Document:

Exhibit 4.22

 

EQUITY INTEREST PLEDGE AGREEMENT

 

This Equity Interest Pledge Agreement (this “Agreement”) has been executed by and among the following parties on _July 20_, 2018 in Beijing, the People’s Republic of China (“China” or the “PRC”):

 

Party A:      Beijing Youxin Fengshun Lubao Vehicle Auction Co., Ltd. (formerly known as Beijing Fengshun Lubao Network Information Technology Co., Ltd.) (hereinafter “Pledgee”), a wholly foreign owned enterprise, organized and existing under the laws of the PRC, with its address at Room 1632, #1-16, Building 1, No. A6, Jianguomenwai Street, Chaoyang District, Beijing;

 

Party B:      Youxin Yishouche (Beijing) Information Technology Co., Ltd. (hereinafter “Pledgor”), a limited liability company organized and existing under the laws of the PRC, with its address at Room 323602, F36, Building 5, Yard 1, Futong East Street, Chaoyang District, Beijing; and

 

Party C:      Beijing Fengshun Lubao Vehicle Auction Co., Ltd., a limited liability company organized and existing under the laws of the PRC, with its address at Room 1416, 14th Floor, Fengkai Wangyuan Technology Incubation Center (Wangyuan Tower), #56 West Fourth Ring South Road, Fengtai District, Beijing.

 

In this Agreement, each of Pledgee, Pledgor and Party C shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas:

 

1.                      Pledgor is a limited liability company who as of the date hereof holds 100% of equity interests of Party C, representing RMB20,000,000in the registered capital of Party C.  Party C is a limited liability company registered in Beijing, China, engaging in consulting and service business.  Party C acknowledges the respective rights and obligations of Pledgor and Pledgee under this Agreement, and intends to provide any necessary assistance in registering the Pledge;

 

2.                      Pledgee is a wholly foreign-owned enterprise registered in China.  Pledgee and Party C which is partially owned by Pledgor have executed an Exclusive Business Cooperation Agreement (as defined below) in Beijing; Party C, Pledgee and Pledgor have executed an Exclusive Option Agreement (as defined below); Pledgor has executed a Power of Attorney (as defined below) in favor of Pledgee;

 

3.                      To ensure that Party C and Pledgor fully perform their obligations under the Exclusive Business Cooperation Agreement, the Exclusive Option Agreement and the Power of Attorney, Pledgor hereby pledges to the Pledgee all of the equity interest that Pledgor holds in Party C as security for Party C’s and Pledgor’s obligations under the Exclusive Business Cooperation Agreement, the Exclusive Option Agreement and the Power of Attorney.

 

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To perform the provisions of the Transaction Documents (as defined below), the Parties have mutually agreed to execute this Agreement upon the following terms.

 

1.              Definitions

 

Unless otherwise provided herein, the terms below shall have the following meanings:

 

1.1                  Pledge: shall refer to the security interest granted by Pledgor to Pledgee pursuant to Section 2 of this Agreement, i.e., the right of Pledgee to be paid in priority with the Equity Interest based on the monetary valuation that such Equity Interest is converted into or from the proceeds from auction or sale of the Equity Interest.

 

1.2                  Equity Interest: shall refer to 100% equity interests in Party C currently held by Pledgor, representing RMB20,000,000 in the registered capital of Party C, and all of the equity interest hereafter acquired by Pledgor in Party C.

 

1.3                  Term of Pledge: shall refer to the term set forth in Section 3 of this Agreement.

 

1.4                  Transaction Documents: shall refer to the Exclusive Business Cooperation Agreement executed by and between Party C and Pledgee on April 18, 2015 (the “Exclusive Business Cooperation Agreement”), the Exclusive Option Agreement executed by and among Party C, Pledgee and Pledgor on July 20, 2018 (the “Exclusive Option Agreement”), Power of Attorney executed on July 20, 2018 by Pledgor (the “Power of Attorney”) and any modification, amendment and restatement to the aforementioned documents.

 

1.5                  Contract Obligations: shall refer to all the obligations of Pledgor under the Exclusive Option Agreement, the Power of Attorney and this Agreement; all the obligations of Party C under the Exclusive Business Cooperation Agreement, the Exclusive Option Agreement and this Agreement.

 

1.6                  Secured Indebtedness: shall refer to all the direct, indirect and derivative losses and losses of anticipated profits, suffered by Pledgee, incurred as a result of any Event of Default.  The amount of such loss shall be calculated in accordance with the reasonable business plan and profit forecast of Pledgee, the consulting and service fees payable to Pledgee under the Exclusive Business Cooperation Agreement, all expenses occurred in connection with enforcement by Pledgee of Pledgor’s and/or Party C’s Contract Obligations and etc.

 

1.7                  Event of Default: shall refer to any of the circumstances set forth in Section 7 of this Agreement.

 

1.8                  Notice of Default: shall refer to the notice issued by Pledgee in accordance with this Agreement declaring an Event of Default.

 

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2.              Pledge

 

2.1                  Pledgor agrees to pledge all the Equity Interest as security for performance of the Contract Obligations and payment of the Secured Indebtedness under this Agreement.  Party C hereby assents that Pledgor pledges the Equity Interest to the Pledgee pursuant to this Agreement.

 

2.2                  During the term of the Pledge, Pledgee is entitled to receive dividends distributed on the Equity Interest.  Pledgor may receive dividends distributed on the Equity Interest only with prior written consent of Pledgee.  Dividends received by Pledgor on Equity Interest after deduction of individual income tax paid by Pledgor shall be, as required by Pledgee, (1) deposited into an account designated and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally donated to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

2.3                  Pledgor may subscribe for capital increase in Party C only with prior written consent of Pledgee.  Any equity interest obtained by Pledgor as a result of Pledgor’s subscription of the increased registered capital of the Company shall also be deemed as Equity Interest.

 

2.4                  In the event that Party C is required by PRC law to be liquidated or dissolved, any interest distributed to Pledgor upon Party C’s dissolution or liquidation shall, upon the request of the Pledgee, be (1) deposited into an account designate and supervised by Pledgee and used to secure the Contract Obligations and pay the Secured Indebtedness prior and in preference to make any other payment; or (2) unconditionally donated to Pledgee or any other person designated by Pledgee to the extent permitted under applicable PRC laws.

 

3.              Term of Pledge

 

3.1                  The Pledge shall become effective on such date when the pledge of the Equity Interest contemplated herein is registered with relevant administration for industry and commerce (the “AIC”).  The Pledge shall remain effective until all Contract Obligations have been fully performed and all Secured Indebtedness have been fully paid.  Pledgor and Party C shall (1) register the Pledge in the shareholders’ register of Party C within 3 business days following the execution of this Agreement, and (2) submit an application to the AIC for the registration of the Pledge of the Equity Interest contemplated herein within 15 business days following the execution of this Agreement.  The parties covenant that for the purpose of registration of the Pledge, the parties hereto and all other shareholders of Party C shall submit to the AIC this Agreement or an equity interest pledge contract in the form required by the AIC at the location of Party C which shall truly reflect the information of the Pledge hereunder (the “AIC Pledge Contract”).  For matters not specified in the AIC Pledge Contract, the parties shall be bound by the provisions of this Agreement.  Pledgor and Party C shall submit all necessary documents and complete all necessary procedures, as required by the PRC laws and regulations and the relevant AIC, to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible after submission for filing.

 

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3.2                  During the Term of Pledge, in the event Pledgor and/or Party C fails to perform the Contract Obligations or pay Secured Indebtedness, Pledgee shall have the right, but not the obligation, to exercise the Pledge in accordance with the provisions of this Agreement.

 

4.              Custody of Records for Equity Interest subject to Pledge

 

4.1                  During the Term of Pledge set forth in this Agreement, Pledgor shall deliver to Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register containing the Pledge within one week from the execution of this Agreement.  Pledgee shall have custody of such documents during the entire Term of Pledge set forth in this Agreement.

 

5.              Representations and Warranties of Pledgor and Party C

 

As of the execution date of this Agreement, Pledgor and Party C hereby jointly and severally represent and warrant to Pledgee that:

 

5.1                  Pledgor is the sole legal and beneficial owner of the Equity Interest.

 

5.2                  Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions set forth in this Agreement.

 

5.3                  Except for the Pledge, Pledgor has not placed any security interest or other encumbrance on the Equity Interest.

 

5.4                  Pledgor and Party C have obtained any and all approvals and consents from applicable government authorities and third parties (if required) for execution, delivery and performance of this Agreement.

 

5.5                  The execution, delivery and performance of this Agreement will not: (i) violate any relevant PRC laws; (ii) conflict with Party C’s articles of association or other constitutional documents; (iii) result in any breach of or constitute any default under any contract or instrument to which it is a party or by which it is otherwise bound; (iv) result in any violation of any condition for the grant and/or maintenance of any permit or approval granted to any Party; or (v) cause any permit or approval granted to any Party to be suspended, cancelled or attached with additional conditions.

 

6.              Covenants of Pledgor and Party C

 

6.1                  During the term of this Agreement, Pledgor and Party C hereby jointly and severally covenant to the Pledgee:

 

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6.1.1                     Pledgor shall not transfer the Equity Interest, place or permit the existence of any security interest or other encumbrance on the Equity Interest or any portion thereof, without the prior written consent of Pledgee, except for the performance of the Transaction Documents;

 

6.1.2                     Pledgor and Party C shall comply with the provisions of all laws and regulations applicable to the pledge of rights, and within five (5) days of receipt of any notice, order or recommendation issued or prepared by relevant competent authorities regarding the Pledge, shall present the aforementioned notice, order or recommendation to Pledgee, and shall comply with the aforementioned notice, order or recommendation or submit objections and representations with respect to the aforementioned matters upon Pledgee’s reasonable request or upon consent of Pledgee;

 

6.1.3                     Pledgor and Party C shall promptly notify Pledgee of any event or notice received by Pledgor that may have an impact on the Equity Interest or any portion thereof, as well as any event or notice received by Pledgor that may have an impact on any guarantees and other obligations of Pledgor arising out of this Agreement.

 

6.1.4                     Party C shall complete the registration procedures for extension of the term of operation within three (3) months prior to the expiration of such term to maintain the validity of this Agreement.

 

6.2                 Pledgor agrees that the rights acquired by Pledgee in accordance with this Agreement with respect to the Pledge shall not be interrupted or harmed by Pledgor or any heirs or representatives of Pledgor or any other persons through any legal proceedings.

 

6.3                 To protect or perfect the security interest granted by this Agreement for the Contract Obligations and Secured Indebtedness, Pledgor hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all certificates, agreements, deeds and/or covenants required by Pledgee.  Pledgor also undertakes to perform and to cause other parties who have an interest in the Pledge to perform actions required by Pledgee, to facilitate the exercise by Pledgee of its rights and authority granted thereto by this Agreement, and to enter into all relevant documents regarding ownership of Equity Interest with Pledgee or designee(s) of Pledgee (natural persons/legal persons).  Pledgor undertakes to provide Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that are required by Pledgee.

 

6.4                 Pledgor hereby undertakes to comply with and perform all guarantees, promises, agreements, representations and conditions under this Agreement.  In the event of failure or partial performance of its guarantees, promises, agreements, representations and conditions, Pledgor shall indemnify Pledgee for all losses resulting therefrom.

 

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7.              Event of Breach

 

7.1                  The following circumstances shall be deemed Event of Default:

 

7.1.1                    Pledgor’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.1.2                    Party C’s any breach to any obligations under the Transaction Documents and/or this Agreement.

 

7.2                  Upon notice or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in Section 7.1, Pledgor and Party C shall immediately notify Pledgee in writing accordingly.

 

7.3                  Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to Pledgee’s satisfaction within twenty (20) days after the Pledgee and /or Party C delivers a notice to the Pledgor requesting ratification of such Event of Default, Pledgee may issue a Notice of Default to Pledgor in writing at any time thereafter, demanding the Pledgor to immediately exercise the Pledge in accordance with the provisions of Section 8 of this Agreement.

 

8.              Exercise of Pledge

 

8.1                  Pledgee shall issue a written Notice of Default to Pledgor when it exercises the Pledge.

 

8.2                  Subject to the provisions of Section 7.3, Pledgee may exercise the right to enforce the Pledge at any time after the issuance of the Notice of Default in accordance with Section 8.1.  Once Pledgee elects to enforce the Pledge, Pledgor shall cease to be entitled to any rights or interests associated with the Equity Interest.

 

8.3                  After Pledgee issues a Notice of Default to Pledgor in accordance with Section 8.1, Pledgee may exercise any remedy measure under applicable PRC laws, the Transaction Documents and this Agreement, including but not limited to being paid in priority with the Equity Interest based on the monetary valuation that such Equity Interest is converted into or from the proceeds from auction or sale of the Equity Interest.  The Pledgee shall not be liable for any loss incurred by its duly exercise of such rights and powers.

 

8.4                  The proceeds from exercise of the Pledge by Pledgee shall be used to pay for tax and expenses incurred as result of disposing the Equity Interest and to perform Contract Obligations and pay the Secured Indebtedness to the Pledgee prior and in preference to any other payment.  After the payment of the aforementioned amounts, the remaining balance shall be returned to Pledgor or any other person who have rights to such balance under applicable laws or be deposited to the local notary public office where Pledgor resides, with all expense incurred being borne by Pledgor.  To the extent permitted under applicable PRC laws, Pledgor shall unconditionally donate the aforementioned proceeds to Pledgee or any other person designated by Pledgee.

 

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8.5                  Pledgee may exercise any remedy measure available simultaneously or in any order.  Pledgee may exercise the right to being paid in priority with the Equity Interest based on the monetary valuation that such Equity Interest is converted into or from the proceeds from auction or sale of the Equity Interest under this Agreement, without exercising any other remedy measure first.

 

8.6                  Pledgee is entitled to designate an attorney or other representatives to exercise the Pledge on its behalf, and Pledgor or Party C shall not raise any objection to such exercise.

 

8.7                  When Pledgee disposes of the Pledge in accordance with this Agreement, Pledgor and Party C shall provide necessary assistance to enable Pledgee to enforce the Pledge in accordance with this Agreement.

 

9.              Breach of Agreement

 

9.1                  If Pledgor or Party C conducts any material breach of any term of this Agreement, Pledgee shall have right to terminate this Agreement and/or require Pledgor or Party C to indemnify all damages; this Section 9 shall not prejudice any other rights of Pledgee herein;

 

9.2                  Pledgor or Party C shall not have any right to terminate this Agreement in any event unless otherwise required by applicable laws.

 

10.       Assignment

 

10.1           Without Pledgee’s prior written consent, Pledgor and Party C shall not have the right to assign or delegate their rights and obligations under this Agreement.

 

10.2           This Agreement shall be binding on Pledgor and his/her successors and permitted assigns, and shall be valid with respect to Pledgee and each of his/her successors and assigns.

 

10.3           At any time, Pledgee may assign any and all of its rights and obligations under the Transaction Documents and this Agreement to its designee(s), in which case the assigns shall have the rights and obligations of Pledgee under the Transaction Documents and this Agreement, as if it were the original party to the Transaction Documents and this Agreement.

 

10.4           In the event of change of Pledgee due to assignment, Pledgor and/or Party C shall, at the request of Pledgee, execute a new pledge agreement with the new pledgee on the same terms and conditions as this Agreement, and register the same with the relevant AIC.

 

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10.5           Pledgor and Party C shall strictly abide by the provisions of this Agreement and other contracts jointly or separately executed by the Parties hereto or any of them, including the Transaction Documents, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof.  Any remaining rights of Pledgor with respect to the Equity Interest pledged hereunder shall not be exercised by Pledgor except in accordance with the written instructions of Pledgee.

 

11.       Termination

 

11.1           Upon the fulfillment of all Contract Obligations and the full payment of all Secured Indebtedness by Pledgor and Party C, Pledgee shall release the Pledge under this Agreement upon Pledgor’s request as soon as reasonably practicable and shall assist Pledgor to de-register the Pledge from the shareholders’ register of Party C and with relevant PRC local administration for industry and commerce.

 

11.2           The provisions under Sections 9, 13, 14 and 11.2 herein of this Agreement shall survive the expiration or termination of this Agreement.

 

12.       Handling Fees and Other Expenses

 

All fees and out of pocket expenses relating to this Agreement, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party C.

 

13.       Confidentiality

 

The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information.  Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, directors, employees, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, directors, employees, legal counsels or financial advisors shall be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the shareholders, director, employees of or agencies engaged by any Party shall be deemed disclosure of such confidential information by such Party and such Party shall be held liable for breach of this Agreement.

 

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14.       Governing Law and Resolution of Disputes

 

14.1           The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

 

14.2           In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations.  In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party’s request to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration Commission for arbitration, in accordance with its Arbitration Rules.  The arbitration shall be conducted in Beijing.  The arbitration award shall be final and binding on all Parties.

 

14.3           Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under this Agreement.

 

15.       Notices

 

15.1           All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such party set forth below.  A confirmation copy of each notice shall also be sent by E-mail.  The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

15.2           Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

 

15.3           Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

 

15.4           For the purpose of notices, the addresses of the Parties are as follows:

 

	
Party A:
    	
Beijing   Youxin Fengshun Lubao Vehicle Auction Co., Ltd.
    
	
 
    	
 
    
	
Address:
    	
Miaopu, #35 Dahuangzhuang, Chaoyang   District, Beijing
    
	
Attn:
    	
Xu Jing
    
	
Phone:
    	
86 10 80180316
    
	
Facsimile:
    	
86 10 80180396
    

 

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Party B:
    	
Youxin Yishouche (Beijing) Information   Technology Co., Ltd.
    
	
 
    	
 
    
	
Address:
    	
Floor 3rd, Building E, Lei Shing   Hong Center, No. 8, Guanshun South Street, Chaoyang District, Beijing
    
	
Attn:
    	
Cai Na
    
	
Facsimile:
    	
010-84752441
    

 

	
Party   C:
    	
Beijing   Fengshun Lubao Vehicle Auction Co., Ltd.
    
	
 
    	
 
    
	
Address:
    	
Miaopu, #35 Dahuangzhuang, Chaoyang   District, Beijing
    
	
Attn:
    	
Xu Jing
    
	
Phone:
    	
86 10 80180316
    
	
Facsimile:
    	
86 10 80180396
    

 

15.5           Any Party may at any time change its address for notices by a notice delivered to the other Parties in accordance with the terms hereof.

 

16.       Severability

 

In the event that one or several of the provisions of this Contract are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Contract shall not be affected or compromised in any respect.  The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

17.       Attachments

 

The attachments set forth herein shall be an integral part of this Agreement.

 

18.       Effectiveness

 

18.1           This Agreement shall become effective upon execution by the Parties.

 

18.2           Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon completion of the governmental filing procedures (if applicable) after the affixation of the signatures or seals of the Parties.

 

19.       Language and Counterparts

 

This Agreement is written in Chinese and English in four copies.  Pledgor, Pledgee and Party C shall hold one copy respectively and the other copy shall be used for registration.  The Chinese version and English version shall have equal legal validity.

 

The Remainder of this page is intentionally left blan

 

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IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Equity Interest Pledge Agreement as of the date first above written.

 

Party A:            Beijing Youxin Fengshun Lubao Vehicle Auction Co., Ltd.

 

 

	
By:
    	
Shuo Huang
    	
 
    
	
Name:
    	
Shuo HUANG
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

 

Party B:            Youxin Yishouche (Beijing) Information Technology Co., Ltd.

 

	
By:
    	
Zhen ZENG
    	
 
    
	
Name:
    	
Zhen ZENG
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

 

Party C:            Beijing Fengshun Lubao Vehicle Auction Co., Ltd.

 

	
By:
    	
Shuo Huang
    	
 
    
	
Name:
    	
Shuo HUANG
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

 

Attachments:

 

1.                              Register of Shareholders of Party C;

 

2.                              The Capital Contribution Certificate for Party C;

 

3.                              Exclusive Business Cooperation Agreement.

 

4.                              Exclusive Option Agreement

 

5.                              Power of AttorneyExhibit 4.35

 

Contract No.: Wei Yin (KF-Kai Feng) He Zi 2018 No. 001

 

 

AUTO FINANCING BUSINESS COOPERATION AGREEMENT

 

 

BETWEEN

 

 

[*]

 

 

AND

 

 

KAI FENG FINANCE LEASE (HANGZHOU) CO., LTD.

 

CERTAIN INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.

 

[*] indicates the redacted confidential portions of this exhibit.

 

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AUTO FINANCING BUSINESS COOPERATION AGREEMENT

 

Party A: [*]

Address: [*]

Legal representative: [*]

Tel: [*]

 

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

 

Address: Room 1814, Unit 1, Block 3, Wanda Business Center, Gongshu District, Hangzhou, Zhejiang

Legal Representative: Zhen Zeng

Tel: (010) 84752481

 

Through friendly negotiation, Party A and Party B intend to enter into cooperation in respect of the financing business related to the purchase of vehicles and/or additional products (services) of vehicles by individual consumers and hereby reach the following terms and conditions.

 

Article 1                           Definitions

 

1.1                     “Consumer” shall refer to a domestic natural person requesting for loans from Party A through Party B.

 

1.2                     “Loan Contract” shall refer to the Auto Financing Loan Contract entered into between the Consumer and Party A (the specific name thereof being the name of the contract executed by the Consumer) and supplemental agreements and relevant appendices thereto.

 

1.3                     “Electronic Loan Receipt” shall refer to the electronic document showing to the Consumer such elements of the loan as the borrower, lender, amount of loan, term of loan, interest rate of loan, repayment amount, repayment date and collateral.

 

1.4                     “Financial Lease Contract” shall refer to the Financial Lease Contract entered into between the Consumer and Party B (the specific name thereof being the name of the contract executed by the Consumer) and supplemental agreements and relevant appendices thereto.

 

1.5                     “Service Agreement” shall refer to the Auto Financing Service Agreement entered into between Party A and Party B (the specific name thereof being the name of the agreement executed by both parties) and supplemental agreements and relevant appendices thereto.

 

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Article 2                           Model of Cooperation

 

2.1                     The Consumer will sell the vehicle purchased and owned by him/her to Party B and then lease back such vehicle for use and make the financial lease payment in installments to Party B. During the term of lease, the title of the vehicle will be registered under the name of the Consumer or such holder as designated by the Consumer.

 

2.2                     Upon Party B’s recommendation, the Consumer will request for a loan from Party A through Party B, for repaying the financial lease payment owed to Party B.

 

2.3                     Party B will provide the agreed offline service to Party A, receive relevant service fees and provide guarantee in relation to such loan in accordance with the Service Agreement.

 

Article 3                           Term of Cooperation

 

3.1                                                           This Agreement shall apply to all transactions under which individual loans are disbursed between June 28, 2018 and June 27, 2020 (inclusive). Upon the expiry of such term of cooperation, the term of cooperation hereunder shall be extended for one year automatically and shall only be extended once if no written notice is received from either party to terminate the cooperation upon expiry of the term thereof.

 

3.2                                                           Upon the expiry of the term of cooperation, the outstanding loans payable by Consumers in connection with the cooperation hereunder are still subject to this Agreement and this Agreement shall remain effective until all outstanding loans are paid up by the Consumers.

 

Article 4                           Rights and Duties of the Parties

 

4.1                                                           Rights and Duties of Party A

 

4.1.1           Party A shall develop risk management policies, including without limitation the credit admittance policy, examination and approval conditions and post-loan management strategies.

 

4.1.2           Party A shall review Party B’s management regulations and operation procedures in connection with the cooperation hereunder.

 

4.1.3           Party A shall be responsible for examination and approval for loans, including without limitation screening of fraud risks, determination of credit admittance 

 

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and examination of loan purpose.

 

4.1.4           Party A shall disburse loans to Consumers who are eligible for loans and satisfy the conditions for disbursement of loans, unless it is unable to disburse loans due to such reasons as requirements of laws and regulations, regulatory policies, risk policies, quota, system malfunction, or waiver by the Consumers.

 

4.1.5           Party A shall manage the loans in their duration, including without limitation the post-loan monitoring, risk classification, allocation of provisions, capital occupation and asset recovery.

 

4.1.6           Party A shall be responsible for inquiries on Consumers’ credit standing and submit credit data to the Credit Center of the People’s Bank of China (PBC) in accordance with relevant regulations.

 

4.1.7           In case of a breach by Party B, Party A shall have the right to change the model of cooperation, products under cooperation, risk management policies and provisions on pledge over the deposit.

 

4.2                                                       Rights and Duties of Party B

 

4.2.1           Party B shall provide relevant service to Party A and receive service fees in accordance with the Service Agreement between both parties.

 

4.2.2           Party B shall, in relevant terms of the Financial Lease Contract entered into with the Consumer, express the intention that “if the Consumer uses the loan to repay the financial lease payment, the title of the vehicle shall be transferred to the Consumer”. Subject to the foregoing, Party B may agree with the Consumer on the rights and interests in and to the vehicle in the Financial Lease Contract, unless otherwise specified herein.

 

4.2.3           Party B shall carry out transactions under the cooperation hereunder in its own name. If it carries out transactions in other names (including without limitation Party B’s branches, subsidiaries, affiliates or other authorized third parties), it shall obtain Party A’s prior written consent and complete the relevant legal procedures.

 

4.2.4           If Party B and/or its affiliates make any plan which may affect Party B’s operational ability and transactions under cooperation, including without limitation change of corporate structure, change of business model, change of product forms, execution or modification of agreements which may affect the cooperation hereunder or Party A’s interests, etc., Party B shall notify Party A in writing at least [*] working days prior to the implementation of such plan.

 

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4.2.5           If any event occurs to Party B and/or its affiliates which may affect Party B’s operational ability and transactions under cooperation, including without limitation a material adverse change in its operational status, high-amount fines being imposed by competent authorities, major legal disputes, ultimate controller and major management personnel being involved in negative events (including litigation), etc., Party B shall notify Party A in writing within [*] working days after the occurrence of such event.

 

4.2.6           Party B shall provide deposit as security and use the vehicle as collateral in favor of Party A to secure the Consumer’s debts in accordance with this Agreement.

 

4.3                                                           Rights and Duties of Both Parties

 

4.3.1           Both parties shall jointly negotiate for and properly adjust such matters as the model of cooperation and term of cooperation.

 

4.3.2           Both parties shall jointly resolve the disputes and controversies with Consumers and issue relevant certifications concerning the Consumers.

 

4.3.3           Both parties shall jointly improve the channel management, business process, risk control and system functions.

 

4.3.4           Both parties shall use the corporate and product marks in such manner as agreed between both parties through negotiation during the term of cooperation.

 

Article 5                           Account Management

 

5.1                                                           Party B shall open a settlement account at Party A, with the account number of [*], which will be mainly used for settlements for the transactions under the cooperation hereunder. Party B shall give close attention to and maintain the adequacy of funds in such account. This account will be used for the following purposes:

 

5.1.1           to pay the deposit: to authorize Party A to deduct and transfer relevant amount to the deposit account in accordance with this Agreement;

 

5.1.2           to pay other amounts: to pay other relevant amounts payable in accordance with this Agreement and the Service Agreement;

 

5.1.3           to receive the loan proceeds: to receive the loan proceeds disbursed by Party A to Consumers in accordance with this Agreement;

 

5.1.4           to receive the service fees: to receive the service fees paid by Party A to Party B 

 

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in accordance with this Agreement;

 

5.1.5           to receive interest accrued on the accounts: to receive interest remitted from the escrow account and deposit account; and

 

5.1.6           to receive remittances: to receive remittances from the escrow account and deposit account.

 

5.2                                                           Party B shall open an escrow account at Party A, with the account number of [*]. The funds in the escrow account will be managed by Party A and shall not be remitted or drawn by Party B without authorization. This account will be used for the following purposes:

 

5.2.1           to receive the loan proceeds: to receive the loan proceeds disbursed by Party A to the Consumers in accordance with this Agreement;

 

5.2.2           to receive other escrow amounts: to receive other escrow amounts as agreed upon between both parties; and

 

5.2.3           [*]

 

5.3                                                           Party B shall open a deposit account with Party A, with the account number of [*]. This account will be used for the following purposes:

 

5.3.1           to retain the deposit: to retain the deposit in accordance with this Agreement; and

 

5.3.2           [*]

 

Article 6                           Disbursement of Loan

 

6.1                                                           If the Consumer passes Party A’s review and satisfies the conditions for disbursement of the loan, Party A will disburse the loan proceeds to Party B’s escrow account in accordance with the Loan Contract and the provisions on entrusted payment, and meanwhile remit [*%] of the loan proceeds from the escrow account to the settlement account.

 

6.2                                                           Party B shall duly complete the registration of vehicle mortgage within the stipulated term in accordance with the Service Agreement and provide Party A with photocopies of the Vehicle Registration Certificate carrying information on the registered mortgage rights as required by Party A. Upon receipt of the qualified photocopies, Party A will remit the remaining [*%] of the loan proceeds from the escrow account to the settlement account.

 

6

 

6.3                                                           If Party B fails to complete the registration of vehicle mortgage or provide relevant photocopies within [*] calendar days (inclusive) after disbursement of the loan, Party A will make deductions from Party B’s settlement account to the escrow account, until the amount in the escrow account is not less than [*%] of the disbursed amount of the loan.

 

6.4                                                           Thereafter, if Party B completes the registration of vehicle mortgage and provides relevant photocopies within [*] calendar days (inclusive) after disbursement of the loan, Party A will release relevant amount of the loan from the escrow account to the settlement account periodically.

 

6.5                                                           If Party B still fails to complete the registration of vehicle mortgage or provide relevant photocopies within [*] calendar days (inclusive) after disbursement of the loan, Party A will declare that the loan is due immediately and require Party B to repay such loan on behalf of the Consumer. Party B irrevocably authorizes Party A to deduct the outstanding amount of the loan from the escrow account, and the balance, if any, remaining in the escrow account will be transferred to the settlement account.

 

Article 7                           Repayment and Interest Payment

 

7.1                                                           Party A and Party B will remind and procure the Consumer to repay the principal of the loan and pay interest on the loan on schedule in the stipulated manner and to the stipulated account in accordance with the elements of loan as recorded on the Electronic Loan Receipt.

 

For different types of products/loans under the cooperation between Party A and Party B, the interest rates vary as follows:

 

	
Type of product/loan
    	
 
    	
Annualized interest rate
    
	
Loan for final payment   for “pay half” products with monthly repayments
    	
 
    	
[*%]
    
	
 
    	
 
    	
 
    
	
Loan for installment   payments for “pay half” products with monthly repayments
    	
 
    	
[*%]
    

 

7.2                                                           If necessary, the Consumer is permitted to prepay the loan upon the stipulated conditions, until the principal of and interest on the loan have been fully paid.

 

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7.3                                                           If the Consumer fails to fully repay the principal and interest owed on the relevant repayment date, Party A shall have the right, from the overdue date, to calculate default interest on the overdue amount based on the number of overdue days at a rate which is [*%] higher than the interest rate recorded in the Electronic Loan Receipt.

 

7.4                                                           The collection and disposal process agreed between both parties will be applicable for overdue loans.

 

Article 8                           Service Fee and Other Fees

 

8.1                                                           The fees of data inquiry and data lines incurred for the cooperation hereunder shall be borne by both parties as follows:

 

8.1.1           Credit information query fees charged by PBC and public security governmental departments, as well as data line expenses charged by PBC and the Ministry of Public Security shall be borne by Party A.

 

8.1.2           Other credit information query fees as well as the data line expenses charged by data providers shall be borne by Party B.

 

8.1.3           In respective of relevant fees incurred from rent of data line from operators for purpose of data sharing and system direct connection, Party B should bear the cost for one main line and Party A shall bear the cost for one backup line.

 

8.2                                                           Other than the aforesaid, neither party may charge the other for transaction fees or any other fees in connection with the system interconnection, unless otherwise agreed upon between both parties.

 

8.3                                                           Technical Service Fee

 

8.3.1           Party A will provide technical service for automatic settlement of escrow amounts for Party B. If the Consumer passes Party A’s review and satisfies the conditions for disbursement of the loan, Party A will disburse the loan proceeds to Party B’s escrow account in accordance with the Loan Contract and the provisions on entrusted payment, and Party B authorizes Party A to automatically remit [*%] of the loan proceeds in the escrow account (the “Amount of Automatic Settlement”) to Party B’s settlement account through the automatic settlement function. The remaining [*%] of the loan proceeds in the escrow account (the “Amount of Settlement upon Approval”) will be remitted in accordance with this Agreement upon approval by Party A.

 

8.3.2           Party A has the right to charge the technical service fee for the technical service

 

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for automatic settlement of escrow amounts on the basis of the Amount of Automatic Settlement and at a rate of [*%] per day, for the following period: [*].

 

8.3.3           Party A has the right to deduct such amount of technical service fee as specified in Clause 8.3.2 from Party B’s settlement account upon the expiry of the period of charging.

 

8.3.4           Upon receipt of the technical service fee paid by Party B, Party A shall issue the invoice satisfying the requirements of Party B’s finance department for the corresponding period of the underlying transaction (on a monthly basis) and mail the invoice to Party B within the first [*] working days of the next month.

 

Article 9                           Pledge over the Deposit

 

9.1                                                           Party B will open a deposit account with Party A for payment and release of the deposit as follows:

 

Party B irrevocably authorizes Party A to, before the disbursement of each loan, deduct an amount not less than [*%] of the disbursed amount of the loan from Party B’s settlement account and remit that amount to the deposit account. Party A will periodically release the balance of the deposit, if any, after the full repayment of the loan and Party A’s exercise of the priority of compensation against the deposit.

 

9.2                                                           The aforesaid amount will be deemed specialized and delivered to Party A when paid into the deposit account, and the pledge over such amount will become effective to secure all debts owed by the Consumer hereunder, including without limitation the principal of the loan, interest and default interest on the loan, and other relevant fees.

 

9.3                                                           If Party B fails to pay the deposit in full and on schedule, Party A shall have the right not to enter into new transactions under the cooperation.

 

9.4                                                           If the Consumer fails to repay the loan or pay the interest on the due date, Party A shall have the priority to be compensated from the deposit remaining in the deposit account.

 

Article 10                    Mortgage over the Vehicle

 

10.1                                                    The Consumer and Party B will enter into the Financial Lease Contract to effect the mortgage registration with Party B as the mortgagee.

 

10.2                                                    After Party A disburses the loan to the Consumer for repaying the financial 

 

9

 

lease payment under the Financial Lease Contract, the Consumer shall acquire the title of the vehicle under such Financial Lease Contract and will, in accordance with the Loan Contract entered into with Party A, use the vehicle as collateral in favor of Party A to secure the debts owed under the Loan Contract.

 

10.2.1                      Party A has the right not to go through the registration of vehicle mortgage immediately and to require cancellation of the registration with Party B as the mortgagee at any time.

 

10.2.2                      Party A has the right to go through the registration of vehicle mortgage with Party A and/or the third party designated by Party A as the mortgagee, in which Party B shall unconditionally provide assistance.

 

10.3                                                    In the duration of the loan, without Party A’s written consent, Party B and the Consumer shall not cancel the registration of collateral with Party B as the mortgagee, or transfer, sell, auction, create new mortgage over the vehicle or take other acts that may affect Party A’s mortgage rights.

 

10.4                                                    Party B is responsible for keeping the original of the Vehicle Registration Certificate until full repayment of the loan.

 

10.5                                                    The proceeds from the transfer, auction or sale of the vehicle in enforcing the mortgage over the vehicle by Party A or by Party B on behalf of Party A shall first be used to repay the principal of the loan, the interest and default interest on the loan and other relevant fees owed by the Consumer to Party A, and Party B shall not challenge Party A’s priority of compensation on any ground.

 

10.6                                                    If Party B makes other arrangements which renders it impossible to give effect to the provisions of Clauses 4.2.2 and 10.2 hereof, Party B shall agree that: (1) the balance of creditor’s claim corresponding to the mortgage registration with Party B as the mortgagee under the Financial Lease Contract shall be RMB [*]; and (2) the vehicle shall be mortgaged in favor of Party A to secure the loan under this Agreement, which shall cover the principal of such loan, interest and default interest on such loan and other fees, and the information on the collateral shall be consistent with that recorded on the related Electronic Loan Receipt.

 

Article 11                    Information Security and Data Sharing

 

11.1                                                    As permitted by applicable laws, the data of the cooperation hereunder should be stored in the host system of Party A and Party B. Each party shall take the confidentiality and security measures on the financial data stored and managed by it in accordance with the regulatory and compliance requirements.

 

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11.2                                                    Party A and Party B shall take effective technical measures to safeguard the Consumer information and protect the rights of Consumers, and shall formulate specific rules related to information security, Consumer rights protection, accident treatment and compensation liabilities.

 

11.3                                                    In the event of the occurrence of an IT emergency as defined by the regulatory body or an emergency that may trigger systemic or regional IT risks, the knowing party shall promptly inform the other, including the impact, disposal and corrective measures of such incident.

 

11.4                                                    Both parties will share external credit data obtained from governmental authorities and the market that is authorized by the Consumer and is consistent with relevant legal requirements. The credit information shall not be disclosed to institutions other than the parties to the cooperation and shall not be used for illegal purposes.

 

11.5                                                    Party A and Party B shall provide each other with relevant data in connection with the cooperation hereunder through the system interconnection, including vehicle transaction information, client approval information, risk review results, contracts and agreements, loan disbursement information and repayment information.

 

11.6                                                    Without the written consent of Party A, Party B shall not use any PBC credit information (including but not limited to PBC variables and PBC ratings) obtained by Party A during the cooperation hereunder and the results generated by Party A based on various risk models and rules, and shall not use such data to assist with other business of Party B or its affiliates.

 

11.7                                                    Party B shall regularly (at least on a quarterly basis) submit to Party A information concerning Party B and Party B’s affiliates controlled by the ultimate controller of Party B, including without limitation the financial statements, audit reports, financial details, tax data, equity structure, financing information, receipts of financing and assets operation data, and shall guarantee the authenticity, integrity and effectiveness of such information, for Party A to evaluate Party B’s operating ability in a timely manner.

 

11.8                                                    Party B shall on a monthly basis submit to Party A overall operational data related to auto financing of Party B and Party B’s affiliates, including without limitation the business model, product forms, amount of disbursements, balance under the cooperation, data on overdue payments, changes in organizational structure, changes in market channels, etc., to facilitate the in-depth cooperation between both parties in the field of auto financing.

 

11

 

Article 12                    Confidentiality

 

12.1                                                    Each party shall keep strict confidential of any materials (whether related to technical or commercial) of any form that are received by it due to execution of this Agreement which belong to the other party or are in relating to the following event (or any other agreement entered into under this Agreement) and shall not use or disclose such information to any third party other than the regulatory authority:

 

(1)             The cooperation hereunder;

 

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

 

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

 

(4)             Business, financial and other matters (including future plans and targets) of other Parties.

 

12.2                                                    This confidentiality clause shall not prohibit the disclosure or use of confidential information in the following scope and in the following manner:

 

(1)             Disclosure or use of confidential information according to the regulations or requirements of the supervisory authority of each Party;

 

(2)             Disclosure or use of confidential information as required in any judicial, arbitral or other proceedings in connection with this Agreement or any other agreement entered into according to this Agreement;

 

12.3                                                    The confidentiality obligation shall persist from the date of execution of this Agreement to the date of publication or disclosure of the same as permitted by the disclosing party, and shall survive the expiry of this Agreement.

 

Article 13                    Default

 

13.1                                                    Any Party shall be deemed to commit a default under any of the following circumstances (hereinafter referred to as “Event of Default”):

 

(1)             The defaulting party breaches any of the provisions of this Agreement, and such breach cannot be rectified or the defaulting party fails to rectify the breach within [*] calendar days after the non-defaulting delivers a written rectification notice;

 

(2)             The defaulting party violates any applicable law, which violation will directly affect this Agreement or cause losses to the other party;

 

(3)             The defaulting party violates other contracts executed with Party A (including but not limited to credit contract, loan contract) and supplementary agreement.

 

12

 

13.2                                                    Default Notice

 

13.2.1                                          Upon any Event of Default, the defaulting party shall as soon as practicable but in no event (other than the effect of force majeure) later than [*] calendar days after becoming aware of the event, notify the non-defaulting party.

 

13.2.2                                          Upon any Event of Default, without prejudice to the non-defaulting party’s right to claim for damages, the non-defaulting party may, within [*] calendar days after the receipt of default notice from defaulting party or after it becomes aware of the occurrence of the event of default (whichever is earlier), elect to continue performing this Agreement or terminate the cooperation hereunder by sending a written notice to the defaulting party.

 

13.2.3                                          This Agreement shall terminate immediately upon receipt by the defaulting party of a notice of termination.

 

13.2.4                                          Losses and liquidated damages for default

 

(1)             The non-defaulting Party shall be entitled to ask the breaching Party to exclude the adverse effects on it;

 

(2)             The non-defaulting Party shall be entitled to suspend or terminate the cooperation hereunder;

 

(3)             The defaulting party shall compensate the non-defaulting party for all direct losses incurred or resulted in an Event of Default attributed by the defaulting party.

 

(4)             The defaulting party shall compensate the non-defaulting party for the losses incurred due to misoperation of the defaulting party (including but not limited to system misoperation, operational failures, etc.).

 

Article 14                    Cooperation Termination

 

14.1             Under any of the following events, either party shall have the right to unilaterally terminate the cooperation hereunder:

 

(1)             The policies of the regulatory authorities of any Party (including but not limited to the China Banking Regulatory Commission, PBC and their branches) have undergone major changes that will significantly affect the cooperation hereunder or such authorities has issued written request to cease the cooperation hereunder:

 

(2)             Any new applicable law or regulatory documents are promulgated by government or regulatory authorities, or the existing applicable law or regulatory documents are revised or interpreted in a new way, which render it impossible to carry out the cooperation hereunder or render it impossible for a party to obtain all of its benefits under any important terms hereunder in accordance with such terms;

 

13

 

(3)             Any Party undergoes material adverse changes, which render it impossible to continue to perform this Agreement as or cause significant damages to the parties;

 

(4)             If any Event of Default occurs, the non-defaulting Party may request the termination of the cooperation hereunder.

 

14.2             Unless otherwise agreed in this Agreement, the cooperation hereunder will terminate upon the expiry of the cooperation term herein.

 

Article 15                            Miscellaneous

 

15.1             If Party A intends to sell or transfer the Consumer loan under this Agreement (assets spin-off), Party B shall provide reasonable assistance, including but not limited to sign necessary documents/undertakings/notifications.

 

15.2             Any matters uncovered herein shall be subject to separate negotiations between the Parties, with respect to which a supplementary agreement should be signed, and shall be performed in accordance with this Agreement and the supplementary agreement.

 

15.3             All Schedules and supplemental agreement of this Agreement are integral parts of this Agreement.

 

15.4             Any dispute that may arise during the performance of this Agreement between the Parties shall be settled through negotiations by all parties. If the negotiations fail, the dispute may be submitted to the people’s court where Party A is located.

 

15.5             The execution, interpretation and disputes resolution of this Agreement is governed by the law of People’s Republic of China.

 

15.6             This Agreement shall be signed on the signing date by the legal representative or authorized signatory of both parties, and shall enter into force after being signed (or stamped signature seal) by the legal representative or authorized signatory of both parties and stamped with an official/contract seal.

 

15.7             The Agreement shall be executed in quadruplicate, with each party holding two pieces. Each piece shall be equally valid.

 

(The Reminder of this page is intentionally left blank.)

 

14

 

(This page has no text and is the signature page of this Agreement.)

 

 

Party A (Seal):

 

 

Legal Representative or Authorized Agent (Signature):

 

 

Date of execution:

 

 

Party B (Seal):

 

 

Legal Representative or Authorized Agent (Signature):

 

 

Date of execution:

 

15

 

Contract No.: Wei Yin (KF-Kai Feng) He Bu Zi 2018 No. 001

 

 

SUPPLEMENTAL AGREEMENT I

 

 

TO

 

 

AUTO FINANCING BUSINESS COOPERATION AGREEMENT

 

1

 

Party A: [*]

Address (address): [*]

Legal representative (person in charge): [*]

Tel: [*]

 

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

Address (address): Room 1814, Unit 1, Block 3, Wanda Business Center, Gongshu District, Hangzhou, Zhejiang

Legal Representative (person in charge): Zhen Zeng

Tel: (010) 84752481

 

Whereas, Party A and Party B entered into the Auto Financing Business Cooperation Agreement with the number of Wei Yin (KF-Kai Feng) Zi 2018 No. 001 (the “Cooperation Agreement”) in 2018, whereby both parties carry out cooperation in respect of the financing business related to the purchase of vehicles and/or additional products (services) of vehicles by individual consumers. Now, therefore, through friendly negotiation, Party A and Party B intend to amend certain terms of the Cooperation Agreement (including all supplemental agreements thereto entered into between both parties before execution of this Supplemental Agreement) and hereby enter into this Supplemental Agreement for mutual adherence.

 

1.                                                                                      The percentage of deposit to be deducted will be changed as follows:

 

Party B irrevocably authorizes Party A to, before the disbursement of each loan, deduct an amount equal to [*%] of the disbursed amount of the loan from Party B’s settlement account and remit that amount to the deposit account. Party A will periodically release the balance of the deposit, if any, after the full repayment of the loan and Party A’s exercise of the priority of compensation against the deposit.

 

2.                                                      From the date of execution and effectiveness of this Supplemental Agreement, the following terms will apply to vehicle mortgage in relation to the vehicle financing transactions with the Consumers under the Cooperation Agreement:

 

2.1                                               As for vehicle mortgage in relation to the vehicle financing transactions with the Consumers within the scope confirmed by both parties, Party B shall go through the registration of vehicle mortgage under the Auto Financing Loan Contract with Party A and/or the third party designated by Party A as the mortgagee in accordance with Party A’s requirements and the Service Agreement; and for those transactions, the mortgage registration under the Financial Lease Contract with Party B as the mortgagee will not be dealt with first and such transactions will not be bound by Clause 4.2.2 of the Cooperation Agreement. 

 

2

 

Both parties will update the specific “scope confirmed by both parties” from time to time.

 

As for the aforesaid vehicle financing transactions with the Consumer, the proceeds from the transfer, auction or sale of the vehicle in enforcing the mortgagee over the vehicle by Party B on behalf of Party A shall first be used to repay the principal of the loan, the interest and default interest on the loan and other relevant fees owed by the Consumer to Party A, and Party B shall not challenge Party A’s priority of compensation on any ground.

 

2.2                                               As for vehicle mortgage in relation to the vehicle financing transactions with the Consumers not covered by the scope specified in Clause 2.1 above, Article 10 of the Cooperation Agreement shall still apply.

 

3.                                                      If Party B requests for materials from Party A as required by lawsuits with the Consumer due to the cooperation, Party A shall provide the required materials within [*] working days (including without limitation certification on validity of electronic contracts and documents such as the Loan Contract, loan disbursement records, etc.). After Party B makes repayment or compensation on behalf of the Consumer, Party B will automatically be entitled to all creditor’s claims, mortgagee’s rights and other collateral rights under the Loan Contract and relevant mortgage contract as well as insurance interests, other benefits and proceeds against the Consumer in lieu of Party A. If Party A receives any amount repaid by the Consumer which should be paid to Party B, it shall pay such amount to Party B within [*] working days of the receipt thereof. After Party B makes repayment or compensation on behalf of the Consumer, Party A shall provide proactive assistance for Party B in all respects for final recovery of debts (including without limitation issuing the transfer notice to the Consumer upon Party B’s request).

 

4.                                                      If Party A entrusts Party B to recover the debts or enforce the mortgage over the vehicle, it shall issue the relevant power of attorney as required by Party B.

 

5.                                                      In the duration of the loan owed by the Consumer, if vehicle robbery and theft is confirmed by the public security organ, Party A shall have the right to require Party B to repay the outstanding principal of and interest and default interest on the loan (excluding compound interest, liquidated damages and other fees) on behalf of the Consumer.

 

6.                                                      If Party A and other partner financial institutions jointly provide the loan under the Cooperation Agreement for the Consumer, any lender shall have the equal rights and interests as Party A, and Party B shall not challenge its 

 

3

 

obligations hereunder on this ground.

 

7.                                                      This Supplemental Agreement shall apply to all loans requested by Consumers under the cooperation between Party A and Party B from and after October 19, 2018, and the outstanding loans under the Cooperation Agreement shall still be governed by the terms of the Cooperation Agreement until full repayment of all outstanding loans.

 

8.                                                      This Supplemental Agreement shall be an integral part of and have the equal legal force and effect as the Cooperation Agreement. In case of any conflict between the Cooperation Agreement and this Supplemental Agreement, this Supplemental Agreement shall prevail; matters not covered by this Supplemental Agreement shall be governed by the Cooperation Agreement.

 

9.                                                      This Supplemental Agreement shall enter into force after being signed or stamped by the legal representatives or authorized attorneys of Party A and Party B and affixed with their official seals/contract seals and shall remain effective within the effective term of the Cooperation Agreement.

 

10.                                               This Supplemental Agreement shall be made in four (4) counterparts, with Party A and Party B each holding two (2), and each counterpart shall have the equal legal force and effect.

 

(The remainder of this page is intentionally left blank)

 

4

 

Party A (seal):

 

Legal representative (person in charge) or authorized attorney (signature/seal):

 

Date of execution:

 

 

Party B (seal):

 

Legal representative or authorized attorney (signature/seal):

 

Date of execution:

 

5

 

Confirmation

 

To[*],

 

We, as the guarantor, are aware of and understand the Auto Financing Business Cooperation Agreement with the number of Wei Yin (KF-Kai Feng) He Zi 2018 No. 001 entered into between Kai Feng Finance Lease (Hangzhou) Co., Ltd. and your bank and the aforesaid Supplemental Agreement, and undertake to perform the Auto Financing Guarantee Contract with the number of Wei Yin (KF-Kai Feng) He Zi 2018 No. 001 between your bank and us.

 

 

Confirmed by: Youqin (Shaanxi) Finance Lease Co., Ltd. (seal)

 

Date:

 

Confirmed by: Yougu (Shanghai) Information Technology Co., Ltd. (seal)

 

Date:

 

Confirmed by: Youzhen (Beijing) Business Consulting Co., Ltd. (seal)

 

Date:

 

Confirmed by: Yousan (Shanghai) Used Car Operating Co., Limited (seal)

 

Date:

 

Confirmed by: Youfang (Beijing) Information Technology Co., Ltd. (seal)

 

Date:

 

Confirmed by: Shenzhen Youxin Pengda Second Hand Car Brokerage Co., Ltd. (seal)

 

Date:

 

Confirmed by: Youxinpai (Beijing) Information Technology Co., Ltd. (seal)

 

Date:

 

6

 

Contract No.: Wei Yin (KF-Kai Feng) He Bu Zi 2018 No. 002

 

 

SUPPLEMENTAL AGREEMENT II

 

 

TO

 

 

AUTO FINANCING BUSINESS COOPERATION AGREEMENT

 

1

 

Party A: [*]

Address (address): [*]

Legal representative (person in charge): [*]

Tel: [*]

 

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

Address (address): Room 1814, Unit 1, Block 3, Wanda Business Center, Gongshu District, Hangzhou, Zhejiang

Legal Representative (person in charge): Zhen Zeng

Tel: (010) 84752481

 

Whereas, Party A and Party B entered into the Auto Financing Business Cooperation Agreement with the number of Wei Yin (KF-Kai Feng) Zi 2018 No. 001 (the “Cooperation Agreement”) in 2018, whereby both parties carry out cooperation in respect of the financing business related to the purchase of vehicles and/or additional products (services) of vehicles by individual consumers. Now, therefore, through friendly negotiation, Party A and Party B intend to amend certain terms of the Cooperation Agreement (including all supplemental agreements thereto entered into between both parties before execution of this Supplemental Agreement) and hereby enter into this Supplemental Agreement for mutual adherence.

 

1.                                         Clauses 6.1 and 6.2 of the Cooperation Agreement will be changed as follows:

 

“6.1 If the Consumer passes Party A’s review and satisfies the conditions for disbursement of the loan, Party A will disburse the loan proceeds to Party B’s escrow account in accordance with the Loan Contract and the provisions on entrusted payment, and meanwhile remit [*%] of the loan proceeds from the escrow account to the settlement account.

 

6.2 Party B shall duly complete the registration of vehicle mortgage within the stipulated term in accordance with the Service Agreement and provide Party A with photocopies of the Vehicle Registration Certificate carrying information on the registered mortgage rights as required by Party A.”

 

2.                                         Clause 8.3 of the Cooperation Agreement will be changed as follows:

 

“8.3.1 Party A will provide technical service for automatic settlement of escrow amounts for Party B. If the Consumer passes Party A’s review and satisfies the conditions for disbursement of the loan, Party A will disburse the loan proceeds to Party B’s escrow account in accordance with the Loan Contract and the provisions on entrusted payment, and Party B authorizes Party A to automatically remit [*%] of the 

 

2

 

loan proceeds in the escrow account (the “Amount of Automatic Settlement”) to Party B’s settlement account through the automatic settlement function.

 

8.3.2 Party A has the right to charge the technical service fee for the technical service for automatic settlement of escrow amounts on the basis of the Amount of Automatic Settlement and at a rate of [*%] per day, for the following period: [*].

 

8.3.3 Party A has the right to deduct such amount of technical service fee as specified in Clause 8.3.2 from Party B’s settlement account upon the expiry of the period of charging.

 

8.3.4 Upon receipt of the technical service fee paid by Party B, Party A shall issue the invoice satisfying the requirements of Party B’s finance department for the corresponding period of the underlying transaction (on a monthly basis) and mail the invoice to Party B within the first [*] working days of the next month.”

 

3.                                         This Supplemental Agreement shall apply to all loans requested by Consumers under the cooperation between Party A and Party B from and after December 7, 2018, and the outstanding loans under the Cooperation Agreement shall still be governed by the terms of the Cooperation Agreement until full repayment of all outstanding loans.

 

4.                                         This Supplemental Agreement shall be an integral part of and have the equal legal force and effect as the Cooperation Agreement. In case of any conflict between the Cooperation Agreement and this Supplemental Agreement, this Supplemental Agreement shall prevail; matters not covered by this Supplemental Agreement shall be governed by the Cooperation Agreement.

 

5.                                         This Supplemental Agreement shall enter into force after being signed or stamped by the legal representatives or authorized attorneys of Party A and Party B and affixed with their official seals/contract seals and shall remain effective within the effective term of the Cooperation Agreement.

 

6.                                         This Supplemental Agreement shall be made in four (4) counterparts, with Party A and Party B each holding two (2), and each counterpart shall have the equal legal force and effect.

 

(The remainder of this page is intentionally left blank)

 

3

 

(Signature page)

 

 

Party A (seal):

 

Legal representative (person in charge) or authorized attorney (signature/seal):

 

Date of execution:

 

 

Party B (seal):

 

Legal representative or authorized attorney (signature/seal):

 

Date of execution:

 

4

 

Confirmation

 

To[*],

 

We, as the guarantor, are aware of and understand the Auto Financing Business Cooperation Agreement with the number of Wei Yin (KF-Kai Feng) He Zi 2018 No. 001 entered into between Kai Feng Finance Lease (Hangzhou) Co., Ltd. and your bank and the aforesaid Supplemental Agreement, and undertake to perform the Auto Financing Guarantee Contract with the number of Wei Yin (KF-Kai Feng) He Zi 2018 No. 001 between your bank and us.

 

 

Confirmed by: Youqin (Shaanxi) Finance Lease Co., Ltd. (seal)

 

Date:

 

Confirmed by: Yougu (Shanghai) Information Technology Co., Ltd. (seal)

 

Date:

 

Confirmed by: Youzhen (Beijing) Business Consulting Co., Ltd. (seal)

 

Date:

 

Confirmed by: Yousan (Shanghai) Used Car Operating Co., Limited (seal)

 

Date:

 

Confirmed by: Youfang (Beijing) Information Technology Co., Ltd. (seal)

 

Date:

 

Confirmed by: Shenzhen Youxin Pengda Second Hand Car Brokerage Co., Ltd. (seal)

 

Date:

 

Confirmed by: Youxinpai (Beijing) Information Technology Co., Ltd. (seal)

 

Date:

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}]]