Document:

Exhibit 10.1

 

 

 

 

 

Asset Transfer Agreement

 

 

 

 

 

 

 

This agreement is signed on June 28, 2014 in Xi’an City,
Shaanxi Province between Qitaihe City Boli Yida Coal Selection Co., Ltd. and Xi’an TCH Energy Technology Co., Ltd.

 

 

    	 

    	 

    

 

Asset Transfer Agreement

 

Transferor: Qitaihe City Boli Yida Coal Selection Co., Ltd.
(hereinafter referred to as Transferor)

Legal Representative: Gui Liu

 

Transferee: Xi’an TCH Energy Technology Co., Ltd (hereinafter
referred to as Transferee)

Legal Representative: Guohua Ku

 

This agreement is the final official agreement based on the
Letter of Intent for Technical Transformation signed on April 10, 2014 between two parties.

 

Whereas

 

1. The Transferor is a limited liability company established
and existed under the laws of People’s Republic of China.

 

2. The Transferee is a limited liability company established
and existed under the laws of People’s Republic of China.

 

3. Through amicable negotiation, Parties entered the Letter
of Intent for Technical Transformation on April 10, 2014, in which the Transferor would transfer its coal gangue power plant to
the Transferee and would reform the coal gangue power plant under the instruction of the Transferee in order for the parties to
complete this assets transfer.

 

4. Parties have completed the transformation in accordance with
the technical plan and requirements of the Transferee. The power plant has met requirements as a coking coal gas power generation
plant, and equipment runs properly.

 

Item One: Definition

 

Unless otherwise specified in this agreement, the terms are
defined as follows:

 

1. Transferred assets: all assets stipulated in Exhibit A of
this agreement, Assets Transfer List.

 

2. Working Days: Monday through Friday of every week, excluding
public holidays of China.

 

3. Effective Day: the date when this agreement comes into legal
force.

 

4. Signature Date: the date when Parties sign or seal the agreement.

 

    	 

    	 

    

 

5. Closing Day: the day on which the Transferor transfers the
assets and ownership to the Transferee, that is, the effective date of this agreement.

 

6. Chinese Law: applicable laws, regulations, orders, notices,
and rules that are promulgated by the Chinese government and its agencies on or before the effective date of this agreement.

  

Item Two: Assets Transfer

 

1. The Transferor agrees to transfer all assets stipulated on
Exhibit A of this agreement—Assets Transfer List to the Transferee.

 

2. The Transferee agrees to accept the transferred assets from
the Transferor according to this agreement.

 

3. All assets under this agreement shall be transferred to the
Transferee on the Closing Day.

 

4. The Transferee will become the only legal owner of the transferred
assets and assumes all rights and obligations of them from the Closing Day; and the Transferor will no longer own any rights of
the transferred assets and will not assume any obligations of them after the Closing Day, unless otherwise specified.

 

Item Three: Transfer of Assets

 

Parties agreed that the assets and their ownership to be transferred
are all listed on the exhibit of this agreement. Any contracts, agreements, rights and responsibilities in the agreements between
Transferor and any third parties that relate to the transferred assets and their debt and credit relationship are not included.
The Transferor shall assume such responsibilities to the third party by itself and protect, and ensure Transferee is free from
these liabilities and responsibilities. Parties agree, the Transferee will not assume any debt, liability, account receivable,
bank loan, government tax or fee or any other mortgages on the transferred assets.

 

Item Four: Others

 

1. If Transferor has purchased any type of insurance for the
transfer assets, and such insurance is still valid upon the closing date, then Transferor shall change the insurer and beneficiary
person on the insurance policy to Transferee within 5 working days of the Closing Date, and provide the original insurance policy
to Transferee. The Transferee shall receive all the benefit and income from the insurance policy from the closing date.

 

    	 

    	 

    

 

2. Transferor promise, upon and after the closing date, if Transferor
acknowledges any business information directly relates to the business that Transferee is operating, Transferor shall first and
immediately provide such business information to the Transferee.

 

Item Five: Price, Time and Method of Payment

 

Based on the construction and transfer price for gas
power generation plants with the same capacity on the current market, and the assets condition and transformation cost for
the original coal gangue power plant of the Transferor, Parties agreed that the transfer price is RMB 115 million in
total (including RMB 43 million for transformation cost). Parties agreed that the payment shall be made by issuing common
stock shares by the parent company of Transferee, China Recycling Energy Corporation (CREG) to the legal entity or natural
person designated by the Transferor at the average closing price per share for the ten trading days prior to the Closing Day.
Within five days after the Effective Day of the agreement, the Transferor shall return RMB 10 million retainer paid by
the Transferee according to the letter of intent.

 

1. The Transferee shall issue common stock shares of CREG (the
“Shares”) as payment to the Transferor within ten working days upon the Closing Date. Both parties agree that the exchange
rate of USD and RMB for the agreement shall be the middle price of exchange rate published by People’s Bank of China on the
Closing Day, and the Transferee agrees that its U.S. parent company CREG shall register all the Shares with SEC in the Form S-3.

 

2. The Transferee shall complete all procedures for the issuance
of shares, and the Transferor shall provide required documents.

  

Item Six: Representation, Warrant and Covenants of the Transferor

 

Transferor represents and warrants to the Transferee:

 

1. The Transferor is a Chinese legal business entity with good
standing.

 

2. Transferor has lawful and full ownership rights to the transferred
assets and has the rights to execute this agreement and transfer the assets. The transferred assets or their related rights and
beneficiaries are free of any mortgage, lien, pledge, restrictions or claims from any third parties as well as free from any court
judgment or verdict by arbitration commissions or any other defects. Transferee shall have all the lawful ownership rights of the
transferred assets upon the effective date of this Agreement, including but not limited to possession, use, beneficial and disposal
rights of the transferred assets. The transferred assets are not to be confiscated or detained under Chinese law or by any third
person or be imposed with any mortgage, lien, pledge or any other forms of obligations.

 

    	 

    	 

    

 

3. Transferor warrants, as to the effective date of this Agreement,
Transferor has not infringed any third party’s patents, copy rights, trademark intellectual property rights or any other
property rights with regard to the transferred assets, and there is no third party has made any claims for these rights. Upon and
after the closing date, the exercise of the transferred assets rights by Transferee will not infringe any third party’s patents,
copy rights, trademark intellectual property rights or any other property rights.

 

4. As to the effective date of this Agreement, Transferor has
notified all third parties that are related to the transferred assets with regard to the transfer.

 

5. Transferor didn’t make any promises, agreements or
arrangements that could create or cause any mortgage, lien, pledge or any other rights on the transferred assets which will benefit
any third party on or after the closing date,.

 

6. As to the closing date of this Agreement, Transferor hasn’t
acknowledged any claims or requests from any third party regarding to any part of the transferred assets which could have negative
impact on Transferee’s rights, nor has it had any direct or indirect disputes, litigation or arbitration related to the transfer
assets.

 

7. Transferor has disclosed to Transferee all the information
related to the transferred assets that Transferee needs to know for the daily operation of the transfer assets, and hasn’t
withheld any information the disclosure of which might affect the execution of this Agreement.

 

8. Transferor shall deliver the transferred assets list to Transferee
on the date of signature date of this Agreement.

 

The above representations, warrants and covenants have the effect
of tracing to the effective date of this Agreement and will keep effect after the signature date of this Agreement.

 

Item Seven: Representations, Warrants and Covenants of the
Transferee

 

1. Transferee is a legally incorporated and existing legal entity
under Chinese Laws.

 

2. Transferee has the full rights to conduct the assets transfer
under this Agreement and has obtained any authorization to execute and perform this Agreement. Transferee’s board of directors
have approved the assets transfer under this Agreement by its resolution.

 

3. Make the payments to Transferor according to the terms of
this Agreement.

 

    	 

    	 

    

 

Item Eight: Other Items

 

1. Parties agree, based upon the principle of honesty and trust,
Transferor shall complete the assets transfer process within five working days of the signature date of this Agreement.

 

2. Transferor agrees to complete any other matters, including
but not limited to sign or have any third party to sign any documents or application, or obtain any approval consent or permit,
or complete any registration or filing before the closing date. Parties further agree, upon the execution of this Agreement, to
make supplement agreements before the closing date, so the transaction could be completed. The supplement agreement shall be an
integrated part of this Agreement.

 

Item Nine: Liabilities for Breach

 

1. Any party’s breach of its representation, warrants
and covenants or any other terms of this Agreement will be consider as a breach of the Agreement. The breaching party shall pay
full and adequate compensation to the other party, including but not limited to the legal fees of another party due to the breach
(including but not limited to the professional consulting fees) and lawsuits with any third party or compensation to any third
party (including but not limited to the professional consulting fees).

 

2. On and after the closing date, if there are any disputes
or debts related to the transferred assets which Transferor didn’t disclose to Transferee on or before the closing date,
Transferor shall try its best to solve it to avoid any damages to the Transferee and the transferred assets. If such disputes or
debts cause any loss to the Transferee or the transferred assets, Transferor shall compensate Transferee for all losses.

 

Item Ten: Dispute Resolution

 

1. Disputes arising from the execution of this Agreement or
in connection with this Agreement shall be settled by both parties through amicable negotiation. If consensus cannot be reached,
either party may, according to the Agreement, submit the dispute to China International Economic and Trade Arbitration Commission
Beijing Branch for arbitration in accordance with its current effective rules. The arbitration award shall be final and binding
to both parties.

 

2. During the arbitration, except for the matters or obligations
in dispute submitted to arbitration, both parties shall continue to fulfill the other undisputed obligations under this Agreement.

 

    	 

    	 

    

 

Item Eleven: Entire Agreement 

 

According to Chinese law, if any terms are considered invalid
by Arbitration Commission, the validity of other terms of this Agreement shall not be affected.

 

Item Twelve: Applicable Law

 

Any issues relating to the execution, effectiveness, interpretation,
performance and disputes of this Agreement shall be governed by Chinese laws.

 

Item Thirteen: Agreement Rights

 

Without written consent by the other party, no party shall transfer
its rights and obligations under this Agreement to any other party.

 

Item Fourteen: Taxes

 

Parties agree any taxes or fees required for each party by the
Chinese laws due to its performance of this Agreement shall be assumed by such party itself. If the taxes or fees are required
to be assumed by both parties, the parties shall split it equally.

 

Item Fifteen: Force Majeure

 

1. Force Majeure is the event that could not be controlled,
foreseen or even is foreseen but could not be avoided, and such event prevents, delays or affects any party of the Agreement to
perform all or part of its obligations. Such event includes but not limited to earthquake, typhoon, flood, fire or any other natural
disaster, war, riot, strike or serious epidemic decease or other similar events.

 

2. If there is a force majeure event, the party suffering such
event shall notify the other party by the fastest possible measure, and it shall provide supporting evidences within 15 days with
details and reasons why such party cannot perform all or part of its obligations or needs to delay its performance, then the Parties
shall consult whether to delay the performance of this Agreement or terminate this Agreement.

 

    	 

    	 

    

 

Item Sixteen: Exhibits

 

All the exhibits of this Agreement are integrated parts of this
Agreement and have same legal effect.

 

Item Seventeen: Copies

 

This Agreement is written in Chinese. There are four original
copies and each party holds two copies. Each original copy has same legal effect.

 

Item Eighteen: Others

 

1. Any notice from one party to another in connection with this
Agreement shall be in written format and sent by personal delivery, fax, telex or mail. If the notice is sent by personal delivery,
it is considered as delivered when it is taken to the other party’s mailing address with a signature demonstrating receipt
has been obtained. If it is sent by fax or telex, it is considered as delivered when the sender received the sent answer report
from the machine; if it is sent by registered mail, it is considered as delivered on the 5th working days after the mailing out
date.

 

2. Any change to this Agreement shall be agreed upon in writing
by both parties before it could take effect. Any change and supplement to this Agreement is an integrated part of this Agreement.

 

3. Any party fails to or delays to exercise its rights or benefits
under this Agreement should not be considered as the waiver of such rights. Also, the partial non-exercise of such rights should
not prevent such party from exercising such rights or benefits in the future.

 

4. The rights or remedies under this Agreement are cumulative
and don’t eliminate other rights and remedies provided by Chinese Laws or provided by laws, regulations or other legally
enforceable measures and documents issued by Chinese government after the closing date.

 

5. Parties confirm that this Agreement will take effect upon
the Parties or their representatives’ execution of this Agreement.

 

Parties have signed this assets transfer agreement and acknowledge
holding two fully executed copies of this agreement.

 

Transferor: Qitaihe City Boli Yida Coal Selection Co., Ltd.

Authorized Representative: __________________

 

Transferee: Xi’an TCH Energy Technology Co., Ltd.

Authorized Representative: ___________________Exhibit 10.2

 

Xi’an
TCH Energy Technology Co., Ltd.

 

Qitaihe
City Boli Yida Coal Selection Co., Ltd.

 

 

 

 

 

 

Lease Agreement for Coking Coal Gas Power
Generation Project 

 

 

 

  

 

 

 

 

June 2014

 

    	 

    	 

    

  

Lease Agreement for Coking Coal Gas Power
Generation Project

 

Lessor: Xi’an TCH Energy Technology
Co., Ltd. (“Party A”)

 

Lessee:
Qitaihe City Boli Yida Coal Selection Co., Ltd. (“Party B”)

 

Whereas, 

 

1. In order to improve the efficiency of
assets operation and decrease the management cost, Party A agrees Party B to lease its coking coal gas power generation assets,
and Party B agrees to lease such coking coal gas power generation assets and pay the leasing fee according to this agreement.

 

2. Both parties have received valid authorization
for the lease agreement, and such lease does not need any further review, verification or approval by relevant government agencies.

 

3. Through friendly negotiation, Parties
reach the agreement on Party B leasing Party A’s coking coal gas power generation assets. According to the “Contract
Law of China” and other laws and regulations, Parties hereby enter into the lease agreement that is binding on both.

 

Article 1, Lease Scope

 

1.1 The coking coal gas power generation
equipment assets that Party B leases from Party A (hereinafter referred to as “Lease Project”) has a capacity of 15
MW. The details of the Lease Project see “Target Assets List” as an attachment of this agreement.

 

1.2 Party B leases the Lease Project for
its power generation purpose, and Party B will enjoy the incomes from such power generation.

 

1.3 Party B operates the Lease Project, keeps
its own accounts, and is responsible for its own profits or losses. Party B shall bear all the taxes and fees in connection
with the operation of the Lease Project.

 

Article 2, Lease Term

 

The lease term is as follows:

 

June 28, 2014 to June 27, 2029.

 

Upon the expiration, Party A will transfer
the lease assets to Party B at no cost.

 

    	 

    	 

    

 

Article 3, Leasing fee and method of
payment

 

3.1 The leasing fee is RMB 3 million per
month. The payment of the leasing fee will be made monthly by wire.

 

3.2 Party B ensures to make payment of
leasing fees on the 15th day of each month. (If the 15th day of the month is a weekend or national
holiday, such payment shall be made on the first working day after the weekend or holiday) Party B shall pay a default fee
to Party A everyday that equals to 0.08% of leasing fee for everyday of its delaying payment.

 

3.3 Party B confirms that the operation
expense, depreciation and the amount of power generated of the lease project remain the same during the lease term.

 

Article 4, Lease Deposit

 

4.1 To ensure the operating profit of the
Lease Project and Party B to fulfill its obligations under this Agreement, both Parties agree that Party B shall pay Party A certain
amount of security deposit. The security deposit will guarantee Party B operates the project honestly, manage the power generation
assets diligently and carefully and bear the operating risk during the operation period.

 

4.2 Party B shall pay RMB 3 million to
Party A as deposit within 10 days after the execution of this Agreement.

 

4.3 If there is any damage or loss to the
Lease Project caused by the operating risk during Party B’s operation process, Party A has the rights to deduct the relevant
amount from leasing deposit paid by Party B as a compensation based upon specific situation according to this Agreement
and its attachment. If the deposit is not enough to pay for Party A’s loss, Party A has the right to request Party B to pay
for the difference.

 

4.4 Upon the expiration of this Agreement,
Party A shall return the deposit to Party B after Parties conclude the accounting based upon this Agreement, excluding the amount
that should be deducted subject to this Agreement and its attachment.

 

Article 5, Rights and Obligations of
Party A

 

5.1 Party A has the right to supervise
Party B on Lease Project. For the activities that could damage the Lease Project and affect the economy of the operation, Party
A has the right to stop them and terminate this Agreement.

 

5.2 Party B shall pay the leasing fee on
schedule. If Party B delays the payment, Party A has the right to deduct the fee from leasing deposit. If the deposit is not enough
to pay for the leasing fee, Party A has the right to request Party B to pay the default fee subject to this Agreement and
request Party B to compensate Party A’s losses.

 

5.3 Party A shall not interfere with Party
B’s normal operation and management activities. The incomes that Party B obtains during its lease term belong to Party B
after payment of the leasing fee and leasing deposit in full.

 

    	 

    	 

    

 

Article 6, Rights and Obligations to
Party B

 

6.1 During the operating period, Party
B has the rights to autonomous management, assuming full responsibilities for profits and losses, and independent and separate
accounts.

 

6.2 Party B shall complete all related
review and approval procedures for the Lease Project and obtain the operating rights for the Lease Project. 

 

6.3 Party B shall ensure the integrity
and good operating condition of the Lease Project. If the Lease Project has problems during operation, Party B is responsible for
the repair, maintenance and their costs.

 

6.4 Party B shall pay the leasing fee on
schedule and give written notice to Party A when making leasing payments.

 

6.5 Party B shall pay the lease deposit
in full, and such deposit accrues no interest.

 

6.6 During the operating period, Party
B shall not terminate or cancel this Agreement without Party A’s consent. If this Agreement is terminated due to Party B’s
reason and cause losses to Party A, it shall be considered as a breach of Agreement by Party B. Party B shall be responsible to compensate
Party A’s direct and indirect losses (subject to the evaluation of the third party).

 

Article 7, Force Majeure (as defined
by the law)

 

If the “Lease Project” could
not be appropriately used due to force majeure, Party A or Party B can be partially or wholly exempted from its liability practically
and realistically according to the impact caused by the force majeure. Either Party that suffers a force majeure shall notify the
other party within 2 working days and provide proofs for the force majeure within 15 working days, and shall endeavor to retrieve
any loss as much as possible. Party A has the right to terminate this Agreement if this Agreement cannot be performed due to the
force majeure.

 

Article 8, Liability of breach of contract

 

8.1 Unless otherwise agreed in this Agreement
or other written consents by Parties, neither party can modify or terminate this Agreement during the term without the written
consent from the other party. If any party breaches this Agreement, it shall pay for all the losses suffered by the other
party as a result of its breach.

 

8.2. Party B shall pay a daily
default fee to Party A that equals to 0.08% of the leasing fee for everyday of its delaying payment.

 

    	 

    	 

    

 

8.3 If Party B defaults payment of leasing
fee accumulatively for 3 months, it is considered as lack of ability to pay leasing fee, and Party A has the right to terminate
this Agreement, and Party B shall compensate all the losses of Party A and pay default fees.

 

8.4 If Party B breaches the term of Article
6 of this Agreement and causes losses to Party A, Party B shall be responsible to compensate Party A’s losses and pay a breach
of contract penalty fee that equals to 40% of the overall leasing fees of this Agreement to Party A. At the same time, Party A
has the right to seek compensation from the person who provides guarantee for the Party B.

 

Article 9, Effect of the Agreement

 

This Agreement is established when both
Parties sign and seal the Agreement. This Agreement will take effect on the date when Parties sign “List of Target Assets”.
If the document is dated differently on the aforementioned documents, this Agreement takes effect on the date of the last agreement
is signed.

 

If any term of this Agreement is considered
invalid by the Court, the validity of other terms of this Agreement shall not be affected.

 

Article 10, Settlement of dispute

 

Any disputes arising out of this Agreement
shall be settled through friendly negotiation, in case no settlement can be reached, each party can file a law suit to the local
People’s Court with jurisdiction in which the Party A is located.

 

Article 11, Others

 

11.1. For any other matters not addressed
in this Agreement, Party A and Party B may reach “Supplement Agreement”, and “Supplement Agreement” has
the same legal effect to this Agreement.

 

11.2. Party B agrees, during the implementation
of this Agreement, Part A can change or assign this Agreement to any other party that Party A designates, if necessary. Party B
shall not assign/transfer its rights and obligations under this Agreement without the written approval of Party A.

 

11.3. This Agreement has six original copies.
Party A and Party B each holds three copies and they all have same legal effect.

 

	Party A :     (sealed)	Party B :     (sealed)
	 	 
	Signature of representative:  	Signature of representative:
	 	 
	Signing date	Signing date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}]]