Document:

EXHIBIT 10.1

 

	[Seal that says	AGENCY:
    STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION:
    GENERAL DIRECTION
	 	 
	 	OFFICIAL
    COMMUNICATION: DG/122/2020

 

 

 

Mexicali, Baja California, on June 29th,
2020.

 

	 	[Seal that says STATE WATER

 COMMISSION OF BAJA

 CALIFORNIA/ DISPATCHED/

 JUNE 29, 2020]

 

 

AGUAS DE ROSARITO, S.A.P.I. de C.V.

Boulevard Rodolfo Sánchez Taboada number 10488, suite
801,

Zona Río, Tijuana Baja California, Mexico Postal Code
22320.

and/or

Paseo de los Héroes number 10289-302, Col. Zona Urbana
Rio Tijuana

Tijuana Baja California, Mexico Postal Code 22010.

Present.

 

We make reference to the Public-Private
Partnership Agreement Number C-SIDUE-CEA-APP-2015-002, entered into on August 22nd, 2016, by and between the STATE WATER
COMMISSION OF BAJA CALIFORNIA (hereinafter, the “CEA”) y AGUAS DE ROSARITO S.A.P.I. de C.V. (hereinafter,
the “DEVELOPER”); as well as STATE COMMISSION OF PUBLIC UTILITIES OF TIJUANA (hereinafter, “CESPT”)
in its capacity as joint obligor, and by, at that time, the Ministry of Planning and Finance as guarantor in the Current Account
Credit Facility. Said agreement was subject matter of Public Bid number SIDUE-CEA-APP-2015-002, was notarized before the public
faith of Mr. Rodolfo González Quiroz, Notary Public number 13 of the City of Mexicali, Baja California, as evidenced in
notarial deed number 78,242, volume 1,890, dated August 26th, 2016, which was amended through amendment agreement dated
June 1st, 2018, (hereinafter, the amendment agreement dated June 1st, 2018 will be referred as “Amendment
Agreement”; and jointly the Amendment Agreement and the agreement C-SIDUE-CEA-APP-2015-002 will be referred to as the
 “APP Agreement”).

 

The APP Agreement, as established in the
Amendment Agreement, is for the “Construction, Financing and Operation of a Desalination Plant in the Municipality of Playas
de Rosarito” consisting of “A Desalination Plant with a capacity of up to 4.4 m3/second in two stages: the
first with a capacity of 2.2 m3/second and an aqueduct to the delivery point in Tank 3 up to the El Florido Water Treatment
Plant both in the Municipality of Tijuana, the expansion to 20,000 m3 of the mentioned Tank 3, and the second with a
capacity of 2.2 m3/second, includes the Design, Preparation of the Executive Project, Construction, Electromechanical
Equipment and functioning Tests of the Desalination Plant and the Aqueducts; as well as, their Operation, Conservation, Maintenance
including its conduction and delivery of up to 4,400 liters per second, the treatment and the disposition of the rejection water
during an operation period of 37 years” (hereinafter the “Project”).

 

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

The terms written with an initial capital
letter, the meaning of which is not expressly defined herein, shall have the meaning ascribed to them in the APP Agreement.

 

In this regard, the fifth paragraph of
Clause First of the APP Agreement provides that the guaranteed annual volume of water at 95% efficiency for both stages of the
Project shall be 131.2 million cubic meters, equivalent to 4,162 liters per second of Potable Water; the first stage being 65.6
million cubic meters, equivalent to 2,081 liters per second, and for the second stage 65.6 million cubic meters, equivalent to
2,081 liters per second at the Measurement Point, regardless of its conduction to the Delivery Point, as well as the disposition
of the Rejection Water1.

 

The public-private partnership projects,
in accordance with the provisions of article 2, paragraph two of the Public-Private Partnership Law for the State of Baja California
(the “APP Law”)2, must be fully justified,
specify the social benefit that is sought to be obtained, and evidence the need or convenience before other forms of financing,
principles that have ceased being in effect in the case of the Project, because, in the event of continuing with the fulfillment
of the agreed obligations, a damage would be caused to the CEA, to the CESPT, to the State of Baja California and to the users
of the service by generating strong pressure to increase the current rates, as will be evidenced below, with the provisions of
the first paragraph of Article 123 of the Regulations to the APP Law3 and Clause
Thirtieth, section V, number 14 of the APP Agreement being applicable.

 

Legal representation of Mr. Luis
Granados Pacheco, General Director of the State Water Commission

 

The undersigned, Mr. Luis Granados Pacheco
is the General Director of the State Water Commission of Baja California, pursuant to the terms of the appointment issued in my
favor on November 1st, 2019, by the Constitutional Governor of the State of Baja California, Mr. Jaime Bonilla Valdez
and ratified before the H. Board of Governors of the CEA, which is supported by the notarization of the corresponding minutes which
corresponds to volume 5,103, with number 183,694, dated November 21st, 2020, notarized before the faith of Notary Public
number Five of the city of Mexicali Baja California, Mr. Luis Alfonso Vidales Moreno, which was registered in the Public Registry
of Property and Commerce in the City of Mexicali Baja California, by means of entry 5883674 dated November 22nd, 2019
of the civil section, who exercises the legal representation of said organization in accordance with articles 11 and 12 of the
Decree by which the State Water Commission of the State of Baja California is created, published in the Official Gazette of the
State of Baja California on March 3rd, 1999 (hereinafter the “Decree for the Creation of the CEA”.

 

 

1 Clause First, paragraph
fifth of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Subject Matter of the
APP contained in Clause Fifth of the Amendment Agreement to the Public-Private Partnership Agreement dated June 1st,
2018, named Amendment to the APP Clauses, pp 13-14.

2 Public-Private Partnership
Law for the State of Baja California published in the Official Gazette of the State on August 22nd, 2014, article 2,
second paragraph. [...]

In the terms provided for in this Law,
the public-private partnership projects shall be fully justified, specify the social benefit that is sought and evidence the need
or convenience before other forms of financing.

3 Regulations for the Public-Private
Partnership Law for the State of Baja California published in the Official Gazette of the State on August 22nd, 2014,
article 123, first paragraph. The Contracting Entity must agree in the Public-Private Partnership Agreement that it may be early
terminated when general interest reasons occur or, when for justified cause, the need for the requirement of the originally agreed
goods or services extinguishes, and it is evidenced that, continuing with fulfillment of the agreed obligation, would cause a
damage or prejudice to the State.

[...]

4 Clause Thirtieth, Section
V, Number 1 of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination
of the APP, Early Termination for reasons of general interest, pp 71-72.

 

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

Legal representation of Chemist Rigoberto
Laborín Valdez, General Director of the State Commission of Public Utilities of Tijuana

 

Chemist Rigoberto Laborín Valdez,
has the authority to contract, obligate and agree on behalf of the CESPT in accordance with his functions, who evidences his capacity
by means of an appointment dated November first, two thousand nineteen, granted by Mr. Jaime Bonilla Valdez, Constitutional Governor
of the State of Baja California, which was granted in accordance with the provisions of articles 49 fraction X of the Political
Constitution of the Free and Sovereign State of Baja California, 2 and 12 of the Organic Law of Public Administration of the State
of Baja California, 21 of the Law of Quasigovernmental Entities of Baja California and 11 of the Law of the State Commissions of
Public Utilities of the State of Baja California and through a power of attorney granted by its Board of Directors as evidenced
in Public Deed Number 182,428, Volume 5,896, dated November 13th, 2019, which is duly notarized before Notary Public
Number 3 of this city of Tijuana, Mr. Xavier Ibáñez Veramendi, registered in the Public Registry of Property and
Commerce under Entry 6182154 of the Civil Section, with registration date December 4th, 2019.

 

Opinion of the CEA as a Contracting
Entity

 

Pursuant to the terms of article 123 of
the Regulations to the APP Law, on June 25th, 2020, the CEA issued the opinion supporting the early termination of the
APP Agreement, which specifies the reasons and justified causes creating it and supporting and motivating such circumstance are
precised, which are communicated to the Developer herein, for the relevant legal, regulatory and contractual purposes (hereinafter
the “CEA Opinion”).

 

Resolution of the Board of Directors
of the State Water Commission of Baja California.

 

At the Fourth Extraordinary Session of
the Board of Directors of the CEA held on June 26th, 2020, the Board of Directors of the CEA resolved to authorize the
early termination of the APP Agreement for the reasons set forth in the CEA Opinion and authorized the undersigned, in his capacity
as as CEA's General Manager, to proceed lawfully.

 

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

GROUNDS FOR THE EARLY TERMINATION
OF THE APP AGREEMENT FOR CAUSES OF GENERAL INTEREST

 

Articles 1, 2, 5, 10, 11 and 12 of the
Decree for the Creation of CEA, 1 of the Decree amending the Executive Decree creating the Decentralized Organism known as State
Water Commission, 111 and 112 of the APP Law, 123 of the Regulations to the APP Law, and other related provisions, as well as the
provisions of Clauses First, Third, Fourth, Fifth, Thirtieth Section V, number 1, Thirty Third and Thirty Eighth of the APP Agreement
and resolution number SE/008/26-06-20 passed during the Fourth Extraordinary Session of the Board of Directors of the CEA are the
basis for the early termination of the APP Agreement.

 

REASON FOR THE EARLY TERMINATION
OF THE APP AGREEMENT FOR CAUSES OF GENERAL INTEREST.

 

Causes of general interest for the
termination of the APP Agreement.

 

In accordance with what is indicated in
Clause Thirtieth, section V, number 1, item a), below are the causes of general interest that justifiably evidence that if the
obligations of the APP Agreement continue to be fulfilled, a damage would be caused to the CEA, to the CESPT, to the State of Baja
California and to the users of the service, by generating strong pressure to increase the current rates, all the foregoing to the
detriment of the general interest.

 

		a)	Description. As evidenced below, the current conditions of the Project have been substantially
modified with respect to the original conditions arising from the Public Bid number SIDUE-CEA-APP-2015-0025,
which trigger the provisions for terminating the APP Agreement for reasons of general interest in accordance with the legal, regulatory
and contractual provisions that have been indicated and the reasoning described herein; as it does not constitute a sustainable
solution given its financial unfeasibility, as well as the damage that would be caused by continuing fulfillment of the obligations
agreed in the APP Agreement.

 

		b)	Justification. Under the APP Agreement, the Developer must carry out the necessary actions
for the development of the Project consisting of the planning, definition and execution of all the actions that it considers necessary
to supply for 37 years, the operation of a flow of up to 4,400 LPS of desalinated and potable water in two stages, each one of
2,200 LPS, to partially cover the demand in the Municipalities of Tijuana and Playas de Rosarito in the State of Baja California.
Originally, it was forseen that the second phase, corresponding to 2,200 LPS, would begin operations in the year 20246.

 

 

5 Exhibits 1, 4 and 5 of the
Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Call, Proposition and Scope of the
works of the Reference Terms, respectively.

6 Cfr. Note 9.

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

Current Account Credit Facility

 

The APP Agreement contains an obligation
of CEA to carry out the contracting of a Current Account Credit line, which must comply with the following characteristics7:

 

		a.	Be irrevocable and contingent;

 

		b.	To guarantee to the Lenders of the Developer the fulfillment of the payment obligations in charge
of the CEA;

 

		c.	Have an amount equivalent to 3 months of the payment of the Consideration including the Value Added
Tax.

 

		d.	Have as a source of payment the necessary and sufficient percentage of the income from the tax
on the remunerations for personal work plus the income from water rights collected by the CESPT for the rendering of its public
utility service.

 

		e.	Be in force as long as there are payment obligations in charge of the CEA under the APP Agreement
(in the order of 37 years);

 

This current account credit line implied
a guarantee for an amount of $295.78 million pesos for phase 1 which was increased in $223.8 million pesos for phase 2, giving
a total of $519.6 million pesos for both phases8.

 

Original Consideration

 

The APP Agreement was executed with a bid
amount equal to $98.6 million pesos of monthly consideration for the first phase and $74.6 million pesos for the second (at February
2016 prices). That is, the consideration for the two phases amounted to $173.2 million pesos including value added tax9.

 

To place the above amounts into context,
the monthly management income of CESPT (Audited in 2019) was of $328.8 million pesos and the operative result (management income
minus operating expense) was $49.1 million pesos per month10.

 

That is, the amount of the Consideration
established in the APP Agreement11 only for phase 1 of $98.6 million pesos
represents 30% of the income of the CESPT for 2019 and 200% of the operating result (income minus management expenses), therefore
the payment of the Consideration would represent the creation of an annual deficit in the order of $593.17 million pesos
to CESPT, this is due to obligation of the CESPT under the APP Agreement, of executing a water purchase and sale agreement
in order for the CEA to have sufficient resources to pay the Consideration12.

 

 

7 Clause Twenty Ninth of the
Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Resources of the Consideration, pp.
68-70.

8 Item 6 of clause Twenty Ninth
of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Resources of the Consideration,
pp. 69.

9 Exhibit 4 to the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Proposition.

10 Opinion on the Financial
Statements of the State Commission of Public Utilities of Tijuana for the period comprised between January 1st and
December 31st, 2019.

11 Clause Eleventh of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Consideration for the Services, pp. 40-46.

12 Opinion of the CEA. 

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

The deficit in the CESPT mentioned in the
previous paragraph impacts the CEA, the State Government and the users in the following manner:

 

		a.	The deficit of CESPT would cause it to be unable to make full payment under the Water Purchase
and Sale Agreement entered into with the CEA, causing the CEA in turn to not have sufficient resources for payment of the Consideration
under this agreement.

 

		b.	Upon the lack of sufficient resources for the payment of the Consideration, the exercise of the
Current Account Credit that the CEA would contract with the guarantee of the Government of the State of Baja California, represented
at the time by the Ministry of Planning and Finance (SPF), would be triggered

 

		c.	Given that the Current Account Credit would affect the income and rights for the tax on remuneration
for personal work in a necessary and sufficient percentage, the Government of the State of Baja California would have its income
affected in the amount of resources necessary to cover the deficit of the Consideration, thus reducing the resources available
for its investment or social spending programs.

 

		d.	Given that the deficit would be maintained over time, this would generate strong pressure to increase
user rates seeking to reduce said deficit.

 

Amendment Agreement

 

The Amendment Agreement amended the Total
Cost of the System and consequently the Total Investment Amount and changed the original risk matrix of the Project by incorporating
an acknowledgement of the variations in the exchange rate and interest rates, in addition to the updating mechanism for inflation
originally foreseen, in accordance with the following13:

 

		a.	It increased the total cost of the System for phase 1 from $5,254.48 million pesos to $6,099.80
million pesos

 

		b.	It reduced the total cost of the System for phase 2 from $3,271.26 million pesos to $2,624.58 million
pesos

 

 

13 Clauses Fourth and Fifth
of the Amendment Agreement to the Public-Private Partnership Agreement, dated June 1st, 2018, named Amendment to the
APP Clauses; Clause Forty Sixth named total Cost of the System pp. 25-26.

 

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

		c.	It modified the amount of the Consideration in charge of the CEA and in favor of the Developer.

 

		d.	It included a clause entitled: “Adjustment mechanism to recognize changes in financial conditions
during the investment period”, which allows for an increase in the payment arising from the increase in the exchange rate
in United States Dollars, in Euros and the increase in the interest rate.

 

Economic Impacts of the Amendment
Agreement

 

The monthly consideration of $98.6 million
pesos for the first phase was increased to $107.83 million pesos per month without considering the effects of exchange rate and
interest rate adjustments14.

 

Likewise, to place into context the amounts
indicated in the previous paragraph, this Consideration of $107.83 million pesos represents 30% of the income of CESPT in 2019
and 219% of its operating result (income minus management expenses), which would imply generating an annual deficit for CESPT
in the order of $704 million pesos.15

 

When calculating the effect of the “Adjustment
mechanism to recognize changes in financial conditions during the investment period”16
incorporated into the APP Agreement through the Amendment Agreement, the Consideration for phase 1 including value
added tax is estimated could increase from $107.83 million pesos to $125.50 million pesos per month.17

 

Again, to place in context the amounts
indicated above, the Consideration for Phase 1 for $125.50 million pesos represents 44% of the income of CESPT in 2019 and 296%
of the operating result (income minus management expenses) which could generate an annual deficit for CESPT of $1,157 million
pesos with the same affectation on the State of Baja California and the corresponding pressure for an increase in user rates.18

 

Options to cover the Deficit generated
between the income and payment obligations in charge of the CEA and the CESPT

 

The amount of the Consideration to be paid
by the CEA and the CESPT under the APP Agreement were increased due to the Amendment Agreement, which increased the amount of the
investment and incorporated the change mechanism per increase of the exchange rate and interest rate, which means that the amount
of such Consideration, from their origin, could generate a budget deficit for the CESPT that began at $593 million pesos annually,
but when incorporating the effects arising from the Amendment Agreement, could reach an amount of $1,157 million pesos annually,
which should be covered by the contingent credit line as follows:19

 

 

14 Clause Fifth of the Amendment
Agreement to the Public-Private Partnership Agreement, dated June 1st, 2018, named Amendment to the APP Clauses; Clause
Eleventh.- Consideration for the Services. Sets an amount for total monthly consideration of $92,968,663, which amount, when adding
the VAT, results in $107,843,649, p. 16.

15 Opinion of the CEA.

16 Clause Fifth of the Amendment
Agreement to the Public-Private Partnership Agreement, dated June 1st, 2018, named Amendment to the APP Clauses; Clause
Fourteenth named Adjustment Mechanisms to recognize changes in the financial conditions during the investment period pp. 17-19.

17 Opinion of the CEA.

18 Ibidem.

19 Ibidem 

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

The deficit of the CESPT mentioned in the
previous paragraph impacts the CEA, the State Government and the users as follows:

 

		a.	The deficit of the CESPT would cause it to be unable to make full payment under the Water Purchase
and Sale Agreement entered into with the CEA, causing the CEA in turn to not have sufficient resources for payment of the Consideration
under this agreement.

 

		b.	Upon the lack of sufficient resources for the payment of the Consideration, the exercise of the
Current Account Credit that the CEA would contract with the guarantee of the Government of the State of Baja California, represented
at the time by the Ministry of Planning and Finance (SPF), would be triggered.

 

		c.	Given that the Current-Account Credit would affect the income and rights for the tax on remuneration
for personal work in a necessary and sufficient percentage, the Government of the State of Baja California would have its income
affected in the amount of resources necessary to cover the deficit of the Counterpart, thus reducing the resources available for
its investment or social spending programs.

 

		d.	Given that the deficit would be maintained over time, this would generate strong pressure to increase
user rates seeking to reduce said deficit.

 

This level of deficit would have to be
covered through a combination of the following three sources:

 

		a.	Reducing or eliminating future investments of the CESPT to the detriment of its service

 

		b.	Use budget resources of the State Government of Baja California affecting the social or investment
projects.

 

		c.	Increase rates substantially affecting the economy of the population.

 

Conclusion

 

Based on the above founded and motivated,
in case of continuing with the obligations foreseen in the APP Agreement, a negative impact on the finances of the CEA, of the
CESPT and in the finances of the State of Baja California and a strong pressure to carry out an increase in the current rates would
be created, thereby affecting the general interest. In other words, the Project contained in the APP Agreement:

 

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

		a.	Is not sustainable.

 

		b.	Is not financially viable, nor sustainable for the CEA and the CESPT.

 

		c.	Puts pressure on the increase in the amount of the rates to be paid by the users, affecting their
economy.

 

		d.	Negatively affects the general interest.

 

Notice of Early Termination of the
APP Agreement for General Interest Reasons.

 

In this context and given that it is the
obligation of CEA to plan and coordinate the pertinent actions so that the population has sufficient hydraulic infrastructure
through sustainable solutions, as established in article 1 of the Decree amending the Executive Decree creating the Decentralized
Organism known as the State Water Commission, through which the State Water Service Commission is administratively and operationally
incorporated into the State Water Commission20 and which must promote, at all
times, its healthy development, a task that is made difficult by the financial unfeasibility of the APP Agreement, due to the
complex situation described in this document; Therefore, pursuant to the terms of Articles 111 and 112 of the APP Law, 12321
of the Regulations to the APP Law, as well as the provisions of Clauses First22,
Third23, Fourth24, Fifth25,
Thirtieth section V, number 126, Thirty Third27
and Thirty Eighth28 of the APP Agreement, the company AGUAS DE ROSARITO
S.A.P.I de C.V. is hereby notified, in its capacity as Developer under the APP Agreement, of the early termination
of the APP Agreement for causes of general interest as of this date, and therefore said agreement ceases to have effects immediately.

 

 

20 Decree amending the Executive
Decree creating the Decentralized Organism known as the State Water Commission by means of which the State Water Service Commission
is administratively and Operationally integrated to the State Water Commission published in the Official Gazette of the State
on January 27th, 2006, article First. Articles 1, 2, 4 and 12 of the Decree creating the State Water Commission of
Baja California are amended to readas follows:

Article 1.- The decentralized public body
with its own legal personality and assets is created, called the State Water Commission of Baja California, which purpose will
be to plan and coordinate the pertinent actions for the population to have sufficient hydraulic infrastructure, as well as to appoint,
organize, and execute the water in block policy in the state, thus satisfying the demand for water services through sustainable
solutions.

21 Cfr. Note 3.

22 Clause First of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Subject Matter of the Agreement, contained in Clause
Fifth of the Amendment Agreement to the Public-Private Partnership Agreement, dated June 1st, 2018, pp. 13-15.

23 Clause Third of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Description of the Works of the Agreement, pp. 28-29.

24 Clause Fourth of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Times for the Execution of the Agreement, pp. 29-33.

25 Clause Fifth of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Realization of the Project and Financing of the Agreement,
pp. 33-35.

26 Clause Thirtieth, Section
V, Number 1 of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination
of the APP, Early Termination for reasons of general interest, pp. 71-72.

27 Clause Thirty Third of
the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination for reasons of
general interest or Justified Causes, pp. 81.

28 Clause Thirty Eighth of
the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Notices, pp. 86-87. 

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

Requirement to the Developer:

 

In terms of the provisions of Clause Thirtieth,
section V, number 1, items a), b) and c)29 respectively, the Developer is requested
to, within the terms mentioned below:

 

		a.	Begin the inventory of the assets that are currently comprise the Works of the Project referred
to in paragraphs a) and b) of number 1 of Section V of Clause Thirtieth of the APP Agreement and proceed to its delivery to CEA
within 90 (ninety) business days as from the date of delivery of this notice;

 

		b.	For purposes of that mentioned in the immediately preceding paragraph, Mr. Juan Carlos Sandoval
has been appointed as representative of CEA.

 

		c.	Submit to CEA the corresponding evidence, with the purpose of acknowledging and paying the non-recoverable
expenses and those pending amortization made by the Developer in the Project.

 

		d.	The reimbursement will be calculated in accordance with the APP Agreement.

 

For purposes of carrying out the delivery
of this notice in terms of the provisions of Clause Thirty Eighth of the APP Agreement30,
I hereby inform you that this notice will be delivered to you by Mr. Alejandro Aguilera Martinez, in his capacity as legal representative
of this State Water Commission of Baja California.

 

Without further ado, saying goodbye to
You.

 

SINCERELY,

 

[Illegible signature]

 

MR. LUIS GRANADOS PACHECO

GENERAL DIRECTOR AND LEGAL REPRESENTATIVE

OF THE STATE WATER COMMISSION OF BAJA
CALIFORNIA

AS CONTRACTOR OF THE APP AGREEMENT.

 

 

[Illegible signature]

 

MR. RIGOBERTO LABORIN VALDEZ

GENERAL DIRECTOR OF THE STATE COMMISSION
OF PUBLIC UTILITIES OF TIJUANA.

 

 

29 Cfr. Note 13.

30 Cfr. Note 5.

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	[Seal that says	AGENCY: STATE WATER COMMISSION OF BAJA CALIFORNIA.
	CEA – Comisión 	 
	Estatal del Agua]	SECTION: GENERAL DIRECTION
	 	 
	 	OFFICIAL COMMUNICATION: DG/122/2020

 

    

 

		c.c.	Members of the State Committee for Public-Private Partnership
Projects. Present

General Minister of the Government of Baja
California.- Present.

Minister of Finance of the State of Baja
California.- Present

Minister of Infrastructure,
Urban Development and Territorial Reorganization of the State of Baja California.- Present

Minister of Water of the State of Baja
California. Present.

Minister of Honesty and Public Function.
Present.

H. Board of Directors of CEA.- Present.

Mr. Juan Carlos Saldoval in
his capacity as representative of the State Water Commission of Baja California in terms of this official communication- present

Project Supervision.- Present.

Project Logbook.- Archive

 

    	[Illegible signature]
	[Illegible signature]
	11Exhibit 10.1

 

SHARE PURCHASE AGREEMENT

 

This Share Purchase
Agreement (this “Agreement”), dated as of June 30, 2020, is entered into among Code Chain New Continent Limited,
a Nevada corporation (“Seller”), Jiazhen Li (“Buyers”), and Long Liao and Chunyong Zheng
(“Payees”). Capitalized terms used in this Agreement have the meanings given to such terms herein.

 

RECITALS

 

WHEREAS, Seller
owns all of the issued and outstanding ordinary shares, (the “Sunlong Shares”), in China Sunlong Environmental
Technology Inc., a Cayman Islands company and a subsidiary of Seller (the “Company”); and

 

WHEREAS, Seller
wishes to sell to Buyer, and Buyer wishes to purchase from Seller, the Sunlong Shares, subject to the terms and conditions set
forth herein;

 

WHEREAS, the
Payees have a prior relationship with the Buyers and have agreed to be responsible for the payment of the purchase price of the
Sunlong Shares on behalf of Buyer, subject to the terms and conditions set forth herein;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

Purchase and sale

 

Section
1.01Purchase and Sale. Subject to the terms and
conditions set forth herein, at the Closing (as defined in Section 2.01), Seller shall sell to Buyer, and Buyer shall purchase
from Seller, the Sunlong Shares, free and clear of any mortgage, pledge, lien, charge, security interest, claim, community property
interest, option, equitable interest, restriction of any kind (including any restriction on use, voting, transfer, receipt of income,
or exercise of any other ownership attribute), or other encumbrance
(each, an “Encumbrance”). 

 

Section
1.02Purchase Price.
The aggregate purchase price for the Sunlong Shares shall be $1,732,114 (the “Purchase Price”),
payable in consideration of cancellation of 1,012,932 shares of the Seller owned by the Payees (the “CCNC Shares”).
The CCNC Shares shall be valued at $1.71 per share, based on the closing price of the Seller’s common stock on June 30, 2020.
Seller and Payees shall cause the CCNC Shares to be cancelled at the Closing.

 

Section
1.03The Buyer shall be a third party beneficiary to the agreement and shall have the
right to enforce such agreement directly to the extent it may deem such enforcement necessary or advisable to protect its rights.

 

ARTICLE II

CLOSING

 

Section
2.01Closing. The
closing of the transactions contemplated by this Agreement (the “Closing”) shall take place on a date mutually
agreed by the parties within 30 days after the date of this Agreement (the “Closing Date”). 

 

    

     

    

 

Section
2.02Seller Closing Deliverables.
At the Closing, Seller shall deliver to Buyer
the following:

 

(a) Share
certificates evidencing the Sunlong Shares, free and clear of all Encumbrances, duly endorsed in blank or accompanied by stock
powers or other instruments of transfer duly executed in blank, with all required share transfer tax stamps affixed thereto.

 

(b) Copies
of all resolutions of the board of directors and the shareholders of Seller authorizing the execution, delivery, and performance
of this Agreement, and the other agreements, instruments, and documents required to be delivered in connection with this Agreement
or at the Closing (collectively, the “Transaction Documents”) to which Seller is a party and the consummation
of the transactions contemplated hereby and thereby;

 

(c) Resignations
of the directors and officers of the Company, if applicable, effective as of the Closing Date.

 

Section
2.03Buyer Closing Deliverables.
At the Closing, Buyer shall deliver to Seller the following:

 

(a) Irrevocable
stock powers signed by each of the Payees addressed to the Seller’s transfer agent with respect to the cancellation of the
CCNC Shares.

 

(b) Confirmation
from Seller’s transfer agent with respect to the cancellation of the CCNC Shares.

 

ARTICLE III

Representations and warranties of seller

 

Seller represents and
warrants to Buyer that the statements contained in this Article III are true and correct as of the date hereof. For purposes of
this Article III, “Seller’s knowledge,” “knowledge of Seller,” and any similar phrases shall mean
the actual or constructive knowledge of any director or officer of Seller, after due inquiry.

 

Section
3.01Organization and Authority of Seller. Seller
is a corporation duly organized, validly existing, and in good standing under the Laws (as defined in Section 3.05) of the state
of Nevada. Seller has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which
Seller is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby
and thereby. The execution and delivery by Seller of this Agreement and any other Transaction Document to which Seller is a party,
the performance by Seller of its obligations hereunder and thereunder, and the consummation by Seller of the transactions contemplated
hereby and thereby have been duly authorized by all requisite corporate action on the part of Seller. This Agreement and each Transaction
Document to which Seller is a party constitute legal, valid, and binding obligations of Seller enforceable against Seller in accordance
with their respective terms.

 

Section
3.02Organization, Authority, and Qualification of the Company. The
Company is a corporation duly organized, validly existing, and in good standing under the Laws of the state of Nevada and has full
corporate power and authority to own, operate, or lease the properties and assets now owned, operated, or leased by it and to carry
on its business as it has been and is currently conducted. Section 3.02 of the Disclosure Schedules sets forth each jurisdiction
in which the Company is licensed or qualified to do business, and the Company is duly licensed or qualified to do business and
is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business as currently
conducted makes such licensing or qualification necessary.

 

    2

     

    

 

Section
3.03No Conflicts or Consents. The execution,
delivery, and performance by Seller of this Agreement and the other Transaction Documents to which it is a party, and the consummation
of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict with any provision of the certificate
of incorporation, by-laws, or other governing documents of Seller or the Company; (b) violate or conflict with any provision of
any statute, law, ordinance, regulation, rule, code, treaty, or other requirement of any Governmental Authority (collectively,
“Law”) or any order, writ, judgment, injunction, decree, determination, penalty, or award entered by or with
any Governmental Authority (“Governmental Order”) applicable to Seller or the Company; (c) require the consent,
notice, or filing with or other action by any Person or require any Permit, license, or Governmental Order; (d) violate or conflict
with, result in the acceleration of, or create in any party the right to accelerate, terminate, or modify any contract, lease,
deed, mortgage, license, instrument, note, indenture, joint venture, or any other agreement, commitment, or legally binding arrangement,
whether written or oral (collectively, “Contracts”), to which Seller or the Company is a party or by which Seller
or the Company is bound or to which any of their respective properties and assets are subject; or (e) result in the creation or
imposition of any Encumbrance on any properties or assets of the Company. 

 

ARTICLE IV

Representations and warranties of buyer

 

Buyer represents and
warrants to Seller that the statements contained in this Article IV are true and correct as of the date hereof. For purposes of
this Article IV, “Buyer’s knowledge,” “knowledge of Buyer,” and any similar phrases shall mean the
actual or constructive knowledge of any director or officer of Buyer, after due inquiry.

 

Section
4.01Authorization; Binding Agreement. The Purchaser has all requisite corporate power
and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby (a) have
been duly and validly authorized and (b) no other corporate proceedings, other than as set forth elsewhere in the Agreement, are
necessary to authorize the execution and delivery of this Agreement or to consummate the transactions contemplated hereby. This
Agreement has been, and shall be when delivered, duly and validly executed and delivered by the Purchaser, assuming the due authorization,
execution and delivery of this Agreement by the other parties hereto, and constitutes, or when delivered shall constitute, the
valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except to the extent
that enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization and moratorium laws and other laws
of general application affecting the enforcement of creditors’ rights generally or by any applicable statute of limitation
or by any valid defense of set-off or counterclaim, and the fact that equitable remedies or relief (including the remedy of specific
performance) are subject to the discretion of the court from which such relief may be sought (collectively, the “Enforceability
Exceptions”)

 

    3

     

    

 

Section
4.02Governmental Approvals. No Consent of or with any Governmental Authority, on the
part of the Purchaser is required to be obtained or made in connection with the execution, delivery or performance of this Agreement
or the consummation of the transactions contemplated hereby, other than (a) such filings as may be required in any jurisdiction
in which such Party is qualified or authorized to do business as a foreign corporation in order to maintain such qualification
or authorization, (b) such filings as contemplated by this Agreement, (c) any filings required with NASDAQ with respect to the
transactions contemplated by this Agreement, or (d) applicable requirements, if any, of the Securities Act of 1933, as amended
(the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and/ or any state “blue sky” securities laws, and the rules and regulations thereunder.

 

Section
4.03Non-Contravention. The execution and delivery by the Purchaser of this Agreement
and the consummation of the transactions contemplated hereby, and compliance with any of the provisions hereof, will not (a) conflict
with or violate any provision of the Organizational Documents of such Party (if any), (b) conflict with or violate any Law,
Order or Consent applicable to such Party or any of its properties or assets, or (c) (i) violate, conflict with or result in a
breach of, (ii) constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under,
(iii) result in the termination, withdrawal, suspension, cancellation or modification of, (iv) accelerate the performance required
by such Party under, (v) result in a right of termination or acceleration under, (vi) give rise to any obligation to make payments
or provide compensation under, (vii) result in the creation of any Lien upon any of the properties or assets of such Party under,
(viii) give rise to any obligation to obtain any third party consent or provide any notice to any Person or (ix) give any Person
the right to declare a default, exercise any remedy, claim a rebate, chargeback, penalty or change in delivery schedule, accelerate
the maturity or performance, cancel, terminate or modify any right, benefit, obligation or other term under, any of the terms,
conditions or provisions of, any material contract of such Party.

 

ARTICLE V

Miscellaneous

 

Section
5.01Interpretation; Headings. This Agreement
shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting
an instrument or causing any instrument to be drafted. The headings in this Agreement are for reference only and shall not affect
the interpretation of this Agreement.

 

Section
5.02Severability. If any term or provision of
this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall
not affect any other term or provision of this Agreement.

 

Section
5.03Entire Agreement. This Agreement and the
other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject
matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and
oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement
and those in the other Transaction Documents, any exhibits, and the Disclosure Schedules (other than an exception expressly set
forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

 

Section
5.04Successors and Assigns. This Agreement shall
be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither
party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall
not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

    4

     

    

 

Section
5.05Amendment and Modification;
Waiver. This Agreement may only be amended,
modified, or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions
hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No failure to exercise, or
delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof. No single
or partial exercise of any right or remedy hereunder shall preclude any other or further exercise thereof or the exercise of any
other right or remedy.

 

Section
5.06Governing Law; Submission to Jurisdiction. This
Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect
to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction). Any legal suit,
action, proceeding, or dispute arising out of or related to this Agreement, the other Transaction Documents, or the transactions
contemplated hereby or thereby may be instituted in the federal courts of the United States of America or the courts of the State
of New York in each case located in the city of New York and county of New York, and each party irrevocably submits to the exclusive
jurisdiction of such courts in any such suit, action, proceeding, or dispute.

 

Section
5.07Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.
A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the same legal
effect as delivery of an original signed copy of this Agreement.

 

[signature page
follows]

 

    5

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto
duly authorized.

 

	 	Code Chain New Continent Limited
	 	 	 
	 	By	/s/ Yimin Jin
	 	Yimin Jin
	 	Chief Executive Officer
	 	 	 
	 	Buyer
	 	 	 
	 	/s/ Jiazhen Li
	 	Jiazhen Li
	 	 	 
	 	Payees
	 	 
	 	/s/ Long Liao
	 	Long Liao
	 	 
	 	/s/ Chunyong Zheng
	 	Chunyong Zheng

 

 

6

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