Document:

ex1009.htm

Exhibit 10.09

	Houston, Texas     	June 1, 2010

 

PROMISSORY NOTE

RECITALS

WHEREAS, the undersigned five corporate entities (each, a "Maker;” or collectively, “Makers”) were each co-makers of a certain Renewal Promissory Note (the “Original Note”) dated May 21, 2007, in the original stated amount of $5,579,847.00, in favor of Teton, Ltd., a Texas limited partnership (“Payee”);

WHEREAS, the Original Note was previously amended by Amendment to Renewal Promissory Note dated May 21, 2008 (the “First Amendment”); by Second Amendment to Renewal Promissory Note and Loan Modification Agreement dated March 3, 2009 (the “Second Amendment”); by Third Amendment to Renewal Promissory Note dated May 21, 2009 (the “Third Amendment”); by Fourth Amendment to Renewal Promissory Note dated May 20, 2009 (the “Fourth Amendment”); by Fifth Amendment to Renewal Promissory Note dated September 21, 2009 (the “Fifth  Amendment”); by Sixth Amendment to Renewal Promissory Note dated October 21, 2009 (the “Sixth  Amendment”); and by Seventh Amendment to Renewal Promissory Note dated February 15, 2010 (the “Seventh Amendment”);

WHEREAS, the Original Note matured on May 21, 2010; and on the date hereof, the Original Note has an outstanding balance of $6,987,646.00, consisting of $5,952,303.00 in outstanding principal and $1,035,343.00 in accrued and unpaid interest;

WHEREAS, by means of this Promissory Note (the “Note”), Makers and Payee desire to renew and extend the Original Note and the liens and security interests that secure repayment of the Original Note.

NOW, THEREFORE, the undersigned Original Note Makers hereby agree as follows:

AGREEMENT

FOR VALUE RECEIVED, the undersigned (i) Pegasi Energy Resources Corporation, a Nevada corporation f/n/a Maple Mountain Explorations Inc.; (ii) Pegasi Energy Resources Corporation, a Texas corporation; (iii) Pegasi Operating Inc., a Texas corporation; (iv) TR Rodessa, Inc., a Texas corporation; and (v) 59 Disposal, Inc., a Texas corporation (each, a "Maker;” or collectively, “Makers”), promise to pay to the order of Teton, Ltd., a Texas limited partnership ("Payee"), at 710 N. Post Oak Rd., Suite 400, Houston, Texas 77024, or such other address as Payee may from time to designate, the sum of SIX MILLION NINE HUNDRED EIGHTY-SEVEN THOUSAND SIX HUNDRED FORTY-SIX AND 00/100 Dollars ($6,987,646.00), in legal and lawful money of the United States of America, plus simple interest thereon at the rate of eight percent (8%) per annum from the date hereof until maturity, if timely paid. Matured unpaid principal shall bear interest at a rate equal to the  lesser of (i) fifteen percent (15%) per annum or (ii) the highest rate allowable by law (the “Default Rate”).  Makers acknowledge that the stated principal amount of this Note represents the current outstanding balance of the Original Note, that the Original Note is being replaced by this Note, and that this Note provides Makers with an extended maturity date and period within which to repay the Note.

Payments of all accrued interest owed to the date of payment shall be payable without demand on (i) October 1, 2010, (ii) January 1, 2011, and (ii) April 1, 2011.  In the event that any of the required interest payments are not timely paid, the entire outstanding balance of this Note shall bear interest at the Default Rate beginning on the missed payment date and ending on the date Makers pay the above-referenced missed interest payment together with all default interest arising after such missed payment.  This Note is due and payable on June 1, 2011 (the “Maturity Date”), when all amounts outstanding under this Note shall be due and payable in full.

 

 

  

1

  

All payments hereon shall be applied first to interest, if any, and thereafter to the balance of principal.

It is expressly provided that upon default in the punctual payment of this Note or any part thereof, principal or interest, as the same shall become due and payable, then at the option of the holder, the entire indebtedness shall be matured; and in the event default is made in the prompt payment of this Note when due or declared due, and the same is placed in the hands of an attorney for collection, or suit is brought on same, or the same is collected through Probate, Bankruptcy or other judicial proceedings, then Makers agree and promise to pay reasonable attorney's fees.  Each maker, surety and endorser of this Note expressly waives all notices of any kind or character, demands for payment, presentations for payment, notices of intention to accelerate the maturity, protest and notice of protest, as to this Note and as to each, every and all installments hereof.

Additionally, upon the insolvency of any Maker, the appointment of a receiver for all or any part of any Maker's property, an assignment for the benefit of creditors of any Maker, a calling of a meeting of creditors of any Maker, the commencement of any proceeding under any bankruptcy, insolvency or debtor relief laws by or against any Maker or any guarantor or surety for Maker, the holder hereof may, at its option, declare the entirety of this Note, principal and interest, immediately due and payable, and pursue any and all other remedies available to it at law or in equity, but failure to do so at any time shall not constitute a waiver of such holder's right to do so at any other time.  Failure to exercise this option upon any default shall not constitute a waiver of the right to exercise it in the event of any subsequent defaults.

It is expressly provided and stipulated that notwith­standing any provision of this Note, in no event shall the aggregate of all interest paid by Makers to the Payee hereunder ever exceed the maximum rate of interest which may lawfully be charged Makers under the applicable usury laws, now or hereafter in effect, on the principal balance of this Note from time to time advanced and remaining unpaid.  In this connection, it is expressly stipulated and agreed that it is the intent of the Payee and Makers in the execution and delivery of this Note to contract in strict compliance with the applicable usury laws.  In further­ance thereof, none of the terms of this Note shall ever be construed to create a contract to pay, for the use, forbearance or detention of money, interest at a rate in excess of the maximum interest rate permitted to be charged under such laws.  Neither Makers nor any guarantors, endorsers, sureties, or other parties now or hereafter becoming liable for payment of this Note shall ever be liable for interest in excess of the maxi­mum interest that may lawfully be charged under such laws, and the provisions of this paragraph shall govern over all other provisions of this Note­.

Makers may prepay this Note at anytime without penalty.

This Note shall be governed by and construed in accordance with the laws of the State of Texas.

If this Note is signed by two or more parties (whether by all as makers or by one or more as an accommodation party or otherwise), the obligations and undertakings under this Note shall be that of all and any two or more jointly and also of each severally. This Note shall bind the undersigned, and the undersigned's respective heirs, personal representatives, successors and assigns.

The undersigned acknowledge(s) and agree(s) that there are no contrary agreements, oral or written, establishing a term of this Note and agree(s) that the terms and conditions of this Note may not be amended, waived or modified except in a written document expressly stating that the writing constitutes an amendment, waiver or modification of the terms of this Note. As used in this Note, the word "undersigned" means, individually and collectively, each maker, accommodation party, indorser and other party signing this Note in a similar capacity. If any provision of this Note is unenforceable in whole or part for any reason, the remaining provisions shall continue to be effective.

THE UNDERSIGNED AND PAYEE, BY ACCEPTANCE OF THIS NOTE, ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS NOTE OR THE INDEBTEDNESS.

THIS WRITTEN LOAN AGREEMENT (AS DEFINED BY SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE) REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

This Note is secured by a Stock Pledge and Security Agreement of even date by and between Pegasi Energy Resources Corporation, a Nevada corporation f/n/a Maple Mountain Explorations Inc.  (“Pledgor” and/or “Debtor”), and Teton, Ltd., a Texas limited partnership (“Secured Party”).

  

2

  

Executed to be effective as of June 1, 2010.

 

	 	Makers/Borrowers:	 
	 	
 

Pegasi Energy Resources Corporation, a Nevada corporation f/n/a

Maple Mountain Explorations Inc.

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	 
Richard Lindermanis, Senior Vice President 

and CFO

	 
	 	 	 	 
	 	 	 	 

 

	 	
 
Pegasi Energy Resources Corporation, a Texas corporation (and wholly-owned subsidiary of Pegasi Energy Resources Corporation, a Nevada corporation f/n/a Maple Mountain Explorations Inc.)

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Richard Lindermanis, Vice President	 
	 	 	 	 
	 	 	 	 

	 	

Pegasi Operating Inc., a Texas corporation (and wholly-owned subsidiary of Pegasi Energy Resources Corporation, a Texas corporation)

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Richard Lindermanis, Vice President	 
	 	 	 	 
	 	 	 	 

	 	

TR Rodessa, Inc., a Texas corporation (and wholly-owned subsidiary of Pegasi Energy Resources Corporation, a Texas corporation)

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Richard Lindermanis, Vice President	 
	 	 	 	 
	 	 	 	 

	 	

59 Disposal, Inc., a Texas corporation (and wholly-owned subsidiary of Pegasi Energy Resources Corporation, a Texas corporation)

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Richard Lindermanis, Vice President	 
	 	 	 	 
	 	 	 	 

3ex101.htm

Exhibit 10.1

Share Exchange Agreement

Transferor:

Di Ruan                                                        ID number: 420704199205085582

Address: No. 105, Ruanjiawan, Ruanjia village, Huahu Town, Echeng District, EEzhou City, Hubei Province, China

Qiong Xiong                                               ID number: 420704199001055103

Address: Gongdianxin Village, Gucheng S Rd., Echeng District, EEzhou City, Hubei Province, China

Qiongqiong Wang                                    ID number: 410402198509245607

Address: No. 2, Xuezhuangcun, Xuezhuangziang, Xinhua District, Pingdingshan City, Henan Province, China

Wei Gong                                                   ID number: 42230219850506193X

Address: No. 15, Zhouhua Rd., Chima Harbor, Chibi City, Hubei Province, China

Feng Cheng                                                ID number: 421281198803220520

Address: No. 1229, Building 153, Quanmenkou Rd., Lushui Lake, Chibi City, Hubei Province, China

Yijie Li                                                         ID number: 130983198309122627

Address: No. 168, Zhongshan E Rd., Shiqiao E District, Shijiazhuang, Hebei Province, China

Chunfeng Zhang                                       ID number: 420583198802023427

Address: No. 708, Minyuan Rd., Hongshan District, Wuhan City, Hubei Province, China

Xiaowei Wang                                           ID number: 420704198109180358

Address: No. 317, Wuchang Blvd., Echeng District, EEzhou City, Hubei Province, China

  

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Transferee: Shenzhen Anytone Technology Co., Ltd.

Legal Representative: Wehhe Yu

Address: No.5, Qiongyu Rd., 51 Building, Hightech Industrial Park, 5th Floor, Shenzhen, China

Shenzhen Kim Fai Solar Technology Co., Ltd. (the “Company”) was founded on December 8th, 2005. The Company’s registered capital was RMB $2.5 million (Paid-in capital: RMB $2.5 million). The Company engages in the technology development and products sales of solar application products and solar energy batteries. Di Ruan, Qiong Xiong, Qiongqiong Wang, Wei Gong, Feng Cheng, Yijie Li, Chunfeng Zhang, Xiaowei Wang (collectively, “Transferors” and individually referred to as “Transferor” below) are shareholders of the Company. All these shareholders have agreed to transfer all of their shares to transferee, Shenzhen Anytone Technology Co., Ltd.

 

In order to clarify the rights and obligations of transferor and transferee, the terms are set as following:

 

	
1.  

	
Purpose

 

Each transferor will transfer all of his/her shares in the Company to Transferee, Shenzhen Anytone Technology Co., Ltd., of which:

 

Di Ruan owns 9%, Qiong Xiong owns 14%, Qiongqiong Wang owns 14%, Wei Gong owns 7%, Feng Cheng owns 14%, Yijie Li owns 14%, Chunfeng Zhang owns 14% and Xiaowei Wang owns 14%.

 

	
2.  

	
Price and time

In consideration of the Company’s assets, debts, and operation situation by both parties, the total value of this transaction is USD$24,000,000 (Exchange rate: 6.8) (the “Purchase Price”). This total Purchase Price includes USD$ 13,000,000 in cash and the rest USD$11,000,000 will be paid in the form of equity through the issuance of restricted shares of common stock of New Energy Systems Group, the Transferee’s public parent company (the “NEWN Shares”), of which:

 

Di Ruan will receive USD$ 2,160,000 in total; Qiong Xiong will receive USD$ 3,360,000 in total; Qiongqiong Wang will receive USD$ 3,360,000 in total; Wei Gong will receive USD$ 1,680,000 in total; Feng Cheng will receive USD$ 3,360,000 in total; Yijie Li will receive USD$ 3,360,000 in total; Chunfeng Zhang will receive USD$ 3,360,000 in total; Xiaowei Wang will receive USD$ 3,360,000 in total.

 

Transferee will make two separate payments to each Transferor, as follows: Transferee will pay USD$ 13,000,000 in cash within one year after this Agreement is signed. Transferee will pay the rest USD$ 11,000,000 by issuing the NEWN Shares within 3 days after the transfer of Transferor’s shares to Transferee have been recorded with the relevant government agency. The per share purchase price of such common shares will be $5.75. The amount of cash and equity payment to be made to each Transferor is further detailed in Schedule A attached hereto.

 

  

2

  

 

	
3.  

	
Guarantee by both parties

	
A.  

	
Each Transferor guarantees that he/she is a legal shareholder of the Company with real capital investment. There is no defect which may affect the right of such Transferor’s ownership;

 

	
B.  

	
Each Transferor guarantees that this transaction is agreed by all other shareholders of the Company and this transaction has no legal barrier;

 

	
C.  

	
Each Transferor severally and not jointly represents and warrants as follows:

 

(i) The Transferor is not acquiring the NEWN Shares (as defined below) as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S (“Regulations S”) promulgated by the United StatesSecurities and Exchange Commission (“SEC”) under the Securities Act of 1933, as amended (the “Securities Act”) in the United States in respect of the NEWN Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the NEWN Shares; provided, however, that the Transferor may sell or otherwise dispose of the NEWN Shares in accordance with applicable law.

 

(ii) The Transferor acknowledges and agrees that none of the NEWN Shares have been registered under the Securities Act and that the Company will not to register any transfer of the NEWN Shares not made pursuant to an exemption from the registration requirements of the Securities Act.

 

(iii)  No broker or finder was involved directly or indirectly in connection with the Transferor’s acquisition of the NEWN Shares pursuant to this Agreement. The Transferor shall indemnify the Company and hold it harmless from and against any manner of loss, liability, damage or expense, including fees and expenses of counsel, resulting from a breach of the warranty contained in this Section 3C(iii).

 

(iv) The Transferor understands that he/she has no registration rights with respect to the NEWN Shares.

 

(v) The Transferor is a resident of the People’s Republic of China.

 

(vi) The Transferor is acquiring the NEWN Shares for investment only and not with a view to resale or distribution and, in particular, the Transferor has no intention to distribute either directly or indirectly any of the Shares in the United States or to U.S. Persons.  The Transferor is acquiring the NEWN Shares as principal for the Transferor’s own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such NEWN Shares.

 

(vii) No person has made to the Transferor any written or oral representations:

 

  

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a)  

	
that any person will resell or repurchase any of the NEWN Shares;

 

	
b)  

	
that any person will refund the purchase price of any of the NEWN Shares;

 

	
c)  

	
as to the future price or value of any of the NEWN Shares; or

 

	
d)  

	
that any of the NEWN Shares will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the NEWN Shares of the Company on any stock exchange or automated dealer quotation system.

 

(viii) The Transferor has such knowledge and experience in financial and business matters as to enable such Transferor to understand the nature and extent of the risks involved in acquiring the NEWN Shares. Transferor is fully aware that such investments can and sometimes do result in the loss of the entire investment. Transferor has engaged his/her own counsel and accountants to the extent that such Transferor deems it necessary.  Transferor has had access to all of the Company’s filings under the Securities Exchange Act of 1934, as amended, on the Commission’s Edgar system.

 

	
D.  

	
Any information related to the Company’s assets, debts and operation situation which transferor disclosed to transferee is true and there is no missing part.

 

	
E.  

	
The Transferee guarantees that this transaction has been approved by the relevant authorities and that Transferee has the ability to pay the relevant transaction fee.

 

	
4.  

	
Time for Company’s ownership transfer and registration change

 

	
A.  

	
Transferor will transfer the ownership of the Company to transferee within 5 days after this agreement is signed. This will include the Company licenses, stamps, materials, plant and all other Company’s assets, none of which shall be concealed from Transferee.

 

	
B.  

	
Upon the signing of this Agreement, both parties should apply for legalization together. Within 3 business days after legalization, both parties should cooperate to complete the equity change in registration.

	
5.  

	
Processing of the Company’s original debt

 

	
A.  

	
The Company’s debts which occurred before this transfer shall continue to be borne by the Company and shall not be borne by Transferors upon the closing of this Agreement.

 

	
B.  

	
If Transferee incurs any loss due to Transferor’s concealment of any pre-existing debts that were not disclosed prior to the execution of this Agreement, Transferee is entitled to recourse against the Transferors.

 

	
6.  

	
Breach of agreement

 

	
A.  

	
Transferee should make Purchase Price timely in accordance with the terms of this Agreement. Each day that payment of the Purchase Price is postponed, Transferee should pay 0.5% of the Purchase Price as penalty;

 

	
B.  

	
If Transferor does not implement the transfer of the Company and the related equity transfer in accordance with the time periods set forth in this Agreement, Transferors shall, in the aggregate, pay USD$1,470 to Transferee as penalty for each day that the transfer of the company and the related equity is postponed.  The breakdown of such penalty payment(s) to be borne by each of the Transferors shall be separately decided amongst the Transferors.

 

	
7.  

	
Effective

 

The agreement will enter into effect after signed by shareholders of transferors and sealed by transferee and notarized. There are 20 copies of this agreement, each party will hold two copies, notarization and registration association will hold one each.

 

	
8.  

	
Dispute Resolution

 

Any dispute of this agreement, both parties should engage in friendly consultations. If consultations fail, the case will be judged by Shenzhen Arbitration Commission. The result will be final and have legal effect.

 

 

[SIGNATURE PAGE TO FOLLOW]

 

  

4

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year set forth below.

Signature by Transferor:

/s/ Di Ruan

/s/ Qiong Xiong

/s/ Qiongqiong Wang

/s/ Wei Gong

/s/ Feng Cheng

/s/ Yijie Li

/s/ Chunfeng Zhang

/s/ Xiaowei Wang

	 	
Transferee: Shenzhen Anytone Technology Co., Ltd

 

	 	 	 	 
	By: 	
/s/ Weihe Yu

	 	 	 	 
	 	
Name: Weihe Yu

	 	 	 	 
	 	
Title: 

	 	 	
 

	 

 

	 	

For purposes of Section 2:

New Energy Systems Group

 

	 	 	 	 
	By: 	
/s/ Nian Chen

	 	 	 	 
	 	
Name: Nian Chen

	 	 	 	 
	 	
Title:

	 	 	
 

	 

Date:  November 10, 2010

  

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Schedule A

 

 

	
Name

	
% of Registered Capital Stock of Shenzhen Kim Fai 

Solar Technology Co., Ltd.

	
Cash

(USD)

	
Number of Common Shares of 

New Energy Systems Group

	
Di Ruan

	
9%

	
$1,170,000

	
172,194

	
Qiong Xiong

	
14%

	
$1,820,000

	
267,857

	
Qiongqiong Wang

	
14%

	
$1,820,000

	
267,857

	
Wei Gong

	
7%

	
$910,000

	
133,929

	
Feng Cheng

	
14%

	
$1,820,000

	
267,857

	
Yijie Li

	
14%

	
$1,820,000

	
267,857

	
Chunfeng Zhang

	
14%

	
$1,820,000

	
267,857

	
Xiaowei Wang

	
14%

	
$1,820,000

	
267,857

	
Total

	
100%

	
$13,000,000

	
1,913,265

 

 

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