Document:

Exhibit

EXECUTION COPY                                            Exhibit 10.1

JPMorgan Chase Bank, National Association
New York Branch
383 Madison Avenue
New York, NY, 10179

December 4, 2019
		
	To: 
	Planet Fitness, Inc. 
4 Liberty Lane West

Hampton, NH 03842 
Attention: Dorvin Lively, President and Chief Financial Officer 

Re:     Master Confirmation—Uncollared Accelerated Share Repurchase
This master confirmation (this “Master Confirmation”), dated as of December 4, 2019, is intended to set forth certain terms and provisions of certain Transactions (each, a “Transaction”) entered into from time to time between JPMorgan Chase Bank, National Association (“Dealer”) and Planet Fitness, Inc., a Delaware corporation (“Counterparty”).  This Master Confirmation, taken alone, is neither a commitment by either party to enter into any Transaction nor evidence of a Transaction.  The additional terms of any particular Transaction shall be set forth in a Supplemental Confirmation in the form of Schedule A hereto (a “Supplemental Confirmation”), which shall reference this Master Confirmation and supplement, form a part of, and be subject to this Master Confirmation.  This Master Confirmation and each Supplemental Confirmation together shall constitute a “Confirmation” as referred to in the Agreement specified below.
The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Master Confirmation.  This Master Confirmation and each Supplemental Confirmation evidence a complete binding agreement between Counterparty and Dealer as to the subject matter and terms of each Transaction to which this Master Confirmation and such Supplemental Confirmation relate and shall supersede all prior or contemporaneous written or oral communications with respect thereto.  
This Master Confirmation and each Supplemental Confirmation supplement, form a part of, and are subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Dealer and Counterparty had executed the Agreement on the date of this Master Confirmation, without any Schedule, but with the elections set forth in this Master Confirmation, including: 
(i)The election of New York law as the governing law (without reference to its choice of law provisions). 

(ii)Counterparty represents and warrants for purposes of Section 3(c) of the Agreement as follows:  
“(c) Absence of Litigation. There is not pending or, to its knowledge, threatened against Counterparty or any of its Affiliates any action, suit or proceeding at law or in equity or before any court, tribunal, governmental body, agency or official or any arbitrator that is likely to affect (i) the legality, validity or enforceability against it of this Agreement, any Confirmation under this Agreement or any Credit Support Document to which it is a party, or (ii) except for, with respect to Counterparty, any matters disclosed by Counterparty in filings with the United States Securities and Exchange Commission prior to the date of this Agreement or prior to the date of entering into a Transaction, its ability to perform its obligations under this Agreement, any Confirmation under this Agreement or such Credit Support Document.”
(iii)The election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Dealer, with a “Threshold Amount” of 3% of shareholders’ equity for JPMorgan Chase & Co. (provided that (a) the phrase “, or becoming capable at such time of being declared,” shall be deleted from clause (1) of such Section 5(a)(vi) of the Agreement, (b) “Specified Indebtedness” shall have the meaning specified in 

Section 14 of the Agreement, except that such term shall not include obligations in respect of deposits received in the ordinary course of Dealer’s banking business, and (c) the following sentence shall be added to the end thereof: “Notwithstanding the foregoing, an Event of Default shall not occur under either (1) or (2) above if (a) the event or condition referred to in (1) or the failure to pay referred to in (2) is caused by an error or omission of an administrative or operational nature, (b) funds were available to Dealer to enable it to make the relevant payment when due, and (c) such payment is made within three Local Business Days.”).

(iv)[Reserved.]

(v)Section 13(b)(i)(2) of the Agreement is hereby amended by deleting the word “non-”.

(vi)Section 7 of the Agreement is hereby amended by deleting the third paragraph thereof.

(vii)“Affiliate” will have the meaning specified in Section 14 of the Agreement, except that for purposes of Section 3(c) of the Agreement as set forth in clause (iii) above, “Affiliate” means, with respect to any person, any entity controlled, directly or indirectly, by such person.  For this purpose, “control” means ownership of a majority of the voting power of the entity or person.

(viii)For purposes of Section 3(f) of the Agreement, Dealer makes the following representation:

It is a U.S. person, and it is a national banking association organized under the laws of the United States.  

(ix)For purposes of Section 3(f) of the Agreement, Counterparty makes the following representation: 

It is a U.S. person, and it is a corporation organized under the laws of the State of Delaware.

(x)Each party agrees to deliver to the other party one duly executed and completed United States Internal Revenue Service Form W-9 (or successor thereto) or W-8ECI, W-8BEN-E or W-8IMY (as applicable) upon execution and delivery of this Agreement; promptly upon reasonable demand by the other party; and promptly upon learning that any such Form previously provided by such party has become obsolete or incorrect.

(xi)For purposes of 3(e) of the Agreement, Dealer and Counterparty each represent and warrant that it is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any relevant jurisdiction to make any deduction or withholding for or on account of any Tax from any payment to be made by it to the other party under this Master Confirmation and each Transaction evidenced hereby.

The Transactions shall be the sole Transactions under the Agreement.  If there exists any ISDA Master Agreement between Dealer and Counterparty or any confirmation or other agreement between Dealer and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and Counterparty, then notwithstanding anything to the contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to which Dealer and Counterparty are parties, the Transactions shall not be considered Transactions under, or otherwise governed by, such existing or deemed ISDA Master Agreement, and the occurrence of any Event of Default or Termination Event under the Agreement with respect to either party or any Transaction shall not, by itself, give rise to any right or obligation under any such other agreement or deemed agreement.  Notwithstanding anything to the contrary in any other agreement between the parties or their Affiliates, the Transactions shall not be “Specified Transactions” (or similarly treated) under any other agreement between the parties or their Affiliates.
All provisions contained or incorporated by reference in the Agreement shall govern this Master Confirmation and each Supplemental Confirmation except as expressly modified herein or in the related Supplemental Confirmation.  
If, in relation to any Transaction to which this Master Confirmation and a Supplemental Confirmation relate, there is any inconsistency between the Agreement, this Master Confirmation, such Supplemental Confirmation and the 

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Equity Definitions, the following will prevail for purposes of such Transaction in the order of precedence indicated: (i) such Supplemental Confirmation; (ii) this Master Confirmation; (iii) the Equity Definitions; and (iv) the Agreement.  
1.Each Transaction constitutes a Share Forward Transaction for the purposes of the Equity Definitions.  Set forth below are the terms and conditions that, together with the terms and conditions set forth in the Supplemental Confirmation relating to any Transaction, shall govern such Transaction.  
General Terms.
		
	Trade Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.  

		
	Buyer:
	Counterparty 

		
	Seller:
	Dealer 

		
	Shares:
	The Class A common stock of Counterparty, par value USD 0.0001 per share (Exchange symbol “PLNT”).

		
	Exchange:
	The New York Stock Exchange

		
	Related Exchange(s):
	All Exchanges

		
	Prepayment/Variable Obligation:
	Applicable 

		
	Prepayment Amount:
	For each Transaction, as set forth in the related Supplemental Confirmation. 

		
	Prepayment Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.

Valuation.
		
	VWAP Price:
	For any Exchange Business Day, as determined by the Calculation Agent based on the volume-weighted average price at which the Shares trade as reported in the composite transactions for United States exchanges and quotation systems, during the regular trading session for the Exchange on such Exchange Business Day, excluding (i) trades that do not settle regular way, (ii) opening (regular way) reported trades in the consolidated system on such Exchange Business Day, (iii) trades that occur in the last ten minutes before the scheduled close of trading on the Exchange on such Exchange Business Day and ten minutes before the scheduled close of the primary trading in the market where the trade is effected, and (iv) trades on such Exchange Business Day that do not satisfy the requirements of Rule 10b-18(b)(3) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as published by Bloomberg at 4:15 p.m. New York time (or 15 minutes following the end of any extension of the regular trading session) on such Exchange Business Day, on Bloomberg page “PLNT <Equity> AQR_SEC” (or any successor thereto), or if such price is not so reported on such Exchange Business Day for any reason or is, in the Calculation Agent’s determination, erroneous, such VWAP Price shall be as determined by the Calculation Agent.  For purposes of calculating the VWAP Price, the Calculation Agent will only include those trades 

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(collectively, “Rule 10b-18 Eligible Transactions”) that (x) do not constitute trades described in clauses (i) to (iv) above and (y) are reported during the period of time in which Counterparty could purchase its own shares under Rule 10b-18(b)(2) and are effected pursuant to the conditions of Rule 10b-18(b)(3), each under the Exchange Act.  
		
	Forward Price:
	For each Transaction, the arithmetic average of the VWAP Prices for all of the Exchange Business Days in the Calculation Period for such Transaction, subject to “Valuation Disruption” below.

		
	Forward Price Adjustment Amount:
	For each Transaction, as set forth in the related Supplemental Confirmation.  

		
	Calculation Period:
	For each Transaction, the period from, and including, the Calculation Period Start Date for such Transaction to, and including, the Termination Date for such Transaction.

		
	Calculation Period Start Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.  

		
	Termination Date:
	For each Transaction, the Scheduled Termination Date for such Transaction; provided that Dealer shall have the right to designate any Exchange Business Day on or after the First Acceleration Date to be the Termination Date for such Transaction (the “Accelerated Termination Date”) by delivering notice to Counterparty of any such designation prior to 6:00 p.m. (New York City time) on the Exchange Business Day immediately following the designated Accelerated Termination Date. 

		
	Scheduled Termination Date:
	For each Transaction, as set forth in the related Supplemental Confirmation, subject to postponement as provided in “Valuation Disruption” below.  

		
	First Acceleration Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Valuation Disruption:
	The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “at any time during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time on any Scheduled Trading Day during the Calculation Period or Settlement Valuation Period” after the word “material,” in the third line thereof.

Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.  
Notwithstanding anything to the contrary in the Equity Definitions, if a Disrupted Day occurs (i) in the Calculation Period, the Calculation Agent may postpone the Scheduled Termination Date by one Scheduled Trading Day for each Disrupted Day, or (ii) in the Settlement Valuation Period, 

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the Calculation Agent may extend the Settlement Valuation Period.  If any such Disrupted Day is a Disrupted Day because of a Market Disruption Event (or a deemed Market Disruption Event as provided herein), the Calculation Agent shall also determine whether (i) such Disrupted Day is a Disrupted Day in full, in which case the VWAP Price for such Disrupted Day shall not be included for purposes of determining the Forward Price or the Settlement Price, as the case may be, or (ii) such Disrupted Day is a Disrupted Day only in part, in which case the VWAP Price for such Disrupted Day shall be determined by the Calculation Agent based on Rule 10b-18 Eligible Transactions in the Shares on such Disrupted Day effected before the relevant Market Disruption Event occurred and/or after the relevant Market Disruption Event ended (in each case, as determined by the Calculation Agent), and the weighting of the VWAP Price for the relevant Exchange Business Days during the Calculation Period or the Settlement Valuation Period, as the case may be, shall be adjusted in a commercially reasonable manner by the Calculation Agent for purposes of determining the Forward Price or the Settlement Price, as the case may be, with such adjustments taking into account the duration of any Market Disruption Event and the volume, historical trading patterns and price of the Shares. Any Disrupted Day resulting from a Regulatory Disruption shall be deemed to be a Disrupted Day in Full. Any Exchange Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full.  
If a Disrupted Day occurs during the Calculation Period for any Transaction or the Settlement Valuation Period for any Transaction, as the case may be, and each of the nine immediately following Scheduled Trading Days is a Disrupted Day (a “Disruption Event”), then the Calculation Agent may deem such Disruption Event to be an Additional Termination Event in respect of such Transaction, with Counterparty as the sole Affected Party and such Transaction as the sole Affected Transaction.
Settlement Terms.
		
	Settlement Procedures:
	For each Transaction:

		
	(i)
	if the Number of Shares to be Delivered for such Transaction is positive, Physical Settlement shall be applicable to such Transaction; provided that the “Representation and Agreement” contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions obligations, limitations or requirements under applicable securities laws arising as a result of the fact that Buyer is the Issuer of the Shares; or

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	(ii)
	if the Number of Shares to be Delivered for such Transaction is negative, then Counterparty Settlement Provisions in Annex A hereto shall apply to such Transaction.  

		
	Number of Shares to be Delivered:
	For each Transaction, a number of Shares (rounded down to the nearest whole number) equal to (a)(i) the Prepayment Amount for such Transaction, divided by (ii)(A) the Forward Price for such Transaction minus (B) the Forward Price Adjustment Amount for such Transaction, minus (b) the number of Initial Shares for such Transaction. For the avoidance of doubt, if the Forward Price Adjustment Amount for any Transaction is a negative number, clause (a)(ii) of the immediately preceding sentence shall be equal to (A) the Forward Price for such Transaction, plus (B) the absolute value of the Forward Price Adjustment Amount.  

		
	Excess Dividend Amount:
	For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.

		
	Settlement Date:
	For each Transaction, if the Number of Shares to be Delivered for such Transaction is positive, the date that is one Settlement Cycle immediately following the Termination Date for such Transaction (which as of the date hereof shall be no more than two Clearance System Business Days following the Termination Date for such Transaction).    

		
	Settlement Currency:
	USD 

		
	Initial Share Delivery:
	For each Transaction, Dealer shall deliver a number of Shares equal to the Initial Shares for such Transaction to Counterparty on the Initial Share Delivery Date for such Transaction in accordance with Section 9.4 of the Equity Definitions, with such Initial Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4.  

		
	Initial Share Delivery Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.  

		
	Initial Shares:
	For each Transaction, as set forth in the related Supplemental Confirmation.  

Share Adjustments.
		
	Potential Adjustment Event:
	Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, the following shall not constitute a Potential Adjustment Event: an Extraordinary Dividend and an Excess Dividend.

It shall constitute an additional Potential Adjustment Event if the Scheduled Termination Date for any Transaction is postponed pursuant to “Valuation Disruption” above (including, for the avoidance of doubt, pursuant to Section 7 hereof), in which case the Calculation Agent may adjust any relevant terms of such Transaction as necessary to preserve as nearly as possible the fair value of such Transaction to Dealer prior to such postponement, which 

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adjustments shall be limited to changes in stock price, volatility, interest rates, stock loan rate, the value of any commercially reasonable Hedge Positions in connection with the Transaction, or liquidity relevant to the Shares or to such Transaction taking into account whether the Calculation Period had fewer Scheduled Trading Days than originally anticipated.
		
	Excess Dividend:
	Any dividend or distribution on the Shares including, for the avoidance of doubt, the type described in Section 11.2(e)(i), Section 11.2(e)(ii)(A) or Section 11.2(e)(ii)(B) of the Equity Definitions or any Extraordinary Dividend.  “Extraordinary Dividend” means the per Share cash dividend or distribution, or a portion thereof, declared by Counterparty on the Shares that is classified by the board of directors of Counterparty as an “extraordinary” dividend.

Consequences of Excess Dividend:    The declaration by Counterparty of any Excess Dividend, the ex-dividend date for which occurs or is scheduled to occur during the Relevant Dividend Period for any Transaction, shall result in an Additional Termination Event in respect of such Transaction, and the Counterparty shall be the sole Affected Party pursuant to such Additional Termination Event and such Transaction shall be the sole Affected Transaction.  For the avoidance of doubt, the Excess Dividend shall not constitute a Potential Adjustment Event.
		
	Method of Adjustment:
	Calculation Agent Adjustment 

		
	Relevant Dividend Period:
	For each Transaction, the period from, and including, the Trade Date for such Transaction to, and including, the Relevant Dividend Period End Date for such Transaction.  

		
	Relevant Dividend Period End Date:
	For each Transaction, if the Number of Shares to be Delivered for such Transaction is negative, the last day of the Settlement Valuation Period; otherwise, the Termination Date for such Transaction.

		
	Agreement Regarding Dividends:
	Notwithstanding any other provisions of this Master Confirmation, the Equity Definitions or the Agreement to the contrary, in calculating any adjustment pursuant to Article 11 of the Equity Definitions or any amount payable in respect of any termination or cancellation of the Transaction pursuant to Article 12 of the Equity Definitions or Section 6 of the Agreement, the Calculation Agent shall not take into account changes to any dividends since the Trade Date. For the avoidance of doubt, if an Early Termination Date occurs in respect of the Transaction, the amount payable pursuant to Section 6 of the Agreement in respect of such Early Termination Date shall be determined without regard to the difference between actual dividends declared (including Extraordinary Dividends) and expected dividends as of the Trade Date.  

Extraordinary Events.
Consequences of Merger Events:

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	(a) Share-for-Share:
	Modified Calculation Agent Adjustment

		
	(b) Share-for-Other:
	Cancellation and Payment on that portion of the Other Consideration that consists of cash; Modified Calculation Agent Adjustment on the remainder of the Other Consideration

		
	(c) Share-for-Combined:
	Component Adjustment

		
	Tender Offer:
	Applicable; provided that 

(a) Section 12.1(d) of the Equity Definitions shall be amended by replacing “10%” in the third line thereof with “20%,” 
(b) Section 12.1(l) of the Equity Definitions shall be amended (i) by deleting the parenthetical in the fifth line thereof, (ii) by replacing “that” in the fifth line thereof with “whether or not such announcement” and (iii) by adding immediately after the words “Tender Offer” in the fifth line thereof “, and any publicly announced change or amendment to such an announcement (including the announcement of an abandonment of such intention)”,
and (c) Sections 12.3(a) and 12.3(d) of the Equity Definitions shall each be amended by replacing each occurrence of the words “Tender Offer Date” by “Announcement Date.” 
Consequences of Tender Offers:
		
	(a) Share-for-Share:
	Modified Calculation Agent Adjustment

		
	(b) Share-for-Other:
	Modified Calculation Agent Adjustment

		
	(c) Share-for-Combined:
	Modified Calculation Agent Adjustment

Any adjustment to the terms of any Transaction hereunder and the determination of any amounts due upon termination of any Transaction hereunder as a result of a Merger Event or Tender Offer shall be made without duplication in respect of any prior adjustment hereunder (including any prior adjustment pursuant to Section 11 below).
		
	Nationalization, Insolvency or Delisting:
	Cancellation and Payment; provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, NYSE American, The Nasdaq Global Select Market or The Nasdaq Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall be deemed to be the Exchange.  

Additional Disruption Events:
		
	(a) Change in Law:
	Applicable; provided that (a) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the 

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phrase “, or public announcement of, the formal or informal interpretation”, (ii) by replacing the word “Shares” where it appears in clause (X) thereof with the words “Hedge Positions” and (iii) by immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party on the Trade Date”; and (b) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word “regulation” in the second line thereof with the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)”.  
Notwithstanding anything to the contrary in the Equity Definitions: (i) any determination as to whether clause (A) or clause (B) of Section 12.9(a)(ii) of the Equity Definitions constitutes a Change in Law shall be made without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, and (ii) to the extent that clause (Y) of Section 12.9(a)(ii) of the Equity Definitions would constitute a Change in Law, such shall instead constitute an Increased Cost of Hedging as described in Section 12.9(a)(vi) of the Equity Definitions.
		
	(b) Failure to Deliver:
	Applicable 

		
	(c) Insolvency Filing:
	Applicable 

		
	(d) Loss of Stock Borrow:
	Applicable

		
	Maximum Stock Loan Rate:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	 (e)
	Hedging Disruption:    Applicable; provided that it shall not constitute a Hedging Disruption if such is solely due to the deterioration of the creditworthiness of the Hedging Party.

		
	 (f)  Increased Cost of Hedging:
	Applicable; provided that it shall not constitute an Increased Cost of Hedging if such is solely due to the deterioration of the creditworthiness of the Hedging Party.

		
	 (g) Increased Cost of Stock Borrow:
	Applicable; provided that it shall not constitute an Increased Cost of Stock Borrow if such is solely due to the deterioration of the creditworthiness of the Hedging Party.

		
	Initial Stock Loan Rate:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Hedging Party:
	For all Additional Disruption Events, Dealer; provided that all determinations, adjustments and calculations by Dealer acting in such capacity shall be made in a good faith and commercially reasonable manner (it being understood that Hedging Party shall be subject to the requirements of the second paragraph under “Calculation Agent” below).

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	Determining Party:
	For all Additional Disruption Events, Dealer; provided that all determinations, adjustments and calculations by Dealer acting in such capacity shall be made in a good faith and commercially reasonable manner (it being understood that Determining Party shall be subject to the requirements of the second paragraph under “Calculation Agent” below).

		
	Hedging Adjustments:
	For the avoidance of doubt, whenever the Calculation Agent is called upon to make an adjustment pursuant to the terms of this Master Confirmation or the Equity Definitions to take into account the effect of an event, the Calculation Agent shall make such adjustment by reference to the effect of such event on Dealer, assuming that Dealer maintains a commercially reasonable Hedge Position.

Non-Reliance/Agreements and
Acknowledgements Regarding
Hedging Activities/Additional
		
	Acknowledgements:
	Applicable 

		
	2.
	Calculation Agent.      Dealer; provided that (i) as Calculation Agent, Dealer shall act at all times in good faith and in a commercially reasonable manner including, for the avoidance of doubt, when making any determination or calculation adjustment; and (ii) following the occurrence of an Event of Default with respect to which Dealer is the sole Defaulting Party, Counterparty shall have the right to designate a nationally recognized third-party dealer in over-the-counter corporate equity derivatives to act, during the period commencing on the date such Event of Default occurred and ending on the Early Termination Date with respect to such Event of Default, as the Calculation Agent with respect to the Transactions under this Master Confirmation.

Following any determination, adjustment or calculation by the Calculation Agent hereunder, upon a written request by Counterparty, the Calculation Agent will promptly (but in any event no later than five (5) Exchange Business Days following receipt of such written request by Dealer) (x) provide to Counterparty by e-mail to the e-mail address provided by Counterparty in such written request a report (in a commonly used file format for the storage and manipulation of financial data) displaying in reasonable detail the basis for such determination, adjustment or calculation, as the case may be, it being understood that the Calculation Agent shall not be obligated to disclose any proprietary or confidential models or any other confidential or proprietary information, in each case, used by it for such determination, adjustment or calculation.  If Counterparty promptly disputes such determination, adjustment or calculation in writing, the Calculation Agent shall work in good faith with Counterparty to resolve the dispute.
		
	3.
	Account Details.

		
	(a)
	Account for payments to Counterparty:     

To be provided by Counterparty.

Account for delivery of Shares to Counterparty:
[        ]

		
	(b)
	Account for payments to Dealer:

Bank:    [        ] 
ABA#:     [        ] 
Acct No.:     [        ] 

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Beneficiary:    [        ] 
Ref:    [        ]
Account for delivery of Shares to Dealer:
[        ]
		
	4.
	Offices.

		
	(a)
	The Office of Counterparty for each Transaction is:  Inapplicable, Counterparty is not a Multibranch Party.

		
	(b)
	The Office of Dealer for each Transaction is: New York

JPMorgan Chase Bank, National Association
New York Branch
383 Madison Avenue
New York, NY, 10179
		
	5.
	Notices.  

		
	(a)
	Address for notices or communications to Counterparty:

Planet Fitness, Inc.
4 Liberty Lane West
Hampton, NH 03842
Attention:      General Counsel
Telephone No:      (603) 957-4625
Facsimile No:       (603) 590-2594
Email Address:    legal@pfhq.com

With a copy to:

Ropes & Gray LLP
800 Boylston St. 
46th Floor
Boston, MA 02199
Attention:    Thomas Fraser
(617) 951-7063
        thomas.fraser@ropesgray.com

and

Isabel Dische
(212) 841-0628
isabel.dische@ropesgray.com

		
	(b)
	Address for notices or communications to Dealer:

JPMorgan Chase Bank, National Association
EDG Marketing Support
Email:        edg_notices@jpmorgan.com
edg_ny_corporate_sales_support@jpmorgan.com 
Attention:      Brett Chalmers
Telephone No:      (212) 622-2252
Email Address:    brett.chalmers@jpmorgan.com

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	6.
	Representations, Warranties and Agreements.

		
	(a)
	Additional Representations, Warranties and Covenants of Each Party.  In addition to the representations, warranties and covenants in the Agreement, each party represents, warrants and covenants to the other party that:

		
	(i)
	It is an “eligible contract participant” (as such term is defined in the Commodity Exchange Act, as amended).  

		
	(ii)
	Each party acknowledges that the offer and sale of each Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof.  Accordingly, each party represents and warrants to the other that (A) it has the financial ability to bear the economic risk of its investment in each Transaction and is able to bear a total loss of its investment, (B) it is a “qualified institutional buyer” as defined in Rule 144A under the Securities Act or an “accredited investor” as that term is defined under Regulation D under the Securities Act and (C) the disposition of each Transaction is restricted under this Master Confirmation, the Securities Act and state securities laws.  

		
	(iii)
	Each party agrees that the obligations and liabilities under any Transaction are solely the corporate obligations of such applicable party (and any applicable guarantor in respect thereof), and each party shall solely look to such other party (and any applicable guarantor in respect thereof) for performance of such other party’s obligations under any Transaction.

		
	(b)
	Additional Representations, Warranties and Covenants of Counterparty.  In addition to the representations, warranties and covenants in the Agreement, Counterparty represents, warrants and covenants to Dealer that:

		
	(i)
	As of the Trade Date for each Transaction hereunder, (A) such Transaction is being entered into pursuant to a publicly disclosed Share buy-back program and its Board of Directors has approved the use of agreements such as this Master Confirmation to effect the Share buy-back program, and (B) there is no internal policy of Counterparty, whether written or oral, that would prohibit Counterparty from entering into any aspect of such Transaction, including the purchases of Shares to be made pursuant to such Transaction.

		
	(ii)
	As of the Trade Date for each Transaction hereunder, the purchase or writing of such Transaction and the transactions contemplated hereby will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

		
	(iii)
	As of the Trade Date for each Transaction hereunder, it is not entering into such Transaction, and as of the date of any election with respect to any Transaction hereunder, it is not making such election, in each case (A) on the basis of, and is not aware of, any material non-public information regarding Counterparty or the Shares, (B) in anticipation of, in connection with, or to facilitate, a distribution of its securities, a self tender offer or a third-party tender offer in violation of the Exchange Act or (C) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares).  

		
	(iv)
	Counterparty (A) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least USD 50,000,000 as of the date hereof.

12

		
	(v)
	As of the Trade Date for each Transaction hereunder, and as of the date of any election with respect to any Transaction hereunder, Counterparty is in compliance in all material respects with its reporting obligations under the Exchange Act.

		
	(vi)
	Counterparty has made, and will make, all material filings required to be made by it with the Securities and Exchange Commission, any securities exchange or any other regulatory body with respect to each Transaction.

		
	(vii)
	The Shares are not, and Counterparty will not cause the Shares to be, subject to a “restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time during any Regulation M Period (as defined below) for any Transaction unless Counterparty has provided written notice to Dealer of such restricted period not later than the Scheduled Trading Day immediately preceding the first day of such “restricted period”; Counterparty acknowledges that any such notice may cause a Disrupted Day to occur pursuant to Section 7 below; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 8 below.  Counterparty is not currently contemplating any “distribution” (as defined in Regulation M promulgated under the Exchange Act) of Shares, or any security for which Shares are a “reference security” (as defined in Regulation M promulgated under the Exchange Act).  “Regulation M Period” means, for any Transaction, (A) the Relevant Period (as defined below) for such Transaction, (B) the Settlement Valuation Period, if any, for such Transaction and (C) the Seller Termination Purchase Period (as defined below), if any, for such Transaction.  “Relevant Period” means, for any Transaction, the period commencing on the Calculation Period Start Date for such Transaction and ending on the later of (1) the earlier of (x) the Scheduled Termination Date and (y) the last Additional Relevant Day (as specified in the related Supplemental Confirmation) for such Transaction, or such earlier day as elected by Dealer and communicated to Counterparty on such day (or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to “Special Provisions for Acquisition Transaction Announcements” below) and (2) if Section 15 is applicable to such Transaction, the date on which all deliveries owed pursuant to Section 15 have been made. 

		
	(viii)
	As of the Trade Date, the Prepayment Date, the Initial Share Delivery Date, the Settlement Date, any Cash Settlement Payment Date and any Settlement Method Election Date for each Transaction, Counterparty is not “insolvent” (as such term is defined under Section 101(32) of the U.S.  Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase a number of Shares with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of Counterparty’s incorporation.  

		
	(ix)
	Counterparty is not, and after giving effect to each Transaction will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.  

		
	(x)
	Counterparty has not entered, and will not enter, into any repurchase transaction with respect to the Shares (or any security convertible into or exchangeable for the Shares) (including any agreements similar to the Transactions described herein), where any initial hedge period, calculation period, relevant period, settlement valuation period or seller termination purchase period (each however defined) in such other transaction will overlap at any time (including as a result of extensions in such initial hedge period, calculation period, relevant period, settlement valuation period or seller termination purchase period as provided in the relevant agreements) with any Relevant Period, any Settlement Valuation Period (if applicable) or any Seller Termination Purchase Period (if applicable) under this Master Confirmation.  In the event that the initial hedge period, relevant period, calculation period or settlement valuation period in any other transaction overlaps with any Relevant Period, any Settlement Valuation Period (if applicable) or any Seller Termination Purchase Period (if applicable) under this Master Confirmation as a result of any postponement of the 

13

Scheduled Termination Date or extension of the Settlement Valuation Period pursuant to “Valuation Disruption” above or any analogous provision in such other transaction, Counterparty shall promptly amend such other transaction (other than, for the avoidance of doubt, any Permitted Purchase (as defined below)) to avoid any such overlap.  Notwithstanding the foregoing, nothing in this Section 6(b)(x) or this Master Confirmation shall prohibit or apply to the following (each, a “Permitted Purchase”): (i) any repurchase of Shares by or on behalf of Counterparty from holders of awards granted under Counterparty’s equity incentive plans for the purpose of paying the tax withholding obligations arising from vesting of, or paying the exercise price in connection with the exercise of, or reacquiring Shares as a result of the forfeiture of, any such awards, (ii) any purchase of Shares by Counterparty pursuant to any Rule 10b5-1 or Rule 10b-18 repurchase plan entered into with Dealer or an Affiliate of Dealer or (iii) any purchase of Shares by or on behalf of Counterparty in connection with any employee stock payroll deduction plan for participating employees of Counterparty or its Affiliates, or any options exercised thereunder.
		
	(xi)
	Counterparty shall, at least one day prior to the first day of the Calculation Period, the Settlement Valuation Period, if any, or the Seller Termination Purchase Period, if any, for any Transaction, notify Dealer of the total number of Shares purchased in Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception set forth in paragraph (b)(4) of Rule 10b-18 under the Exchange Act (“Rule 10b-18”) by or for Counterparty or any of its “affiliated purchasers” (as defined in Rule 10b-18) during each of the four calendar weeks preceding such day and during the calendar week in which such day occurs (“Rule 10b-18 purchase” and “blocks” each being used as defined in Rule 10b-18), which notice shall be substantially in the form set forth in Schedule B hereto.

		
	(xii)
	As of the Trade Date for each Transaction hereunder there has not been any Merger Announcement (as defined below).

		
	(xiii)
	Counterparty understands that no obligations of Dealer to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any affiliate of Dealer or any governmental agency.

		
	(c)
	In addition to the representations, warranties and covenants in this Agreement, Dealer represents, warrants and covenants to Counterparty that:

		
	 (i)
	In addition to the covenants in the Agreement and herein, Dealer agrees to use commercially reasonable efforts, during the Calculation Period and any Settlement Valuation Period (as defined in Annex A) for any Transaction, to make all purchases of Shares in connection with such Transaction in a manner that would comply with the limitations set forth in clauses (b)(1), (b)(2), (b)(3) and (b)(4) and (c) of Rule 10b-18, as if such rule were applicable to such purchases and taking into account any applicable Securities and Exchange Commission no-action letters as appropriate, and subject to any delays between the execution and reporting of a trade of the Shares on the Exchange and other circumstances beyond Dealer’s control; provided that, during the Calculation Period, the foregoing agreement shall not apply to purchases made to dynamically hedge for Dealer’s own account or the account of its affiliate(s) the optionality arising under a Transaction (including, for the avoidance of doubt, timing optionality); provided further that, without limiting the generality of the first sentence of this Section 6(c)(i), Dealer shall not be responsible for any failure to comply with Rule 10b-18(b)(3) to the extent any transaction that was executed (or deemed to be executed) by or on behalf of Counterparty or an “affiliated purchaser” (as defined under Rule 10b-18) pursuant to a separate agreement is not deemed to be an “independent bid” or an “independent transaction” for purposes of Rule 10b-18(b)(3).

		
	(ii)
	In connection with each Transaction, Dealer represents and warrants to Counterparty that it has not, at any time before the public announcement of the Trade Date by Counterparty 

14

of its entry into such Transaction, discussed any offsetting transaction(s) in respect of such Transaction with any third party.
		
	(iii)
	Dealer hereby represents and covenants to Counterparty that it has implemented policies and procedures, taking into consideration the nature of its business, reasonably designed to ensure that individuals making investment decisions related to any Transaction do not have access to material nonpublic information regarding Issuer or the Shares. 

		
	(iv)
	Within one Exchange Business Day of purchasing any Shares on behalf of Counterparty pursuant to the once-a-week block exception set forth in paragraph (b)(4) of Rule 10b-18, Dealer shall notify Counterparty of the total number of Shares so purchased.

		
	(v)
	On the first Exchange Business Day of each week, Dealer shall provide weekly reports (the “Weekly Reports”) in connection with such Transaction to the Counterparty and to such other persons or agents of the Counterparty as the Counterparty shall reasonably designate in writing, by electronic mail to the Counterparty or its designee.  Each weekly report shall include the ADTV in the Shares for each Scheduled Trading Day during the immediately preceding week (as defined and determined in accordance with Rule 10b-18, as defined herein), the VWAP Price for each such Scheduled Trading Day and the high and low price on each such Scheduled Trading Day.  For the avoidance of doubt and notwithstanding anything to the contrary in the two immediately preceding sentences, the VWAP Price for purposes of this Master Confirmation shall be determined pursuant the language opposite the caption “VWAP Price” in Section 1 of this Master Confirmation under the heading “Valuation” and not on the basis of, or by reference to, the VWAP Price set forth in any Weekly Report.

		
	7.
	Regulatory Disruption.  In the event Dealer concludes, in its good faith, reasonable judgment, based on commercially reasonable discretion and upon the advice of counsel, that it is appropriate, with respect to any legal, regulatory or self-regulatory requirements or policies and procedures generally applicable to accelerated share repurchase transactions, consistently applied, and imposed by, or related to its compliance with, applicable law, for it to refrain from or decrease any market activity, and in order to maintain, establish or unwind a commercially reasonable hedge position, on any Scheduled Trading Day or Days during the Calculation Period or, if applicable, the Settlement Valuation Period, Dealer may by written notice to Counterparty elect to deem that a Market Disruption Event has occurred and will be continuing on such Scheduled Trading Day or Days.  Dealer shall notify Counterparty as soon as practicable (but in no event later than one Trading Day) that a Regulatory Disruption has occurred and the Scheduled Trading Days affected by it, provided that the Dealer shall not be obligated to disclose any proprietary or confidential models or any other confidential or proprietary information, in each case, used by it for such determination.

		
	8.
	10b5-1 Plan.  The parties intend that each Transaction entered into under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 and each Transaction entered into under this Master Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c).  

		
	(a)
	Counterparty represents, warrants and covenants to Dealer that Counterparty is entering into this Master Confirmation and each Transaction hereunder in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares.  

		
	(b)
	During the Calculation Period and the Settlement Valuation Period, if any, for any Transaction and in connection with the delivery of any Alternative Delivery Units for any Transaction, Dealer (or its agent or Affiliate) may effect transactions in Shares in connection with such Transaction.  The timing of such transactions by Dealer, the price paid or received per Share pursuant to such transactions and the manner in which such transactions are made, including whether such transactions are made on 

15

any securities exchange or privately, shall be within the sole judgment of Dealer.  Counterparty acknowledges and agrees that all such transactions shall be made in Dealer’s sole judgment and for Dealer’s own account.
		
	(c)
	Counterparty does not have, and shall not attempt to exercise, any control or influence over how, when or whether Dealer (or its agent or Affiliate) makes any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) in connection with any Transaction, including over how, when or whether Dealer (or its agent or Affiliate) enters into any hedging transactions.  Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Master Confirmation and each Supplemental Confirmation under Rule 10b5-1.  

		
	(d)
	Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Master Confirmation or any Supplemental Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c).  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty or the Shares.  

		
	(e)
	Counterparty shall not, directly or indirectly, communicate any material, non-public information relating to the Shares or any Transaction (including any notices required by Section 10(a)) to any employee of Dealer, other than as set forth in the Communications Procedures attached as Annex B hereto.

		
	9.
	Counterparty Purchases.  Without the prior written consent of Dealer (which consent shall not be unreasonably conditioned, delayed, or denied), and except for purchases which are not solicited by or on behalf of Counterparty and employee stock repurchases (or any “affiliate” or “affiliated purchaser” as defined in Rule 10b-18), Counterparty shall not directly or indirectly (including by means of a derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share), listed contracts on the Shares or securities that are convertible into, or exchangeable or exercisable for Shares (including any Rule 10b-18 purchases of blocks (as defined in Rule 10b-18)) during any Relevant Period, any Settlement Valuation Period (if applicable) or any Seller Termination Purchase Period (if applicable), under this Master Confirmation.  Nothing in this Section 9 shall prohibit or apply to Permitted Purchases or to any acquisition, exercise, exchange or other transaction in connection with any awards under any equity incentive plan or program of Counterparty.

Notwithstanding the immediately preceding paragraph or anything herein to the contrary (i) an agent independent of Counterparty may purchase Shares effected by or for an issuer plan Counterparty in accordance with the requirements of Section 10b-18(a)(13)(ii) under the Exchange Act (with “issuer plan” and “agent independent of Counterparty” each being used herein as defined in Rule 10b-18), and (ii) Counterparty or any “affiliated purchaser” may purchase Shares in (x) unsolicited transactions or (y) privately negotiated (off-market) transactions, in each case, that are not “Rule 10b-18 purchases” (as defined in Rule 10b-18), in each case, without Dealer’s consent.
		
	10.
	Special Provisions for Merger Transactions.  Notwithstanding anything to the contrary herein or in the Equity Definitions:

		
	(a)
	Counterparty agrees that: 

		
	(i)
	except to the extent required by law, and unless such Merger Announcement (defined below) is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares, it will not during the period commencing on the Trade Date for any Transaction and ending on the last day of the Relevant Period or, if applicable, the later of the last day 

16

of the Settlement Valuation Period and the last day of the Seller Termination Purchase Period, for such Transaction make, or to the extent within Counterparty’s reasonable control, permit to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction (a “Merger Announcement”); 
		
	(ii)
	it shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify Dealer following any such Merger Announcement that such Merger Announcement has been made; and 

		
	(iii)
	it shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide Dealer with written notice specifying (i) Counterparty’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement date of any Merger Transaction or potential Merger Transaction that were not effected through Dealer or its Affiliates and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the announcement date of any Merger Transaction or potential Merger Transaction.  Such written notice shall be deemed to be a certification by Counterparty to Dealer that such information is true and correct.  In addition, Counterparty shall promptly notify Dealer of the earlier to occur of the completion of such transaction and the completion of the vote by target shareowners.  

		
	(b)
	Counterparty acknowledges that any such Merger Announcement or delivery of a notice with respect thereto may cause the terms of any Transaction to be adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 8 above.

		
	(c)
	Upon the occurrence of any Merger Announcement (whether made by Counterparty or a third party), Dealer, in its good faith and commercially reasonable discretion, may (i) make commercially reasonable adjustments to the terms of any Transaction to account for the economic effect of the Transaction of such Merger Announcement, including adjustments to the Scheduled Termination Date or the Forward Price Adjustment Amount, and/or suspend the Calculation Period and/or any Settlement Valuation Period or (ii) treat the occurrence of such Merger Announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transactions hereunder as the Affected Transactions and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Calculation Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.

“Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act, other than, solely for purposes of this Section 10, any such transaction in which the consideration consists solely of cash and there is no valuation period.
		
	11.
	Special Provisions for Acquisition Transaction Announcements.  Notwithstanding anything to the contrary herein or in the Equity Definitions:

		
	(a)
	If an Acquisition Transaction Announcement occurs on or prior to the Settlement Date for any Transaction, then the Calculation Agent shall make such adjustments to the exercise, settlement, payment or any other terms of such Transaction (including  adjustments to the Forward Price Adjustment Amount) as the Calculation Agent determines are commercially reasonable, at such time or at multiple times as the Calculation Agent determines appropriate, to account for the economic effect on such Transaction of such Acquisition Transaction Announcement, provided such adjustments shall only be made to account for changes in the inputs to the fair value of a fixed-for-fixed forward or option on equity shares, as applied to the Transaction, and provided further that no such adjustments shall be made to account for changes in expected dividends.

17

		
	(b)
	“Acquisition Transaction Announcement” means (i) the announcement by Counterparty or any of its subsidiaries of an Acquisition Transaction or an event that, if consummated, would result in an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, by Counterparty or any of its subsidiaries or any other party that is a party to such agreement or letter of intent, (iii) the announcement by Counterparty of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction, (iv) any other similar announcement by Counterparty or any of its subsidiaries that is bona fide and, in the reasonable judgment of the Calculation Agent, is reasonably likely to result in an Acquisition Transaction, or (v) any announcement of any change or amendment to any previous Acquisition Transaction Announcement (including any announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent, understanding or intention).  For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to any public announcement, whether made by the Issuer or a third party; provided that such announcement by such third party shall be bona fide and such third party has filed a Schedule 13D under Rule 13d-1 (or, if applicable, Rule 13d-2) of the Exchange Act in respect of such announcement.

		
	(c)
	“Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the definition of Merger Event shall be read with the references therein to “100%” being replaced by “30%” and references to “50%” being replaced by “75%” and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction with respect to Counterparty, (iv) any acquisition by Counterparty or any of its subsidiaries where the aggregate consideration transferable by Counterparty or its subsidiaries exceeds 50% of the market capitalization of Counterparty, (v) any lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 25% of the market capitalization of Counterparty (measured as of the relevant date of announcement) or (vi) any transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareowners in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).

		
	12.
	Acknowledgments.  

		
	(a)
	The parties hereto intend for:

		
	(i) 
	each Transaction to be a “securities contract” as defined in Section 741(7) of the Bankruptcy Code and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 555, 556, 560 and 561 of the Bankruptcy Code; 

		
	(ii) 
	the Agreement to be a “master netting agreement” as defined in Section 101(38A) of the Bankruptcy Code; 

		
	(iii) 
	a party’s right to liquidate, terminate or accelerate any Transaction, net out or offset termination values or payment amounts, and to exercise any other remedies upon the occurrence of any Event of Default or Termination Event under the Agreement with respect to the other party or any Extraordinary Event that results in the termination or cancellation of any Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code); and 

18

		
	(iv) 
	all payments for, under or in connection with each Transaction, all payments for the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in the Bankruptcy Code).

		
	(b)
	Counterparty acknowledges that:

		
	(i)
	during the term of any Transaction, Dealer and its Affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to such Transaction; 

		
	(ii)
	Dealer and its Affiliates may also be active in the market for the Shares and Share-linked transactions other than in connection with hedging activities in relation to any Transaction; 

		
	(iii)
	Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the VWAP Price; 

		
	(iv)
	any market activities of Dealer and its Affiliates with respect to the Shares may affect the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in a manner that may be adverse to Counterparty; and 

		
	(v)
	each Transaction is a derivatives transaction in which it has granted Dealer an option; Dealer may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of the related Transaction.  

		
	13.
	No Collateral, Netting or Setoff.  Obligations under any Transaction shall not be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against any other obligations of the parties, whether arising under the Agreement, this Master Confirmation or any Supplemental Confirmation, or under any other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against obligations under any Transaction, whether arising under the Agreement, this Master Confirmation or any Supplemental Confirmation, or under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of setoff, netting or recoupment.

		
	14.
	Delivery of Shares.  Notwithstanding anything to the contrary herein, Dealer may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date.  

		
	15.
	Alternative Termination Settlement.  In the event that (a) an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect to any Transaction or (b) any Transaction is cancelled or terminated upon the occurrence of an Extraordinary Event (except as a result of (i) a Nationalization, Insolvency or Merger Event in which the consideration to be paid to holders of Shares consists solely of cash, (ii) a Merger Event or Tender Offer that is within Counterparty’s control, or (iii) an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party other than an Event of Default arising solely from a failure to comply with Section 6(b)(vi) of this Master Confirmation, an Event of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the type described in Section 5(b) of the Agreement, in each case that resulted from an event or events outside Counterparty’s control), if either party would owe any amount to the other party pursuant to Section 6(d)(ii) of the Agreement or any Cancellation Amount pursuant 

19

to Article 12 of the Equity Definitions (any such amount, a “Payment Amount”), then, in lieu of any payment of such Payment Amount, unless Counterparty makes an election to the contrary no later than the Early Termination Date or the date on which such Transaction is terminated or cancelled, Counterparty or Dealer, as the case may be, shall deliver to the other party a number of Shares (or, in the case of a Nationalization, Insolvency or Merger Event, a number of units, each comprising the number or amount of the securities or property that a hypothetical holder of one Share would receive in such Nationalization, Insolvency or Merger Event, as the case may be (each such unit, an “Alternative Delivery Unit”) with a value equal to the Payment Amount, as determined by the Calculation Agent over a commercially reasonable period of time (and the parties agree that, in making such determination of value, the Calculation Agent may take into account the market price of the Shares or Alternative Delivery Units on the Early Termination Date or the date of early cancellation or termination, as the case may be, and, if such delivery is made by Dealer, the prices at which Dealer purchases Shares or Alternative Delivery Units on any Exchange Business Day to fulfill its delivery obligations under this Section 15); provided that in determining the composition of any Alternative Delivery Unit, if the relevant Nationalization, Insolvency or Merger Event involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash; and provided further that Counterparty may elect that the provisions of this Section 15 above providing for the delivery of Shares or Alternative Delivery Units, as the case may be, shall not apply only if Counterparty represents and warrants to Dealer, in writing on the date it notifies Dealer of such election, that, as of such date, Counterparty is not aware of any material non-public information regarding Counterparty or the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.  If delivery of Shares or Alternative Delivery Units, as the case may be, pursuant to this Section 15 is to be made by Counterparty, paragraphs 2 through 7 of Annex A hereto shall apply as if (A) such delivery were a settlement of such Transaction to which Net Share Settlement applied, (B) the Cash Settlement Payment Date were the Early Termination Date or the date of early cancellation or termination, as the case may be, and (C) the Forward Cash Settlement Amount were equal to (x) zero minus (y) the Payment Amount owed by Counterparty.  For the avoidance of doubt, if Counterparty validly elects for the provisions of this Section 15 relating to the delivery of Shares or Alternative Delivery Units, as the case may be, not to apply to any Payment Amount, the provisions of Article 12 of the Equity Definitions, or the provisions of Section 6(d)(ii) of the Agreement, as the case may be, shall apply.  If delivery of Shares or Alternative Delivery Units, as the case may be, is to be made by Dealer pursuant to this Section 15, the period during which Dealer purchases Shares or Alternative Delivery Units to fulfill its delivery obligations under this Section 15 shall be referred to as the “Seller Termination Purchase Period”.
		
	16.
	Calculations and Payment Date upon Early Termination.  The parties acknowledge and agree that in calculating (a) the Close-Out Amount pursuant to Section 6 of the Agreement and (b) the amount due upon cancellation or termination of any Transaction (whether in whole or in part) pursuant to Article 12 of the Equity Definitions as a result of an Extraordinary Event, Dealer may (but need not) determine such amount based on (i) expected losses assuming a commercially reasonable (including with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss or (ii) the price at which one or more market participants would offer to sell to the Seller a block of shares of Common Stock equal in number to the Seller’s hedge position in relation to the Transaction.  Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement or Article 12 of the Equity Definitions, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement or upon cancellation or termination of the relevant Transaction under Article 12 of the Equity Definitions will be payable on the day that notice of the amount payable is effective; provided that if Counterparty elects to receive or deliver Shares or Alternative Delivery Units in accordance with Section 15, such Shares or Alternative Delivery Units shall be delivered on a date selected by Dealer as promptly as practicable.  For the avoidance of doubt, if an Early Termination Date occurs in respect of the Transaction, the amount payable shall be determined without regard to any dividends including Extraordinary Dividends or Excess Dividends any dividend or distribution on the Shares described in Section 11.2(e)(ii)(A) or Section 11.2(e)(ii)(B) of the Equity Definitions.

		
	17.
	Limit on Beneficial Ownership.  Notwithstanding anything to the contrary in this Master Confirmation, Counterparty acknowledges and agrees that, on any day, Dealer shall not be obligated to receive from Counterparty any Shares, and Counterparty shall not be entitled to deliver to Dealer any Shares, to the extent (but only to the extent) that after such transactions Dealer’s ultimate parent entity would directly or indirectly “beneficially own” (as such term is defined for purposes of Section 13(d) of the Exchange Act) at any time 

20

on such day in excess of 8% of the outstanding Shares.  Any purported receipt of Shares shall be void and have no effect to the extent (but only to the extent) that after such receipt, Dealer’s ultimate parent entity would directly or indirectly so beneficially own in excess of 8% of the outstanding Shares.  If, on any day, any receipt of Shares by Dealer is not effected, in whole or in part, as a result of this Section 17, Counterparty’s obligations to deliver such Shares shall not be extinguished and any such delivery shall be effected over time by Counterparty as promptly as Dealer determines, such that after any such delivery, Dealer’s ultimate parent entity would not directly or indirectly beneficially own in excess of 8% of the outstanding Shares.
		
	18.
	Maximum Share Delivery.  Notwithstanding anything to the contrary in this Master Confirmation, in no event shall Dealer be required to deliver any Shares, or any Shares or other securities comprising Alternative Delivery Units, in respect of any Transaction in excess of the Maximum Number of Shares set forth in the Supplemental Confirmation for such Transaction.  For the avoidance of doubt, in no event shall Counterparty be required to deliver any Shares, or any Shares or other securities comprising Alternative Delivery Units, in respect of any Transactions in excess of the Reserved Shares.

		
	19.
	Additional Termination Events.

		
	(a)
	The occurrence of an event described in paragraph III of Annex B hereto will constitute an Additional Termination Event, with Counterparty as the sole Affected Party and the Transactions specified in such paragraph III as the Affected Transactions.

		
	(b)
	Notwithstanding anything to the contrary in Section 6 of the Agreement, if a Termination Price is specified in the Supplemental Confirmation for any Transaction, then an Additional Termination Event (with respect to which Counterparty shall be the sole Affected Party and such Transaction shall be the sole Affected Transaction) will occur without any notice or action by Dealer or Counterparty if, on two consecutive Exchange Business Days, the price of the Shares on the Exchange at any time falls below such Termination Price.

		
	20.
	Non-confidentiality.  Dealer and Counterparty hereby acknowledge and agree that, subject to Section 8(e), each is authorized to disclose the tax structure and tax treatment of the transactions contemplated by this Master Confirmation and any Supplemental Confirmation hereunder to any and all persons, without limitation of any kind, and there are no express or implied agreements, arrangements or understandings to the contrary.

		
	21.
	Assignment and Transfer.  Notwithstanding anything to the contrary in the Agreement, without the consent of Counterparty, Dealer may assign any of its rights or duties hereunder to any one of its Affiliates (1) that has a long-term issuer rating that is equal to or greater than the higher of  Dealer’s credit rating, as specified by at least one of Standard & Poor’s and Moody’s, at the time of such assignment and such credit rating on the date of this Master Confirmation, and (2) whose obligations hereunder will be guaranteed, pursuant to the terms of a customary guarantee in a form used generally for similar transactions, by JPMorgan Chase & Co.; provided that, at the time of such assignment (i) Counterparty will not be required to pay (including a payment in kind) to the transferee any amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) of the Agreement (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e) of the Agreement) greater than the amount in respect of which Counterparty would have been required to pay to Dealer in the absence of such transfer; and (ii) Counterparty will not receive any payment (including a payment in kind) from which an amount had been withheld or deducted, on account of a Tax under Section 2(d)(i) of the Agreement (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e) of the Agreement), in excess of that which Dealer would have been required to so withhold or deduct in the absence of such transfer, except to the extent that the transferee will be required to make additional payments pursuant to Section 2(d)(i)(4) of the Agreement in respect of such excess.  

Notwithstanding any other provision in this Master Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Counterparty, Dealer may designate any of its Affiliates to purchase, sell, receive or deliver such Shares or other securities and otherwise to perform Dealer’s obligations in respect of any Transaction and any such designee may assume such obligations; provided that (i)  Dealer shall be discharged of its obligations to Counterparty only to the extent of any such 

21

performance by such designee, and (ii) Dealer hereby acknowledges that notwithstanding any such designation hereunder, to the extent any of Dealer’s obligations in respect of any Transaction are not completed by its designee, Dealer shall be obligated to continue to perform or to cause any other of its designees to perform in respect of such obligations.    
		
	22.
	Amendments to the Equity Definitions.

		
	(a)
	Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the words “a material economic”; and adding the phrase “or the relevant Transaction; provided that such event is not based on (a) an observable market, other than the market for Counterparty’s own stock, or (b) an observable index, other than an index calculated or measured solely by reference to Counterparty’s own operations.” at the end of the sentence.

		
	(b)
	Section 11.2(c) of the Equity Definitions is hereby amended by (i) replacing the words “a diluting or concentrative” with “a material economic” in the fifth line thereof, (ii) adding the phrase “or such Transaction” after the words “the relevant Shares” in the same sentence, (iii) replacing the words “dilutive or concentrative” in the sixth to last line thereof with “material economic”, and (iv) deleting the phrase “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)” and replacing it with the phrase “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares).”

		
	(c)
	Section 11.2(e) of the Equity Definitions is hereby amended by deleting clause (iii) thereof in its entirety.  Section 11.2(e)(v) of the Equity Definitions is amended by adding the words “at a premium to the current market price thereof (other than in connection with Permitted Purchases)” after the word  “Shares” in such Section.  Section 11.2(e)(vii) of the Equity Definitions is hereby amended by (x) inserting the words “similar corporate” immediately prior to the word “event” and (y) deleting the words “a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with “, in the commercially reasonable judgment of the Calculation Agent, a material economic event affecting the theoretical value of the Shares or the relevant Transaction; provided that such event is not based on (a) an observable market, other than the market for Counterparty’s own stock, or (b) an observable index, other than an index calculated and measured solely by reference to the Counterparty’s own operations.”.

		
	(d)
	Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:

		
	(i)
	deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); and

		
	(ii)
	replacing the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares” with the phrase “such Lending Party does not lend Shares” in the penultimate sentence.

		
	(e)
	Section 12.9(b)(v) of the Equity Definitions is hereby amended by adding the phrase “; provided that the Non-Hedging Party may so elect to terminate the Transaction only if the Non-Hedging Party represents and warrants to the Hedging Party in writing on the date it notifies the Hedging Party of such election that, as of such date, the Non-Hedging Party is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws” immediately prior to the period at the end of subsection (C).

		
	(f)
	Section 12.9(b)(v) of the Equity Definitions is hereby amended by deleting clause (X) in the final sentence.

		
	23.
	Extraordinary Dividend.  If Counterparty declares any Extraordinary Dividend that has an ex-dividend date during the period commencing on the Trade Date for any Transaction and ending of the last day of the Relevant 

22

Period or, if applicable, the later of the last day of the Settlement Valuation Period and the last day of the Seller Termination Purchase Period, for such Transaction, then prior to or on the date on which such Extraordinary Dividend is paid by Counterparty to holders of record, Counterparty shall pay to Dealer, for each Transaction under this Master Confirmation, an amount in cash equal to the product of (i) the amount of such Extraordinary Dividend and (ii) the theoretical short delta number of shares as of the opening of business on the related ex-dividend date, as determined by the Calculation Agent, required for Dealer to hedge its exposure to such Transaction.
		
	24.
	Status of Claims in Bankruptcy.  Dealer acknowledges and agrees that neither this Master Confirmation nor any Supplemental Confirmation is intended to convey to Dealer rights against Counterparty with respect to any Transaction that are senior to the claims of common stockholders of Counterparty in any United States bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to any Transaction; provided further that nothing herein shall limit or shall be deemed to limit Dealer’s rights in respect of any transactions other than any Transaction.

		
	25.
	Wall Street Transparency and Accountability Act.  In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), the parties hereby agree that neither the enactment of WSTAA or any regulation under the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, nor any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the date of this Master Confirmation, shall limit or otherwise impair either party’s otherwise applicable rights to terminate, renegotiate, modify, amend or supplement any Supplemental Confirmation, this Master Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under any Supplemental Confirmation, this Master Confirmation, the Equity Definitions incorporated herein, or the Agreement (including rights arising from Change in Law, Loss of Stock Borrow, Increased Cost of Stock Borrow, Hedging Disruption, Increased Cost of Hedging, or Illegality).

		
	26.
	Delivery of Cash.  For the avoidance of doubt, other than payment of the Prepayment Amount by Buyer, nothing in this Master Confirmation shall be interpreted as requiring Buyer to cash settle any Transaction hereunder, except in circumstances where cash settlement is within Buyer’s control (including where Buyer elects to deliver or receive cash, where Buyer fails timely to elect to deliver Settlement Shares pursuant Annex A hereof in settlement of any Transaction hereunder or to deliver or receive Alternative Termination Delivery Units, or where Buyer has made settlement by delivery of Unregistered Settlement Shares in accordance with Annex A hereof unavailable due to the occurrence of events within its control) or in those circumstances in which holders of the Shares would also receive cash.

		
	27.
	U.S. QFC Stay Rules. The parties agree that (i) to the extent that prior to the date hereof both parties have adhered to the 2018 ISDA U.S. Resolution Stay Protocol (the “Protocol”), the terms of the Protocol are incorporated into and form a part of this Agreement, and for such purposes this Agreement shall be deemed a Protocol Covered Agreement and each party shall be deemed to have the same status as Regulated Entity and/or Adhering Party as applicable to it under the Protocol; (ii) to the extent that prior to the date hereof the parties have executed a separate agreement the effect of which is to amend the qualified financial contracts between them to conform with the requirements of the QFC Stay Rules (the “Bilateral Agreement”), the terms of the Bilateral Agreement are incorporated into and form a part of this Agreement and each party shall be deemed to have the status of “Covered Entity” or “Counterparty Entity” (or other similar term)  as applicable to it under the Bilateral Agreement; or (iii) if clause (i) and clause (ii) do not apply, the terms of Section 1 and Section 2 and the related defined terms (together, the “Bilateral Terms”) of the form of bilateral template entitled “Full-Length Omnibus (for use between U.S. G-SIBs and Corporate Groups)” published by ISDA on November 2, 2018 (available as of the date of this Master Confirmation on the 2018 ISDA U.S. Resolution Stay Protocol page at www.isda.org and a copy of which is available upon request),  the effect of which is to amend the qualified financial contracts between the parties thereto to conform with the requirements of the QFC Stay Rules, are hereby incorporated into and form a part of this Agreement, and for such purposes this Agreement shall be deemed a “Covered Agreement,” Dealer shall be deemed a “Covered Entity” and Issuer shall be deemed a “Counterparty Entity.” In the event that, after the date of this Agreement, both parties hereto 

23

become adhering parties to the Protocol, the terms of the Protocol will replace the terms of this paragraph. In the event of any inconsistencies between this Agreement and the terms of the Protocol, the Bilateral Agreement or the Bilateral Terms (each, the “QFC Stay Terms”), as applicable, the QFC Stay Terms will govern. Terms used in this Section 27 without definition shall have the meanings assigned to them under the QFC Stay Rules. For purposes of this paragraph, references to “this Agreement” include any related credit enhancements entered into between the parties or provided by one to the other. In addition, the parties agree that the terms of this paragraph shall be incorporated into any related covered affiliate credit enhancements, with all references to Dealer replaced by references to the covered affiliate support provider.
“QFC Stay Rules” means the regulations codified at 12 C.F.R. 252.2, 252.81–8, 12 C.F.R. 382.1-7 and 12 C.F.R. 47.1-8, which, subject to limited exceptions, require an express recognition of the stay-and-transfer powers of the FDIC under the Federal Deposit Insurance Act and the Orderly Liquidation Authority under Title II of the Dodd Frank Wall Street Reform and Consumer Protection Act and the override of default rights related directly or indirectly to the entry of an affiliate into certain insolvency proceedings and any restrictions on the transfer of any covered affiliate credit enhancements.
		
	28.
	[Reserved.]

		
	29.
	Counterparts.  This Master Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Master Confirmation by signing and delivering one or more counterparts.

		
	30.
	Credit Support. The parties hereto acknowledge that no Transaction hereunder is secured by any collateral that would otherwise secure the obligations of Counterparty herein or pursuant to the Agreement. 

		
	31.
	Waiver of Jury Trial.  EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE AGREEMENT, THIS MASTER CONFIRMATION, EACH SUPPLEMENTAL CONFIRMATION, THE TRANSACTIONS HEREUNDER AND ALL MATTERS ARISING IN CONNECTION WITH THE AGREEMENT, THIS MASTER CONFIRMATION AND ANY SUPPLEMENTAL CONFIRMATION AND THE TRANSACTIONS HEREUNDER.  EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTIONS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.

		
	32.
	Exclusive Jurisdiction.  THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY IN ANY SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THE AGREEMENT, THIS MASTER CONFIRMATION, ANY SUPPLEMENTAL CONFIRMATION AND/OR ANY TRANSACTION HEREUNDER AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

Communications with Employees of J.P. Morgan Securities LLC.  If Counterparty interacts with any employee of J.P. Morgan Securities LLC with respect to any Transaction, Counterparty is hereby notified that such employee will act solely as an authorized representative of JPMorgan Chase Bank, N.A. (and not as a representative of J.P. Morgan Securities LLC) in connection with such Transaction.

24

EXECUTION COPY

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this Master Confirmation and returning it to us.
Very truly yours,
	
		
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

	By:
	/s/ Brett Chalmers

	Authorized Signatory

	Name:   Brett Chalmers

Accepted and confirmed 
as of the date first set  
forth above:
	
		
	PLANET FITNESS, INC.

	By:
	/s/ Dorvin Lively

	Authorized Signatory

	Name:   Dorvin Lively, President & CFO

[Signature page to the Master Confirmation]

SCHEDULE A
FORM OF SUPPLEMENTAL CONFIRMATION
JPMorgan Chase Bank, National Association
New York Branch
383 Madison Avenue
New York, NY, 10179

[__________], 20[__]
		
	To: 
	Planet Fitness, Inc. 
4 Liberty Lane West

Hampton, NH 03842 
Attention: Dorvin Lively, President and Chief Financial Officer 

Re:     Supplemental Confirmation—Uncollared Accelerated Share Repurchase
The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction entered into between JPMorgan Chase Bank, National Association (“Dealer”) and Planet Fitness, Inc., a Delaware corporation (“Counterparty”) on the Trade Date specified below.  This Supplemental Confirmation is a binding contract between Dealer and Counterparty as of the relevant Trade Date for the Transaction referenced below.  
1.    This Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation, dated as of December 4, 2019 (the “Master Confirmation”), between Dealer and Counterparty, as amended and supplemented from time to time.  All provisions contained in the Master Confirmation govern this Supplemental Confirmation except as expressly modified below.  
2.    The terms of the Transaction to which this Supplemental Confirmation relates are as follows: 
Trade Date:    [__], 20[__]
Forward Price Adjustment Amount:    USD [___] 
		
	Calculation Period Start Date:
	[__], 20[__]

		
	Scheduled Termination Date:
	[__]

		
	First Acceleration Date:
	[___________]

Prepayment Amount:    USD [___________] 
Prepayment Date:     [__], 20[__]
		
	Initial Shares:
	[___] Shares; provided that if, in connection with the Transaction, Dealer is unable, after using commercially reasonable efforts, to borrow or otherwise acquire a number of Shares equal to the Initial Shares for delivery to Counterparty on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that Dealer is able to so borrow or otherwise acquire; provided further that if the Initial Shares are reduced as provided in the preceding proviso, then Dealer shall use commercially reasonable efforts to borrow or otherwise acquire an additional number of Shares equal to the shortfall in the Initial Shares delivered on the Initial Share Delivery Date and shall deliver such additional Shares as promptly as practicable, and all Shares so 

A-1

delivered shall be considered Initial Shares. All Shares delivered to Counterparty in respect of the Transaction pursuant to this paragraph shall be the “Initial Shares” for purposes of “Number of Shares to be Delivered” in the Master Confirmation.
Initial Share Delivery Date:    [__], 20[__]
		
	Maximum Stock Loan Rate:
	75 basis points per annum

		
	Initial Stock Loan Rate:
	25 basis points per annum

Maximum Number of Shares:    [___]1 Shares
Termination Price:    USD [__]2 per Share 
		
	Additional Relevant Days:
	The three (3) Exchange Business Days immediately following the Calculation Period.

		
	Reserved Shares:
	Notwithstanding anything to the contrary in the Master Confirmation, as of the date of this Supplemental Confirmation, the Reserved Shares shall be equal to [___]3 Shares. For the avoidance of doubt, the number of Reserved Shares shall not be subject to adjustment.

3.    Counterparty represents and warrants to Dealer that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs, in each case except as otherwise disclosed to Dealer.  
4.    This Supplemental Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts.  

1 To be approximately 50% of the total number of Shares outstanding on the Trade Date.
2 To be approximately 50% of the closing Share price on the Trade Date.
3 To be approximately 2x the number of Initial Shares.

A-2

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this Supplemental Confirmation and returning it to us.
Very truly yours,
	
		
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

	By:
	 

	Authorized Signatory

	Name:   

Accepted and confirmed 
as of the Trade Date:
	
		
	PLANET FITNESS, INC.

	By:
	 

	Authorized Signatory

	Name:   

A-3

SCHEDULE B
FORM OF CERTIFICATE OF RULE 10B-18 PURCHASES

[Letterhead of Counterparty]
JPMorgan Chase Bank, National Association
New York Branch
383 Madison Avenue
New York, NY, 10179

Re:     Uncollared Accelerated Share Repurchase

Ladies and Gentlemen:
In connection with our entry into the Master Confirmation, dated as of December 4, 2019, between JPMorgan Chase Bank, National Association and Planet Fitness, Inc., a Delaware corporation, as amended and supplemented from time to time (the “Master Confirmation”) and the Supplemental Confirmation thereto, dated as of [__________], 20[__], we hereby represent that set forth below is the total number of shares of our common stock purchased by or for us or any of our affiliated purchasers in Rule 10b-18 purchases of blocks (all as defined in Rule 10b-18 under the Securities Exchange Act of 1934) pursuant to the once-a-week block exception set forth in Rule 10b-18(b)(4) during the four full calendar weeks immediately preceding the first day of the [Calculation Period][Settlement Valuation Period][Seller Termination Purchase Period] (as defined in the Master Confirmation) and the week during which the first day of such [Calculation Period][Settlement Valuation Period][Seller Termination Purchase Period] occurs.

Number of Shares:  __________________
We understand that you will use this information in calculating trading volume for purposes of Rule 10b-18.
Very truly yours,
	
		
	PLANET FITNESS, INC.

	By:
	 

	Authorized Signatory

	Name:   

Schedule B

ANNEX A
COUNTERPARTY SETTLEMENT PROVISIONS
1.    The following Counterparty Settlement Provisions shall apply to any Transaction to the extent indicated under the Master Confirmation: 
		
	Settlement Currency:
	USD 

		
	Settlement Method Election:
	Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof and replacing it with the words “Net Share” and (ii) the Electing Party may make a settlement method election only if the Electing Party represents and warrants to Dealer in writing on the date it notifies Dealer of its election that, as of such date, the Electing Party is not aware of any material non-public information regarding Counterparty or the Shares and is electing the settlement method in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.  

		
	Electing Party:
	Counterparty 

		
	Settlement Method Election Date:
	The earlier of (x) the second Exchange Business Day immediately following the Accelerated Termination Date (in which case election under Section 7.1 of the Equity Definitions shall be made no later than 10 minutes prior to the open of trading on the Exchange on such second Exchange Business Day) and (y) the Scheduled Termination Date (such earlier date, the “Scheduled Settlement Election Date”), unless, on the Scheduled Settlement Election Date, Counterparty is aware of any material, non-public information regarding Counterparty or the Shares, in which case the Settlement Method Election Date shall be the earlier of (x) the 30th calendar day immediately following the Scheduled Settlement Election Date and (y) the first date immediately following the Scheduled Settlement Election Date on which Counterparty is not aware of any material, non-public information regarding Counterparty or the Shares.

		
	Default Settlement Method:
	Cash Settlement 

		
	Forward Cash Settlement Amount:
	An amount equal to (a) the Number of Shares to be Delivered, multiplied by (b) the Settlement Price.  

		
	Settlement Price:
	An amount equal to the average of the VWAP Prices for the Exchange Business Days in the Settlement Valuation Period, subject to Valuation Disruption as specified in the Master Confirmation.

		
	Settlement Valuation Period:
	A number of Scheduled Trading Days required in order to unwind a commercially reasonable hedge position in a commercially reasonable manner, determined beginning on the Scheduled Trading Day immediately following the Termination Date.  Dealer shall notify Counterparty of the last Scheduled Trading Day of the Settlement Valuation Period on or prior to the 

Annex A-1

Exchange Business Day immediately following such last Scheduled Trading Day.
		
	Cash Settlement:
	If Cash Settlement is applicable, then Buyer shall pay to Seller the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date.

		
	Cash Settlement Payment Date:
	The later of (x) the Exchange Business Day immediately following the last day of the Settlement Valuation Period and (y) the earlier of the Exchange Business Day immediately following the date of Counterparty’s Settlement Method Election and the Settlement Method Election Date.

		
	Net Share Settlement Procedures:
	If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 7 below.  

2.    Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in either case, with a value equal to the sum of (x) 100% of the absolute value of the Forward Cash Settlement Amount, with such Shares’ value determined by the Calculation Agent and (y) all commercially reasonable actual, documented out-of-pocket expenses of Dealer in connection with Dealer’s receipt of such Registered Settlement Shares or Unregistered Settlement Shares, as the case may be, up to an amount equal to 0.50% of the amount determined in clause (x), including commercially reasonable fees and actual, documented out-of-pocket expenses of one outside counsel.  If all of the conditions for delivery of either Registered Settlement Shares or Unregistered Settlement Shares have not been satisfied, Cash Settlement shall be applicable in accordance with paragraph 1 above notwithstanding Counterparty’s election of Net Share Settlement.
3.    Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above if: 
(a)    a registration statement covering public resale of the Registered Settlement Shares by Dealer (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including, any prospectus supplement thereto, the “Prospectus”) shall have been delivered to Dealer, in such quantities as Dealer shall reasonably have requested, on or prior to the date of delivery; 
(b)    the form and content of the Registration Statement and the Prospectus (including, any sections describing the plan of distribution) shall be reasonably satisfactory to Dealer; 
(c)    as of or prior to the date of delivery, Dealer and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities of similar size (provided that prior to receiving or being granted access to any such information, Dealer and any such agent may be required by Counterparty to enter into a customary nondisclosure agreement with Counterparty in respect of any such due diligence investigation) and the results of such investigation are reasonably satisfactory to Dealer, in its good faith and commercially reasonable judgment; and 
(d)    as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with Dealer in connection with the public resale of the Registered Settlement Shares by Dealer substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance reasonably satisfactory to Dealer, which Underwriting Agreement shall include, provisions substantially similar to those contained in such underwriting agreements relating to the mutual indemnification of, and contribution in connection with the liability of, the parties and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.  
4.    If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above: 

Annex A-2

(a)    all Unregistered Settlement Shares shall be delivered to Dealer (or any Affiliate of Dealer designated by Dealer) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof; 
(b)    as of or prior to the date of delivery, Dealer and any potential purchaser of any such shares from Dealer (or any Affiliate of Dealer designated by Dealer) identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private placements of equity securities of similar size by issuers similar to Counterparty (including,  the right to have made available to them for inspection all relevant financial and other records, pertinent corporate documents and other information reasonably requested by them); provided that prior to receiving or being granted access to any such information, any such Dealer (or Affiliate) or potential purchaser may be required by Counterparty to enter into a customary nondisclosure agreement with Counterparty in respect of any such due diligence investigation;
(c)    as of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with Dealer (or any Affiliate of Dealer designated by Dealer) in connection with the private placement of such shares by Counterparty to Dealer (or any such Affiliate) and the private resale of such shares by Dealer (or any such Affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities of similar size by similar issuers, in form and substance commercially reasonably satisfactory to Dealer, which Private Placement Agreement shall (i) include provisions substantially similar to those contained in such private placement purchase agreements relating to the mutual indemnification of, and contribution in connection with the liability of, the parties, (ii) provide for Counterparty to use its best efforts to provide documentation appropriate for private placement of equity securities of similar size by similar issuers, and the payment by Counterparty of all commercially reasonable and actual, documented out-of-pocket expenses of Dealer (and any such Affiliate) in connection with such resale up to an amount equal to 2.00% of the amount determined in clause (x) of paragraph 2 above, including all reasonable fees and actual, documented out-of-pocket expenses of one outside counsel for Dealer (such expenses to be without duplication of expenses in clause (y) of paragraph 2 above), and (iii) contain representations, warranties, covenants and agreements of the parties reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and 
(d)    in connection with the private placement of such shares by Counterparty to Dealer (or any such Affiliate) and the private resale of such shares by Dealer (or any such Affiliate), Counterparty shall, if so requested by Dealer, prepare, in cooperation with Dealer, a private placement memorandum in form and substance reasonably satisfactory to Dealer.  
5.    Dealer, itself or through an Affiliate (the “Selling Agent”) or any underwriter(s), using commercially reasonable efforts to achieve the highest rate, will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the “Settlement Shares”) delivered by Counterparty to Dealer pursuant to paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by Dealer, is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”).  If Counterparty is prohibited by law or by contract from disclosing all material non-public information known to Counterparty with respect to Counterparty and the Shares to any potential purchasers of such Settlement Shares, then the sale of such Settlement Shares shall not be required to commence until the earlier of (x) the 30th calendar day immediately following the Cash Settlement Payment Date and (y) the first date immediately following the Cash Settlement Payment Date on which Counterparty reasonably concludes that it is able to disclose such information.  If the proceeds of any sale(s) made by Dealer, the Selling Agent or any underwriter(s), net of any commercially reasonable fees and commissions (including underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with commercially reasonable carrying charges and expenses incurred in connection with the offer and sale of the Shares (including the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, Dealer will refund, in USD, such excess or, at the Counterparty’s election, a number of Shares equal to such excess determined by the Dealer in its commercially reasonable discretion, to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, Dealer shall return to Counterparty on that date such unsold Shares.  
6.    If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 

Annex A-3

are less than the absolute value of the Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement Amount being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to Dealer, through the Selling Agent, a notice of Counterparty’s election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares.  If Counterparty elects to deliver to Dealer additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall.  Such Makewhole Shares shall be sold by Dealer in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Counterparty shall, at its election, either make such cash payment or deliver to Dealer further Makewhole Shares until such Shortfall has been reduced to zero.  
7.    Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares for any Transaction be greater than the Reserved Shares minus the amount of any Shares actually delivered by Counterparty under any other Transaction under this Master Confirmation (the result of such calculation, the “Capped Number”).  Counterparty represents and warrants (which shall be deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares determined according to the following formula: 
A – B
		
	Where
	A  =     the number of authorized but unissued shares of Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and

B  =     the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than Transactions in the Shares under this Master Confirmation) with all third parties that are then currently outstanding and unexercised.  
“Reserved Shares” means, for each Transaction, as set forth in the Supplemental Confirmation for such Transaction.
If at any time, as a result of this paragraph 7, Counterparty fails to deliver to Dealer any Settlement Shares, Counterparty shall, to the extent that Counterparty has at such time authorized but unissued Shares not reserved for other purposes, promptly notify Dealer thereof and deliver to Dealer a number of Shares not previously delivered as a result of this paragraph 7.

Annex A-4

ANNEX B
COMMUNICATIONS PROCEDURES

December 4, 2019

I.    Introduction
Planet Fitness, Inc. (“Counterparty”) and JPMorgan Chase Bank, National Association (“Dealer”) have adopted these communications procedures (the “Communications Procedures”) in connection with entering into the Master Confirmation (the “Master Confirmation”), dated as of December 4, 2019, between Dealer and Counterparty relating to Uncollared Accelerated Share Repurchase transactions.  These Communications Procedures supplement, form part of, and are subject to the Master Confirmation.
II.    Communications Rules
For each Transaction, from the Trade Date for such Transaction until the date all payments or deliveries of Shares have been made with respect to such Transaction, Counterparty and its Employees and Designees shall not engage in any Program-Related Communication with, or disclose any Material Non-Public Information to, any Trading Personnel; provided, however, that Communications in respect of a Permitted Purchase falling under romanette (ii) of the Permitted Purchase definition shall be permitted with Designated Trading Personnel.  Except as set forth in the preceding sentence, the Master Confirmation shall not limit Counterparty and its Employees and Designees in their communication with Affiliates and Employees of Dealer, including Employees who are Permitted Contacts.
III.    Termination
If, in the sole judgment of any Trading Personnel or any Affiliate or Employee of Dealer participating in any Communication with Counterparty or any Employee or Designee of Counterparty, such Communication would not be permitted by these Communications Procedures, such Trading Personnel or Affiliate or Employee of Dealer shall immediately terminate such Communication.  In such case, or if such Trading Personnel or Affiliate or Employee of Dealer determines following completion of any Communication with Counterparty or any Employee or Designee of Counterparty that such Communication was not permitted by these Communications Procedures, such Trading Personnel or such Affiliate or Employee of Dealer shall promptly consult with his or her supervisors and with counsel for Dealer regarding such Communication.  If, in the reasonable judgment of Dealer’s counsel following such consultation, there is more than an insignificant risk that such Communication could materially jeopardize the availability of the affirmative defenses provided in Rule 10b5-1 under the Exchange Act with respect to any ongoing or contemplated activities of Dealer or its Affiliates in respect of any Transaction pursuant to the Master Confirmation, it shall be an Additional Termination Event pursuant to Section 19(a) of the Master Confirmation, with Counterparty as the sole Affected Party and all Transactions under the Master Confirmation as Affected Transactions.    
IV.    Definitions
Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Master Confirmation.  As used herein, the following words and phrases shall have the following meanings:
“Communication” means any contact or communication (whether written, electronic, oral or otherwise) between Counterparty or any of its Employees or Designees, on the one hand, and Dealer or any of its Affiliates or Employees, on the other hand.
“Designated Trading Personnel” means [__________] and [__________] or any of their designees; provided that Dealer may amend the list of Designated Trading Personnel by delivering a revised list of Designated Trading Personnel to Counterparty (which amended list shall become effective on the third Exchange Business-Day immediately following delivery of such list by Dealer to Counterparty).
“Designee” means a person designated, in writing or orally, by Counterparty to communicate with Dealer on behalf of Counterparty.

Annex B-1

“Permitted Contact” means any of [__________] and [__________] or any of their designees; provided that Dealer may amend the list of Permitted Contacts by delivering a revised list of Permitted Contacts to Counterparty (which amended list shall become effective on the third Exchange Business-Day immediately following delivery of such list by Dealer to Counterparty).
“Trading Personnel” means [__________] and [__________] or any of their designees; provided that Dealer may amend the list of Trading Personnel by delivering a revised list of Trading Personnel to Counterparty (which amended list shall become effective on the third Exchange Business-Day immediately following delivery of such list by Dealer to Counterparty); and provided further that, for the avoidance of doubt, the persons listed as Permitted Contacts are not Trading Personnel.
“Employee” means, with respect to any entity, any owner, principal, officer, director, employee or other agent or representative of such entity, and any Affiliate of any of such owner, principal, officer, director, employee, agent or representative.
“Material Non-Public Information” means information relating to Counterparty or the Shares that (a) has not been widely disseminated by wire service, in one or more newspapers of general circulation, by communication from Counterparty to its shareowners or in a press release, or contained in a public filing made by Counterparty with the Securities and Exchange Commission and (b) a reasonable investor might consider to be of importance in making an investment decision to buy, sell or hold Shares.  For the avoidance of doubt and solely by way of illustration, information should be presumed “material” if it relates to such matters as dividend increases or decreases, earnings estimates, changes in previously released earnings estimates, significant expansion or curtailment of operations, a significant increase or decline of orders, significant merger or acquisition proposals or agreements, significant new products or discoveries, extraordinary borrowing, major litigation, liquidity problems, extraordinary management developments, purchase or sale of substantial assets and similar matters.
“Program-Related Communication” means any Communication the subject matter of which relates to the Master Confirmation or any Transaction under the Master Confirmation or any activities of Dealer (or any of its Affiliates) in respect of the Master Confirmation or any Transaction under the Master Confirmation.

Annex B-2solarmax_ex1061.htm

EXHIBIT 10.61
 
Contract No.: 
 
Financial Leasing Contract
 
(direct leasing)
 
Lessor: Huaxia Financial Leasing Co., Ltd. (hereinafter referred to as “Lessor”)
 
Legal representative: Ren Yongguang
 
Address: Room A-413, Financial Center, No. 36 Changhong Road, Kunming Economic and Technological Development Zone, Yunnan Province
 
Lessee: Guizhou Autonomous Prefecture Yilong Zhonghong Green Energy Co., Ltd. (hereinafter referred to as “Lessee”)
 
Legal representative: Zhou Feng
 
Address: Benke Village, Xinqiao Town, Anlong County, Southwest Guizhou Autonomous Prefecture, Guizhou
 
Mailing address: Benke Village, Xinqiao Town, Anlong County, Southwest Guizhou Autonomous Prefecture, Guizhou
 
Contact number: [13636304829]
 
Email: [None]
 
Place of signing: Xicheng District, Beijing
 
Date of signing: [October] [     ], 2019
  
	 
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	 SOLARMAX YILONG FINANCIAL LEASING CONTRACT

	 

 
 
Whereas:
 
The Lessee intends to enter into a financing lease with the Lessor for the purpose of leasing, retaining and ultimately acquiring the ownership of all the assets purchased, constructed and used for Zhonghong Yilong New District Xinqiao 70MWp Agricultural PV Power Station Project located in Southwest Guizhou Autonomous Prefecture, Guizhou Province (hereinafter referred to as “Project”), including PV power plant facilities and structures
 
The Lessee and Solarmax Technology (Jiangsu) Co., Ltd. (hereinafter referred to as “Seller”) have signed “Zhonghong Yilong New District Xinqiao 70MWp Agricultural PV Power Station Project Project Contract” (contranct No.: SMX-JSZH-2019-056) and related annexes (hereinafter referred to as “Equipment Procurement Contract”).
 
According to the Equipment Procurement Contract, the Seller shall procure, supply and install the facilities, structures and PV modules and other movable Equipment used in the Project, and the Lessee obtains from the Seller the ownership of PV power plant facilities, PV modules and other movable Equipment, structures and other assets of the power plant in accordance with the terms and conditions of the Equipment Procurement Contract.
 
According to the financing arrangement between the Lessor and the Lessee, the Lessee, Lessor and Seller signed Agreement on the Transfer of Rights and Obligations (contract No.: ) and related annexes (hereinafter referred to as “ Agreement on the Transfer of Rights and Obligations”) on [October] [ ], [2019]
 
Upon friendly negotiation, the Lessor and the Lessee have signed this financial leasing contract (hereinafter referred to as “Contract”) on the basis of equality, voluntariness and mutual benefit, which shall be binding upon the parties hereto.
 
The Lessor and the Lessee are collectively referred to as the “Parties”, individually referred to as a “Party”.
 
Clause 1 Definition
 
Unless otherwise agreed in this Contract, the terms hereunder shall have the following meanings:
 
1.1 “Contract” means the main text the Contract, Lease Schedule, “Pre-lease Interest/Grace Period Interest/Rent Payment Form” and related annexes under this financial leasing transaction.
 
1.2 “Lease Agreement” means the financial leasing of the Lease Items under the Lease Schedule specified by the main text the Contract, Lease Schedule, “Pre-lease Interest/Grace Period Interest/Rent Payment Form” and other related annexes.
 
1.3 “Lessor” means the lessor who participates in the financial leasing transaction hereunder, namely Huaxia Financial Leasing Co., Ltd.
 
1.4 “Lessee” means the lessee participating in the financial leasing transaction hereunder, as specified in the cover and signature page of this Contract.
  
	 
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	SOLARMAX YILONG FINANCIAL LEASING CONTRACT

	

   
1.5 “Lease Schedule” means the schedule setting out the specific conditions and trading elements of the leasing transaction hereunder. The Lease Schedule specifies the details of the Lease Items, the Lease Term, the Rent, payment terms and other contents that need to be supplemented. In the event of a conflict between the main text of this Contract and the Lease Schedule, the later shall prevail.
 
1.6 “Pre-lease Interest/Grace Period Interest/Rent Schedule” means the payment estimate forms specifying the estimated Rent, Pre-lease Interest, Grace Period Interest, estimated repayment date and other transaction information; the estimated Rent, Pre-lease Interest and Grace Period Interest are calculated based on Lease Commencement Date and financing amount agreed upon by both Parties unddr this Contract. Please see the Lease Schedule for Pre-lease Interest/Grace Period Interest/Rent Schedule.
 
1.7 “Pre-lease Interest/Grace Period Interest/Rent Payment Form” means the Pre-lease Interest/Grace Period Interest/Rent Payment Form issued to the Lessee specifying the actual Rent amount and Rent, Pe-lease Interest, and Grace Period Interest payment deadline, which are calculated according to financing amount and actual payment date of the Lease Item Purchase Price, after the Lessor pays the first Lease Item Purchase Price according to the Agreement on the Transfer of Rights and Obligations. Where there is an inconsistency between the Pre-lease Interest/Grace Period Interest/Rent Schedule and the Pre-lease Interest/Grace Period Interest/Rent Payment Form, the later shall prevail.
 
1.8 “Equipment” means all the assets including facilities and structures used in the Zhonghong Yilong New District Xinqiao 70MWp Agricultural PV Power Station Project under the the Equipment Procurement Contract signed between the Lessee and the Seller, which are accepted by the Lessor according to the Agreement on the Transfer of Rights and Obligations. For details of Equipment, please refer to the List of Lease Items under the Agreement on the Transfer of Rights and Obligations.
 
1.9 “Lease Item” means all the assets used in the Zhonghong Yilong New District Xinqiao 70MWp Agricultural PV Power Station Project purchased by the Lessor from the Seller and leased to the Lessee, including PV power plant facilities, its replacements, components, add-ons, parts and updates, as well as structures. The specific details of the Lease Items shall be subject to the “Lease Item Acceptance Confirmation” issued by the Lessee.
 
1.10 “Lease Commencement Date” means the date when the Lessor starts to charge the Lessee the Grace Period Interest/lease loan principal and interest. Unless otherwise agreed in this Contract, the Lease Commencement Date is the date of acceptance specified by the Lessee in the Lease Item Acceptance Confirmation or the latest Lease Commencement Date set out in the Lease Schedule.
 
1.11 “Payment Date” means the date on which the Lessee pays the Rent and other payables to the Lessor. Specifically, it is subject to the Lease Agreement
 
1.12 “Financing Period” means the period from the date on which the Lessor pays the Lease Item Purchase Price to the expiration of the period during which the Lessee leases the Lease Items under the Lease Agreement.
 
1.13 “Lease Term” means the period from the Lease Commencement Date hereunder to the expiration of the period during which the Lessee leases the Lease Items under the Lease Agreement.
 
1.14 “Pre-lease Period” means the period from the date on which the Lessor pays the first Lease Item Purchase Price to the Lease Commencement Date. During the Pre-lease Period, the Lessee only pays the Lease Loan Interest and does not pay the Lease Loan Principal.
  
	 
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	SOLARMAX YILONG FINANCIAL LEASING CONTRACT

	

1.15 “Grace Period” means the period from the Lease Commencement Date hereunder to the date on which the Lessor starts to charge the Lease Loan Principal as stipulated in the Lease Schedule. During the Grace Period, the Lessee only pays the Lease Loan Interest and does not pay the Lease Loan Principal.
 
1.16 “Contract Term” means the period from the date of signing of the Contract to the date on which the obligations hereunder have been fulfilled completely.
 
1.17 “Rent” means the consideration paid by the Lessee to the Lessor for the Lease Items in accordance with this Contract, including the Lease Loan Principal and the Lease Loan Interest. Specifically, it is subject to the Lease Agreement.
 
1.18 “Lease Loan Principal” means the Lease Item Purchase Price paid by the Lessor to the Seller as agreed in the Lease Agreement, which is the financing amount actually provided to the Lessee. The specific amount is subject to the Lease Agreement
 
1.19 “Lease Loan Interest” means interest calculated based on the Lease Loan Principal and the Lease Loan Interest Rate.
 
1.20 “Lease Loan Interest Rate” means the interest rate applicable to the calculation of the Rent based on the Lease loan Principal. The interest rate is determined by reference to the benchmark loan interest rate for the same period announced by the People’s Bank of China, subject to the Lease Agreement.
 
1.21 “Pre-lease Interest” means the capital cost that the Lessee shall pay to the Lessor during the Pre-lease Period.
 
1.22 1.20 “Pre-lease Interest Rate” means the interest rate applicable to the calculation of the Pre-lease Interest based on the Lease loan Principal. The interest rate is determined by reference to the benchmark loan interest rate for the same period announced by the People’s Bank of China, subject to the Lease Agreement.
 
1.23 1.21 “Grace Period Interest” means the capital cost that the Lessee shall pay to the Lessor during the Grace Period.
 
1.24 1.20 “Grace Period Interest Rate” means the interest rate applicable to the calculation of the Grace Period Interest based on the Lease Loan Principal. The interest rate is determined by reference to the benchmark loan interest rate for the same period announced by the People’s Bank of China, subject to the Lease Agreement.
 
1.25 “Commission Fee” means the service fees charged by the Lessor to the Lessee for this financial leasing transaction. The specific amount and corresponding payment date shall be subject to the Lease Agreement.
 
1.26 The “Lease Security Deposit” means certain amount of funds paid by the Lessee to the Lessor to ensure that the Lessee will fulfill its obligations hereunder. The specific amount and payment date shall be subject to the Lease Agreement.
 
1.27 “Retention Price” means the nominal price that the Lessee should pay to the Lessor for acquiring the ownership of the Lease Items at the expiration of the Lease Term.
 
1.28 “Late Penalty” means the penalty charged by the Lessor to the Lessee due to the Lessee’s delay in paying the Rent and other payables, which is calculated from the day on which such Rent and other payables are due as agreed to the actual payment thereof. The specific calculation method shall be subject to the Lease Schedule.
   
	 
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	SOLARMAX YILONG FINANCIAL LEASING CONTRACT

	

 
1.29 “Supply Contract” means the Equipment Procurement Contract signed by the Lessee and the Seller, Agreement on the Transfer of Rights and Obligations and related annexes.
 
1.30 “Seller” means the Equipment supplier under the “Supply Contract”, responsible for procuring the Lease Items.
 
1.31 “Lease Item Purchase Price” means the consideration paid by the Lessor for acquiring the ownership of the Lease Items under the “Supply Contract”.
 
1.32 “Agreement on the Transfer of Rights and Obligations” means the “Agreement on the Transfer of Rights and Obligations”(No.:) and the related annexes signed and intended to be signed by the Lessor, the Lessee and the Seller, which stipulates that the Lessor shall accept the assignment from the Lessee of the rights and obligations to pay for and acquire the ownership of the Lease Items under the Equipment Procurement Contract, pay the Lease Item Purchase Price and acquire the full ownership of the Lease Items, and lease them to the Lessee for use.
 
Clause 2 Transactions and Lease Items
 
2.1 The Lessee, based on the need for financing, conducts financing lease business with the Lessor in accordance with this Contract. The Lessor agrees to sign the Financial Leasing Contract and the Lease Schedule with the Lessee. Both Parties confirmed that the Lessee enters into a “Supply Contract” with the Seller based on its selection of the Lease Items and the Seller. The Lessor agrees to conduct financial leasing transaction with the Lessee for the Lease Items under the above-mentioned “Supply Contract”.
 
2.2 The Lessor, the Lessee, and the Seller sign the “Agreement on the Transfer of Rights and Obligations”, which stipulates that the Lessor shall accept the assignment from the Lessee of the rights and obligations to pay for and acquire the ownership of the Lease Items under the Supply Contract, pay the Lease Item Purchase Price and acquire the full ownership of the Lease Items. Both Parties confirm that when the Lessor pays the Seller the first Lease Item Purchase Price in accordance with the Supply Contract, the ownership of the Lease Items is transferred from the Seller to the Lessor and the Lease Items are leased out by the Lessor to the Lessee. The Lessee agrees to lease the Lease Items from the Lessor and perform all obligations and liabilities in accordance with the Lease Agreement and the Pre-lease Interest/Grace Period Interest/Rent Payment Form, including the payment of the Rent to the Lessor.
 
2.3 Both Parties confirm that they only assign and accept the assignment of the rights and obligations to pay for and acquire the ownership of the Equipment in accordance with the Agreement on the Transfer of Rights and Obligations, other rights and obligations under the Supply Contract shall still be enjoyed and borne by the Lessee, and the Lessee shall abide by and perform such rights and obligations under the Supply Contract.
  
	 
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	SOLARMAX YILONG FINANCIAL LEASING CONTRACT

	

   
2.4 The Lease Items hereunder is specified in the Lease Schedule of this Contract. The Lessor may pay the purchase price in a lump sum or by installment, and will lease out the Lease Items in a one-off manner. For details, please refer to the Lease Schedule. After the Lessor pays each Lease Item Purchase Price according to the “Supply Contract”, the Lease Item Purchase Price forms a leasing claim, which is subjedct to the Pre-lease Interest/Grace Period Interest/Rent Payment Form issued by the Lesssor. The aggregation of leasing claims formed by each Lease Item Purchase Price constitute the total leasing claim hereunder. After the Lease Commencement Date, the total leasing claim forms a consolidated claim, which is subject to Pre-lease Interest/Grace Period Interest/Rent Payment Form. Before the Lease Commencement Date specified in this Contract, the Lease Item shall be subject to the “List of Lease Items” in the “Agreement on the Transfer of Rights and Obligations” signed by the Lessor, the Lessee and the Seller, and listed in the “Notice of Payment” submitted by the Lessee; after the Lease Commencement Date, it shall be subject to the “List of Lease Items” set out in the Lease Item Acceptance Confirmation submitted by the Lessee.
 
2.5 The Lessee confirms that the Seller of the Lease Items is independently selected and determined by the Lessee, the name, model, quality, quantity, technical standard and inspection standard and method, as well as the price, delivery time and transportation arrangement of the Lease Items are all selected and determined by the Lessee upon negotiation with the Seller, without relying on the Lessor’s skills and judgments, or being affected or interfered with by the Lessor, and the Lessor neither requires the Lessee to make such selection according to the Lessor’s willingness, nor changes the Lease Items and the Seller that have been selected by the Lessee. The Lessee shall bear full responsibility for its decision and selection, and under no circumstances will the Lessor bear such responsibility.
 
Clause 3 Lease Item Acquisition and Purchase Price Payment
 
3.1 The Lessee has signed the “Equipment Procurement Contract” with the Seller and signed the corresponding “Agreement on the Transfer of Rights and Obligations” with the Lessor and the Seller according to the Lease Items and the Seller selected and determined by the Lessee, which stipulates that the Lessor shall accept the assignment from the Lessee of the rights and obligations under the “Supply Contract” regarding the payment and acquisition of Equipment ownership. Both Parties agree and confirm that the Lessor appoints the Lessee to perform, on bahlaf of the Lessor, all rights, obligations and liabilities other than the acquisition of the ownership of the Lease Items and the payment of the Lease Item Purchase Price under the Supply Contract, including but not limited to the rights and obligations under the “Supply Contract” regarding Equipment installation, commissioning, maintenance, etc. The Lessee shall bear the costs arising therefrom and corresponding consequences. If the Lessee causes any losses in performing the “Supply Contract”, it shall make compensation. The Lessee confirms and agrees to the above-mentioned agreement.
 
3.2 The Lease Item Purchase Price hereunder is set out in the Lease Schedule. Other than the purchase price stipulated in the Agreement on the Transfer of Rights and Obligations, which shall be paid by the Lessor, the other payment obligations shall be borne by the Lessee, and the Lessee shall itself deal with the dispute and controversy with the Seller arising from the failure to comply with or perform the other payment obligations under the Supply Contract, and the Lessor shall not bear any responsibility therefor. If the actual settlement price of the Lease Items exceeds the Lease Item Purchase Price under the Agreement on the Transfer of Rights and Obligations, the difference shall be borne by the Lessee.
 
3.3 The Lessee agrees and confirms that although the Lessor only assumes the obligation to pay the Lease Item Purchase Price, the Lease Items under the “Supply Contract” is owned by the Lessor, and the Lessee undertakes to waive its ownership of the Lease Items under the Supply Contract and shall not claim ownership of the Lease Items on the grounds of bearing other obligations under the Supply Contract (including but not limited to the obligation to pay the subsequent project funds).
   
	 
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	SOLARMAX YILONG FINANCIAL LEASING CONTRACT

	

 
3.4 After the Lessor pays the Lease Item Purchase Price under the “Supply Contract”, it shall be deemed to have fulfilled the obligation to pay the Lease Item Purchase Price hereunder. After the payment conditions stipulated in this Contract and the “Supply Contract” is satisfied, the Lessor will review the amount stated in the “Notice of Payment” submitted by the Lessee and the Seller; if there is no error, it shall pay the Lease Item Purchase Price under the List of Lease Items in the Notice of Payment to the account designated by the Seller and/or the Lessee in a lump sum or by installment, and the Lease Item Purchase Price paid by the Lessor shall constitute the leasing claim hereunder, which is specifically subject to the content listed in the “Pre-lease Interest/Grace Period Interest/Rent Payment Form” issued by the Lessor. If any “Supply Contract” is canceled or terminated due to the fault of the Lessee, it shall constitute a fundamental breach of contract by the Lessee, and the Lessor has the right to cancel this Contract and hold the Lessee liable for breach of contract.
 
3.5 Both Parties confirm that all the payment conditions stipulated in the Agreement on the Transfer of Rights and Obligations shall be satisfied before the Lessor pays the Lease Item Purchase Price according to the Agreement on the Transfer of Rights and Obligations and the schedule of this Contract. The Lessor has the right to waive part of the aforementioned payment conditions at its sole discretion. Notwithstanding the foregoing, the Lessor still has the right to require the Lessee to satisfy the above-mentioned payment conditions as required by this Contract and the Agreement on the Transfer of Rights and Obligations after paying the Lease Item Purchase Price. Unless otherwise stipulated in this Contract, before the Lessor pays the Lease Item Purchase Price, the Lessee shall ensure that the payment conditions stipulated in this Contract and the Agreement on the Transfer of Rights and Obligations are satisfied, and all documents and materials provided by the Lessee to the Lessor shall remain in force and the circumstances set forth therein shall remain unchanged or, if there is any change, the Lessee has made reasonable description thereof recognized by the Lessor.
 
3.6 Both Parties confirm and agree that, in addition to the Lease Item Purchase Price, other expenses for the acquisition of the ownership of the Lease Items shall be settled by the Lessee at its own expense. If the Lessee bear the aforesaid expenses, it shall not be deemed that the Lessor is in breach of the obligation to pay the Lease Item Purchase Price hereunder, nor shall it affect the Lessor’s full ownership of the Lease Items. Any dispute between the Lessee and the Seller due to the payment of such expenses shall be settled by the Lessee and the Seller, and the Lessor shall not bear any responsibility therefor.
 
Clause 4 Delivery and Ownership of Lease Items
 
4.1 The Lessor is not responsible for the delivery of the Lease Items and does not bear the expenses, costs and risks associated with the delivery. The Lessee shall negotiate with the Seller directly to determine the matters concerning the delivery of the Lease Items, which shall be stipulated in the Supply Contract, including but not limited to the delivery time, place of delivery, delivery method, and expenses incurred for delivery.
 
4.2 The Lease Items shall be delivered directly by the Seller to the Lessee. If the place of delivery specified in the “Supply Contract” is not the place of use of the Lease Items, the Lessee shall transport the Lease Items to the place of use and bear the transportation fee, insurance premiums and other related expenses arising therefrom. On the date on which the Lessee delivers the Lease Items, the Lessee shall promptly take delivery of, inspect and accept the Lease Items and issue the Lease Item Acceptance Confirmation to the Lessor. The delivery date stated in the Confirmation of Acceptance of Leases is the date of delivery of the corresponding Lease Items. The Lessee’s delay or failure to issue a “Lease Item Acceptance Confirmation” does not affect the delivery of the Lease Items and the transfer of ownership of the Lease Items, and the Lessor has the right to require the Lessee to compensate the Lessor for all the losses suffered therefrom.
  
	 
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4.3 Before the signing of the Agreement on the Transfer of Rights and Obligations, for the Equipment that the Seller has delivered to the Lessee (if any), the Lessee shall, on the date when the Lessor pays the first Lease Item Purchase Price, submit the “Lease Item Acceptance Confirmation” of the Equipment and the delivery note signed by the Lessee and the Seller, and the ownership of the Equipment shall be transferred to the Lessor from the date the Lessor pays the first Lease Item Purchase Price.
 
4.4 The Lessee shall complete the delivery of all the Lease Items and issue the Lease Item Acceptance Confirmation to the Lessor before the latest Lease Commencement Date set out in the corresponding Lease Schedule of this Contract, otherwise the Lessor has the right to cancel this Contract.
 
4.5 Both Parties confirm that the ownership of the Lease Items shall be transferred to the Lessor from the date when the Lessor pays the first Lease Item Purchase Price in accordance with the provisions of the Agreement on the Transfer of Rights and Obligations (the details of the Lease Items shall be subject to the Lease Item Acceptance Confirmation), the Lessee shall not claim the ownership of the Lease Items against the Lessor on the grounds that it makes payment of relevant amount (if any). During the Financing Period, the Lessor is the sole legal owner of the Lease Items, and the Lessor has the right to publicize and register the Contract and the Lease Items in the “Unified Registration Platform for Movable Property Financing “ of Credit Reference Center of the People’s Bank of China, and to set an ownership label on the Lease Items. The Lessee shall actively cooperate and ensure that the label is not damaged or covered during the Lease Term.
 
4.6 Due to any reason not attributable to the Lessor, any third party claims rights to the Lease Items and thus causes a dispute, the Lessee shall bear the responsibility and the losses incurred therefrom by the Lessor. If the foregoing circumstances set out in this paragraph occur, it shall not affect any the debts, obligations and liabilities that the Lessee shall bear hereunder.
 
4.7 Without the prior written consent of the Lessor, the Lessee shall not commit any of the following acts that endanger the Lease Items and the Lessor’s ownership thereof:
 
(1) To transfer, sublease, lend or otherwise dispose of the Lease Items;
 
(2) To set mortgages, pledges, liens or other rights restrictions on the Lease Items;
 
(3) To cooperate with a third party using the Lease Items as an investment or a cooperation condition;
 
(4) To remove the Lease Items from the place of use stated in the Lease Schedule without the consent of the Lessor;
 
(5) To reduce the value of the Lease Items by replacing the Lease Items, or adding or replacing parts, device, services, software, etc. thereof;
  
	 
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(6) To cover and destroy the ownership label set by the Lessor on the Lease Items;
 
(7) To indicate expressly or explicitly that the Lessee is the owner of the Lease Items or allows any other person to reasonably consider that the Lessee is the owner;
 
(8) To take the Lease Items as the property for the Lessee to bear its civil liability or include the Lease Items in bankruptcy property of the Lesse when it goes bankrupt;
 
(9) Any other act that may infringe the Lease Items and the ownership thereof.
 
4.8 When the Lease Items are attached to other movable property or real estate, the right of the Lessor to the Lease Items is not changed. In any case, without the consent of the Lessor, the Lessee may not transfer the Lease Items together with other movable property or real estate to which the Lease Items are attached or impose other rights restrictions thereon. At the same time, the Lessee shall obtain and retain all the certificates or documents relating to such attachment and take necessary measures to (a) prevent any creditor, mortgagee or other entity (other than the Lessor) from setting any guarantee or encumbrance on any Lease Items; and (b) ensure that the Lessor has the right to access and dismantle the Lease Items in accordance with the Lease Agreement.
 
4.9 At the time of signing this contract, if the Lessor is unable to register the ownership of the Lease Items due to reason attributable to laws and regulations or registration system, the fact that the Lessor is the sole legal owner of the Lease Items shall not be affected. If the ownership registration of the Lease Items can be realized within the term of the Contract, the Lessee confirms that it will unconditionally assist the Lessor to apply for the registration of ownership of the Lease Items.
 
Clause 5 Pre-lease Period, Pre-lease Interest, Grace Period, Grace Period Interest, Lease Term, Rent Calculation and Other Payment
 
5.1 Pre-lease Period, Pre-lease Interest, Grace Period, Grace Period Interest, Lease Term, Rent, Lease Loan Interest Rate, other payment calculation method, payment method, account No., etc. hereunder shall be subject to the Lease Schedule. The Lessor shall, in accordance with the Lease Item Purchase Price and the payment node as stipulated in the Agreement on the Transfer of Rights and Obligations, prepare the corresponding “Pre-lease Interest/Grace Period Interest/Rent Schedule”, which shall be affixed with the seal of and confirmed by the Lessee before the Lessor pays the amount. The Pre-lease Interest, Grace Period Interest, and Rent stated in the “Pre-lease Interest/Grace Period Interest/Rent Schedule” shall be calculated based on the Lease Item Purchase Price paid by the Lessor and the benchmark loan interest rate for the same period announced by the People’s Bank of China on the date of signing this Contract, and the estimated Pre-lease Interest, Grace Period Interest, and Rent shall be calculated in accordance with the calculation method set out in the Lease Schedule.
 
Both Parties confirm that after the actual payment of the Lease Item Purchase Price, the Lessor shall, in accordance with the calculation method and payment method stipulated in the Lease Schedule, prepare the corresponding “Pre-lease Interest/Grace Period Interest/Rent Payment Form” according to each Lease Item Purchase Price and the specific Payment Date, and send it to the Lessee. The Pre-lease Interest/Grace Period Interest/Rent Payment Form, this Contract and its Lease Schedule shall constitute a Lease Agreement. Unless there is error in the calculation, the Lessee shall pay the Lessor relevant amount according to the amount, currency, time and method of payment specified in the Pre-lease Interest/Grace Period Interest/Rent Payment Form. Unless otherwise provided in this Contract, neither Party may suspend or terminate the lease of the Lease Items within the term of the Contract.
  
	 
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5.2 The Pre-lease Interest, Grace Period Interest, Rent and other expenses quoted hereunder include taxes. The Rent consists of the Lease Loan Principal and the Lease Loan Interest. When the Lessee pays the Pre-lease Interest, it shall calculate the interest payable for the current period according to the provisions stipulated in the corresponding Lease Agreement, and calculate the tax amount according to the applicable tax rate and the interest payable as the taxable base. The VAT amount as stated in the “Pre-lease Interest/Grace Period Interest/Rent Payment Form” shall be adjusted if the Lease Loan Interest is adjusted due to the adjustment of Lease Loan Interest Rate.
 
5.3 During the Pre-lease Period/Grace Period hereunder, for the Lease Item Purchase Price paid by the Lessor, the Lessee shall pay the Lessor the Pre-lease Interest/Grace Period Interest according to the Lease Loan Interest calculated according to the Lease Loan Interest Rate stipulated in the Corresponding “Pre-lease Interest/Grace Period Interest/Rent Payment Form”. The Pre-lease Interest/Grace Period Interest is calculated according to the Lease Item Purchase Price actually paid by the Lessor and the actual number of days of the Pre-lease Period/Grace Period, and the payment method of the Pre-lease Interest/Grace Period Interest and the date on which the Pre-lease Interest/Grace Period Interest starts to be calculated is stipulated in the Lease Schedule.
 
5.4 Both Parties confirm that the Pre-lease Interest/Grace Period Interest/Rent in the “Pre-lease Interest/Grace Period Interest/Rent Schedule” agreed in the Lease Schedule shall be the estimated Pre-lease Interest/Grace Period Interest/Rent calculated according to the estimated payment date and amount of the Lease Item Purchase Price to be paid by the Lessor, the benchmark loan interest rate for the same period announced by the People’s Bank of China at that date, and the calculation method stipulated in the Lease Schedule. If the benchmark loan interest rate for the same period announced by the People’s Bank of China at the Payment Date of the Lease Item Purchase Price and the Lease Commencement Date is inconsistent with the interest rate agreed in the Pre-lease Interest/Grace Period Interest/Rent Schedule, the Lessor shall adjust the amount of Pre-lease Interest/Grace Period Interest/Rent according to the benchmark loan interest rate for the same period announced by the People’s Bank of China on the Payment Date of the Lease Item Purchase Price and the Lease Commencement Date, and issue the Pre-lease Interest/Grace Period Interest/Rent Payment Form to the Lessee.
 
5.5 After receiving the Pre-lease Interest, Grace Period Interest and Rent paid by the Lessee, the Lessor shall issue to the Lessee VAT invoice equal to the amount of the Pre-lease Interest, Grace Period Interest and Rent.
 
5.6 During the term of this Contract, if the benchmark loan interest rate for the same period announced by the People’s Bank of China is adjusted, the Lease Loan Interest Rate, interest rate for the Grace Period and interest rate for the Pre-lease Period shall be adjusted proportionally in the same direction. The amount of the Rent, Grace Period Interest, Pre-lease Interest for the period before and covering the benchmark loan interest rate adjustment date shall remain unchanged. From the beginning of the next lease period, the Rent, Grace Period Interest, Pre-lease Interest shall be charged according to the adjusted Lease Loan Interest Rate, interest rate for the Grace Period, and interest rate for the Pre-lease Period, and the Lessor shall issue to the Lessee a Notice of Adjustment to Rent/Grace Period Interest/Pre-lease Interest. The Lessee confirms that the Lessor does not need to obtain the Lessee’s consent for the above-mentioned adjustment to the Lease Loan Interest Rate, interest rate for the Grace Period, and interest rate for the Pre-leasing Period. Unless there is error in the calculation, the Lessee shall pay the Lessor the Rent, Grace Period Interest, and Pre-lease Interest according to the amount, currency, time and method of payment specified in the Notice of Adjustment to Rent/Grace Period Interest/Pre-lease Interest issued by the Lessor. If The Lessor delays in issuing or fails to issue the “Notice of Adjustment to Rent/Grace Period Interest/Pre-lease Interest, it shall not be deemed that the Lessor waives the right to adjust the Rent, Grace Period Interest, and Pre-lease Interest. The Lessor shall still have the right to adjust the Rent, Grace Period Interest, and Pre-lease Interest according to the provisions of this Clause, and require the Lessee to pay the Rent, Grace Period Interest, and Pre-lease Interest and other payables according to the adjusted amount. If the “Notice of Adjustment to Rent/Grace Period Interest/Pre-lease Interest” is inconsistent with the provisions of the Lease Schedule and the “Pre-lease Interest/Grace Period Interest/Rent Payment Form”, the “Notice of Adjustment to Rent/Grace Period Interest/Pre-lease Interest” shall prevail.
   
	 
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5.7 The Lessee understands and recognizes the nature of the financial leasing of this Contract. Therefore, the Lessee agrees that during the term of this Contract, if any applicable laws or regulations (or their interpretation) or financial regulatory policies or financial markets in China undergo any major changes (for example, the PBOC no longer publishes the benchmark interest rate) or it is required to comply with any requirements of any regulatory agency/government department (whether made in writing or orally), resulting in a significant increase in the cost incurred by the Lesssor for providing (or maintaining) the financial leasing transaction, a change in the basis for the calculation of the Lease Loan Interest Rate by the Lessor, and/or a significant decrease in the net income obtained by the Lessor from the financial leasing transaction described in this Contract, the Lessor reserves the right to reasonably re-determine the Lease Loan Interest Rate as stated in the financial leasing transaction and the calculation method or adjust the applicable period of interest rate to ensure that the rights and interests of the Lessor hereunder are not affected. If the above-mentioned changes in laws and regulations or the requirements of any regulatory agency/government department are retroactive, and thus cause increase in the cost of the Lessor and/or decrease in the net income of the Lessor in the retroactive period, the Lessee shall make compensation to the Lessor within fifteen working days after receiving the written notice of the Lessor. Unless there is a significant calculation error in the Lessor’s compensation requirements or the Rent calculated by the Lessor based on the re-determined Lease Loan Interest Rate, the Lessor’s written notice of payment of the Rent or the relevant compensation request issued pursuant to the re-determined Lease Loan Interest Rate shall be the decisive evidence of the Rent or compensation amount payable by the Lessee to the Lessor.
 
5.8 If the Lessee refuses to accept the above interest adjustment, or fails to reach a consensus with the Lessor through negotiation within 10 working days, the Lessor has the right to cancel this Contract. Under such circumstances, the Commission Fee, Rent and other fees already charged by the Lessor will not be refunded; the Lessee shall pay the Lessor the sum of the following amount: 1) outstanding and due Rent, Grace Period Interest, and Pre-lease Interest; 2) Late Penalty; 3) interest on the Lease Loan Principal in the immature Rent calculated according to the corresponding Lease Agreement to the cancellation date; 4) Lease Loan Principal in the immature Rent; 5) Retention Price; 6) other payables. After the Lessee pays the foregoing fees, the ownership of the Lease Items will be automatically transferred to the Lessee in an “As-Is” condition, which shall be dealt with by the Lessee at its own expense, and the Lessor shall not assume any responsibility or obligation arising therefrom.
 
5.9 Before the Lessor pays the Lease Item Purchase Price according to the “Supply Contract”, the Lessee shall pay the Lessor the Commission Fee and the Lease Security Deposit according to the calculation method and payment timeset out in the Lease Schedule. The Lessor shall not refund the Commission Fee after receiving it, and the Lease Security Deposit shall be interest free.
 
5.10 If the Lessee fails to perform or fully perform the obligations hereunder, the Lessor has the right to use the Lease Security Deposit to offset the amount payable by the Lessor in the following order: (1) Late Penalty; (2) Rent payable, Grace Period Interest, and Pre-lease Interest (3) agreed damages (if any); (4) other payables. The Lessor has the right to change the above repayment order at its discretion. After the above-mentioned offset, the Lessee shall promptly make up the Lease Security Deposit according to the Lessor’s notice. If the Lessee fails to make up the Lease Security Deposit as required, the Lessor has the right to use the Rent or other funds paid by the Lessee thereafter to make up the Lease Security Deposit. If the Lessee does not have any amount in arrears during the performance of this Contract, the Lessor will refund the above-mentioned Lease Security Deposit to the bank account number specified by the Lessee within five working days after confirming that the Lessee has fulfilled all of its liabilities and obligations under the Lease Agreement.
  
	 
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5.11 The Lessee’s obligation to pay the Pre-lease Interest/Grace Period Interest/Rent and all other payables under the Contract is unconditional. All the amount payable by the Lessee hereunder shall be paid to the Lessor on time and in full. Unless otherwise provided in this Contract, the Lessee shall not claim any reduction, deduction or offset of the payables for any reason.
 
5.12 Both Parties agree and confirm that the account used by the Lessee to pay the Rent and other payables to the Lessor (“Lessee’s Account”) and the account used by the Lessor to receive the Pre-lease Interest/Grace Period Interest/Rent paid by the Lessee (“Lessor’s Account”) are subject to the Lease Schedule.
 
5.13 Within the performance period of this Contract, if either Party changes the account specified in the Lease Schedule, it shall notify the other Party in writing five (5) working days in advance. If the other Party fails to receive the notice in time due to the fault of the Party with change, the change will not take effect for the other party.
 
5.14 The Lessee shall take initiative to pay the Rent hereunder. It shall pay the Rent and other payables on time and in full to the Lessor’s Account as stated in the Lease Schedule, in accordance with the time, amount and payment method set out in the Pre-lease Interest/Grace Period Interest/Rent Payment Form. Where the Lessee pays the Grace Period Interest, Rent, Commission Fee, Lease Security Deposit and other payables in advance, it shall be deemed to make payment on the due date.
 
5.15 The Payment Date specified in the Contract, Lease Schedule, and Pre-lease Interest/Grace Period Interest/Rent Payment Form shall be the date of receipt, and if the Payment Date is a non-banking business day, the banking business day immediately before such date shall be the Payment Date.
 
5.16 If the Lessor fails to receive the Pre-lease Interest, Grace Period Interest, Rent or other receivables on time and in full due to the fault not attributable to the Lessor, the Lessor has the right to request the Lessee to pay a Late Penalty for the period until the actual payment date.
 
Clause 6 Lease Items Quality Defect, Claims and Risk Bearing
 
6.1 In view of the fact that the Lessee shall select the Lease Items and the Seller based on its own needs, no representation or warranty is made by the Lessor therefor, expressly or explicitly. The Lessee shall assume full responsibility for the selection and determination of the name, quantity, performance, specifications, model, quality, delivery time, place and method, etc. of the Lease Items, and the Lessor does not assume any responsibility therefor.
  
	 
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6.2 If the Lease Items fails to meet the requirements of the “Supply Contract” or meet the requirements for use, including but not limited to failure to deliver or delay in delivering the Lease Items, quality defects, or the Seller’s failure to perform transportation, technical support and other obligations under the “Supply Contract” or failure to satisfy the Lessee for any reason, the Lessee shall itself make a claim directly against the Seller under the “Supply Contract”. Where the Lessor cooperate to provide relevant documents and assign relevant staff members in accordance with the reasonable requirements of the Lessee, it shall be deemed to have fulfilled the necessary assistance obligations. Any compensation and maintenance agreement between the Lessee and the Seller regarding the Lease Items shall be confirmed in writing by the Lessor in advnace and submitted to the Lessor for record in a timely manner. Any expenses and costs incurred in the above-mentioned claim process, including the costs incurred by the Lessor for assisting the Lessee in making the claim, shall be borne by the Lessee.
 
6.3 During the term of this Contract, the Lessee shall be liable for compensation for the personal injury or property damage caused to the Lessor and any third party by the Lessee’s possession and use of the Lease Items.
 
6.4 If it is unable to use the Lease Items under the circumstances described in paragraph 6.2 of this Clause, the Lessee shall take reasonable and effective measures to ensure that the Lease Items and the Lessor’s ownership thereof are not damaged
 
6.5 Whether or not the Lessee initiates a claim, litigation or arbitration against a third party, whether or not the Lessee obtains compensation through such claim, litigation or arbitration, and whether or not the quality defect of the Lease Items described in paragraph 6.2 of this Clause is settled effectively, the validity and performance of this Contract shall not be affected. The Lessee shall still pay the Rent and other payables in full and on time according to this Contract, and perform all other obligations hereunder.
 
Clause 7 Insurance
 
7.1 During the term of this Contract, unless otherwise agreed in the Lease Schedule, the Lessee shall, as an applicant, effect an insurance for the Lease Items at its own expenses, with the specific insurance type, time, amount, conditions, etc. being subject to the Lease Schedule.
 
7.2 The insurance for the Lease Items hereunder must meet at least the following conditions:
 
(1) The type of insurance must be approved by the Lessor and meet the requirements of national laws, policies or industry practices, and the insurance shall continue to be valid during the term of this Contract;
 
(2) The insurance is effected with an insurance company recognized or agreed by the Lessor;
 
(3) The insurance amount shall not be less than the value of the Lease Items on the Lease Commencement Date (based on the higher of the carrying amount or appraised value);
 
(4) The Lessor is the first beneficiary (or additional insured).
 
7.3 The insurance premiums incurred by the Lessee for the insurance of the Lease Items shall be borne by the Lessee. The Lessee shall submit the original insurance policy/insurance endorsement to the Lessor for custody.
  
	 
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7.4 The Lessee shall renew the insurance as stipulated in this Contract ten (10) working days before the expiration date of the insurance, and timely submit the original copy of the renewed insurance policy/insurance endorsement to the Lessor.
 
7.5 If the Lessee fails to perform the insurance obligation as stipulated in this Clause, the Lessor has the right to effect or renew the insurance on its own, and the various expenses and costs arising therefrom shall be borne by the Lessee. Both Parties confirm that the aforesaid provisions does not constitute the obligation of the Lessor to effect an insurance, and the Lessor has the right to decide whether to insure or renew the insurance. The Lessee shall pay the insurance premium and the corresponding fees to the Lessor’s Account in full within three (3) working days from the date of receipt of the details of the insurance premium issued by the Lessor, if the Lessee fails to pay or fully pay such amount in time, the Lessor has the right to deduct it from the Rent and/or the Lease Security Deposit and collect a penalty as agreed, without prejudice to any claim that the Lessor may file against the Lessee.
 
7.6 Without the prior written consent of the Lessor, the Lessee may not cancel or change the insured/insurance beneficiary and other insurance clauses concerning the Lessor’s right and interest, nor transfer the insurance interest. The Lessor has the right to transfer the insurance interest and the Lessee shall provide necessary assistance.
 
7.7 After the occurrence of an insurance accident, the Lessee shall immediately notify the Lessor and the insurance company, immediately carry out loss assessment and file a claim, and take any necessary measures (including providing the Lessor with the documents required by the Lessor, completing the claim procedures, etc.) to ensure that insurance company will pay the insurance indemnity in a timely manner. Unless otherwise agreed in the Lease Schedule, the insurance indemnity for the Lease Items shall be directly and fully received by the Lessor.
 
7.8 The insurance insemnity shall be received and used in the following method:
 
(1) If the Lease Items do not suffer total loss, and the Lessee does not commit a breach of contract hereunder, the Lessor authorizes the Lessee to receive the insurance indemnity and the Contract shall remain valid. If the Lessee does not commit any breach of contract hereunder, the insurance indemnity shall be used to pay expenses for the repair or replacement of the Lease Items hereunder; if the Lessee has committed a breach of contract hereunder, the insurance indemnity shall be used preferentially to pay the amount owed by the Lessee or the liability for breach of contract, and the remainder shall be used to pay for expenses for the repair or replacement of the Lease Items. The Lessee shall notify the Lessor in writing of the insurance claim settlement and the use of the insurance indemnity within seven (7) working days after the end of the claim settlement.
 
(2) If the Lease Items suffer total loss, the Lessor has the right to terminate this Contract in advance. The Lessee is responsible for the claim settlement and the Lessor shall receive the insurance indemnity. The insurance indemnity shall be used to pay the following amount in the following order: 1) Late Penalty; 2) outstanding and due Rent, Grace Period Interest, and Pre-lease Interest; 3) interest on the Lease Loan Principal in the immature Rent calculated according to the Lease Agreement to the actual termination date; 4) Lease Loan Principal in the immature Rent; 5) Retention Price; 6) other payables.
 
(3) If the insurance indemnity is insufficient to pay the amount specified in the preceding paragraph the Lessee is required to pay or is insufficient to pay the expenses for the above-mentioned repair or replacement of the Lease Items, the Lessee shall make up the shortfall. If there is a surplus after the amount specified in the preceding paragraph is fully paid using the insurance indemnity, the surplus shall be owned by the Lessee.
  
	 
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7.9 Both Parties confirm that the Lessee’s obligations and liabilities hereunder shall not be affected by the insurance invalidity and invalidation, insurance accident or insurance indemnity, and the Lessee shall still perform the obligation to pay the Rent and other payables and other obligations in accordance with the Lease Agreement.
 
7.10 If the Lease Items are damaged or lost under the circumstances that the Lessee fails to effect the insurance or due to the accident outside the insurance coverage, it shall be implemented in accordance with Clause 10 of this Contract.
 
Clause 8 Guarantee
 
8.1 The guarantee method hereunder is stipulated in the Lease Schedule. The Lessee shall actively cooperate with the relevant guarantor to sign a guarantee contract with the Lessor or issue a corresponding guarantee document to the Lessor, and go through various registration procedures required for the guarantee in accordance with the provisions of laws, regulations and rules.
 
8.2 If in the opinion of the Lessor, the Lessee has a decrease in creditworthiness or other event that makes it necessary for the Lessor to reasonably protect its rights occurs, the Lessor may request the Lessee to increase the corresponding guarantee and the Lessee shall immediately satisfy the request.
 
Clause 9 Lease Items Possession, Repair, Maintenance, and Risk Bearing
 
9.1 During the lease term, the Lessee shall use the Lease Items at the place of use specified in the Lease Item Acceptance Confirmation, and use repair, and maintain the Lease Items in accordance with the requirements of the Lessor and industry practice at its own expenses, keeping them in good appearance and operating condition.
 
9.2 The Lessee shall use the Lease Items strictly in accordance with the use instructions, operation specifications and designed use of the Lease Items and be equipped with professional operators, the daily repair and maintenance of the Lease Items shall be carried out by professional after-sales and maintenance organizations and personnel, and the Lessee shall prepare and keep manuals or records related to the use, repair, and maintenance of the Lease Items. All the expenses, tax, etc. arising from the use, repair and maintenance of the aforementioned Lease Items shall be borne by the Lessee. If the repair and maintenance requires any replacement, addition or renewal of parts, devices and services for the Lease Items, the Lessee shall notify the Lessor in writing and provide relevant information. The new parts, devices and services after the replacement, addition or renewal automatically become part of the Lease Items and shall be owned by the Lessorr free of charge.
 
9.3 Within the term of this Contract, in the event of a change in national policy, if the Lease Items is forcibly eliminated, the Lessee shall provide the equipment or assets not lower than the equivalent conditions, which shall be recognized by the Lessor and become the Lease Items hereunder, and the List of Lease Items shall be changed in time. The ownership of the replaced Lease Items shall be automatically transferred to the Lessee in an “As-Is” condition, and the Lessor shall automatically obtain the ownership of the alternative Lease Items after the replacement. If the Lessee fails to replace the Lease Items in time as agreed, it shall be deemed that the Lessee has committed a fundamental breach of contract, and the Lessor has the right to hold the Lessee liable for breach of contract in accordance with the paragraph 17.2.
   
	 
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9.4 The place of use of the Lease Items shall be subject to the “Lease Item Acceptance Confirmation”. The Lessee may not remove the Lease Items without the prior written confirmation of the Lessor. During the Lease Term, the Lessor or its agent has the right to request on-site inspection of the place of use of the Lease Items and the status of the Lease Items, and the Lessee shall provide necessary assistance and provide the Lessor with a record of the use, repair and maintenance of the Lease Items.
 
9.5 The Lessee shall not alter or replace the Lease Items or otherwise impair the value or function of the Lease Items without the prior written consent of the Lessor. The Lessor has the right to stop the Lessee’s act causing damage to the Lease Items and request the Lessee to take necessary remedies.
 
9.6 During the term of this Contract, the Lessee shall be liable for any personal injury or property damage caused by the Lease Items due to any reason not attributable to the Lessor, and the Lessor shall not bear any responsibility arising therefrom.
 
9.7 The Lessee’s dispute with any third party due to the use, repair and maintenance of the Lease Items does not affect its obligations to pay the Rent and other payables and other obligations hereunder.
 
9.8 If the Lessee loses possession of the Lease Items due to the reason not attributable to the Lessor, the Lessee shall immediately take necessary measures to request the return thereof, with the expenses incurred being borne by the Lessee, and the Lessee shall still pay the Rent and other payables in full and on time.
 
9.9 During the lease term, the Lessor shall not interfere with the Lessee’s legal right to quietly possess the Lease Items, unless the Lessee violates this Contract.
 
Clause 10 Damage to and Loss of the Lease Items and Treatment
 
10.1 Before the date when the Lease Items are delivered by the Seller to the Lessee, the risk of damage to and loss of the Lease Items shall be borne by the Lessee and the Seller in accordance with the “Supply Contract”. From the date when the Lease Items are delivered by the Seller to the Lessee, the risk of damage to and loss of the Lease Items shall be borne by the Lessee, including but not limited to the risks within the insurance coverage, risks outside the insurance coverage, and the risk of failure to effect an insurance. If the Lease Items are damaged or lost, the Lessee’s obligation to pay the Rent and other obligations hereunder will not be affected.
 
10.2 If the Lease Items do not suffer total loss, or suffer total loss, but can be replaced by equipment or assets not lower than the equivalent conditions, the Lessee shall immediately notify the Lessor in writing, and the Lessor has the right to choose any of the following method, with the Lessee being responsible for dealing with it and paying all the expenses. Under such circumstances, the Contract remains valid, and the Lessee should still perform the obligation to pay the Rent and other payables and other obligations under the Lease Agreement:
 
(1) Restoring or repairing the Lease Items to a state in which it can be used normally;
   
	 
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(2) Replacing the Lease Items with equipment or assets recognized by the Lessor and not lower than the equivalent conditions (including but not limited to equivalent specifications, quality, performance and value). These alternative equipment or assets are automatically and immediately become the Lease Items owned by the Lessor hereunder. The Lessee shall provide the relevant supporting documents of the alternative Lease Items at its own expense to assist in registering ownership thereof or going through change procedures (if required). The replaced Lease Items shall be automatically transferred to the Lessee in an “As-Is” condition, which shall be handled by the Lessee at its own expense. The Lessor does not assume any responsibility or obligation arising therefrom
 
(3) If the Lessee fails to perform the obligation to repair or replace the Lease Items as described above, it shall be deemed that the Lessee has committed a fundamental breach of contract, and the Lessor shall have the right to hold the Lessee liable for breach of contract in accordance with paragraph 17.2, and require the Lessee to pay all the outstanding and due Rent, immature Rent, Late Penalty, retention price and other payables. After the Lessee pays the above-mentioned amount in full, the ownership of the Lease Items (if any) will be automatically transferred to the Lessee in an “As-Is” condition, which shall be dealt with by the Lessee at its own expense, and the Lessor shall not assume any responsibility or obligation arising therefrom.
 
10.3 If the Lease Items suffer total loss, are lost or irreplaceable, the Lessee shall immediately notify the Lessor in writing, and both the Lessor and the Lessee shall have the right to cancel this Contract, and the Commission Fee, Rent and other fees already charged by the Lessor will not be refunded; the Lessee shall make compensation and pay the Lessor the sum of the following amount: 1) outstanding and due Rent; 2) Late Penalty; 3) Lease Loan Interest in the immature Rent calculated according to the Lease Agreement to the cancellation date; 4) Lease Loan Principal in the immature Rent; 5) Retention Price; 6) other payables. The ownership of the residual Lease Items lost or suffering total loss will be automatically transferred to the Lessee in an “As-Is” condition, which shall be dealt with by the Lessee at its own expense, and the Lessor shall not assume any responsibility or obligation arising therefrom.
 
Clause 11 Right of Retention and Transfer of Ownership at Expiration
 
11.1 Both Parties hereto unanimously confirm that after the expiration of the Lease Term, the Lease Items shall be purchased by the Lessee in accordance with the Retention Price of the Lease Items as stipulated in the schedules of this Contract.
 
11.2 Both Parties confirm and agree that after the expiration of the Lease Term hereunder and the Lessee has paid off all the Rent, Lease Term and other amount payable to the Lessor hereunder and fulfilled all other obligations, the Lessee shall obtain the ownership of the Lease Items in an “As-Is” condition. The Lessor does not make any representation or warranty regarding the performance and contitions of the Lease Items at that time.
 
11.3 After the ownership of the Lease Items is transferred to the Lessee, the Lessor shall cooperate with the Lessee to go through procedures for obtaining the ownership of the Lease Items, including but not limited to the issuance of the Notice of Transfer of Ownership to the Lessee, and the relevant taxes and fees (if any) arising from the transfer of ownership of the Lease Items shall be borne by the Lessee.
   
	 
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Clause12 Special Circumstances and Related Provisions
 
12.1 During the term of this Contract, under any of the following circumstances, the Lessee shall promptly notify the Lessor in writing and, in accordance with the requirements of the Lessor, provide appropriate guarantees and take effective remedies satisfactory to the Lessor. Otherwise, the Lessor has the right to take the remedies specified in this Contract and require the Lessee to bear the liability for breach of contract hereunder or to compensate the Lessor for all losses arising therefrom:
 
(1) The Lessee’s operating conditions deteriorate significantly;
 
(2) The Lessee ceases production, suspends business, carries out merger, separation, asset restructuring, or equity merger and acquisition, is involved in major legal litigation/dispute, or goes bankrupt, or its business license is revoked:
 
(3) The Lessee transfers property or secretly withdraws funds to avoid debts;
 
(4) The Lease Items are frozen, detained, retained, executed, or seized, or other events that affect their normal operation occur;
 
(5) The Project involved in this Contract violates relevant national laws, regulations, rules or industrial policies;
 
(6) The above-mentioned (1) to (3) circumstances occur to the guarantor or the value of the mortgaged (pledged) assets is seriously impaired, affecting the exercise of the rights of the mortgagee (pledgee);
 
(7) Occurrence of other events that may significantly affect the normal repayment of the debts hereunder.
 
12.2 During the term of the contract, if the Lease Items are forcibly acquired, requisitioned or expropriated by the government, the Lessee shall immediately notify the Lessor in writing, and the Lessor shall have the right to immediately cancel this Contract, and the Commission Fee, Grace Period Interest, Rent and other fees already charged by the Lessor will not be refunded; the Lessee shall make compensation and pay the Lessor the sum of the following amount: 1) outstanding and due Rent, Grace Period Interest and Pre-lease Interest; 2) Late Penalty; 3) Lease Loan Interest in the immature Rent calculated according to the Lease Agreement to the cancellation date; 4) Lease Loan Principal in the immature Rent; 5) Retention Price; 6) other payables.
 
12.3 After the Lessor has received all the above-mentioned amount from the Lessee, the lease agreement concerning the Lease Items that have been requisitioned or expropriated shall be terminated, and the ownership of the Lease Items that have been requisitioned or expropriated shall be automatically transferred to the Lessee in a “As-Is” condittion. The relevant expenses shall be borne by the Lessee, and the Lessor shall not assume any responsibility or obligation arising therefrom. If the Lessee fails to notify in time, the Lessor has the right to require the Lessee to compensate for all the losses caused thereby to the Lessor and to assume the liability for breach of contract hereunder.
 
12.4 Any form of compensation or consideration paid by a government department for expropriation or requisition shall first be used to pay all the amount payable by the Lessee specified in paragraph 12.2 of this Clause. If there is any surplus, the surplus shall be owned by the Lessee.
    
	 
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12.5 Both Parties confirm that if the Contract is invalidated or revoked, the ownership of the Lease Items shall be automatically transferred to the Lessee in an “As-Is” condition, the relevant expenses shall be borne by the Lessee, the Lessor shall not bear any responsibility and obligation arising therefrom, nor shall it refund the Commission Fee, Rent and other fees already charged by the it, and the Lessor shall have the right to require the Lessee to pay the following amount: 1) outstanding and due Rent, Grace Period Interest, and Pre-lease Interest; 2) Late Penalty; 3) Lease Loan Interest in the immature Rent calculated according to the corresponding Lease Agreement to the termination date; 4) Lease Loan Principal in the immature Rent; 5) Retention Price; 6) other payables.
 
12.6 If the “Supply Contract” is invalidated or revoked due to the reason not attributable to the Lessor, or the Lease Items cannot be delivered on the latest Lease Commencement Date, the Lessor and the Lessee shall negotiate a solution; if the negotiation fails, the Lessor or the Lessee has the right to cancel this Contract, and the ownership of the Lease Items that have been delivered shall be automatically transferred to the Lessee in an “As-Is” condition; the Lessor will not refund the Commission Fee, Grace Period Interest, Rent and other fees already charged by it, and shall have the right to require the Lessee to compensate the Lessor for all the losses suffered by the Lessor and pay the compensation, which shall include the sum of the following amount: 1) Late Penalty; 2) Pre-lease Interest/Grace Period Interest/Lease Loan Interest on the entire Lease Loan Principal calculated according to the corresponding Lease Agreement to the cancellation date; 3) entire Lease Loan Principal; 4) Retention Price; 5) other payables.
 
Clause 13 Notice, Service and Assistance
 
13.1 Any notice hereunder shall be made in writing and, unless otherwise stated, notices hereunder shall be made by letter, personal delivery or fax. Both Parties designate the address stated in this Contract as the communication and contact address.
 
13.2 If any Party’s communication address or other contact information changes, the Party shall timely notify the other Party in writing, otherwise the changes will not take effect for the purpose of this Contract.
 
13.3 Both Parties agree that any notice or document issued by either Party hereunder shall be delivered to the communication address set out in this Contract and shall be deemed to have been made or served under the following circumstances:
 
(1) If sent by letter, the fifth (5) working day after the letter is sent by a registered mail to the address specified in this Contract;
 
(2) If sent by personal delivery, the date on which the receipient signs off upon receipt;
 
(3) If sent by fax, when the transmission of the fax is confirmed by the transmission receipt, provided that the transmission receipt shall indicate the correct fax number and number of fax pages, no transmission error (or similar) information is displayed.
 
13.4 The Lessee agrees that the summons and notices issued under any litigation initiated against it shall be deemed to have been served as long as they are sent to the Lessee’s address as stated in this Contract.
  
	 
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13.5 During the term of this Contract, the Lessee shall perform the following notification and assistance obligations toward the Lessor:
 
(1) The Lessee shall provide the Lessor with a copy of its annual financial report and annual audit report affixed with the official seal of the Lessee within fifteen (15) working days after the completion of such reports;
 
(2) The Lessee shall provide reports on the use, repair and maintenance of the Lease Items within fifteen (15) working days after the end of each fiscal year;
 
(3) The Lessee shall notify the Lessor in writing at least thirty (30) working days prior to changing its name, organizational structure, legal representative, registered address or main business office;
 
(2) If the Lessee ceases production, suspends business, carries out merger, separation, asset restructuring, or equity merger and acquisition, is involved in major legal litigation/dispute, or goes bankrupt, or its business license is revoked, it shall notify the Lessor in writing within five (5) working days after the occurrence thereof;
 
(5) If any other event that has a material adverse effect on the Lessee’s performance hereunder occurs, the Lessee shall immediately notify the Lessor.
 
13.6 The Lessee confirms that the Lessor has the right to require the Lessee to provide other information required by the Lessor or to cooperate in other work from time to time according to the post-lease management of the financial leasing transaction hereunder, without prejudice to the normal operation of the Lessee.
 
Clause 14 Taxes and Fees
 
14.1 The Lessor agrees to pay the stamp duty, VAT applicable to financial leasing industry and surcharges, and income tax payable by it on the financial leasing transaction hereunder in accordance with the relevant laws and regulations of the People’s Republic of China.
 
14.2 The Lessee agrees that, except for the taxes and fees specified in paragraph 14.1, it shall bear other taxes and fees levied by the competent tax authorities on the financial leasing transaction hereunder in accordance with the relevant laws and regulations of the People’s Republic of China which are in force and promulgated and/or amended from time to time. In addition, all taxes and fees (if any) incurred in the transfer of the Lease Items hereunder shall be borne by the Lessee, including taxes and fees that may be payable by the Lessor for the transfer of ownership at expiration of the Contract set out in the Contract and the Lease Schedule, and for the Lessor’s disposal of the Lease Items due to the default of the Lessee. If the Lessor is required to pay the relevant taxes and fees for the reasons mentioned above, the Lessee shall pay the Lessor in full within five (5) working days after receiving the tax payment certificate of the Lessor If the Lessee refuses to pay such amount, the Lessor has the right to include the amount in the debt receivable and calculate the corresponding Late Penalty.
 
Clause 15 Representation and Warranty
 
15.1 Representation and Warranty of the Lessor
 
(1) The Lessor is a non-bank financial institution legally established and existing under the laws of the People’s Republic of China. It has an independent legal person status and has the qualification to engage in financial leasing business.
  
	 
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(2) The Lessor has completed all necessary internal measures required to sign and perform this Contract, which comply with the company’s articles of association, business scope specified in the business license and relevant laws and regulations;
 
(3) The Lessor has obtained all the approvals, permits or consents of competent government departments and third parties required to complete and execute this Contract;
 
(4) The Lessor shall notify the Lessee in writing at least thirty (30) working days prior to changing its name, organizational structure, legal representative, registered address or main business office;
 
(5) During the Lease Term, if the Lessee does not commit any breach of contract, the Lessor undertakes that the Lessee’s legal possession and use of the Lease Items will not be affected;
 
(6) The Lessor has carefully read all the terms of this Contract and all its schedules and annexes, fully understood the meaning of each clause and signed this Contract based on its true meaning.
 
15.2 Representation and Warranty of the Lessee
 
(1) The Lessee is a company legally established and existing under the laws of the People’s Republic of China. It has an independent legal person status and has the capacity for civil conduct and civil liability appropriate to the business scope stated in its business license, being a qualified party;
 
(2) The Lessee has completed all necessary internal measures required to sign and perform this Contract, which comply with the company’s articles of association, business scope specified in the business license and relevant laws and regulations;
 
(3) The Project involved in this Contract comply with the provisions of laws and regulations and have obtained the approval of all relevant national departments, which will continue to be valid during the Lease Term hereunder;
 
(3) The Lessee has obtained all the approvals, permits or consents of competent government departments and third parties required to complete and execute this Contract, and the approval documents are complete and valid
 
(5) There is no pending dispute, claim or legal proceeding between the Lessee and the Seller under the “Supply Contract”. The Lessee or the Seller do not commit and are not found to commit any breach of contract under the “Supply Contract” which may result in the termination or cancellation of the Supply Contract;
 
(6) The Lessee undertakes that it shall, at its own expenses, pay the amount other than the Lease Item Purchase Price paid by the Lessor (if any) under the “Supply Contract”, and obtain the VAT invoice of some auxiliary facilities payable by the Lessee. The payment of such amount does not affect the Lessor’s ownership of the entire Lease Items, and the Lessor has the sole and complete ownership of the Lease Items.
 
(7) The Lessee undertakes that, unless otherwise agreed in the Lease Schedule, it shall, at its own expenses, effect all risks and machine damage insuance for the Lease Items with an insurance company that is recognized by the Lessor; the insurance amount shall at least cover the total purchase price of the Lease Items or the higher of the carrying amount or appraised value of the Lease Items on the Lease Commencement Date. The validity of the insurance shall cover the whole term of the lease contract (other relevant insurance requirements shall be subject to the provisions of the main text of the Financial Leasing Contract) and the insurance shall be kept valid throughout the Lease Term;
  
	 
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(8) The Lessee undertakes to ensure that the amount paid by the Lessor shall be earmarked for the purchase of the Lease Items, and it is not allowed that the Seller and the Lessee use such amount for other purposes.
 
(9) During the lease term, the Lessee undertakes that the Lessor has complete and sole ownership of the Lease Items hereunder, and the Lessee undertakes that no mortgage, lien, lease or other encumbrance of any form will be set on the Lease Items, and no third party has any recourse for the Lease Items; any contract or rights and obligations between the Lessee and other third party shall not affect the validity of this Contract;
 
(10) Without the prior written consent of the Lessor, the Lessee and the Seller shall not change the amount of the Lease Item Purchase Price, payment method, conditions of delivery of the Lease Items, requirements, etc., or cancel the “Supply Contract” in advance;
 
(11) The Lessee undertakes not to impose any restrictions on any rights and interests under the Supply Contract, including but not limited to setting any guarantee, or any transaction or debt that may hinder or affect the Lessor’s exercise of the ownership of the Lease Items;
 
(12) Any materials and documents submitted by the Lessee to the Lessor in accordance with the provisions of this Contract are legal, true and complete, all copies are consistent with the original, and the signatures and seals in all materials and documents are true and valid;
 
(13) During the term of this Contract, the Lessee shall exist legally and validly. If the Lessee’s operating period is about to expire, it shall update the operating period before expiration to ensure that the operating period is not shorter than the Lease Term;
 
(14) The Lessee is eligible to use the Lease Items, and it uses the Lease Items within the scope of business specified in the company’s articles of association and business license, for lawful purposes. The Project where the Lease Items is located is legal and has been approved by the competent department;
 
(15) During the term of the Contract, the Lessee agrees to cooperate in the Lessor’s post-lease management, including inquiry about and inspection of the Lessee’s day-to-day operation and use of the Lease Items, and provide corresponding information according to the Lessor’s requirements;
 
(16) The Lessee confirms and agrees that after the Contract is signed, the Lessor will register the financial leasing transaction under this Contract on the “Unified Registration Platform for Movable Property Financing” of Credit Reference Center of the People’s Bank of China;
 
(17) The Lessee confirms that it irrevocably authorizes the Lessor to inquire, use, and retain its credit information during this transaction in accordance with the relevant laws and regulations of China, through the PBOC Enterprise Credit Information Database, Financial Credit Information Database and other credit information agency established by competent credit reference department;
 
(18) The Lessee confirms that it irrevocably authorizes the Lessor to inquire, use, and retain its basic information, business information, etc. related to this transaction during this transaction through the Lessor’s shareholders, its branches and subsidiaries;
   
	 
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(19) The Lessee agrees to satisfy other conditions as stipulated in the Lease Schedule of this Contract required by the Lessor for this transaction, and recognizes the obligation to pay the Rent and other amount listed in the Lessor’s “Rent Payment Schedule” calculated in accordance with the Lease Schedule of this Contract.
 
The Lessee has carefully read all the terms of this Contract and all its schedules and annexes, fully understood the meaning of each clause and signed this Contract based on its true meaning. The Lessor has taken reasonable measures to bring the Lessee’s attention to and explain the clauses in this Contract that attempt to exempt or limit the liability of the Lessor.
 
Clause 16 Liability for Breach of Contract
 
16.1 Under any of the following circumstances, the Lessee shall constitute a breach of contract hereunder:
 
(1) The Lessee fails to pay any due Rent, Commission Fee, Lease Security Deposit or other payables on time and in full;
 
(2) The Lessee fails to provide the guarantee in accordance with the Lease Agreement, or fails to go through relevant guarantee registration procedures as scheduled;
 
(3) The Lessee fails to perform the obligations related to the Lease Items insurance, insurance renewal, and claim settlement in accordance with Clause 7 of this Contract and the Lease Schedule;
 
(4) The Lessee fails to reasonably use, repair and maintain the Lease Items in accordance with Clause 9 of this Contract;
 
(5) The representations, warranties or other written statements made by the Lessor hereunder prove to be false, untrue or materially misleading;
 
(6) The Lessee commits any prohibited act as stipulated in Clause 4, paragraph 4.7 of this Contract without the prior written consent of the Lessor;
 
(7) The Lessee violates notification and assistance obligations as stipulated in Clause 13 of this Contract;
 
(8) The Lessee has acted in violation of other provisions in this Contract or other contracts signed between the Lessee and the Lessor.
 
(9) The Lessor has reasonable grounds to believe that an event that affects the solvency or the normal performance of this Contract of the Lessee has occurred or may occur to the Lessee
 
16.2 Under any of the following circumstances, the Lessee shall constitute a fundamental breach of contract hereunder:
 
(1) The Lessee delays for 30 days or cumulative 60 days to pay any due Rent, Commission Fee, Lease Security Deposit or other payables in full;
 
(2) Under the circumstances specified in paragraph 16.1 of this Cluase, the Lessee fails to make a correction within one month after the Lessor has lodged a notice;
 
(3) The Lessee violates the obligations set out in Clause 4 and Clause 9 of this Contract and fails to correct or remedy it after the written notice of the Lessor;
   
	 
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(7) The Lessee violates notification and assistance obligations as stipulated in Clause 13 of this Contract and the representations and warranties specified in Clause 15, paragraph 15.2, whcih seriously endangers the Lessor’s claims
 
(5) The Lessee violates the provisions of paragraph 9.3 of Clause 9, paragraph 10.2 of Clause 10, paragraph 12.1 of Clause 12 of this Contract and the supplemental provisions of Clause 7 of the Lease Schedule;
 
(6) Due to the fault of the Lessee, the Lessee fails to fulfill the obligation to receive all the Lease Items before the latest Lease Commencement Date set out in the Lease Agreement and complete the lease related matters;
 
(7) The Lessee unilaterally cancels the Lease Agreement early in an express or explicit manner in violation of the Lease Agreement;
 
(8) The Lessee commits a breah of contract under any “Supply Contract” and thus the corresponding “Supply Contract” is cancelled by the Lessor or the Seller.
 
16.1 Under any of the following circumstances, the Lessor shall constitute a breach of contract hereunder:
 
(1) The Agreement on the Transfer of Rights and Obligations is cancelled or invalidated and revoked due to the fault of the Lessor;
 
(2) During the Lease Term, the Lessee is unable to possess or use the Lease Items due to the fault of the Lessor.
 
(3) The Lease Item Purchase Price under the “Supply Contract” is not paid in full and on time due to the fault of the Lessor.
 
Clause 17 Remedy for Breach of Contract
 
17.1 If a breach of contract described in Clause 16, paragraph 16.1 of this Contract occurs to the Lessee, the Lessor has the right to take one or more of the following measures:
 
(1) Requiring the Lessee to take remedial measures or provide supplemental guarantees satisfactory to the Lessor within the specified time limit, and bear the expenses incurred thereby;
 
(2) Requiring the Lessee to immediately stop using the corresponding or all Lease Items;
 
(3) Requiring the lessee to pay a penalty in accordance with the Lease Agreement and compensate the Lessor for the losses suffered thereby;
 
(4) Requiring the guarantor to perform the compensatory obligation on the debt arising from the Lessee’s default;
 
(5) Other remedies permitted by law.
 
17.2 If a breach of contract described in Clause 16, paragraph 16.2 of this Contract occurs to the Lessee, the Lessor has the right to take one or more of the following measures, in addition to the right to exercise the remedy in accordance with paragraph 17.1 of this Clause:
 
(1) Canceling the Lease Agreement or this Contract;
 
(2) Requiring the Lessee to return the corresponding or all of the Lease Items immediately or take back the corresponding or all of the Lease Items without resorting to the judicial proceeding, including but not limited to directly accessing to the place of use of the Lease Items and possessing and transferring them;
  
	 
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(3) Requiring the Lessee to pay corresponding or all the outsatnding and due Rents, immature Rents, Late Penalty, Retention Price and other payables under the Lease Agreement. The Lessor has the right to determine the priority of payment of the above amounts;
 
(4) Claiming a security right against the Lessee or a third party and requieing them to fulfill the compensatory obligations on the debt under paragraph 17.2, item (3) and paragraph 17.3;
 
(5) Other remedies permitted by law.
 
17.3 All taxes and related expenses incurred by the Lessor from the exercise of the remedy for breach of contract hereunder (including but not limited to the cancellation of the Lease Agreement or requiring returning, taking back, repairing, or disposing of the Lease Items) or from the enforcement of the Lessee’s obligations under the Lease Agreement (including but not limited to litigation fees, appraisal fees, and attorney fees) shall be borne by the Lessee.
 
17.4 If the Lessor claims to take back the Lease Items, the Lessor shall have the right to require the Lessee to compensate the Lessor for all the losses after taking back the Lease Items (for the avoidance of doubt, the losses include the difference between the value of the Lease Items and the amount mentioned in paragraph 17.2, item (3) and paragraph 17.3 of this Clause. Both Parties confirm that when the Lessor takes back the Lease Items, the value of the Lease Items shall be determined by a qualified appraisal or auction institution appointed by the Lessor).
 
17.5 The Lessor’s exercise of remedy for breach of contract stipulated in this Clause shall not affect the other rights that the Lessor enjoys hereunder, nor shall it affect other obligations that the Lessee shall bear hereunder.
 
17.6 If the Lessor cancels this Contract, the “Agreement on the Transfer of Rights and Obligations” shall be terminated accordingly, and the Lessor shall not bear any responsibility to the Lessee or the Seller. The Lessee shall itself bear the liability for breach of contract in accordance with the provisions of the Supply Contract.
 
17.7 If the Agreement on the Transfer of Rights and Obligations or the Supply Contract is canceled prior to this Contract due to the fault not attributable to the Lessor, the Lessor has the right to cancel this Contract. The Lessor shall not assume any responsibility to the Lessee and the Seller. The Lessee shall compensate the Lessor for all losses under the Agreement on the Transfer of Rights and Obligations and this Contract. In addition, if the Seller suffers any loss, the Lessee shall bear full responsibility to the Seller and ensure that the Lessor does not bear any responsibility or obligation arising therefrom
 
17.8 If a breach of contract described in Clause 16, paragraph 16.3 of this Contract occurs to the Lessor, the Lessee has the right to take one or more of the following measures:
 
(1) Requiring the Lessor to compensate the Lessee for all economic losses suffered therefrom;
 
(2) Requiring that the Contract is canceled and the Lessor shall compensate the Lessee for all the economic losses suffered by the Lessee; the Lessee shall, according to the Lease Loan Principal in the unpaid Rent and the Retention Price set out in this Contract, pay the corresponding consideration for the Lease Items, and the ownership of the Lease Items shall be transferred to the Lessee in an “As-Is” condition.
  
	 
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Clause 18 Early Termination
 
18.1 During the Lease Term, the Lessee has the right to apply in writing for early termination of the Lease Agreement. After the written consent of the Lessor and all the following conditions are met, part or all of the Lease Agreement hereunder shall be terminated early on the first Payment Date of the Rent thereafter (“Early Termination Payment Date”): 
 
(1) No breach of contract by the Lessee occurs or exists under this Contract;
 
(2) The Lessee shall notify the Lessor in writing at least thirty (30) working days in advance;
 
(3) The Lessee pays the following amount to the Lessor before the Early Termination Payment Date: 1) all outstanding and due Rents and Late Penalty as of the Early Termination Payment Date; 2) all immature Lease Loan Principal; 3) Lease Item Retention Price; 4) early termination fee (if any) (early termination fee is subject to the provisions of the Lease Schedule); 5) tax and other expenses arising from early termination.
 
18.2 After the Lessor receives all the above-mentioned amount, the Lease Agreement shall be terminated early, the ownership of the Lease Items under the Lease Agreement shall be transferred to the Lessee in an “As-Is” condition, and the Lessor shall issue a Notice of Transfer of Ownership to the Lessee.
 
Clause 19 Force Majeure
 
19.1 In case of force majeure events, including war, terrorist attacks, earthquakes, fires, typhoons, changes in government policies or other events that are unpredictable and uncontrollable by any Party hereto and whose occurrence and consequences cannot be prevented or avoided, the party that is affected by the force majeure event and unable to perform its obligations hereunder shall immediately notify the other Party in writing (not later than seven (7) days after the occurrence of the force majeure event) and provide proof of the force majeure event and associated losses, and take remedial measures to reduce losses and prevent the increase of losses.
 
19.2 If a Party suffering from a force majeure event fails to provide supporting documents in accordance with paragraph 19.1 of this Clause, the other Party has the right to reasonably hold that it does not suffer from a force majeure event, and the Party that suffers from the force majeure event shall immediately resume the performance of this Contract.
 
19.3 Depending on the extent of the impact of the force majeure event, the parties concerned shall decide upon negotiation whether to delay the performance of or terminate this Contract. If the force majeure event lasts for more than sixty (60) days, causing that a Party is unable to continue to perform the obligations hereunder, either Party has the right to notify the other Party in writing to cancel this Contract, and the Commission Fee, Rent and other fees already charged by the Lessor will not be refunded; the Lessee shall make compensation and pay the Lessor the sum of the following amount: 1) outstanding and due Rent; 2) Late Penalty; 3) Lease Loan Interest in the immature Rent calculated according to the corresponding Lease Agreement to the cancellation date; 4) Lease Loan Principal in the immature Rent; 5) Retention Price; 6) other payables. After the Lessee has fulfilled the above-mentioned payment obligations, the ownership of the Lease Items shall be automatically transferred to the Lessee in an “As-Is” condition.
  
	 
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19.4 During the period of force majeure, if the Party suffering from the force majeure event fails to perform or delays the performance of the obligations hereunder due to the force majeure, part or all of the liability for breach of contract may be exempted. However, the Party suffering from the force majeure event may not request exemption from the obligations that should be performed hereunder, including but not limited to Rent payment obligations.
 
19.5 After the end of force majeure, the Party suffering from a force majeure event shall immediately notify the other Party. The parties concerned shall continue to perform the obligations hereunder after the end of force majeure, and the term of the Contract shall be extended accordingly.
 
Clause 20 Confidentiality
 
20.1 Unless otherwise provided in this Contract, the parties concerned shall be obliged to keep confidential the business secrets obtained by signing and performing this Contract. If any Party fails to perform its confidentiality obligations and thus causes any disclosure of the contents of this Contract, the breaching party shall immediately stop any violation of obligation hereunder upon written request of the non-breaching party and take measures to eliminate any adverse effects caused thereby. Otherwise, the non-breaching party has the right to take reasonable measures to eliminate such effects, and the breaching party shall compensate for all the losses caused to the other Party and bear the costs incurred therefrom.
 
20.2 Each Party hereto have the right to provide information related to this Contract to the qualified institutions or individuals for inquiry and use at the request of judicial departments (including court, procuratorate, and public security organ), government departments or financial regulatory agencies.
 
Clause 21 Entry into Force of the Contract, and Change, Termination and Transfer of Contractual Rights and Obligations
 
21.1 This Contract shall become effective upon signature and seal by the legal representatives or authorized representatives of both Parties.
 
21.2 After this Contract takes effect, all “Supply Contract” signed subsequently for the supply of the Lease Items shall become an annex to this Contract and become an integral part of this Contract.
 
21.3 After this Contract becomes effective, neither Party hereto may change it or cancel it in advance. Any amendments, changes, additions or cancellations of this Contract shall be agreed upon by both Parties hereto and a written agreement shall be reached. Such written agreement shall be an integral part of this Contract and have the same legal effect as this Contract.
 
21.4 During the term of this Contract, the Lessee may not assign the rights and obligations under this Contract or any Lease Agreement without the prior written consent of the Lessor. Without prejudice to the Lessee’s quiet possession of the Lease Items, the Lessor has the right to transfer or pledge part or all of its rights hereunder to a third party, or mortgage the Lease Items to a third party, or set other encumbrance on the Lease Items, without the consent of the Lessee. At the request of the Lessor, the Lessee shall provide relevant supporting materials and actively cooperate with the Lessor to exercise the above rights.
   
	 
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21.5 This Contract shall be made in six copies, with each party holding three copies, and each copy shall have the same legal effect.
 
Clause 22: Applicable Law and Dispute Settlement
 
22.1 This Contract shall be governed by and construed in accordance with the laws of the People’s Republic of China.
 
22.2 If any dispute concerning this Contract cannot be settled through friendly negotiation between the two Parties, both Parties agree to file a lawsuit in the people’s court with jurisdiction over the place where this Contract is signed. During the settlement of the the dispute, the parties concerned shall continue to perform the terms that are not contentious
 
Clause 23 Notarization and Enforcement
 
23.1 The Lessor has the right to decide on the relevant matters concerning the application for enforcement notarization of the Contract to the notary public office prescribed by the competent government department. Each party concerned confirm that it has a complete and clear understanding of the meaning, content, procedures, and effectiveness of the enforcement notarization. Upon notarization, the Contract shall be enforceable. If the Lessee fails to perform or fails to properly perform the obligations stipulated in this Contract, the Lessor has the right to apply directly to the competent people’s court for enforcement without a litigation, and the Lessee and the guarantor bearing joint liability shall ensure that they actively cooperate in and accept the enforcement of the people’s court without a litigation.
 
23.2 The Lessee confirms that it has a complete and clear understanding of the meaning, content, procedures, and effectiveness of the enforcement notarizationthe specified in relevant laws and regulations; upon notarization, this Contract shall become an enforceable debt instrument.
 
23.3 The Lessee undertakes to accept that the scope of debts executed forcibly by the people’s court includes, but is not limited to, Pre-lease Interest, Grace Period Interest, penalty, damages, all Rents (including outstanding and due Rent and immature Rent), Retention Price, expenses incurred by the Lessor to recover the claims hereunder (including but not limited to attorney fees, execution fees, notary fees, appraisal fees, transportation expenses, etc.), and other payables as stipulated in this Contract.
  
	 
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23.4 Execution object verification and confirmation. The Lessee agrees that the notary public office shall verify the performance of the debt by any of the following verification methods to determine the execution object: (1) telephone (including SMS) verification, subject to contact number stated in this Contract and reserved in the notary public office; (2) mailing verification, subject to communication address stated in this Contract and reserved in the notary public office; (3) email verification, subject to email address stated in this Contract and reserved in the notary public office. The Lessee undertakes that it will notify the responsible notary of the notary public office in writing if there is any change to the above-mentioned contact number, communication address and email address. Otherwise, the contact information shall be subject to the statement of this Clause, and the Lessee shall bear the liability for failure to notify. The Lessee agrees that under the following circumstances, the notary public office may issue an “Executiion Certificate” according to the unilateral request of the Lessor and supporting materials provided by the Lessor: (1) the notary public office fails to contact the Lesssee using all the above-mentioned contact information; (2) the Lessee raises an objection to the request of the Lessor and supporting materials provided by the Lessor, but fails to provide contrary evidence or sufficient contrary evidence within three working days after receiving the verification notice from the notary public office; (3) the Lessee raises no objection to the request of the Lessor and supporting materials provided by the Lessor.
 
23.5 This Clause applies in preference to the terms of this Contract regarding dispute settlement.
 
23.6 The cost of notarization and the cost of applying for enforcement shall be borne by the Lessee and the Guarantor.
 
Clause 24 Miscellaneous
 
24.1 The headings of the sections, clauses and attachments hereunder are for convenience only and are not used as a basis for the contents under the heading and do not affect the interpretation of this Contract.
 
24.2 All obligations of the Lessee hereunder are continuous and are fully binding on the successor, agent, receiver, and assignee of the Lessee and the alternative entity after merger, reorganization and change of name.
 
24.3 If any provision of this Contract is found to be invalid, illegal or unenforceable, it shall not not affect the validity, legality and enforceability of the other provisions thereof.
 
24.4 The waiver of any rights or remedies by the Lessor must be made in writing. The delay of or failure to exercise any right or remedy by the Lessor shall not be deemed a waiver of such remedy or right.
 
(Signature Page Below)
  
	 
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(Signature Page)
 
Each Party hereto has read, fully understood and agreed to all the terms and conditions. In witness whereof, the Parties hereto have caused this Contract to be executed as follows:
 
Lessor: Huaxia Financial Leasing Co., Ltd. (seal)
 
Legal representative or authorized representative (signature):
 
Date: October ______, 2019              日
 
Lessee: Southwest Guizhou Autonomous Prefecture Yilong Zhonghong Green Energy Co., Ltd. (seal)
 
Southwest Guizhou Autonomous Prefecture Yilong Zhonghong Green Energy Co., Ltd. (seal)
 
Legal representative or authorized representative (signature): Zhou Feng
 
Date: October ______, 2019           日
  
	 
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