-branch

         

        Account Number: **********************

 

1. Party B applies for a savings card to the
bank designated by Party A (hereinafter referred to as “Party B’s Account”) or Party B authorizes Party A to
apply for a new savings card to the designated bank. Party B shall pay the rent in full to Party B’s Account for Party A
to entrust the designated party to withhold in accordance with the rent payment method as stipulated in this Contract. The savings
card information is as follows:

 

Account Name:

 

Bank of Deposit:

 

Account Number:

 

2. Where Party B fails to pay Party A the full
amount of rent of each period within the time limit stipulated in this Contract, it shall be deemed that Party B fails to perform
the obligation to pay the rent for the relevant period.

 

3. In addition to the payment method specified
in Paragraph 1 of this Article, Party B may also choose to make payment to Party A’s finance department or make transfer
to Party A’s designated account. In time of payment or transfer, Party B shall inform Party A’s financial personnel
of the contract number and Party B’s name and request the receipt from Party A’s financial personnel after payment.
The amount paid by Party B and the date of payment shall be subject to the receipt issued by Party A.

 

4. In the process of contract performance,
Party B may submit a written application to Party A to change the term of lease of this Contract and the rent for each period,
and then Party A should decide whether to accept the change. If Party A agrees to make the change, Party A, Party B and Party C
shall agree on the new term of lease and the rent. Party A, Party B and Party C shall re-sign a written agreement as the amendment
to this Contract.

 

5. During the performance of the Contract,
Party B may pay any installments of rent not less than the current due payment before the current payment date specified in this
Contract but may not require Party A to reduce the rent on the grounds of paying the rent in advance.

 

    	 	4	 

     

    

 

 

6.
During the term of lease, where there is a need to change the rent as the national government increases or reduces relevant taxes,
change the tax rate and bank interest rate, Party A has the right to notify Party B of the change and propose a new rent by mobile
phone text message or other means and begin to implement the new rent from the next month after the nation announces such adjustment.
Party B must acknowledge the change and promise to pay.

 

7. Party A has the right to transfer its creditor’s
rights against Party B to a third party. Party B agrees that Party A notifies Party B of such transfer through a text message to
the contact telephone number specified in the Contract or other means.

 

8. Party B shall bear all expenses such as
fuel, toll charge, maintenance and repair, penalty for violation of regulation, vehicle insurance, parking fee, taxes, and administrative
fees incurred during the term of lease. If Party A suffers losses due to the preceding matters, Party B shall compensate Party
A for its losses.

 

Article 4 Deposit

 

1. Upon the signing of this Contract, Party
B shall pay Party A the financial lease deposit agreed by both parties on the date of signing this Contract, which shall be used
as the guarantee for Party B to perform its obligations under this Contract. The amount shall be as stipulated in the foregoing
part of this Contract.

 

2. The financial lease deposit bears no interest.
If Party B breaches this Contract, Party A may use any part of the deposit to exercise the remedy or compensate for the loss. Where
Party B fully performs its contractual obligations hereunder and has no breach of contract, Party A shall return Party B the deposit
or allow Party B to offset all or part of the final rent when the financial lease expires.

 

3. Where Party B violates the provisions of
the third paragraph of Article 19 of this Contract, Party A shall not refund the deposit and shall not exempt Party B from the
liability for breach of contract to Party A. Party A has the right to first pay the expenses incurred from the collection from
and management of Party B with the deposit, and when the deposit reduces due to deduction, Party B shall make up the difference
within three days. Otherwise Party B shall be deemed to have materially breached the contract.

 

4. If Party B proposes to terminate or rescind
this Contract before the expiration of the term, the deposit will not be refunded regardless of whether Party A agrees or not.

 

Article 5 Contract Price and Validity

 

1. This Contract shall take effect from the
date when Party A stamps its seal onto it and Party B and Party C sign or stamp their seals onto it.

 

2. The terms concerning Party B on applying
for leased vehicles, deposit, first-installment rent, term of lease, total rent, repayment date of each period, designated repayment
debit card number and insurance are detailed in this Contract, and Party B voluntarily follows the stipulations agreed in the Contract.
This Contract shall be delivered in person by the financing consultant. The provisions of the Contract shall become effective,
irrevocable and may not be modified from the date of signing by Party B and Party C.

 

    	 	5	 

     

    

 

 

3. Party B and Party C ensure that the address
and contact information stated in this Contract are true and valid. Where this Contract is delivered to Party B and Party C by
Party A by post based on the above address and contact information and is received, Party B and Party C hereby confirm that it
shall be deemed to have received. Party B and Party C shall carefully read the mail received. If Party B and Party C raise no objection
within seven days after receiving the mail or Party B has made repayment in accordance with the Contract, Party B and Party C shall
be deemed to accept and be willing to follow the provisions of this Contract.

 

Article 6 Ownership of Leased Vehicles

 

1. During the term of lease, before Party B
has fulfilled all the obligations under this Contract, the ownership of the leased vehicle belongs to Party A, the leased vehicle
is registered under the name of Party A and all taxes, fees and insurance premiums concerning the vehicle shall be paid by Party
B in the name of Party A.

 

2. When Party B performs this Contract, Party
B has the right to legally use the leased vehicle. After Party B fulfills all the obligations hereunder and settles all the payables
arising under this Contract to Party A, the leased vehicle hereunder can be purchased by Party B at the price of RMB 1 (in
word: RMB ONE YUAN ONLY). If Party B purchases it in accordance with the Contract, the ownership of the leased vehicle shall be
transferred to Party B. Party A shall cooperate with Party B to handle the vehicle transfer registration formalities and the corresponding
expenses shall be borne by Party B.

 

3. During the term of lease, Party B shall
not express or imply that it is the owner of the vehicle or make others reasonably consider Party B to be the owner of the vehicle.
Without the written consent of Party A, Party B shall not sell, mortgage, pledge, sublease, transfer, gift, make investment with,
dismantle the positioning device of, renounce possession of or otherwise dispose of the leased vehicle nor have any other violation
of the ownership of the leased vehicle or use the leased vehicle to engage in illegal activities. If Party B has the above-mentioned
act that constitutes breach of contract, Party A has the right to take back the leased vehicle.

 

4. During the lease period, Party A or the
agent entrusted by Party A has the right to check the use and integrity of the leased vehicle, in which case Party B shall provide
all conveniences. Without the written consent of Party A, Party B shall not make any substantial modification or installation of
the leased vehicle. If Party B changes the leased vehicle privately, the parts, accessories, equipment and facilities installed
on the leased vehicle will automatically become part of the leased vehicle and be owned by Party A, and Party A has no need to
make any compensation, and the rent will not be adjusted therefor. If Party B’s random refitting causes depreciation of the
vehicle or causes other losses to Party A, Party B shall be liable for compensation.

 

Article 7 Delivery and Acceptance of the
Leased Vehicle

 

1. During the lease period, the license plate
of the leased vehicle shall be registered in the name of Party A. Before the leased vehicle is delivered to Party B, relevant formalities
for registration with relevant authority shall be completed and Party B agree that during the term of lease Party A has the right
to mortgage the leased vehicle to the designated bank or other institutions. Party B shall cooperate if needed.

 

2. Party A and Party B agree that the vehicle
should be delivered on _______________ and Party A will notify through phone call or text message, as designated by Party B, the
notice to pick up the vehicle. The contact information of Party B is specified in this Contract. In case of any change to the contact
information, Party B shall promptly notify Party A in writing.

 

    	 	6	 

     

    

 

 

3. On the day of delivery of the leased vehicle,
Party B shall check the items delivered with the leased vehicle and sign the Confirmation of Delivery of the Leased Vehicle.
If Party B fails to sign the Confirmation of Delivery of the Leased Vehicle and submit it to Party A or Party A’s
entrusting party after obtaining the leased vehicle and fails to provide reasonable causes, it shall be deemed that it has checked
and has no objection to the leased vehicle and the articles delivered together with the vehicle.

 

4. After Party A delivers the leased vehicle
to Party B, the risk liability for the leased vehicle will be transferred to Party B. During the term of lease, the risk of damage,
loss, theft, force majeure and other accidents of the leased vehicle (including but not limited to traffic violations, illegal
accidents, traffic accidents or other personal, property, fines liabilities and the losses caused to Party A by the use of vehicles)
shall be fully borne by Party B.

 

5. In the case that Party A provides the vehicle
in accordance with Party B's needs, Party B shall not refuse to accept the leased vehicle for any reason. The relevant provisions
for the term of lease and the rent shall not be affected whether there are other reasonable causes or not.

 

Article 8 Use and Custody of the Leased
Vehicle

 

1. Party B promises to abide by the traffic
regulations when using the financially leased vehicle and ensure driving with driver license and valid insurance. It shall bear
the legal responsibility during the use of the vehicle. Otherwise, Party A has the right to temporarily withhold the vehicle until
the elimination of such unsafe hidden dangers, and Party B shall pay the rent normally during the period.

 

2. Where the leased vehicle or its setting,
custody, use and operation cause personal injury or property damage to third parties, Party B shall be fully liable for compensation.
Where a third party’s claim to Party A results in Party A’s loss (including but not limited to the compensation paid
by Party A, the legal costs, lawyer's fees, travel expenses and other reasonable expenses and expenses arising from handling the
dispute), Party B shall compensate for Party A’s loss.

 

3. During the lease period, without the written
consent of Party A, Party B shall not use the leased vehicle to engage in transportation that does not conform to its function
and may not disassemble or scrap the vehicle.

 

4. During the period that Party B occupies
and uses the leased vehicle and before the debts owed to Party A are fully settled, Party B shall promptly accept the punishment
for the traffic violations caused by the leased vehicle and bear the fines, point deductions, failure of ownership transfer therefrom.
Where the leased vehicle is detained due to Party B's reasons, Party B still needs to pay the rent in accordance with this Contract.
Where Party A suffers losses therefrom, Party B shall be liable to Party A for compensation.

 

5. Party A shall not be responsible for the
quality assurance of the leased vehicle but shall cooperate with Party B to recover from the supplier as to the defects of the
leased vehicle that really exist and should be attributed to the supplier’s liabilities. Party A's cooperation is limited
to providing transaction documents for purchase of the leased vehicle and transferring part or all of the right of recourse to
Party B. Party B shall not require to change or refuse to perform its due responsibilities or obligations hereunder on the ground
that the leased vehicle has defects. Party A shall not be bound by any representation, guarantee or commitment made by the supplier
to Party B and shall not be held responsible for it.

 

6. Party B shall carefully and properly store
and use the leased vehicle in accordance with the vehicle operating instructions, operation manuals and general industry standards
within the agreed location, use qualified personnel to operate the vehicle and ensure that the vehicle is in good working condition.

 

    	 	7	 

     

    

 

 

7. If the leased vehicle is at risk of damage,
loss, theft, force majeure, etc. during the term of lease, Party B shall not be exempted from its obligation of paying rent to
Party A in accordance with this Contract. At the same time, Party B shall restore or repair the vehicle to a state in which it
can be fully used. If the parts need to be replaced, Party B shall purchase the parts of the same status, performance or value
as those of the leased vehicle at Party B’s own expense.

 

8. To ensure the safety of the leased vehicle,
a GPS system shall be installed. Party B promises not to modify or disassemble the system during the term of lease and not to block
the GPS signal. Otherwise, it shall be regarded as Party B’s default, and Party A has the right to take back the vehicle.
If the GPS system does not function well during the term of lease and Party B fails to cooperate with the repair within 24 hours
after receiving the reminder from Party A, Party A shall have the right to take back the vehicle for the maintenance of GPS.

 

Article 9 Special Agreement on Vehicle Repair
and Maintenance

 

1. During the warranty period of the leased
vehicle, Party B shall perform repair and maintenance at the maintenance place designated by Party A. If Party B fails to perform
repair and maintenance at the maintenance place designated by Party A, Party B shall be in breach of contract, in which case, Party
A may request Party B to perform secondary maintenance at the designated maintenance place, with all the expenses incurred borne
by Party B. Where Party B needs to entrust Party A to handle the maintenance and repair of the vehicle on behalf of Party B, it
shall inform Party A at least one working day in advance. If Party B fails to properly keep and regularly use the leased vehicle
or fails to maintain and repair the vehicle according to the maintenance requirements, thus leads to the loss of the leased vehicle,
Party B shall be liable to Party A for compensation.

 

2. The dispute arising from the quality of
the leased vehicle and the repair service shall be settled by negotiation between Party B and the supplier and the maintenance
service organization. Regardless of the result of the settlement, Party B’s obligation to pay rent and payables to Party
A shall not be affected.

 

3. Parts that are installed or replaced on
the vehicle due to repair, maintenance, etc. are an inseparable part of the vehicle and are owned by Party A.

 

Article 10 Agreement on the Insurance and
Other Expenses Concerning the Leased Vehicle

 

1. If the insurance premium and purchase tax
of the leased vehicle during the term of lease are paid by Party A entrusted by Party B, they shall be borne by Party B. Party
A shall make itself as the insured and the beneficiary to cover the insurances for the leased vehicle according to the insurance
types and insurance amounts specified below, and the expenses shall be borne by Party B:

 

	1) Compulsory insurance for traffic accident of motor-driven vehicle	 	*Compulsory	 	6) Carrier's liability insurance ≥RMB 0.5 million	 	*Compulsory
	2) Vehicle damage insurance (not less than the new car purchase price)	 	*Compulsory	 	7) Robbery and theft insurance	 	*Compulsory
	3) Third party liability insurance of motor-driven vehicle ≥RMB 1 million	 	*Compulsory	 	8) Glass breakage insurance 	 	Optional
	4) Accident excess reduction for above insurance types 2) and 3) 	 	*Compulsory	 	9) Spontaneous combustion insurance 	 	Optional (*Compulsory for vehicles with vehicle age of more than three years)
	5) Insurance for special repair at 4S store	 	Optional 	 	10) Other insurances selected by Party B  	 	Optional

 

    	 	8	 

     

    

 

 

2. The insurance types specified in the above
table are only the minimum requirement for the insurance for the leased vehicle. Party B can increase the insurance types and the
insurance amount according to its own risk tolerance capacity. The leased vehicle shall be insured for a period not less than the
term of lease of the vehicle hereunder.

 

3. The documents for the leased vehicle such
as insurance contracts, insurance policies, insurance invoices, etc. shall be kept by Party A.

 

4. If the leased vehicle is renewed during
the term of lease, Party B shall pay the insurance premium to the account designated by Party A seven days before the due date
of the current insurance, and Party A shall handle the renewal procedure on its behalf.

 

5. As the insured and beneficiary in the insurance,
Party A has the right to offset the due obligation of Party B with insurance indemnity when Party B fails to perform its obligations
as stipulated in this Contract. After the insurance indemnity offsets the payment, Party A or the third party designated by Party
A has the right to claim compensation from Party B.

 

6. During the lease period, if there is a traffic
accident, Party B shall immediately notify the insurance company and Party A. Party B is responsible for collecting relevant information
and proofs for handling claim settlement with insurance companies. If the loss is caused by the delay of Party B, Party B shall
be liable for compensation.

 

7. During the possession and use of the leased
vehicle by Party B, Party B shall bear responsibility for the safety of the leased vehicle. Party A shall not bear any joint or
advance payment liability; Party B shall be responsible for bearing the loss or deficiency after the insurance indemnity as to
the economic compensation liability for the leased vehicle and other property and personal loss caused by accident or other reasons.

 

8. Party B shall bear the losses arising from
vehicle repair or ceased operation caused by the improper use by Party B or accident. Party B still needs to pay the rent during
the ceased operation period.

 

9. When the term of lease expires, if Party
B continues to use or occupy the vehicle, it shall continually bear the insurance premium for the leased vehicle and submit it
to Party A for insurance coverage. If Party A makes payment in advance, Party B shall make payment to Party A. Party B shall also
pay Party A the rent in accordance with the rent amount and payment period stipulated in this Contract. Otherwise, all risks and
consequences arising therefrom shall be borne by Party B.

 

    	 	9	 

     

    

 

 

Article 11 Agreement on the Loss of the
Leased Vehicle

 

During the term of lease, if the leased vehicle
is damaged, lost, defrauded, sublet, stolen or lent by Party B after it loses control of the leased vehicle, even if Party B has
no mistake or fault for the accident itself and its result, it will not exempt or reduce Party B’s compensation obligations
to Party A. After the above-mentioned circumstances such as loss occur, Party B shall promptly notify Party A and assist to report
the case to the police department and the insurance company. Party B also shall compensate Party A for the loss, which shall be
based on the difference between the total unpaid rent for the leased vehicle and the insurance indemnity. After Party B performs
its compensation obligation, this Contract terminates and Party A shall return the lease deposit to Party B without interest.

 

Article 12 Vehicle Take-back

 

1. Party B agrees that Party A may, by itself
or by authorizing a third party, take measures to take back the leased vehicle for re-disposal if Party B delays the rent payment
or loses the ability to pay before the total contract value is fully paid and the proceeds will be used to settle the payables
to Party A by Party B hereunder, including but not limited to, the rent, interest, penalty interest, liquidated damages for the
remaining term.

 

2. If the proceeds are insufficient to repay
the amount payable by Party B, Party B shall make up the difference within seven days from the date of receiving Party A’s
notice. Party B shall cooperate with Party A’s vehicle disposal behavior and waive all defenses (including but not limited
to the vehicle take-back behavior, collected vehicle disposal price and son on). The liabilities and losses caused by the lessor
taking measures to recover the vehicle shall be borne by Party B.

 

Article 13 Guarantee

 

1. Way of Guarantee: Party C voluntarily provides
Party A with irrevocable unlimited joint liability guarantee for Party B to perform all obligations under this Contract and its
annexes. Party C acknowledges that, at the time of guarantee, it fully acknowledges the contracting and operating conditions of
both Party A and Party B. This guarantee is independent, irrevocable and ongoing. The guarantor’s guarantee responsibility
may not be modified by the invalidity or revocation of this Contract, nor is it modified by the lessee and the guarantor’s
behavior of changing their own management or operation system.

 

2. Scope of Guarantee:

 

(1) The rent, liquidated damages, damage awards
and other payables that Party B need to pay hereunder as well as legal cost, attorneys' fees and other expenses paid by Party A
for the realization of the creditor's rights as agreed in this Contract;

 

(2) The investigation charge, litigation fee,
notary fee, attorney's fee, insurance premium and preservation fee for Party A to realize the creditor's rights as well as possible
prepayments and other expenses for Party A. Where this Contract stipulates the specific amount, it shall be followed. If the specific
amount is not stipulated in this Contract, the receipts issued by the relevant units to Party A or the legal documents in force
shall prevail.

 

3. If Party B fails to perform or fails to
fully perform the obligations stipulated in this Contract, Party C shall perform on behalf of Party B to Party A within five working
days after receiving the notice from Party A, and Party C guarantees to waive any right of defense.

 

    	 	10	 

     

    

 

 

4. Guarantee Period: It begins from the effective
date of this Contract and ends when the rent that should be paid by Party B to Party A hereunder and possible liquidated damages
and losses are fully settled.

 

5. The parties agree that if Party B has bankruptcy
proceedings and if, in the bankruptcy proceedings, Party B and other creditors reach a settlement agreement or propose a reorganization
plan, Party A’s rights under this Contract shall not be affected due to the settlement agreement or the reorganization plan
and Party C’s guarantee liability will not be relieved. Party C shall not compete against Party A’s claims for rights
under the conditions stipulated in the settlement agreement or the reorganization plan. If Party B and Party C have legal defense
rights, Party B and Party C are willing to give them up. For the parts that are not paid off despite Party A’s concessions
to Party B in the settlement agreement or the reorganization plan, Party C shall still bear the guarantee liabilities.

 

6. Party C’s guarantee under this Contract
is continuing. Its continuity is not affected by any disputes, claims or legal procedures nor shall be changed by the Party B’s
bankruptcy, inability to repay, loss of enterprise qualification, amendment of articles of association, or any essential changes
or transfer of debts to a third party.

 

7. When Party C loses its guarantee ability, Party
B shall promptly inform Party A and provide a new guarantee approved by Party A; otherwise Party A may request Party B to pay all
the rent in advance.

 

Article 14 Prepayment

 

If Party B makes prepayment in advance during
the term of lease, the repayment amount is equal to the total tax-included amount in this Contract minus the total amount repaid
by Party B. Before transferring the ownership of the leased vehicle to Party B. Party B shall pay the vehicle purchase price of
the vehicle RMB 1 (In words: ONE YUAN ONLY) and Party A shall cooperate with Party B to handle the vehicle transfer
registration formalities, with the corresponding expenses borne by Party B.

 

Article 15 Special Authorization

 

During the performance of this Contract, Party
B authorizes Party A and the designated bank or institution to investigate in a legal manner the various types of information of
Party B and Party B’s family members (applicable to Party B as an individual), including the credit report obtained through
the People’s Bank of China Credit Information Basic Database. At the same time, Party A and the designated bank are authorized
to share the above-mentioned information authorized by Party B through investigation.

 

Article 16 Commitment on Information Authenticity

 

Party B and Party C understand that the information
and data provided to Party A are the important judgment basis for Party A, Party B and Party C to enter into this Contract. Party
B and Party C guarantee the authenticity of various application data and information provided to Party A during its application
and contract performance. If Party B and Party C provide false application materials and information, Party A has the right to
terminate this Contract, and Party B and Party C shall be liable for compensation for the losses arising therefrom.

 

    	 	11	 

     

    

 

 

Article 17 Obligation to Inform

 

Party B shall inform Party A when the following
circumstances occur:

 

1. Party B’s permanent address, domicile,
private telephone number and working telephone number change.

 

2. Party B changes employer or becomes unemployed.

 

3. The business address of Party B’s
self-operated business is changed and Party B’s self-operated business is stopped or closed.

 

4. The marital status of Party B has been changed.

 

5. The vehicle is seriously damaged, lost or
in other similar situations or seized, sealed up, confiscated, compulsorily occupied or subject to the similar measures taken by
government agencies, other institutions or individuals.

 

6. The above situation of the spouse of Party
B has changed.

 

7. Party B is subject to compulsory measures
or execution of penalties for criminal liability.

 

8. If Party B is an enterprise or institution,
it shall promptly inform Party A of the equivalent information as stipulated in this Article.

 

Article 18 Notice

 

1. Notices, consents or other communications
under this Contract must be written in Chinese and delivered in person, recognized international express, registered mail or fax
at the address below or other address or fax number notified by both parties.

 

Party A: 

 

Contact:

 

Tel:

 

Email:

 

Fax:

 

Address:

 

Party B:

 

Contact:

 

Tel:

 

Email:

 

Fax:

 

Address:

 

    	 	12	 

     

    

 

 

Party C:

 

Contact:

 

Tel:

 

Email:

 

Fax:

 

Address:

 

2. All notices or other communications sent
to any party under this Contract shall be deemed to be officially delivered or made at the time of submission (if delivered by
hand or mailed) or upon receipt (if sent by fax). Notices or other communications received at the receiving place on non-working
days or during non-working hours shall be deemed to be served on the next business day of the place.

 

3. Timely Notification of Address Change

 

If a party changes any of the specifics described
in Paragraph 1 of this Article, it must notify the other party in writing before the change takes effect.

 

Article 19 Liability for breach of contract

 

1. Party B shall, in accordance with the provisions
of this Contract, deposit the payable amount of each period into the designated debit card by this Contract on a monthly basis
or otherwise pay in accordance with the Contract. If Party B fails to pay the current payables according to the specified time,
it shall pay the overdue interest to Party A equal to 3‰ of the overdue rent each day.

 

2. During the term of the lease, if the number
of unhandled violations of the leased vehicle reaches 5 or the deducted points reaches 12 or above and Party B still fails to handle
it within one month after the notice of Party A, Party A has the right to use the rent of the current month as the priority for
dealing with the traffic violation, and the overdue liability therefrom shall be borne by Party B. If the rent for the current
month is insufficient to cover the fines for traffic violation, Party A shall be entitled to have deduction from the deposit paid
by Party B. If Party B have traffic violations before Party A handles the mortgage registration and Party B’s failure to
handle them in the first time results in Party A’s registration failure due to the existence of traffic violation, Party
A is entitled to recover the vehicle.

 

3. If any of the following circumstances occurs,
it shall be deemed a material breach of contract by Party B. In that case, Party A may terminate this Contract, take back the leased
vehicle and dispose of it by itself, all the money paid by Party B will not be refunded, and Party B will be required to pay the
amount due for each period and liquidated damages equal to 20% of the total tax-included contract value. If Party A is unable to
take back the vehicle due to Party B’s reasons, Party B shall pay Party A tax-included contract value minus total rent paid
by Party B plus RMB 1. All the expenses resulting from Party A’s realization of creditor’s rights, including but are
not limited to legal cost, legal fee and travel expenses, shall be borne by Party B. In the case of a crime, Party A has the right
to report the case to the police department.

 

    	 	13	 

     

    

 

 

(1) Party B fails to pay the installment according
to the stipulated time and it is 15 days past the due date or there are two cumulative late payments;

 

(2) Party B is involved in litigation or causes
the lease of the vehicle to be seized and impounded by judicial departments, such as public prosecutor’s office, due to the
deterioration of Party B’s assets;

 

(3) Before Party B fails to pay the amount
due in accordance with this Contract, Party B sells, mortgages, pledges, subleases, transfers, makes investment with or otherwise
dispose of the leased vehicle without Party A’s written consent;

 

(4) Without Party A’s consent, Party
B transfers, conceals, disassembles or illegally modifies the leased vehicle or conceals, disassembles, destroys or otherwise invalidates
the attachments to the leased vehicle, resulting in that Party A be exposed to the risk of losing the control over the leased vehicle;

 

(5) Party B has an abnormal movement in the
use of the vehicle, or the contact information is incorrect or Party B cannot be reached;

 

(6) Party B dismantles or destroys GPS equipment
without the permission by Party A, or Party A informs Party B to go to the designated place to inspect GPS equipment but Party
B refuses;

 

(7) Party B misrepresents or conceals facts
in documents, such as application documents;

 

(8) Party B fully or partially loses its capacity
for civil conduct or dies, and its guardian or heir fails to perform the Contract as agreed;

 

(9) Party B has other situations that will
or may lead to the loss of capability to pay debts, including but not limited to:

 

A. Party B’s income has deteriorated
significantly;

 

B. Party B is involved in criminal
cases, economic disputes or other legal disputes;

 

C. Other debts due are not repaid;
or

 

D. Other circumstances in which the
contract performance ability is lost.

 

(10) Without the consensus, Party B unilaterally
terminates this Contract;

 

(11) Party B violates other obligations as
stipulated in this Contract.

 

4. If Party B’s failure to pay Party
A insurance premium during the term of lease that results in Party A’s advance payment thereof, Party B shall pay the overdue
interest to Party A equal to 3‰ of the overdue amount each day.

 

5. If Party A has the right to terminate this
Contract in accordance with the provisions of this Contract, within ten days after Party A sends a reminder notice to Party B,
Party B shall pay in full each installment of payables that are overdue, each installment of payable that have not expired but
are deemed to be expired, liquidated damages and all other payments due but unpaid by Party B to Party A.

 

    	 	14	 

     

    

 

 

6. If Party B defaults, Party A has the right
to include the breach of contract information in the People’s Bank of China’s Credit Information System, and Party
B shall bear the consequences therefrom.

 

7. If Party B is slack to its due credit right
and causes losses to Party A, Party A may request the people’s court at the place where the contract is signed to exercise
the subrogation right in its own name. Party B shall bear such expenses from Party A’s exercise of the subrogation right
as legal cost, attorney’s fee and travel expense.

 

8. Where Party B waives its creditor’s
right or is not able to transfer property, which causes damage to Party A, Party A may, in its own name, request the people’s
court of the place where the Contract is signed to revoke Party B’s waiver behavior. Where Party B’s property transfer
at an obviously unreasonable low price causes damage to Party A, and the transferee knows or should know the situation, Party A
may, in its own name, request the people’s court of the place where the Contract is signed to revoke Party B’s transfer
behavior. Party B shall bear such expenses that result from Party A’s exercise of the right of cancellation as legal cost,
attorney’s fee and travel expense.

 

9. When Party A exercises statutory discharge
or can unilaterally terminate the Contract according to the Contract, if Party A chooses to take back the leased vehicle, Party
B shall pay the rent due but unpaid, the penalty for traffic violation during the term of lease, the damages caused to Party A
and other expenses that should be borne by Party B and liquidated damages equal to 20% of the total tax-included contract value
to Party A.

 

Article 20 Confidentiality Liability

 

1. Party B and Party C shall keep confidential
Party A’s trade secrets obtained by during the performance of the Contract (not limited to business, finance, technology,
product information, customer information, other documents marked as confidential, undisclosed information and all information
in this Contract). Without the written permission of Party A, no party shall disclose such information to other parties; otherwise,
it shall be liable for breach of contract and compensate for the loss.

 

2. This confidentiality article is permanently
valid and is not subject to the validity of this Contract.

 

Article 21 Others

 

1. This Contract is a financial lease contract.
All parties have carefully read all the terms of this Contract and take reasonable measures to draw the attention of other parties
to the terms on exempting or limiting their responsibilities hereunder, and relevant terms are explained in accordance with the
requirements of other parties. Matters not covered in this Contract are implemented in accordance with relevant laws and regulations.
Where no provisions are made in accordance with laws and regulations, Party A and Party B may reach a written supplemental agreement
through negotiation, which has the same legal effect as this Contract.

 

2. The annexes to this Contract and the relevant
documents issued by Party B to Party A, including but not limited to, the power of attorney, commitment letter, confirmation letter,
payment form and application form, are all part of this Contract and have the same legal effect as this Contract.

 

3. Party B has no right to terminate or discharge
the financial leasing contract. If Party B requests to cancel the legal relationship under this Contract in advance due to special
reasons, Party A has the right to review the request and decide whether to agree. The legal relationship under this Contract may
not be lifted without the written consent of Party A.

 

    	 	15	 

     

    

 

 

4.
As for all disputes concerning this Contract, if the negotiation thereon fails, Party A, Party B and Party C agree to the jurisdiction
of the people's court of the place where Party A is located.

 

5. When performing this Contract, Party A,
Party B and Party C shall contact each other and send notices by letter or email. The address of the service shall be the contact
address or e-mail address of the party specified in this Contract. If Party A exercises the statutory right of rescission in accordance
with this Contract or agrees to terminate the Contract, it shall send a written letter via express mail or registered mail of rescission
/termination to Party B to the address specified in this Contract B, which shall be deemed to have been delivered and the Contract
shall be terminated. In addition, notification can also be made in the form of e-mail or text message, which will be deemed to
be delivered to Party B on the third day after the above notice is sent.

 

6. The original of and the annex to this Contract
are made in quintuplicate, with Party A holding three copies and Party B and Party C each holding two copies, which have the same
legal effect. The other required copies shall be agreed upon by both parties.

 

    	 	16	 

     

    

 

 

There is no text below, which are the annex
to and signature page of this Contract:

 

Party A (Lessor) (Seal):

 

Legal Representative (or Authorized Representative)
(Signature):

 

Date of Contract Signing:

 

Party B (Lessee) (Signature and Seal)

 

Date of Contract Signing:

 

Party C (Guarantor) (Signature and Seal)

 

Date of Contract Signing:

 

Place of Contract Signing: Ruixi Auto Store at
No. 777, Section 2, South 2nd Ring, Yuelu Street, Yuelu District, Changsha City, Hunan (Opposite to Sunshine 100)

 

Annex: 

 

The legally valid identification documents of
the parties to the Contract (the legal person is the copy of the business license affixed with the company's official seal, the
natural person is the copy of the ID card with signature)

 

    	 	17

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