Document:

Technical Services Agreement

by and among

Zhejiang Joinan Lighting Co., Ltd.

Jiangshan Greenworld Photoelectricity Consulting Co., Ltd.

and

The Shareholders of Zhejiang Joinan Lighting Co., Ltd.

May 6, 2011

 

  

  

  

 

	
Technical Service Agreement

 

Technical Services Agreement

 

This Technical Services Agreement (“this Agreement”) is entered into on  May 6, 2011  by the following Parties:

	
(1)

	
Zhejiang Joinan Lighting Co., Ltd. (hereinafter called “Party A”) is a limited liability company, duly incorporated in Jiangshan, the People’s Republic of China (“PRC”) whose legal address is: 18, Xing Gong Seventh Road, Shangyu, Jiangshan.

	
(1)

	
Jiangshan Greenworld Photoelectricity Consulting Co., Ltd. (hereinafter referred to as “Party B”), a wholly foreign owned enterprise (“WFOE”) to be  incorporated in Jiangshan,Zhejiang , PRC, whose legal address is: 18-3, Xing Gong Seventh Road, Shangyu, Jiangshan.

	
(3)  

	
The shareholders of Zhejiang Joinan Lighting Co., Ltd. (hereinafter collectively called “Shareholders”), as follows:

	
Name of the

Shareholders

	 	
Shareholding

Ratio %

	 	 	
ID Card No.

	 	
Contact

Address

	
Lixia Wang

	 	 	45	%	 	360424197404070010	 	  
	
Jiangtu Zhu

	 	 	27	%	 	320311196611111277	 	  
	
Huanyong Wang

	 	 	20	%	 	332624196308020032	 	  
	
Tianhui Liu

	 	 	8	%	 	362133197612023333	 	  

(Party A, Party B and Shareholders are referred to collectively in this Agreement as the “Parties”, and individually as “a Party” or “each Party”.)

WHEREAS:

	
(1)

	
Shareholders collectively hold 100% of equity interests of Party A;

	
(2)

	
Party A’s business scope is as follows: manufacture and sales of lighting facilities and variable voltage variable frequency inverter, as well as their components, import and export goods;

	
(3)

	
Party B’s business scope is photoelectricity technical and enterprise management consulting; and

	
(4)

	
The Parties agree that Party B provides Party A with technical services.

 

  

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Technical Service Agreement

 

NOW THEREFORE, the Parties hereby agree through friendly negotiation as follows:

 

Article 1 Definition

	
1.1

	
“PRC” refers to the People’s Republic of China, for the purpose of this Agreement, excluding the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Province;

	
1.2

	
“PRC Laws” refers to all PRC laws, administrative regulations and government rules in effect;

	
1.3

	
“RMB” refers to the legal currency within the PRC;

	
1.4  

	
“Technical Service Fee” or “Consideration” refers to the consideration as defined in Article 3.1 and paid to Party B by Party A.

Article 2 Contents of Technical Services

Party B shall provide to Party A the following technical services:

	
2.1

	
Party B shall select, purchase and update the proper software for finance management for Party A at Party A’s expense in accordance with the practical requirements for finance management, and Party B will conduct training on the use of such software, and provide relevant consultancy services.

	
2.2

	
Party B shall select, purchase and update the proper software on human resource management for Party A at Party A’s expense in accordance with the practical requirements for human resource management, and Party B conduct training on the use of such software, and provide relevant consultancy services.

	
2.3

	
Party B shall select, purchase and update the proper technology development software and operation software for the Party A’s technology developments and operations at Party A’s expense in accordance with the practical requirements for technology development and conduct training on the use of such software, and provide relevant consultancy services.

	
2.4

	
Party B shall provide other related computer systems and software to Party A at Party A’s expense in accordance with the specific demands by Party A.

	
2.5

	
Party B shall seek qualified network service company to provide services to Party A at Party A’s expense with respect to its application of domain name and design of website, assist Party A in communication with the network service company on the matters in relation to the domain name and website.

	
2.6

	
Party B shall facilitate the computers, server and other facilities for Party A and at Party A’s expense in accordance with the requirements of Party A, and make periodical maintenance on aforesaid facilities.

 

  

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Technical Service Agreement

 

	
2.7

	
Party B shall provide research and development service to Party A in accordance with the request of Party A, including but not limited to, software research and development, software testing and software application.

	
2.8

	
Party B shall provide data analysis service to Party A in accordance with the request of Party A, including but not limited to, data classification and storage, data analysis and data search.

	
2.9

	
Party B shall provide technical consulting service to Party A in accordance with the request of Party A, including but not limited, technical strategic consulting and technology development consulting and analysis.

	
2.10  

	
Party B shall conduct training for Party A’s technical staff. In the event of technical problems of Party A, e.g. hardware errors or hardware break-down, Party B shall designate relevant staff to work on-site assisting Party A to resolve such problems when necessary. Party B shall also be responsible for hardware maintenance service of Party A’s servers, computers and other technological facilities.

Article 3 Technical Service Fee

	
3.1

	
The Parties agree that, with respect to the services provided by Party B to Party A under this Agreement, Party B shall be entitled to charge Party A a quarterly service fee in an amount equivalent to Party A’s total amount of operational income of such quarter (the "Technical Service Fee").

Article 4 Warranties and Undertakings by Party A

	
4.1

	
Within the term of this Agreement, Party B shall be an exclusive service provider consigned by Party A to provide the services as set forth in Article 2 hereunder, and Party A shall not consign any other entities to provide Party A (including its branches and subsidiaries) with any services identical to or similar with those services provided in Article 2 hereunder.

	
4.2

	
Party A shall provide Party B with all the information at the request of Party B which is necessary for Party B to provide the services as set forth in Article 2 hereunder, and shall be responsible for the authenticity and efficiency of such information.

	
4.3

	
Party A shall fully cooperate with Party B, and provide assistance and convenience to Party B for its on-site working, and shall not hinder Party B in providing services as set forth in Article 2 hereunder.

	
4.4

	
Party A shall promptly make full payment of the Technical Services Fee, if any, to Party B in accordance with the provisions hereunder.

 

  

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Technical Service Agreement

 

	
4.5

	
Without the prior written consent by Party B, Party A shall not take any action that would materially affect Party B’s rights and interests hereunder.

Article 5 Warranties and Undertakings by Party B

	
5.1

	
Party B shall take full advantage of its capacity and resources to provide the services as stipulated in Article 2 hereunder.

	
5.2

	
Party B shall timely update and improve the technical services in accordance with the actual condition and reasonable demands of Party A.

	
5.3

	
Party B shall accept any reasonable suggestions regarding hardware, software and staff training from Party A during the course of providing services to Party A.

Article 6 Guaranty

To secure the performance of the obligations assumed by Party A hereunder, Shareholders agree to pledge all of their equity interests in Party A to Party B, and the Parties agree to execute the Equity Pledge Agreement with respect thereto.

Article 7 Taxes and Expenses

The Parties shall pay, in accordance with relevant PRC laws and regulations, their respective taxes and fees arising from the execution and performance of this Agreement.

Article 8 Assignment of the Agreement

	
8.1

	
Party A shall not transfer part or all of its rights and obligations under this Agreement to any third party without the prior written consent of Party B.

	
8.2

	
The Parties agree that Party B shall be entitled to transfer, at its own discretion, any or all of its rights and obligations under this Agreement to any third party upon a five (5)–day written notice to Party A.

Article 9 Liability of Breach

	
9.1

	
If Party A fails to duly pay the Technical Services Fee in accordance with the provisions of Article 3 hereunder, then Party A shall pay the liquidated damage amount per day equal to 0.03% of the unpaid consideration which falls due; if any delay of payment amounts to ten(10) days, then Party B shall be entitled to exercise the right of pledge under the Equity Pledge Agreement.

 

  

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Technical Service Agreement

 

	
9.2

	
If Party A violates its representations and warranties hereunder and fails to redress such violation within ten (10) days upon receipt of written notice from Party B, Party B shall be entitled to exercise the right of pledge under the Equity Pledge Agreement.

	
9.3

	
If Party B does not fully perform its obligations and duties under this Agreement, or is otherwise in default of any of its representations and warranties hereunder, Party A shall be entitled to request Party B to redress its default.

Article 10 Effectiveness, Modification and Cancellation

	
10.1

	
This Agreement shall take effect on the day of execution hereof, and the valid term hereof shall  expire upon the day of completion of the acquisition of the assets or the equity of Party A by Party B or its designated third party.

	
10.2

	
The modification of this Agreement shall not be effective unless a written modification is signed by the Parties.

	
10.3

	
This Agreement shall not be terminated or canceled unless a written agreement is signed by the Parties, provided that Party B may, by giving a thirty (30)- day prior notice to the other Parties hereto, terminate this Agreement.

 

Article 11 Confidentiality

	
11.1

	
The negotiation, execution and articles of this Agreement and any information, documents, data and all other materials (herein “Confidential Information”) arising out of the implementation of this Agreement, shall be kept strictly confidential by the Parties. Without the written approval by the other Parties, none of the Parties shall disclose any Confidential Information to any third party, but the following shall not be considered to be “Confidential Information”:

	
  

	
(1)

	
The materials that are known by the general public (but not including the materials disclosed by a Party receiving the materials in breach of this Agreement); or

	
  

	
(2)

	
The materials required to be disclosed subject to the applicable laws or the rules or provisions of any stock exchange.

The materials disclosed by each Party to its legal or financial consultants relating the transactions under this Agreement, provided the legal or financial consultants shall comply with the confidentiality provisions set forth in this Section. The disclosure of the Confidential Information by staff, employed institution, or consultants of any Party shall be deemed as the disclosure of such Confidential Information by such Party, and such Party shall bear the liabilities for breaching the contract.

 

  

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Technical Service Agreement

 

	
11.2

	
If this Agreement is terminated or becomes invalid or unenforceable, the validity and enforceability of this Article shall not be affected or impaired.

Article 12 Force Majeure

	
12.1

	
“Force Majeure” refers that any event that could not be foreseen, and could not be avoided and overcome, which includes among other things, but without limitation, acts of nature (such as earthquake, flood or fire), government acts, strikes or riots;.

	
12.2

	
If an event of Force Majeure occurs, any of the Parties who is prevented from performing its obligations under this Agreement by an event of Force Majeure  shall notify the other Party without delay and within fifteen (15) days of the event provide detailed information about and notarized documents evidencing the event, shall take appropriate means to minimize or remove the negative effects of Force Majeure  on the other Party and shall not assume the liabilities for breaching this Agreement. While the Force Majeure is continuing, the Party alleging breach may suspend her performance. The Parties shall keep on performing this Agreement after the event of Force Majeure disappears.

Article 13 Governing Law and Dispute Resolution

	
13.1

	
The effectiveness, interpretation, implementation and dispute-resolution related to this Agreement shall be governed under PRC Laws.

	
13.2

	
Any dispute arising out of this Agreement shall be resolved by the Parties through friendly negotiation. If the Parties could not reach an agreement within thirty (30) days since the dispute is brought forward, either Party may submit the dispute to China International Economic and Trade Arbitration Commission in Beijing for arbitration under its applicable rules. The arbitration should be held in English. The arbitration award should be final and binding upon the Parties.

	
13.3

	
During the process of dispute-resolution, the Parties shall continue to perform other terms under this Agreement, except for provision of dispute resolution.

Article 14 Miscellaneous

	
14.1

	
The Parties acknowledge that this Agreement constitutes the entire agreement of the Parties with respect to the subject matters therein and supersedes and replaces all prior or contemporaneous oral or written agreements and understandings.

 

  

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Technical Service Agreement

 

	
14.2

	
This Agreement shall bind and benefit the successor of each Party and the transferee permitted hereunder with the same rights and obligations as if the original parties hereof.

	
14.3

	
Any notice required to be given or delivered to the Parties hereunder shall be in writing and delivered to the address as indicated below or such other address or as such party may designate, in writing, from time to time. All notices shall be deemed to have been given or delivered upon by personal delivery, fax and registered air mail. It shall be deemed to be delivered upon: (1) registered air mail: five (5) business days after deposit in the mail; (2) personal delivery or fax: two (2) business days after transmission. If the notice is delivered by fax, it should be confirmed by original through registered air mail or personal delivery:

Party A

Contact person:Yang Xiaowen

Address: 18, Xing Gong Seventh Road, Shangyu, Jiangshan.

Tel: 0570-4352001

Fax:  0570-4352000

Party B

Contact person:Liu Chuanling

Address: 18-3, Xing Gong Seventh Road, Shangyu, Jiangshan.

Tel:

Fax:

The Representative designated by the Shareholders

Contact person: Liu Tianhui

Address: 18, Xing Gong Seventh Road, Shangyu, Jiangshan.

Tel:

Fax:

	
14.4

	
If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions shall not in any way be affected or impaired thereby. In such event, the Parties shall use best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which effects the parties original intention to the largest extent.

	
14.5

	
This Agreement is executed in six (6) copies with each party holding one copy, and each of the copies shall be equally valid and authentic.

[Signature Page Follows]

 

  

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Technical Service Agreement

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and delivered as of the date as written above.

Party A

Zhejiang Joinan Lighting Co., Ltd.

Legal Representative: Zhu Jiangtu

Signature & Seal: _____________________________

Party B

Jiangshan Greenworld Photoelectricity Consulting Co., Ltd.

Legal Representative: Liu Chuanling

Signature & Seal: ______________________________

 

The Shareholders of Zhejiang Joinan Lighting Co., Ltd.

Wang Lixia: ______________________

Zhu Jiangtu: ______________________

Wang Huanyong: ______________________

Liu Tianhui: ______________________

  

8Loan Agreement

By and between

The Shareholders of Zhejiang Joinan Lighting Co., Ltd.

 

(“Borrowers”)

and

 

Jiangshan Greenworld Photoelectricity Consulting Co., Ltd.

 

(“Lender”)

 May 6, 2011

  

  

  

	
Loan Agreement

Loan Agreement

This Loan Agreement (“this Agreement”) is executed by and among the following Parties on May 6, 2011.

	
(1)

	
Shareholders of Zhejiang Joinan Lighting Co., Ltd. . (hereinafter collectively as “Borrowers”), as follows:

	
Name of the

Shareholders

	 	
Shareholding

Ratio %

	 	 	
Contribution

	 	 	
ID Card No.

	 	
Contact

Address

	
Lixia Wang

	 	 	45	%	 	 	1,350,000	 	 	360424197404070010	 	  
	
Jiangtu Zhu

	 	 	27	%	 	 	810,000	 	 	320311196611111277	 	  
	
Huanyong Wang

	 	 	20	%	 	 	600,000	 	 	332624196308020032	 	  
	
Tianhui Liu

	 	 	8	%	 	 	240,000	 	 	362133197612023333	 	  

and

	
(2)

	
Jiangshan Greenworld Photoelectricity Consulting Co., Ltd. (hereinafter called the “Lender”), a wholly foreign owned enterprise registered in China with its registered address at 18-3, Xing Gong Seventh Road, Shangyu, Jiangshan; . It’s legal representative is Liu Chuanling.

(Borrowers and Lender are collectively called “the Parties” or “each Party” or “a Party” respectively.)

WHEREAS:

	
(1)

	
Borrowers collectively hold 100% of the Equity Interests in Zhejiang Joinan Lighting Co., Ltd. (the “Company”);

	
(2)

	
Lender is a wholly foreign owned enterprises incorporated in Jiangshan, Zhejiang in accordance with the laws of People’s Republic of China;

	
(3)

	
Borrowers desire to borrow from Lender for the operations of the Company by pledging their equity in the Company to Lender as the guaranty hereof, and Lender agrees to provide such loan to Borrowers.

  

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Loan Agreement

NOW, THEREFORE, The Parties made and entered into this Agreement with respect to the Loan hereunder through friendly negotiation as follows:

	
1.

	
Definitions

Except provided otherwise, the terms under this Agreement shall mean:

	
1.1

	
“Assets Transfer” refers to the assignment of the Company’s assets to Lender or its designated third party in accordance with the provisions of the exclusive purchase option agreement (the “Exclusive Purchase Option Agreement”) executed on the execution date of this Agreement;

	
1.2

	
“Company” refers to Zhejiang Joinan Lighting Co., Ltd., a domestic company which is incorporated and validly existing under the PRC Laws, its business license No. is 330881000007827, and its registered address is 18, Xing Gong Seventh Road, Shangyu, Jiangshan;

	
1.3

	
“Equity” or “Equity Interests” refers to one hundred percent (100%) of the equity interests in the Company owned by Borrowers;

	
1.4

	
“Equity Transfer” refers to the assignment of Company’s Equity Interests held by Borrowers to Lender or its designated third party in accordance with the provisions of the Exclusive Purchase Option Agreement;

 

	
1.5

	
“Loan” refers to the Total Principal loaned to Borrowers by Lender in accordance with Article 2 hereunder;

	
1.6

	
“PRC” refers to the People’s Republic of China, for the purpose of this Agreement, excluding the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Province;

	
1.7

	
“PRC Laws” refers to all PRC laws, administrative regulations and government rules in effect now or as they may be modified throughout the term of this Agreement;

	
1.8

	
“RMB” refers to the legal currency within the PRC;

	
1.9

	
“Shareholders” or “Borrowers” refers to each of the owners of the Equity Interests in the Company.

	
2.

	
The Total Loan Amount

	
2.1

	
The total principal of the Loan hereunder is 300,000 Yuan (“Total Principal”), the amount and ratio of the Loan loaned to each Shareholder are shown below:

	
Name of the

Shareholders

	 	
Amount of the Loan

Yuan)

	 	 	
Percentage in Total

Principal (%)

	 
	
Lixia Wang

	 	 	135,000	 	 	 	45	%
	
Jiangtu Zhu

	 	 	81,000	 	 	 	27	%
	
Huanyong Wang

	 	 	60,000	 	 	 	20	%
	
Tianhui Liu

	 	 	24,000	 	 	 	8	%

 

  

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Loan Agreement

	
3.

	
Term of the Loan

Unless otherwise provided, the term of Loan shall commence upon the obtaining of the Loan by Borrowers and expire when the Loan is completely repaid by Borrowers in accordance with the provisions of Article 6 hereunder or expressly waived in writing by Lender.

	
4.

	
Loan Usage

	
4.1

	
The Total Principal of the Loan provided hereunder shall be used by Borrowers for the operations of the Company, and Borrowers shall in no event change the usage without the prior written consent by Lender. Borrowers hereby covenant and agree to contribute, within two (2) working days immediately following the funding of the Loan, the Total Principal of the Loan to the bank account of the Company.

	
5.

	
Loan Interest

	
5.1

	
Except as provided in Section 5.2 hereunder, the Loan hereunder shall be interest-free.

	
5.2

	
When the Equity Transfer or the Assets Transfer set forth in the Article 6 hereof takes place and if the deemed value of the consideration of Equity Transfer or consideration of Assets Transfer in accordance with Article 6 hereof is higher than the Total Principal due to the requirement by the then applicable law or any other reason, the excess shall be deemed to be  interest on the Loan (the “Interest”) to the maximum extent being permitted by the PRC Laws, and shall be repaid to Lender by Borrowers together with the Total Principal pursuant to the consideration of Equity Transfer or consideration of Assets Transfer, as the case may be, in accordance with Article 6 hereof. Borrowers further agree to handle the balance in excess of the permitted Interest according to Lender’s instruction.

	
6.

	
Repayment

	
6.1

	
The Loan shall become due and payable upon request of Lender after the completion of the Equity transfer or the Assets transfer. Lender shall be entitled to demand the repayment at any time by the delivery of a written notice of demand for repayment sent by Lender to Borrowers (“Repayment Notice”). The Repayment Notice shall indicate Lender’s election for the Loan to be repaid by way of the consideration of Equity Transfer or consideration of Assets Transfer in accordance with Section 6.3, or by other manner set forth in the Repayment Notice.

  

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Loan Agreement

	
6.2

	
Repayment Notice shall indicate the terms and conditions for repayment of the Loan (“Repayment Terms”).

	
6.3

	
Except as provided otherwise by Repayment Notice, Borrowers shall repay the Loan to Lender in accordance with the following provisions:

	
  

	
6.3.1

	
In the event of an Equity Transfer under the Exclusive Purchase Option Agreement, the Loan shall be repaid in full by way of Borrowers’ payment to Lender of the consideration of Equity Transfer paid by Lender to Borrowers, net of any tax paid by the Shareholders on such consideration (the “Consideration of Equity Transfer”) (If the deemed value of the Consideration of Equity Transfer is higher than the Total Principal, the excess shall be deemed to be Interests of the Loan to the maximum extent being permitted by PRC Laws. Borrowers further agree to handle the balance in excess of the permitted Interest according to Lender’s instruction);

	
  

	
6.3.2

	
In the event of an Assets Transfer, the Loan shall be repaid in full by way of Borrowers’ payment to Lender of their allocable portion, to the maximum extent as permitted by PRC Laws, of the consideration paid by Lender to the Company for the Assets Transfer, net of any tax paid by the Company or the Shareholders on such consideration (the “Consideration of Assets Transfer”) (If the deemed value of the Consideration of Assets Transfer is higher than the Total Principal, the excess shall be deemed to be Interest on the Loan to the maximum extent being permitted by PRC Laws. Borrowers further agree to handle the balance in excess of the permitted Interest according to Lender’s instruction);

	
6.4

	
If the deemed value of the Consideration of Equity Transfer or Assets Transfer is lower than the Total Principal under this Agreement, Borrowers shall be exempted from the shortfall repayment obligation.

	
7.

	
Conditions for Granting of the Loan

	
7.1

	
Lender shall grant the Loan immediately following the receipt of the written evidence which proves that the Parties have fulfilled all the following conditions hereof (or subject to any waiver by Lender of any conditions as follows):

 

  

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7.1.1

	
Lender has obtained all of the required licenses, permits, approvals and registrations to open its capital account and current bank accounts and has commenced its business;

	
  

	
7.1.2

	
Borrowers have signed the Equity Pledge Agreement set forth in Article 9 hereof; and

	
  

	
7.1.3

	
The warranties and undertakings made by Borrowers in Article 8 hereof shall be true, correct and complete in all aspects when made, and shall be true, correct and complete in all aspects during the term of the Loan.

	
7.2

	
Borrowers shall cause the Total Principal amount to be transferred directly to the Company’s bank account for the operations of the Company.

	
8.

	
Borrower’s Warranties and Undertakings

	
8.1

	
Borrowers hereby represent and warrant to Lender that, as of the execution date of this Agreement:

	
  

	
8.1.1

	
Borrowers legally hold one hundred percent (100%) of the Equity Interests in the Company and there are no other options, warrants, rights, agreements or understandings by which any person has a right or claim to acquire from the Company or from any member of Borrowers any equity interest in the Company;

	
  

	
8.1.2

	
Except as otherwise provided in the Equity Pledge Agreement and Exclusive Purchase Option Agreement, there is no pledge or other forms of encumbrances or claims on the Equity Interests;

	
  

	
8.1.3

	
There are no material debts which adversely affect the Loan borrowed by Borrowers from Lender;

	 	
8.1.4 

	
Borrowers have obtained all the necessary written approvals and authorizations from every relevant third party, if any, with respect to Borrowers’ execution and implementation of this Agreement; and

	 	
8.1.5

	
Execution of this Agreement by Borrowers shall not constitute any breach of the Article of Associations of the Company.

	
8.2

	
Borrowers undertake, and will also cause the Company to undertake, the followings:

	
  

	
8.2.1

	
Except as otherwise provided in the Equity Pledge Agreement and Exclusive Purchase Option Agreement and other agreements signed among Borrowers, the Company and the Lender, without Lender’s prior written consent, Borrowers and Company shall not transfer, sell, mortgage or otherwise dispose of or encumber any assets or incomes of the Company;

 

  

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Loan Agreement

	
  

	
8.2.2

	
Without Lender’s prior written consent, Borrowers shall not engage in any business or operation which is in competition with the Company, the Company’s owned or controlled subsidiaries and Lender, nor shall Borrowers invest in or work for any company or entity which is in competition with the Company, the Company’s owned or controlled subsidiaries, or Lender;

	
  

	
8.2.3

	
Without Lender’s prior written consent, Borrowers shall not take action to supplement or amend the Articles of Association of the Company, nor to increase or decrease the registered capital or change the shareholding structure of the Company in any manner;

	
  

	
8.2.4

	
Without Lender’s prior written consent, Borrowers or the Company shall not take action to, and shall prevent the Company from taking action to approve, cause or allow the dissolution, liquidation or change of legal form of the Company or any of its owned and controlled subsidiaries;

	
  

	
8.2.5

	
Without Lender’s prior written consent, the shareholder’s meeting of the Company shall not approve, cause or allow any profit distribution proposal, nor shall Borrowers accept such distributed dividends; at Lender’s request, Borrowers shall promptly convene the shareholder’s meeting of the Company for the purpose of allocating the Company’s distributable profits, approve for the profit distribution proposal, which has been approved by Lender in writing in advance, and accept such distributed dividends;

	
  

	
8.2.6

	
At Lender’s request, Borrowers shall provide Lender with all information regarding the Company’s business operation and financial condition;

	
  

	
8.2.7

	
Without Lender’s prior written consent, Borrowers shall not incur or succeed to any debts or liabilities which may adversely affect their Equity Interests;

	
  

	
8.2.8

	
Borrowers shall appoint, and appoint only, the candidates nominated by Lender to the board of directors and supervisor office of the Company, and shall not replace such candidates without Lender’s written consent;

	
  

	
8.2.9

	
Except as Lender may otherwise consent in writing in advance, Borrowers shall not cause the Company shareholders’ meeting and the board of directors to approve any establishment of new subsidiary, any acquisition by, any consolidation with, or any investment in any third party;

	
  

	
8.2.10

	
Borrowers shall promptly notify Lender of any pending or threatened lawsuit, arbitration or administrative disputes which involve the assets, business or incomes of the Company; and make every effort to take action to resolve such lawsuit, arbitration or administrative disputes for safeguarding the legal rights and interests of the Company;

	
  

	
8.2.11

	
Without Lender’s prior written consent, Borrowers shall not take action to approve, cause or allow any conduct that could materially affect the Company’s assets, business or liabilities; and

 

  

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Loan Agreement

	
  

	
8.2.12

	
Borrowers shall strictly comply with the provisions of this Agreement, and effectively perform its obligations hereunder, and shall be prohibited from committing any conduct which may affect the validity or enforceability of this Agreement.

	
9.

	
Guaranty of the Loan

To secure the repayment of the Loan hereunder, Borrowers agree to pledge all their Equity Interests in the Company to Lender, and all Parties agree to execute the Equity Pledge Agreement with respect thereto.

	
10.

	
Tax and Expense

	
10.1

	
The Parties shall pay their respective taxes and expenses in relation to the execution and performance hereof in accordance with the PRC Laws. Borrowers may charge their taxes and expenses in relation to the execution and performance hereof to the Company, upon Lender’s prior approval.

	
10.2

	
Lender shall pay the taxes and expenses in accordance with Section 6.4 hereof (if applicable).

	
11.

	
Assignment of Agreement

	
11.1

	
Borrowers shall not transfer any or all of their rights and obligations under this Agreement to any third party without the prior written consent of Lender.

	
11.2

	
The Parties agree that Lender shall be allowed, at its own discretion, to transfer any or all of its rights and obligations under this Agreement to any third party upon the delivery of a five (5)–day written notice to Borrowers.

	
12.

	
Liabilities and Indemnities for Breach of this Agreement

	
12.1

	
If Borrowers fail to use the Loan in compliance with the terms and conditions of this Agreement, Lender may require Borrowers to promptly repay the unduly used part.

	
12.2

	
If Borrowers breach any warranty or undertaking as provided in Article 8 or other provisions under this Agreement hereof, or the Company breaches any provisions provided in the Technology Service Agreement, Consigned Management and Service Agreement or Exclusive Purchase Option Agreement or other agreements signed among Borrowers, the Company and Lender, and fail to redress such breach within fifteen (15) days upon receipt of the written notice from Lender, Lender shall be entitled to request Borrowers to repay the granted Loan immediately.

  

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Loan Agreement

	
12.3

	
Borrowers should be jointly and severally liable for their obligations under this Agreement. If any of the Borrowers fails to repay the Loan in compliance with the terms and conditions of this Agreement, Borrowers should pay a damage of 0.03% of the unpaid part of the repayable Loan on each day of delay to Lender. If the repayment is delayed for more than fifteen (15) days, Lender is entitled to foreclose its equity pledge rights in accordance with the Equity Pledge Agreement.

	
13.

	
Effectiveness, Modification and Cancellation

	
13.1

	
This Agreement shall take effect on the date of execution hereof by the Parties.

	
13.2

	
The modification of or amendment to this Agreement shall not be effective without written agreement of the Parties through the negotiation.

	
13.3

	
This Agreement shall not be terminated or canceled without written agreement through negotiation, provided Lender may, by delivering a thirty (30)-day prior notice to Borrowers hereto, terminate this Agreement.

	
13.4

	
Unless Lender fails to grant the Loan as required hereunder after the satisfaction of all conditions as set forth in Section 7.1 hereunder by Borrowers, Borrowers shall not be entitled to unilaterally terminate this Agreement.

	
14.

	
Confidentiality

	
14.1

	
The negotiation, execution and articles of this Agreement and any information, documents, data and all other materials (herein “Confidential Information”) arising out of the implementation of this Agreement, shall be kept in strict confidential by the Parties. Without the written approval by the other Parties, neither of the Parties shall disclose to any third parties any Confidential Information, but the following shall not be considered to be “Confidential Information”:

	
  

	
(1)

	
The materials that are known by the general public (but not including the materials disclosed by a party receiving the materials in breach of this Agreement); or

	
  

	
(2)

	
The materials required to be disclosed subject to the applicable laws or the rules or provisions of any stock exchange.

	
  

	 

The materials disclosed by each Party to its legal or financial consultants relating to the transactions under this Agreement, provided the legal or financial consultants shall comply with the confidentiality set forth in this Section. The disclosure of the confidential materials by staff or employed institution of any Party shall be deemed as the disclosure of such materials by such Party, and such Party shall bear the liabilities for breaching the contract.

  

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Loan Agreement

	
14.2

	
This Article shall survive whatever this Agreement is invalid, amended, revoked, terminated or unable to implement by any reason.

	
15.

	
Force Majeure

	
15.1

	
“Force Majeure” refers that any event that could not be foreseen, and could not be avoided and overcome, which includes among other things, but without limitation, acts of nature (such as earthquake, flood or fire), government acts, strikes or riots;.

	
15.2

	
If an event of Force Majeure occurs, any of the Parties who is prevented from performing its obligations under this Agreement by an event of Force Majeure shall notify the other Party without delay and within fifteen (15) days of the event provide detailed information about and notarized documents evidencing the event and take appropriate means to minimize or remove the negative effects of Force Majeure on the other Party, and shall not assume the liabilities for breaching this Agreement. While the Force Majeure is continuing, the Party alleging breach may suspend her performance. The Parties shall keep on performing this Agreement after the event of Force Majeure disappears.

	
16.

	
Governing Law and Dispute Resolution

	
16.1

	
The effectiveness, interpretation, implementation and dispute-resolution related to this Agreement shall be governed under PRC Laws.

	
16.2

	
Any dispute arising out of this Agreement shall be resolved by Parties through mutual negotiation. If Parties could not reach an agreement within thirty (30) days since the dispute is brought forward, any Party may submit the dispute to China International Economic and Trade Arbitration Commission in Beijing for arbitration under its applicable rules, the language of arbitration proceedings shall be English. The arbitration award should be final and binding upon both parties.

	
16.3

	
During the process of dispute-resolution, Parties shall continue to perform other terms under this Agreement, except for provision of dispute resolution.

	
17.

	
Miscellaneous

	
17.1

	
The Parties acknowledge that this Agreement constitutes the entire agreement of the Parties with respect to the subject matters therein and supersedes and replaces all prior or contemporaneous oral or written agreements and understandings.

  

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Loan Agreement

	
17.2

	
This Agreement shall bind and benefit the successor of each Party and the transferee permitted hereunder with the same rights and obligations as if the original parties hereof.

	
17.3

	
Any notice required to be given or delivered to the Parties hereunder shall be in writing and delivered to the address as indicated below or such other address or as such party may designate, in writing, from time to time. All notices shall be deemed to have been given or delivered upon by personal delivery, fax and registered mail. It shall be deemed to be delivered upon: (1) registered air mail: five (5) business days after deposit in the mail; (2) personal delivery or by fax: two (2) business days after transmission. If the notice is delivered by fax, it should be confirmed by original through registered air mail or personal delivery:

 

Representative appointed by Borrowers: Liu Tianhui

 

Address: 18, Xing Gong Seventh Road, Shangyu, Jiangshan;

Tel: 0570-4352001

Fax: 0570-4352000

Lender

Contact person: Liu Chuanling

Address: 18-3, Xing Gong Seventh Road, Shangyu, Jiangshan;

 

Tel:

Fax:

	
17.4

	
If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions shall not in any way be affected or impaired thereby. In such event, the Parties shall use best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which effects the Parties original intention to the largest extent.

	
17.5

	
This Agreement shall be executed in English and Chinese language versions, each of which shall have equal validity. However, in the event of any inconsistency between the two, the English language version shall govern and control.

	
17.6

	
This Agreement is executed in six (6) copies with each of the person signing this Agreement holding one copy. Each of copy shall be equally valid and authentic.

  

10

  

	
Loan Agreement

IN WITNESS THEREFORE, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written.

For and on behalf of

Borrowers:

All Shareholders of Zhejiang Joinan Lighting Co., Ltd.

 

Wang Lixia: ______________________

 

Zhu Jiangtu: ______________________

 

Wang Huanyong: ______________________

 

Liu Tianhui: ______________________

Lender:

 

Jiangshan Greenworld Photoelectricity Consulting Co., Ltd.

Legal Representative: Liu Chuanling

Signature & Seal: _____________________

  

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