Common use of Debt Settlement Clause in Contracts

Debt Settlement. The Company shall use reasonable endeavours to negotiate and enter into Debt Settlement Agreement(s) with the Secured Creditors to settle their secured debts, which are expected to be executed prior to the implementation of the Scheme. It is envisaged that the Debt Settlement shall involve, among others, (i) payment(s) of such amount(s) that may be determined with reference to the valuation(s) of the relevant Collateral(s) to be conducted by an independent valuer(s) appointed by the Company, if appropriate and possible, and such amount(s) shall be paid in the time and manner as set out in the relevant Debt Settlement Agreement; and (ii) the release and discharge of all the relevant claims against the Group and the release of the relevant Collateral(s). The Secured Creditors who enter into a Debt Settlement Agreement shall be excluded from participating in the Scheme as Scheme Creditors. In the event that any Secured Creditor does not eventually participate in the Debt Settlement by entering into a Debt Settlement Agreement, it is envisaged that (i) the relevant debts owed by the Company shall be recognised as unsecured debts and be included in and settled by the Scheme, and (ii) if any Secured Creditor holds any Collateral(s) granted by a Group company other than the Company and has an unsecured claim against the Company, the relevant Secured Creditor shall be entitled to enforce the Collateral(s) in parallel to the Scheme to recover its debt provided that it agrees (via the Scheme) to pay to the Company any amount it receives in excess of the aggregate amount of its claims. Upon finalisation of the adjudications of claims filed by the Scheme Creditors, the Company shall implement the Scheme for the full and final settlement of all debts and claims of all Scheme Creditors. It is envisaged that the Scheme shall involve a pari passu distribution of (and at the selection by each Scheme Creditor of one of the following) cash, convertible bonds, redeemable preference shares or other options or instruments which the Company may consider appropriate for the settlement of claims of the Scheme Creditors , details of which are subject to further negotiation. As at the date of this announcement, the existing authorised share capital of the Company is HK$880.00 million, divided into 8,800,000,000 Shares of HK$0.10 each, of which 5,111,622,235 Shares were issued and credited as fully paid up for the amount of HK$511,162,223.50. The Capital Reorganisation shall entail the Capital Reduction, the Share Premium Cancellation, the Share Consolidation and the Increase in Authorised Share Capital, and upon completion of the Capital Reorganisation, the Company shall propose the Change in Board Lot Size, under which, the board lot size shall be increase from 2,000 Shares to 20,000 Shares each. As disclosed in the Company’s circular dated 17 June 2020, the Company proposed to implement the following:–

Debt Settlement. DEBT SETTLEMENT AGREEMENT Effective Date: , 20 This Agreement is for the negotiation and compromise of a debt under the following terms and conditions: The Company Parties. with a mailing address of , City of , State of shall use reasonable endeavours be known as the “Creditor”. This is usually in the case when an individual wants to negotiate and enter into Debt Settlement Agreement(s) make a final payment for a debt that is owed. When mentioned jointly shall be known as the “Parties”. with a mailing address of , City of , State of shall be known as the Secured Creditors “Debtor”. If the Creditor is a Business Entity, then an individual who is authorized by that Business Entity to settle their secured debts, which are expected sign this document on its behalf must sign his or her Name. This is the amount of money the Debtor has agreed to be executed prior to Pay in the implementation manner defined here in exchange for the Creditor’s debt forgiveness. Through the mutual interest of the SchemeParties, they agree that this outstanding debt shall be marked as paid if Debtor shall make payment of $ by , 20 . Mark the “Check,” “Bank Wire,” “Certified Check,” or “Cash” checkbox to indicate how the Debtor must pay the creditor. Record the Legal Name of the Creditor on the first blank space in the first paragraph. The debtor offers a payment that is less than the outstanding due (usually between 50% to 70%) if the payment can be made immediately. That is, the party that holds the debt. After Payment – After the last payment is complete the Creditor will agree to remove all harmful postings from the Debtor’s credit report. Download it using one of the three buttons presented on this page to choose the format you prefer (Adobe PDF, Microsoft Word (.docx), or Open Document Text (.odt)) 2 – Produce The Requested Information Several pieces of information will need be needed to balance the wording in this Agreement. On the blank line after that, record the Two-Digit Calendar Year for this Date.The next area requiring attention will be “XII. A series of checkboxes have been provided so this may be done efficiently. It is envisaged understood amongst the Parties that the Debt Debtor has an outstanding debt with the Creditor. First, we will identify the Creditor. If none of these define how this the Settlement Amount must be paid, then mark the “Other” checkbox and report the Payment Instructions the Creditor expects the Debtor to follow when submitting the required payment.The next sentence in this item will seek to solidify the Date when the Creditor must receive the Settlement Amount from the Debtor. Then, using the second blank line, document the Creditor’s Street Address. After the payment has been made by the Debtor the Creditor shall involvemake any and all efforts to remove the outstanding debt from the Credit Reporting Agencies. The Debtor must sign this Agreement to formally enter it. 3 – Both Parties Must Sign This Document To Execute It The final requirement of this contract will be to bind both parties to its terms. Finally, among others, (i) payment(s) of such amount(s) that may be determined the third and fourth blank spaces will need the City and State associated with reference the Creditor’s Street Address supplied on them. This is the party obligated to satisfy the debt owed to the valuation(s) Creditor. To begin we will solidify the parties that intend to enter this contract. Payment has been worded to solidify how the Settlement Amount must be paid to the Debtor. Locate the blank line after the words “…Settlement Debt Amount By” then enter the Month Name and Two-Digit Calendar Day when the Creditor must receive this payment. When Printing his or her Name, the Signature Party should follow it with the Legal Name of the relevant Collateral(s) to be conducted by an independent valuer(s) appointed by the Company, if appropriate and possible, and such amount(s) shall be paid Business Entity as reported in the time first paragraph (i.e. ▇▇▇▇ ▇▇▇, 1X Corp.). Furthermore, the Creditor declares that they will not make additional information that could harm the Debtor’s credit report. A debt settlement agreement is a contract signed between a creditor and manner as set out debtor to re-negotiate or compromise on a debt. We will need to document the same information reported on the Creditor in the relevant remainder of this paragraph. Settlement Debt,” calls for the adjusted Debt Settlement Agreement; and (ii) Amount set for the release and discharge purposes of all the relevant claims against the Group and the release of the relevant Collateral(s). The Secured Creditors who enter into a Debt Settlement Agreement shall be excluded from participating in the Scheme as Scheme Creditors. In the event that any Secured Creditor does not eventually participate in the Debt Settlement by entering into a Debt Settlement Agreement, it is envisaged that (i) the relevant debts owed by the Company shall be recognised as unsecured debts and be included in and settled by the Scheme, and (ii) if any Secured Creditor holds any Collateral(s) granted by a Group company other than the Company and has an unsecured claim against the Company, the relevant Secured Creditor shall be entitled to enforce the Collateral(s) in parallel this document supplied to the Scheme blank line. Adjacent to recover its debt provided that it agrees (via this he or she should enter the Scheme) to pay to current Date. Effective Date.” This is the Company any amount it receives in excess of Date when the aggregate amount of its claims. Upon finalisation of the adjudications of claims filed by the Scheme Creditors, the Company shall implement the Scheme for the full and final settlement of all debts and claims of all Scheme Creditors. It is envisaged that the Scheme shall involve a pari passu distribution of (and at the selection by each Scheme Creditor of one of the following) cash, convertible bonds, redeemable preference shares or other options or instruments which the Company may consider appropriate for the settlement of claims of the Scheme Creditors , details of which are subject to further negotiation. As at the date terms of this announcement, Agreement will become active or Effective. Enter this amount on the existing authorised share capital of blank line following the Company is HK$880.00 million, divided into 8,800,000,000 Shares of HK$0.10 each, of which 5,111,622,235 Shares were issued and credited as fully paid up for the amount of HK$511,162,223.50dollar sign in this section.The section labeled “IV. The Capital Reorganisation shall entail the Capital Reduction, the Share Premium Cancellation, the Share Consolidation and the Increase in Authorised Share Capital, and upon completion of the Capital Reorganisation, the Company shall propose the Change in Board Lot Size, under which, the board lot size shall be increase from 2,000 Shares to 20,000 Shares each. As disclosed in the CompanyDebtor’s circular dated 17 June 2020, the Company proposed to implement the following:–Signature Date