Document:

Exhibit 10.54

 

Guizhou Qianxinan JinYuan new energy
Co., Ltd (SPIC)

Jiangsu Zhonghong photovoltaic engineering
technology Co., Ltd (ZHPV)

Nanjing
zhaohewei new energy Co., Ltd (parent company of project company)

Qianxinan
Hongguan new energy Co., Ltd (project company)

 

 

 

 

 

 

 

 

 

 

 

Xinqiao Hehua 25MW agricultural photovoltaic
power station in Yilong New Area

Project cooperation and development agreement

 

 

 

 

 

 

Guiyang, China

December 2020

 

     

     

    

 

Xinqiao Hehua 25MW agricultural photovoltaic
power station in Yilong New Area

Project cooperation and development agreement

 

Party A: Guizhou Qianxinan JinYuan new
energy Co., Ltd

Legal representative: Geng Zhi

Address: Building 8, Shiji HongYuan community,
Jushan Avenue, Xingyi City, Qianxinan Prefecture, Guizhou Province

 

Party B: Jiangsu Zhonghong photovoltaic
engineering technology Co., Ltd

Legal representative: Xu Aojun

Address: room 1108, Chengxin building,
885 Chengxin Avenue, Jiangning District, Nanjing (Jiangning Development Zone)

 

Party C: Nanjing zhaohewei new energy
Co., Ltd

Legal representative: Rui Yun

Company residence: Room 102, 2 building,
Huijin Xintiandi Plaza, 11 Sheng Tai Road, Jiangning District, Nanjing (Jiangning Development Zone)

 

Party D: Qianxinan Hongguan new energy
Co., Ltd

Legal representative: Wang Hui

Address: daqiodi group, Muke village, Xinqiao
Town, Anlong county, Qianxinan Buyi and Miao Autonomous Prefecture, Guizhou Province

 

Whereas:

 

1. Party A is a
wholly-owned subsidiary of Guizhou JinYuan Weining Energy Co., Ltd., a holding subsidiary of Guizhou JinYuan Co., Ltd. of
state power investment group. It is mainly responsible for resource acquisition, development and construction, production,
operation and maintenance management of new energy projects in Southwest Guizhou and panzhou of Guizhou Province.

 

2. Party B holds
100% equity of Party C Nanjing zhaohewei new energy Co., Ltd.Mainly engaged in photovoltaic system engineering design,
construction, operation and maintenance; mechanical and electrical engineering construction; wholesale of solar cells and
solar modules; design, manufacturing and sales of photovoltaic system engineering accessories.

 

3. Party C (the “target
company”) holds 100% equity of Party D Qianxinan Hongguan new energy Co., Ltd. It is mainly engaged in the development, investment,
construction, operation and maintenance of photovoltaic power station; the design, construction, operation and maintenance of photovoltaic
system engineering; the construction of mechanical and electrical engineering; the design, manufacture and sales of photovoltaic
system engineering accessories; Trade brokerage and agency.

 

    2

     

    

 

4. Party D(“project
company”) is Qianxinan Hongguan new energy Co., Ltd., which is the main investor of Xinqiao Hehua 25MW agricultural photovoltaic
power station in Yilong new area.

 

Based on the principles
of honesty, mutual benefit, fairness and voluntariness, through friendly negotiation, the parties have reached the following specific
agreement on the merger and acquisition (cooperative development) of Xinqiao Hehua 25MW agricultural photovoltaic power station
project in Yilong new area.

 

1  Definition

 

1.1 “This project”
and “target project” refer to “Xinqiao Hehua 25MW agricultural photovoltaic power station project in Yilong New
Area”.

 

1.2 “This Agreement”
refers to the cooperative development agreement of the project, including all its attachments and amendments and supplements to
this agreement by all parties.

 

1.3 “Parties”
refer to Party A, Party B, Party C and Party D of this agreement.

 

1.4 “Project company”
refers to the project investment subject specified in the project filing documents, namely “Qianxinan Hongguan new energy
Co., Ltd.”.

 

1.5 “Target company”,
Beijing megahertz new energy Co., Ltd.

 

1.6 “Local government”
refers to the provincial (District), municipal and county governments and other authorities where the project is located.

 

1.7 “EPC general
contract” refers to the EPC general contract signed by the project company as the employer and the EPC general contractor
(the specific name and content shall be subject to the signed version contract) and its supplementary contract.

 

1.8 “Grid connected
trial operation” refers to the trial operation activities carried out by the construction unit to check whether the performance
of the photovoltaic power station system meets the design requirements after the project has the conditions of trial operation
and handover for production acceptance; under the conditions of meeting the trial operation provisions of < GBT 50796-2012 >
acceptance code for photovoltaic power generation project >, when the time reaches 72 hours, the trial operation is deemed to
be completed. The construction unit shall reply whether it agrees to enter the trial operation within seven (7) days after receiving
the application. If it fails to reply within the agreed time, it shall be deemed that the construction unit agrees to enter the
trial operation.

 

1.9 “Construction
period” refers to the period from the commencement of the project to the commissioning of the full capacity grid connected
power generation of the project.

 

1.10 “Merger and
acquisition” means that Party A holds 100% of the equity of the target company through equity merger and acquisition after
the project has reached the preconditions stipulated in the signed “framework agreement on cooperation of Xinqiao Hehua 25MW
agricultural photovoltaic power station project in Yilong New District”.

 

1.11 “State power
investment” refers to the State Power Investment Group Co., Ltd.

 

1.12 “Guizhou JinYuan”
refers to the State Power Investment Group Guizhou JinYuan Co., Ltd.

 

    3

     

    

 

2  Project overview

 

2.1 Project Name:
Yilong New Area Xinqiao Hehua 25MW agricultural photovoltaic power station project.

 

2.2 Project
location: Xinqiao Town, Yilong New District, Qianxinan Prefecture, Guizhou Province.

 

2.3 Project
indicators: on June 23, 2020, the project was included in the project list of the notice of the comprehensive Department of
the National Energy Administration on announcing the bidding results of state subsidies for photovoltaic power generation
projects in 2020 (gnztxneng [2020] No. 64). During the operation period, the grid price for the first 20 years was 0.4087
Yuan / kWh, and that for the next five years was 0.3515 Yuan / kWh.On July 13, 2020, the project was registered by Guizhou
Energy Bureau (project code: ppc200a52238001), with the registered capacity of 25MW.

 

2.4 Project
commissioning plan: the project has been started in November 2020, and will be grid connected in full capacity before
December 31, 2020.

 

3  Cooperation
mode and related agreements

 

3.1 According to
the cooperation framework agreement of Xinqiao Hehua 25MW agricultural photovoltaic power station project in Yilong new
district signed by all parties, after the merger and acquisition of the target company, Party A holds 100% equity of the
target company.

 

3.2 All parties
agree that on the date when the equity transfer agreement for Party A’s acquisition of 100% equity of the target company is
signed, Party B shall complete the transfer of all seals, files and business licenses (original and duplicate) of the target
company and the project company, and Party A shall be responsible for the overall management.

 

3.3 The
feasibility study report of this agreement project has been reviewed by the State Power Investment Group Energy Technology
Engineering Co., Ltd. and the review opinions have been issued. The proposed installed capacity of the project is 27.016mwp,
the estimated static total investment is 89115500 Yuan, and the unit static investment is 3298.62 Yuan / kWp; the interest
during the construction period is 436100 Yuan, the project dynamic investment is 89551600 Yuan, and the unit dynamic
investment is 3314.76 Yuan / kWp (see Annex 1 for the estimate table).The total investment of the project consists of
equipment purchase cost, construction cost, installation cost, other costs, basic reserve cost, interest during construction
period, etc. All parties agree that the budget estimate is the investment control objective of the project, and the joint
control of all parties shall not break through.

 

3.4 The EPC total
contract amount of the project is RMB 88.1205 million, including: equipment procurement, installation engineering,
construction engineering, project consulting service fee, survey and design, land lease fee during construction period, land
acquisition fee during construction period, green compensation fee for land levy and lease, compensation fee for water and
soil conservation, access fee of national power investment production and operation center, access fee of Guiyang production
and operation center, project insurance fee and other taxes Fees (environmental protection compensation fees, policy
processing fees, etc.), engineering quality inspection and testing fees, project inspection fees, project settlement fees;
fees required for the completion and commissioning of the project in the early stage of the project, project construction,
production and operation, and handling of documents required for acceptance, etc., are all inclusive.

 

    4

     

    

 

3.4.1 The parties agree
that for the single project within the scope of EPC general contract, which needs to be signed by the project company, the actual
amount shall be deducted from the EPC general contract amount with the consent of Party A.

 

3.5 995000 Yuan of the
project company shall be borne by the project company after the equity transfer, and controlled and used by Party A according to
the regulations of Guizhou JinYuan. Party A shall control the use according to the regulations of Guizhou JinYuan, including production
preparation fee, engineering construction supervision fee (including main equipment supervision, engineering supervision, arrival
inspection and installation inspection fee), and project technical and economic evaluation fee. The due diligence expenses (including
legal due diligence, financial due diligence, financial audit, asset evaluation, post evaluation, etc.) incurred by Party A merger
and acquisition of the project shall be included in the technical and economic review fees and shall not be exceeded.(see Annex
3: list of expenses controlled by Party A and used by the project company for details)

 

3.6 The parties
agree that the project construction standards shall be implemented in accordance with the relevant provisions of the state,
Guizhou Province, state power investment and Guizhou JinYuan. The components and other main equipment used in the project
shall be included in the list of qualified suppliers of SDIC, with no more than one component manufacturer and no more than
one component model (except with the consent of Party A); the component quality assurance terms and relevant liabilities for
breach of contract shall be borne by the equipment manufacturer to the project company; other equipment shall be purchased
through bidding in accordance with the technical standards of SDIC and Guizhou JinYuan (to be confirmed by Party A)The
technical part of the EPC general contract shall prevail); the main equipment and materials procurement and subcontracting
contracts in the charge of the EPC General Contractor shall be provided to the project company for record after signing.

 

3.7 All parties
agree that before Party A starts the merger and acquisition of the target company, Party B may first carry out project
financing in the name of the project company in financial institutions. However, before signing the financing agreement, the
financing scheme and agreement shall be submitted to Party A for written confirmation. The financing funds can only be used
for the construction of the project, and the financing expenses during the construction period of the project shall be borne
by Party A. After the merger and acquisition of the target company, Party A undertakes to undertake the financing agreement
of the project company or use other funds to replace the financing of the project company.

 

3.8 All parties agree
that after Party A holds 100% of the equity of the target company, if the project has substantial impact or major potential risks
(including but not limited to external guarantee, litigation, false assets, administrative penalty, major business risks, etc.)
due to Party B reasons, Party B shall be unconditionally responsible for solving and bearing the relevant costs, and compensate
Party A for the losses caused thereby (no matter when the event occurs).

 

    5

     

    

 

4  Commitment
and guarantee of all parties

 

4.1 Party A
undertakes that it is a limited company legally established and validly existing in accordance with the laws of China and can
independently undertake and perform its responsibilities and obligations under this agreement.

 

4.2 Party A
undertakes that the signing of this agreement will not violate any other contractual obligations that are legally binding on
Party A, and will not violate the relevant laws and regulations applicable to it and currently in force.

 

4.3 Party A promises
to actively coordinate with the main equipment manufacturers, and strive to enjoy the centralized purchase price and other preferential
conditions for the main equipment of the project company.

 

4.4 Party A undertakes
that after the merger and acquisition of the target company, it will ensure that the project company will pay the corresponding
amount according to the signed EPC contract.

 

4.5 Party B undertakes
that Party B shall give priority to the cooperative development with Party A for the newly acquired construction indexes in the
area. If Party A and Party B fail to reach the cooperation intention and the public facilities of the project need to be used for
the project, Party A shall promise to give support, and the specific matters shall be discussed by both parties separately.

 

4.6 Party B, Party C
and Party D jointly undertake that they are a limited company legally established and validly existing in accordance with Chinese
laws and can independently undertake and perform their responsibilities and obligations under this agreement.

 

4.7 Party B, Party C
and Party D jointly undertake that the signing of this agreement will not violate any other contractual obligations that are legally
binding on Party B, Party C and Party D, and will not violate the applicable and currently effective relevant laws and regulations.

 

4.8 Party B undertakes
to continue to be responsible for all the following works of the project, as follows:

 

4.8.1 Go through
all the procedures and documents required by the project to ensure that the project is constructed in accordance with the law
and regulations to meet the relevant requirements of the local government and the power grid company. Including but not
limited to: resource assessment, geological exploration, environmental impact assessment, water and soil conservation, safety
assessment, agricultural scheme, feasibility study, construction drawing design, grid connection intention agreement, access
system approval, etc., and obtained project record.(see Annex 2 for the list of preliminary procedures)

 

4.8.2 Responsible
for completing the land acquisition and leasing of the project, and obtaining the necessary state-owned land and forest land
use license procedures.

 

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4.8.3 After the
completion of the project, be responsible for signing the power purchase and sale contract with the power grid company, and
be responsible for the special acceptance of the project, such as environmental impact assessment, water and soil
conservation, fire protection, agriculture, etc., to ensure that the project passes the acceptance of the local competent
Department of energy (if any), and the agricultural scheme passes the acceptance of the local competent department of
agriculture (if any), and meet the requirements of the completion acceptance of the project and apply for the power business
license.

 

4.8.4 The expenses
for handling the relevant procedures in 4.8.1, 4.8.2 and 4.8.3 have been included in the total investment expenses, and the
project company shall not be required to pay separately. If the budget is exceeded due to force majeure, the parties shall
negotiate separately.

 

4.8.5 Be
responsible for organizing the preparation of project settlement report, which shall be handed over to Party D after passing
the audit, and the expenses incurred shall be listed in the technical and economic review expenses controlled and controlled
by Party A.

 

4.8.6 Be
responsible for signing the relevant technical consulting contracts in the above terms in the name of the project company.
After the signing of this agreement, all contracts signed externally shall be confirmed by Party A in writing; for all
project agreements / contracts and other documents signed externally without Party A written confirmation, any expenses and
responsibilities arising therefrom shall be borne by Party B.

 

4.9 Party B
undertakes that after the full capacity grid connected power generation of the project, if the total efficiency of the
photovoltaic power generation system in the first year tested by the third-party testing agency entrusted by the project
company is lower than 5% of the feasibility study value approved by the feasibility study report due to Party B reasons, or
the actual utilization hours of power generation in the previous three years are lower than the feasibility study value
approved by the feasibility study report, Party B agrees to reduce the EPC general contract price of the project to meet the
internal rate of return of the capital approved by the feasibility study report, and implement the price adjustment shall be
separately agreed in the EPC contract.

 

4.10 After Party B approval,
if the investment rate of the PV module is lower than the promised value in the feasibility study report due to Party B approval.
The reduced amount shall be firstly deducted from the project funds payable by the project company to the EPC party, and the insufficient
part shall be deducted from the funds payable by the project company to Party B. the insufficient part shall be made up by Party
B in cash.

 

4.11 Party B
undertakes that if the actual electricity price is lower than 0.4087 Yuan / kWh due to Party B reasons, Party B shall be
responsible for coordinating and implementing the reduction of the EPC contract price by the EPC general contractor; when the
actual electricity price is lower than the competitive configuration electricity price by 0.01 Yuan / kWh, Party B shall
reduce the general contract cost of the project unit by 100 Yuan / kWh accordingly. When the actual electricity price is 0.01
Yuan / kWh higher than the Competitive Allocation electricity price, the total contract cost of the project unit will be
increased by 100 Yuan / kWh.

 

4.12 Party B
undertakes that all debts incurred by Party B in the process of static investment reduction of the project unit have nothing
to do with Party A, Party A does not need to bear any compensation liability to Party B for the price adjustment, and the
taxes and fees incurred by the project company in the above process shall be borne by Party B.

 

4.13 Party B undertakes
that, since the signing of this agreement, Party C shall not have any right restrictions such as pledge, mortgage or other security
interests (except for the pledge, mortgage or other security interests used for project construction financing and agreed by Party
A) on all the equity of the project company, and there shall be no equity agency, ownership dispute, etc. As of the signing date
of this agreement, there is no existing or potential dispute or risk for the project; if there is, Party A has the right to unilaterally
terminate this agreement, and any costs and losses arising from this agreement or risk shall be borne by Party B.

 

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4.14 Party B undertakes
that all the project documents, materials and other written materials delivered to Party A about the project company are free from
material omission and falsity, and that such written materials are complete, accurate and effective. If such written materials
are copies, they are consistent with the original; and Party B undertakes that the project company has no other debts and contingent
liabilities that are not disclosed in the accounts, and that if they are not disclosed due to the non-disclosure of the project
company Party A shall have the right to claim compensation from Party B in case of losses caused by debts or contingent debts.

 

4.15 Party B undertakes
that if the relevant administrative license documents of the project are incomplete or the relevant taxes and fees during the construction
period (cultivated land occupation tax, etc.) are not paid due to Party B reasons, the government has the right to require the
project company to make up or impose administrative penalties on the project company and pay the relevant taxes and fees during
the construction period (cultivated land occupation tax, etc.), no matter when such matters occur, Party B shall be responsible
for handling such administrative license And bear all the expenses incurred, including administrative penalty expenses, etc. If
the land is confiscated or the project equipment and facilities are demolished due to administrative punishment, the losses arising
therefrom shall be borne by Party B.

 

4.16 All parties undertake
to fulfill the responsibilities and obligations agreed in this agreement after the signing of this agreement.

 

5  Liability
for breach of contract and termination of project cooperation

 

5.1 If after Party A
completes the merger and acquisition of the target company, Party A finds that there are matters in article 4.12 of this agreement
that have a significant impact on the subsequent cooperation, and Party B fails to properly solve them, resulting in losses to
Party A, Party A has the right to recover from Party B.

 

5.2 If any party
of this agreement violates the agreement, it shall be deemed as a breach of contract, and the breaching party shall bear the
liability for breach of contract to the observant party. The way of bearing the liability for breach of contract is: the
observant party has the right to terminate this agreement, require the breaching party to return the property or articles (if
any) paid by the observant party, and compensate for the losses; if the observant party requires the breaching party to
continue to perform this agreement, the breaching party shall compensate the observant party for the loss and continue to
perform this agreement according to law.

 

5.3 If the
agreement cannot be performed, the expected purpose of the agreement cannot be achieved, or the project cannot be implemented
due to national or local policies or force majeure, or the requirements of the state power investment company have changed,
or the project cannot be implemented due to Party B reasons, the parties to the agreement shall negotiate to solve or
terminate this agreement, and each party shall not be liable for breach of contract.

 

    8

     

    

 

6  Service of
documents

 

6.1 The relevant
documents sent by either party to the other party under this agreement can only be sent in writing by EMS, in person or by
fax to the following addresses, which shall be deemed to be delivered after reaching the following addresses:

 

Party A: Guizhou Qianxinan
JinYuan new energy Co., Ltd

Address: Building 8,
Shiji HongYuan community, Jushan Avenue, Xingyi City, Qianxinan Prefecture, Guizhou Province

Post code: 562499

Attention: Dong Xiangxi

Tel: 17585560059

Email:851058414@qq.com

 

Jiangsu Zhonghong Photovoltaic
Technology Co., Ltd

Address: room 1108,
Chengxin building, 885 Chengxin Avenue, Jiangning District, Nanjing (Jiangning Development Zone)

Postal Code: 211100

Attention: Ding Chunhao

Tel: 17811863898

Email:danielding@solarmaxtech.com.cn

 

Party C: Nanjing zhaohewei
new energy Co., Ltd

Address: Room 102, 2
building, Huijin Xintiandi Plaza, 11 Sheng Tai Road, Jiangning District, Nanjing (Jiangning Development Zone)

Postal Code: 211100

Attention: Ren Fei

Tel: 13770981465

Email:maggieren@solarmaxtech.com.cn

 

Party D: Qianxinan Hongguan
new energy Co., Ltd

Address: daqiodi formation,
Muke village, Xinqiao Town, Anlong county, Qianxinan Buyi and Miao Autonomous Prefecture, Guizhou Province

Postal Code: 552401

Attention: Wang Hui

Tel: 18156903677

Email:wanghui@solarmaxtech.com.cn

 

The parties to this
contract may from time to time by similar written notice change the address for service of notices to be given under this contract.

 

6.2 If either party
changes its address or contact person, it shall send a notice to the other party in a timely manner according to the above methods.
Before the other party receives the above change notice, the notice delivered according to the address mentioned in the first paragraph
of this article shall be deemed to have been delivered.

 

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7  Others

 

7.1 Each party shall
perform the obligation of confidentiality for the contents of this agreement. Unless required by national laws, regulations or
relevant authorities, without the written consent of other parties, neither party shall disclose the specific details and relevant
information of this cooperation to any unrelated third party, and request their respective related parties to perform the obligation
of confidentiality.

 

7.2 If one party
fails to perform or not fully perform its obligations under this agreement due to force majeure, such party shall not be
deemed to be in breach of contract. However, the party suffering from the above force majeure event shall immediately notify
the other party in writing after the occurrence of the event, and provide sufficient evidence to prove the occurrence and
duration of the force majeure event within 15 days thereafter. In case of force majeure, both parties shall immediately
consult with each other to seek a fair solution so as to minimize the impact of force majeure.

 

7.3 Any dispute
arising from the performance of this Agreement shall be settled through friendly negotiation. If it cannot be settled, either
party may apply to the people court with jurisdiction in the place where the project is located for settlement.

 

7.4 Matters not
specified in this Agreement shall be further discussed according to the situation of the parties.

 

7.5 This Agreement
shall come into force on the date when it is signed and sealed by the legal representatives or authorized principals of all
parties. This agreement is made in OCTUPLICATE with each party holding two copies.

 

Enclosure:

 

1. Budget estimate of
Xinqiao Hehua 25MW agricultural photovoltaic power station project in Yilong New Area

 

2. Preliminary procedures
list ----------------------There is no text below -------- (this page is the signature and seal page of the cooperative development
agreement of Xinqiao Hehua 25MW agricultural photovoltaic power station project in Yilong New District)

 

first party:Guizhou
Qianxinan JinYuan new energy Co., Ltd. (seal)

Legal representative
(or authorized client) (signature)

 

Party B:Jiangsu
Zhonghong photovoltaic engineering technology Co., Ltd. (seal)

Legal representative
(or authorized client) (signature)

 

Party C:Nanjing
zhaohewei new energy Co., Ltd. (seal)

Legal representative
(or authorized client) (signature)

 

Party D:Qianxinan
Hongguan new energy Co., Ltd

Legal representative
(or authorized client) (signature)

 

Signing place: Guiyang

Date of signing: mm
/ DD / yyyy

 

    10

     

    

 

Annex 1:

 

General budget
estimate of Xinqiao lotus agricultural photovoltaic power station project in Yilong New Areasurface

 

           
Unit: 10000 Yuan

 

	Serial

 number	 	Name of project or cost	 	Equipment purchase cost	 	 	Construction and installation cost	 	 	other

 expenses	 	 	total	 
	One	 	Equipment and installation engineering	 	 	5843.66	 	 	 	1272.40	 	 	 	 	 	 	 	7116.05	 
	1	 	Power generation equipment and installation engineering	 	 	5349.86	 	 	 	1182.66	 	 	 	 	 	 	 	6532.51	 
	2	 	Step up power transformation and distribution equipment and installation engineering	 	 	440.73	 	 	 	36.16	 	 	 	 	 	 	 	476.90	 
	3	 	Control and protection equipment and installation engineering	 	 	53.70	 	 	 	52.94	 	 	 	 	 	 	 	106.64	 
	4	 	Other equipment and installation works	 	 	0.00	 	 	 	0.00	 	 	 	 	 	 	 	0.00	 
	Two	 	architectural engineering	 	 	 	 	 	 	952.59	 	 	 	 	 	 	 	952.59	 
	1	 	Power plant engineering	 	 	 	 	 	 	663.37	 	 	 	 	 	 	 	663.37	 
	2	 	Booster station project	 	 	 	 	 	 	21.28	 	 	 	 	 	 	 	21.28	 
	3	 	Housing construction engineering	 	 	 	 	 	 	0.00	 	 	 	 	 	 	 	0.00	 
	4	 	traffic engineering	 	 	 	 	 	 	92.81	 	 	 	 	 	 	 	92.81	 
	5	 	Other construction works	 	 	 	 	 	 	175.13	 	 	 	 	 	 	 	175.13	 
	Three	 	other expenses	 	 	 	 	 	 	 	 	 	 	668.17	 	 	 	668.17	 
	1	 	Project construction land cost	 	 	 	 	 	 	 	 	 	 	257.00	 	 	 	257.00	 
	2	 	Project construction management fee	 	 	 	 	 	 	 	 	 	 	225.17	 	 	 	225.17	 
	3	 	Production preparation cost	 	 	 	 	 	 	 	 	 	 	36.00	 	 	 	36.00	 
	4	 	Survey and design fee	 	 	 	 	 	 	 	 	 	 	100.00	 	 	 	100.00	 
	5	 	other	 	 	 	 	 	 	 	 	 	 	50.00	 	 	 	50.00	 
	 	 	Total of three parts	 	 	5843.66	 	 	 	2224.99	 	 	 	668.17	 	 	 	8736.81	 
	Four	 	Basic reserve fund (2%)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	174.74	 
	 	 	Total static investment of the project	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8911.55	 
	Five	 	Access system cost	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.00	 
	Six	 	Reserve fund for price difference	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.00	 
	 	 	The total static investment of the project is one to six	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8911.55	 
	Seven	 	Interest during construction period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	43.61	 
	 	 	Total dynamic total investment of the project	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8955.16	 
	 	 	Static investment per kW (Yuan / kW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3298.62	 
	 	 	Dynamic investment per kW (Yuan / kW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3314.76	 

 

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Annex 2:

 

Preliminary procedures list (not limited
to this)

 

	Serial

 number	 	File name	 	remarks
	1	 	Project investment and development agreement	 	 
	2	 	Project filing documents	 	 
	3	 	Feasibility study report and review comments	 	 
	4	 	Access system report and review comments	 	 
	5	 	Send out project approval documents	 	 
	6	 	Land use prequalification documents and land use approval documents	 	 
	7	 	EIA approval (filing) documents	 	 
	8	 	Water and soil conservation plan and reply	 	 
	9	 	Project planning and site selection documents	 	 
	10	 	Construction land planning documents	 	 
	11	 	Approval opinions on occupation of forest land	 	 
	12	 	Evaluation report and review opinions of overlying mineral resources (including data collection certificate)	 	 
	13	 	Geological hazard risk assessment report and review comments	 	 
	14	 	Safety assessment report and approval	 	 
	15	 	Power engineering quality supervision and inspection report	 	 
	16	 	Social stability assessment report	 	 
	remarks	 	The specific preliminary work documents shall be subject to the relevant requirements of the local government and the power grid company	 	 

 

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Annex 3

 

Party A controls the project company
to use the expense table (total amount control, but the expense category is not limited to this)

 

	Serial

 number	 	Fee name	 	Amount (ten thousand Yuan)	 	remarks
	1	 	Financial audit	 	4	 	 
	2	 	Financial adjustment	 	2.5	 	 
	3	 	Assets appraisal	 	5	 	 
	4	 	Legal adjustment	 	7	 	 
	5	 	Technical and economic evaluation	 	8	 	 
	6	 	Project settlement and related cost consultation	 	6	 	 
	7	 	Production preparation cost	 	10	 	 
	8	 	supervisor	 	22	 	 
	9	 	manufacture supervision	 	10	 	 
	10	 	Arrival acceptance and inspection	 	7	 	 
	11	 	Feasibility study review	 	13	 	 
	12	 	Post project evaluation	 	5	 	 
	 	 	total	 	99.5	 	 

 

 

13THE SHARES REPRESENTED BY THIS COMPENSATION AGREEMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO SPARBAR INC. THAT SUCH REGISTRATION IS NOT REQUIRED. THE COMMON SHARES
ISSUABLE UPON CONVERSION OF THESE PREFERRED SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE COMMON
SHARES ISSUABLE UPON CONVERSION OF THE PREFERRED SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO SPARBAR, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

 

 

EMPLOYMENT AND COMPENSATION AGREEMENT

 

This Employment and Compensation Agreement (“Agreement”)
is entered into this 28th day of October 2020 (the “Effective Date”) by and between Sparbar, Inc., a Delaware
corporation (the “Company”) and Jasvinder Singh Gill (the “Executive”).

 

NOW, THEREFORE, in consideration of the mutual covenants
contained herein, it is hereby agreed by and between the parties hereto:

 

Section 1. TERM

 

1.1       Initial
Term. Company hires and retains Executive for an initial term of five (5) years commencing on November 30, 2019 (the “Commencement
Date”) and expiring on November 30, 2024, as Chief Executive Officer (“CEO”) of Company (the “Initial Term”).

 

1.2       Automatic
Renewal. This Agreement shall automatically renew for additional terms of one (1) year (the “Renewal Term”) unless
either party shall give the other party sixty (60) days written notice of their intent not to permit this Agreement to automatically
renew.

 

Section 2.DUTIES AND RESPONSIBILITIES

 

2.1       Job Description.
Executive shall perform the duties and responsibilities of CEO of Company in accordance with (A) the job description attached hereto
as Exhibit A; (B) applicable laws and regulations; (C) the Certificate of Incorporation, Bylaws, and rules of the Company; (D)
in any other manner properly delegated and communicated to Executive and shall provide executive management services for Company.
Executive shall report directly to the Board of Directors of the Company (the “Board”). This statement of duties and
responsibilities shall not limit the powers of the Board to engage at any time certified public accountants or others to examine
and report concerning the accounts and financial affairs of Company, and, for the purpose of making such examination, the persons
so authorized by the Board shall have access to all records of the Company.

 

    -1-

    

    

       2.2       Expenditures.
Executive shall have the responsibility to manage the day-to-day operation of the Company including the approval of all expenditures
(except Executive’s expense reports, which will be approved by a person nominated by the Board) in the ordinary course of
business that are reasonable and necessary for the continued operation of the Company. Generally, expenditures shall be limited
to amounts set forth in the annual operating budget or as otherwise approved or allowed by the Board. In no event may Executive
spend more than $15,000 outside of the ordinary course of business for any purpose without the express authorization of the Board.

 

2.3       Non-Competition.
Executive agrees that, during the term of this Agreement and for a period of two (2) years after the Effective Date of Termination
of this Agreement (as defined hereinafter), for whatever reason, Executive shall not directly or indirectly, in any manner whatsoever,
including either individually or in partnership, jointly or in conjunction with any other person, or as a consultant, representative,
independent contractor, principal, agent, owner or shareholder, and whether or not for compensation:

 

(A) carry on, or engage in, or have a financial
interest in, or advise, lend money to, guarantee the debts or obligations of, or permit its or Executive’s name to be used
or employed by any person that carries on or is engaged in, any product anywhere in North America (the “Restricted Area”)
that:

 

(i) (a) has been offered by the Company or Sparbar, LTD., a U.K.
Limited Company, during the five years prior to the Effective Date until the Effective Termination Date; or

 

(b) comprises any revisions, developments, or
upgrades of any such product or products; or

 

(ii) competes with any product or revision of such product identified
in section (A)(i) above (collectively, the “Restricted Products”);

 

(B) sell any Restricted Products to any entity
or person in the Restricted Area (a “Restricted Customer”); or

 

(C) take an active management role in any venture
which sells, manufacturers, markets, or distributes Restricted Products in the Restricted Area.

 

2.3.1       Executive agrees not
to solicit or otherwise contact or assist any other person in contacting customers of the Company for a business and/or commercial
purpose for a period of two (2) years from the Effective Date of Termination.

 

2.3.2       Executive agrees to
refrain from contacting, recruiting, or hiring any then-present or future employee of Company for a period of two (2) years from
the Effective Date of Termination.

 

2.3.3        Executive agrees
that each restrictive covenant set forth above shall be construed as being independent of any other covenant or provision of this
Agreement. In the event it shall be determined that one or more restrictive covenant, as set forth above, is unreasonable in any manner,
the covenant shall not be stricken from this Agreement, but shall be modified only to the extent necessary to be reasonable and
enforceable.

    -2-

    

    

 

2.4       Non-Disclosure
of Confidential Information. Executive shall not, either during the term of this Agreement, or at any time thereafter, impart
in any way to anyone any confidential information of Company or its customers which Executive may acquire in the performance of
Executive’s duties under this Agreement, except as permitted by Company or under the compulsion of law. Confidential information
shall be interpreted in its broadest form to include any and all information obtained by Executive about Company or its customers
during the term of this Agreement and, without limiting the generality hereof, includes all records, e-mails, phone records, text
messages, other tangible items, and intangible information whether created, transmitted, communicated, or stored on Company’s
equipment or personal equipment.

 

2.5Provisions Reasonable. Executive acknowledges
that the provisions set forth in Sections 2.1 through 2.4, inclusive, are reasonable and are required for the reasonable
protection of Company and its affiliates and further acknowledges that a breach of these provisions may cause damage to Company
that cannot be measured or compensated monetarily. Company shall be entitled to injunctive or any other equitable relief deemed
appropriate under existing law as well as actual damages and attorneys’ fees as allowed by law.

 

Section 3.COMPENSATION AND BENEFITS OF EXECUTIVE

 

3.1       Base Compensation.
Executive shall be paid an annual base salary of Seventy-Seven Thousand and 00/100 Dollars ($77,000.00) (“Base Compensation”)
beginning on the Effective Date and payable in accordance with the Company’s payroll practices.

 

3.2       Other Benefits.
Executive shall be entitled to participate in any and all other benefits provided by the Company.

 

3.3        Preferred
Stock. Company will grant Executive Three Million (3,000,000) shares of Restricted Series A Voting Preferred Convertible stock
in the Company (the “Preferred Shares”), such shares conforming in substantial form to the Certificate of Designation
in Exhibit C to this Agreement, with delivery as follows:

 

(A) The Preferred Shares shall be issued to Executive on the books
and records of the Company and shall bear the legend in accordance with the Securities Act of 1933 in substantially the form of
3.3(D) below, designating all relevant securities restrictions on transfer or sale. In the event that the Company elects to terminate
this Agreement at any time following the commencement of the Term, all Preferred shares defined in this Section 4 shall be deemed
earned upon the Effective Date.

 

(B) Company agrees to provide letters of opinion by Company’s
counsel to Executive as evidence of payment via delivery of the Preferred Shares.

 

(C) Condition Precedent. Company shall have no obligation to deliver
the Restricted

    -3-

    

    

Shares unless and until Executive and Company execute
the Lock-Up Agreement in the form of Exhibit “B” attached hereto.

 

(D) This Agreement and any certificate issued thereto shall bear
the following legend:

 

THE SHARES REPRESENTED BY THIS COMPENSATION AGREEMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO SPARBAR INC. THAT SUCH REGISTRATION IS NOT REQUIRED. THE COMMON SHARES
ISSUABLE UPON CONVERSION OF THESE PREFERRED SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE COMMON
SHARES ISSUABLE UPON CONVERSION OF THE PREFERRED SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO SPARBAR, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

 

Section 4.DUTIES AND RESPONSIBILITIES OF COMPANY

 

4.1       Review
and Performance Appraisal. Annually, Executive and the Board will cause a review of Executive’s performance of job duties,
responsibilities, goals compensation and objectives; which may be periodically changed or amended by the Board. This review shall
be completed in writing each year. Annual performance appraisals will be in accordance with the practices and procedures established
by Company.

 

4.2       Indemnification
of Executive. If Executive discharges the duties of the position in good faith and with the degree of diligence, care, and
skill that an ordinary, prudent person would exercise under similar circumstances in a like position, then Company will indemnify
and hold Executive harmless in the event Executive is, or is threatened to be made, a party to a threatened, pending, or completed
action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and whether formal or informal, other than
an action by or on behalf of Company, because Executive is or was an official, employee, or agent of Company or is or was serving
at the request of Company as an official, committee member, employee, or agent of Company, to the extent that Executive is not
covered by insurance obtained by Company. In discharging the duties, Executive may rely upon the opinion of legal counsel and upon
the report of an independent appraiser selected with reasonable care by the Board or of an officer of Company. Executive may also
rely upon financial statements and reports concerning Company’s financial condition represented to be correct by an officer
of Company having charge of its records, or as stated in a written report by an independent public or certified public accountant,
or a firm of accountants. Company will only indemnify Executive under this Section if Executive acted in good faith and in a manner
Executive reasonably believed to not oppose the best interests of Company and/or its members.

 

 

 

    -4-

    

    

Section 5.Termination of Agreement.

 

5.1       Termination
by Company. The Board may terminate this Agreement only with the express written approval of Executive, which writing shall
include the date the termination is effective (the “Effective Date of Termination”).

5.2       Termination
by Executive. Executive may terminate this Agreement without cause or reason by giving one (1) month’s (30 calendar days)
written notice to Company. In the event Executive provides written notice of termination of this Agreement, Company may reduce
the time period set forth in this Section. In the event Company reduces the time period set forth herein, Company shall only be
obligated to provide Executive with Base Compensation and other benefits through the actual date upon which Executive’s employment
is terminated.

 

5.3       Termination
by Death or Disability of Executive.

 

5.3.1       The death of Executive
will cause immediate termination of this Agreement. Any compensation or benefits due under any section of this Agreement shall
be paid to the beneficiary designated by Executive on a form provided by Company or insurance company. If no beneficiary is designated,
payment shall be made to Executive’s spouse and if Executive does not have a spouse, then to Executive’s estate. Executive
may name successor beneficiaries.

 

5.3.2       The absence of Executive
by reason of confirmed illness, other confirmed incapacity, or inability to perform under this Agreement for more than ninety (90)
consecutive calendar days will result in the termination of this Agreement. The Company may extend the within-stated period or
request additional medical or other proof of illness, incapacity, or inability at its sole discretion.

 

5.4       Dissolution
of Company. The dissolution of Company will cause immediate termination of this Agreement.

 

5.5       Return
of Property. On the date this Agreement is terminated, Executive agrees to return to Company or destroy all of Company’s
property including, but not limited to, all e-mails, records of phone conversations, text messages, other tangible items, and intangible
information, relating to or containing confidential information as described in Section 2.4 of this Agreement, including any copies,
and arrangements made for payment by Executive of any indebtedness to Company. At Company’s option, upon Company’s
request, Executive will certify to Company in writing that it has complied with the requirements of this sentence. To the extent
Confidential Information is stored on any smartphone, tablet, laptop or other electronic device (“Device”) that was
not provided by Company, Executive agrees to delete the Confidential Information from such Device. To the extent Confidential Information
is stored on a Device provided to Executive by Company, Executive shall not delete the Confidential Information, but shall instead
return the Device to Company within ten (10) days following the termination of this Agreement. The provisions of this Section 5.5
are in addition to any provisions for the return of Company’s property contained in Company’s employee handbook at
the time of termination.

 

    -5-

    

    

5.6       Termination
Compensation. In the event this Agreement is terminated by either party, Executive shall be entitled to Executive’s Base
Compensation through the Effective Date of Termination, plus Executive’s vested benefits, if applicable.

 

Section 6.GENERAL PROVISIONS

 

6.1       Mutual
Agreement. Nothing in this Agreement shall be deemed to create a partnership or agency relationship between Company and Executive
or to make either of the parties jointly liable for any obligation arising out of such activities and services contemplated by
this Agreement.

 

6.2        Joint
Effect of Agreement. This Agreement shall be binding upon the parties and their respective heirs, executors, administrators,
successors and assigns. Executive shall not assign any part of Executive’s rights under this Agreement without the written
consent of Company. In the event of a merger, transfer, consolidation or reorganization involving Company, this Agreement shall
continue in full force and become an obligation of Company's successor.

 

6.3       Section
Headings. Section headings and numbers have been inserted for convenience of reference only, and if there shall be any conflict
between any such headings or numbers and the text of this Agreement, the text shall control.

 

6.4       Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be considered an original, and all of which taken
together shall be considered one and the same instrument.

 

6.5       Waiver.
Waiver by either party of any term or condition of this Agreement or any breach shall not constitute a waiver of any other term
or condition or breach of this Agreement.

 

6.6       Execution
and Applicable Law. This Agreement has been executed in the State of New York and shall be governed in accordance with the
laws of the State of New York in every respect, unless federal law takes precedence or otherwise pre-empts the laws of this state.

 

6.7       Notices.
Any notice or communication permitted or required by this Agreement shall be in writing and shall become effective upon its personal
delivery or two days after its mailing by Certified Mail, Return Receipt Requested, postage prepaid addressed:

 

6.7.1       If to Company,
at its current mailing address.

 

6.7.2       If to Executive,
to Executive’s last known address as provided by Executive.

 

6.7.3       Notice may also be
sent by electronic transmission, provided that receipt of such notice has been acknowledged by the recipient.

 

6.8       Conflict.
If any of the terms, conditions or statements in this Agreement shall

    -6-

    

    

differ from, conflict with or contradict the terms, conditions or
statements in Company’s policies, procedures, or handbook, then this Agreement will govern.

 

6.9       Independent
Advice. Executive hereby acknowledges that Executive has been advised to seek the advice of legal counsel and a CPA prior to
the execution of this Agreement. By signing this Agreement, Executive acknowledges that Executive has sought the advice of legal
counsel and a CPA or has specifically waived the advice and is signing this Agreement, the contents of which Executive has read
and understands, without further explanation or advice by Company or its attorney.

 

6.10       Waiver
of Jury Trial. The Parties hereto acknowledge that the right to trial by jury is a constitutional right, but that it may be waived.
Each party, after consulting (or having had the opportunity to consult) with counsel of their choice, knowing and voluntarily,
and for their future 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 Agreement.

 

6.11       Dispute
Resolution. Notwithstanding any procedures set forth in Company’s employee handbook or policies, in each and every instance
where a dispute may arise in connection with this Agreement, and if the parties cannot reach a mutually acceptable resolution of
same within thirty (30) days after written notice of the dispute, the matter shall be referred to and settled by binding arbitration
in accordance with the rules of the American Arbitration Association as in effect on the date of initiation of the arbitration.
All arbitration proceedings will be conducted in the State of New York, or in such other place or places as the parties may agree
to in writing. The arbitration shall be presided over by a single arbitrator who shall be selected in accordance with the rules
of the American Arbitration Association.

 

6.11.1       The
arbitrators shall resolve disputes in accordance with the laws of the State of New York, and shall have the power to order, among
other things, specific performance of the Agreement and to permit discovery under the terms of the New York Court Rules then in
effect. Judgment upon the award rendered by the arbitrators may be entered in a Supreme Court located within the state of New York
and shall be final and legally binding.

 

6.11.2       The
fees of the arbitrators and expenses incident to the arbitration proceeding shall be borne equally by the parties to such arbitration,
or as the arbitrators deem appropriate.

 

6.12       Background
and Credit Checks. By entering into this Agreement, Executive specifically consents and authorizes Company and/or its
agents to conduct such criminal, employment, credit and/or educational background checks as may be permitted by law (collectively
“Background Checks”) as Company may determine necessary at any time during the term of this Agreement. Executive agrees
to execute such other written authorizations or consents as may be required by Company to conduct such Background Checks.

 

6.13       Entire
Agreement. This Agreement contains all of the terms agreed upon by the parties with respect to the subject matter of this Agreement
and supersedes all prior

    -7-

    

    

agreements, arrangements, and communications between the parties
concerning such subject matter whether oral or written.

 

The Parties have executed this Agreement as of the date first set forth
above. 

 

For Company: For Executive:

SPARBAR, INC.,

A Delaware corporation

 

_____________________________________________________

By: Kenny LamBy:
Jasvinder Singh Gill

Its: Chief Operating Officer

 

 

 

 

    -8-

    

    

 

EXHIBIT A

Description of CEO Position

 

Purpose

The primary purpose of this position is to assist Sparbar Inc. to fulfill its
Vision of creating a leading global sports equipment and brand.

 

Duties and Responsibilities

 

Oversee day-to-day operations, fulfillment, staff management, R&D, communications,
supply chain, marketing, and all other duties as may be assigned by the Board of Directors and not inconsistent with the position.

Primary Functions: Make day to day executive level decisions for the
future of the company. Lead innovation, R&D and new technologies to current and future brand designs.

Additional CEO Responsibilities:

		·	Provide inspired leadership company wide.

		·	Make high-level decisions about policy and strategy.

		·	Report to the board of directors and keep them informed.

		·	Develop and implement operational policies and a strategic plan.

		·	Act as the primary spokesperson for the company.

		·	Develop the company’s culture and overall company vision.

		·	Help with recruiting new staff members when necessary.

		·	Create an environment that promotes great performance and positive morale.

		·	Oversee the company’s fiscal activity, including budgeting, reporting,
and auditing.

		·	Work with senior stakeholders, chief financial officer, chief information officer,
and other executives.

		·	Assure all legal and regulatory documents are filed and monitor compliance with
laws and regulations.

		·	Work with the executive board to determine values and mission, and plan for short
and long term goals.

		·	Identify and address problems and opportunities for the company.

		·	Build alliances and partnerships with other organizations.

		·	Oversee day-to-day operation of the company.

		·	Work closely with the human resource department to
ensure great hiring.

    -9-

    

    

EXHIBIT “B”

LOCKUP AGREEMENT

 

THIS AGREEMENT (this "Agreement")
is made and entered as of this 28th Day of October 2020 (the “Effective Date”) by and between SparBar, Inc.,
a Delaware corporation ("Company") and Jasvinder Singh Gill, a natural person residing in the United Kingdom (“Shareholder”).

 

WHEREAS, Shareholder has acquired
shares in the Company’s Series A Voting Convertible Preferred Stock pursuant to that certain Employment Compensation Agreement
with the Company dated October 28, 2020;

 

NOW, THEREFORE, the parties
hereto agree as follows:

 

1.       Intent
of Parties; Vesting of Shares. Shareholder has acquired Three Million (3,000,000) shares of Convertible Preferred Stock in
the Company that may be converted into shares of common stock in the Company (the “Company Shares”) on a 1-for-1 basis.
It is the intent of Company and Shareholder that, upon conversion, the Company Shares shall be freely transferable upon vesting
except as provided in this Agreement or otherwise as required by applicable Federal and State securities laws and regulations.

 

2.       Restriction
Period. For a period of (12) months from the date of acquisition of the Company Shares, Shareholder shall not sell, transfer,
assign, convey, donate, pledge, encumber, alienate, or in any way dispose of (collectively "Sell") any of the Company
Shares or any portion, right or interest therein, except in compliance with the terms and conditions of this Agreement. Any purported
or attempted transfer or assignment, whether voluntary or involuntary, of any Company Shares in the Company in violation of this
Agreement shall be null and of no legal effect.

 

3       Schedule
Permitted Transfers. Notwithstanding any provisions of this Agreement to the contrary, Shareholder shall be permitted to sell
the following Company Shares (each, a "Permitted Sale"): Shareholder shall permitted to sell that number of Company Shares
held by Shareholder equal to the greater of (i) 75,000 shares per trading day or (ii) that number of shares calculated by the total
of 20% of the prior trading days’ trading volume. Such limits shall be per day only and shall not accumulate.

 

4.       Representations
and Warranties of Company Shareholders. Shareholder represents and warrants to and agrees with Company that:

 

(a) This Agreement has been duly authorized,
executed and delivered by Shareholder. This Agreement constitutes the valid, legal and binding obligation of Shareholder, enforceable
in accordance with its terms, except as rights to indemnity hereunder may be limited by applicable federal or state securities
laws, and except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditor's
rights generally; and

 

(b) The consummation of the transactions contemplated
hereby will not result in any breach of the terms or conditions of, or constitute a default under, any agreement or

    -10-

    

    

other instrument to which Shareholder
is party, or violate any order, applicable to such Finder, of any court or federal or state regulatory body or administrative agency
having jurisdiction over Finder or over any of his property, and will not conflict with or violate the terms of Shareholder’s
current employment.

 

5.       Representation,
Warranties, Covenants and Agreements of Company. Company represents, warrants, covenants to and agrees with Shareholder that:

 

(a) This Agreement has been duly authorized
and executed by Company. This Agreement constitutes the valid, legal and binding obligation of Company, enforceable in accordance
with its terms, except as rights to indemnity hereunder may be limited by applicable federal or state securities laws, except in
each case as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditor's
rights generally.

 

(b) Company has been duly organized and is validly
existing and in good standing as a corporation under the laws of its jurisdiction of incorporation and has all requisite power
and authority to conduct its business.

 

6.       Parties.
This Agreement shall inure to the benefit of and be binding upon Company and Shareholder, and their respective affiliates, officers,
directors, registered representatives, employees and their respective successors and assigns, and no other person shall acquire
or have any right by virtue of this Agreement.

 

7.       Attorney's
Fees. If any party fails to perform any of its obligations hereunder, or if a dispute arises concerning the meaning of interpretation
of any provision of this Agreement, the defaulting party or the party not prevailing such in dispute, as the case may be, shall
pay any and all costs and expenses incurred by the other party in enforcing or establishing its rights under, including, without
limitation, court costs and reasonable attorneys' fees.

 

8.       Governing
Law and Supersession. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the
State of New York, without regard for its choice of law provisions, and shall supersede any previous agreements, written or oral,
expressed or implied, between the parties relating to the subject matter hereof.

 

9.       Notices.
All notices or other communications hereunder shall be in writing and shall be deemed given when delivered personally to each of
the parties as set forth on the signature page hereto: one (1) day after being transmitted via facsimile to the corresponding facsimile
number below; one (1) day after being sent via overnight mail; three (3) days after being mailed by first class registered or certified
mail, return receipt requested, or, if transmitted via electronic message, upon acknowledgment of receipt by the recipient.

 

10.       No
Partnership; Survival or Representations. Nothing herein contained shall be construed to constitute an association, partnership,
unincorporated business or any other entity between Company and the Company Shareholders.

 

    -11-

    

    

11.       Validity
of Agreement. The invalidity of any portion of this Agreement shall not affect the validity of the remainder thereof.

 

12.       Entire
Agreement. This Agreement constitutes the entire agreement and supersedes all prior written or oral and all contemporaneous
oral agreements, understandings and negotiations between the parties with respect to the subject matter of this Agreement. No amendment
or addition to, or modification of, any provision contained in this Agreement shall be effective unless fully set forth in writing
signed by all of the parties hereto.

 

13.       Further
Assurances. Each of the parties hereto agrees on behalf of such party, his or its successors and assigns, that such party will,
without further consideration, execute, acknowledge and deliver such other documents and take such other action as may be necessary
or convenient to carry out the purposes of this Agreement.

 

14.       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which taken together
shall constitute but one and the same Agreement.

 

IN WITNESS WHEREOF, the parties hereto have duly executed
this Agreement as of the date first above written.

 

Company: SparBar, Inc.:

 

 

 

_________________________________________

By: Jasvinder Singh Gill

Its: Director and President/CEO

 

 

_________________________________________

By: Kenny Lam

Its: Director and Chief Operating Officer

 

 

 

 

Shareholder:

 

 

 

_________________________________________

Jasvinder Singh Gill

 

Number of Preferred Shares: 3,000,000

Convertible into Number of Common Shares: 3,000,000

 

    -12-

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