Document:

Xi’an
TCH Energy Technology Co., Ltd

Pucheng
Xin HengYuan Biomass Power Generation Co., Ltd

 

Biomass Power Generation Project Lease
Agreement

 

September, 2013

 

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Biomass
Power Generation Project Lease Agreement

 

Lessor:
Xi’an TCH Energy Technology Co., Ltd (hereinafter refers to as Party A)

 

Leasee: PuCheng XinHengYuan Biomass
Power Generation Co., Ltd. (hereinafter refers to as Party B)

 

Whereas:

 

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

 

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

 

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

 

Article 1 Lease scope

 

1.1 The Phase I and Phase II biomass power
generation equipment assets that Party B leases from Party A (hereinafter referred to as “Lease
Project”) has a total installed capacity of 2 x 12,000 kw. The details of the Lease Project see “Target Assets
List” as an attachment of this Agreement.

 

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

 

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

 

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Article 2 Lease Term

 

The Lease Term is as follows:

 

Phase I of the project: June 29, 2010 to
June 28, 2025.

 

Phase II of the project: September 2, 2013
to June 28, 2025.

 

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

 

Article 3 Leasing fee and method of payment

 

3.1 The leasing fee is RMB 3.8 million
per month. The payment of the leasing fee will be made monthly by wire.

 

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

 

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

 

Article 4 Lease Deposit

 

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

 

4.2 Party B shall pay RMB 3.8 million to
Party A as deposit within 10 days after the execution of the agreement. ( RMB 1.9 million has been paid for phase I, the actual
deposit payment is RMB 1.9 million this time.)

 

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

 

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

 

Article 5 Rights and Obligations of Party
A

 

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

 

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

 

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

 

5.4 A shareholder of Party B shall provide
joint liability guarantee to Party A to ensure that Party B will make full payment of leasing fees on time and perform its obligations
under this Agreement.

 

Article 6 Rights and Obligations to Party
B

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 7 Force Majeure (as defined by
the law)

 

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

 

Article 8 Liability of breach of contract

 

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

 

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

 

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

 

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

 

Article 9 Effect of the Agreement

 

This Agreement is established
when both Parties sign and seal the agreement. This Agreement will take effect on the date when Parties sign “Target Assets
List” and “Joint Liability Guarantee Agreement”. If the dates are different on the aforementioned documents,
this Agreement takes effect on the date of the last agreement is signed.

 

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

 

Upon this agreement
takes effect, the assets lease agreement by the Parties dated June 29, 2010 shall stop its effect from September 1, 2013.

 

Article 10 Settlement of dispute

 

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

 

Article 11 Others

 

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

 

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

 

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

 

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

 

    	7Executive Compensation Recoupment Policy

(Adopted September 11, 2013)

 

This policy covers each of the executive officers (each a “covered
executive”) of Kraton Performance Polymers, Inc. (the “Company”) who serves as an “officer” of the
Company, as such term defined under Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended.

 

The Company will, to the extent permitted by governing law,
seek to recover, at the direction of the Compensation Committee after it has considered the costs and benefits of doing so, any
annual incentive compensation payment, long-term incentive payment or other payment to a covered executive under the following
circumstances:

 

		·	The payment was predicated upon achieving certain financial results
that were subsequently the subject of a substantial restatement of the Company’s financial statements as filed with the Securities
and Exchange Commission; 

 

		·	The Compensation Committee determines that the covered executive engaged
in fraud or willful misconduct that caused or substantially caused the substantial restatement; and

 

		·	A lower payment would have been made to the covered executive based
upon the restated financial results.

 

In each instance, the Company will to the extent practicable
seek to recover from the covered executive the amount by which the Compensation Committee has determined that an incentive payment
made in the prior three years to such covered executive for the relevant period exceeded the lower payment that would have been
made based on the restated financial results. Application of this policy does not preclude the Company from taking any other action
to enforce a covered executive’s obligations to the Company, including termination of employment or institution of civil
or criminal proceedings

 

The Compensation Committee will make all determinations required
under this policy in its sole and absolute discretion, and such determinations shall be conclusive and binding on all persons,
including each covered executive and the Company.

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