Document:

Exhibit 10.42

 

Share Purchase and Investment Agreement

This share purchase and investment agreement (“the Agreement”) is entered into
on June, 14th, 2015 (“Execution Date”) by the following Parties in Shanghai, the People’s Republic of China (the
“PRC”).

 

Transferor: Synthesis Energy Systems, Inc. (“SES BVI”)

Registered address: Portcullis TrustNet Chambers, P.O. Box 3444, Road Town, Tortola,
British Virgin Islands

 

Transferee: Rui Feng Enterprises Limited (“Rui Feng”)

Registered address: Offshore Incorporations Centre, P.O. Box 957, Road Town, Tortola,
British Virgin Islands

 

The above companies hereinafter are referred to as “Parties” collectively and
as “Party” individually.

Whereas, Synthesis Energy Systems Investments, Inc. (“SESI”
or “Target Company”) is a private company incorporated by the Registrar of companies of Mauritius under the laws
of Mauritius on Sept. 20, 2005 with company number C1/GBL 58616, with its registered address at c/op International Proximity, 3rd
Floor, Ebene Esplanade, 24 Cybercity, Ebene, Mauritius.

Whereas, Synthesis Energy Systems (Zaozhuang) New Gas Company LTD.
(“ZZ Plant”) is a cooperative joint venture in the form of limited liability company incorporated in accordance
with the laws of the PRC, with its registered address at No. 2 Hengshan Road, Xuecheng District, Zaozhuang, Shandong. Target Company
and Shandong Wejiao Group Xuecheng Energy Co., Ltd. (“Xuecheng Energy”) hold 98.05% and 1.95% shares of ZZ Plant respectively
at the time of the Agreement.

Whereas, the Transferor intends to transfer 61% shares of the Target
Company (“Target Shares”) to the Transferee subject to the terms and conditions of this Agreement, and the Transferee
is willing to accept the target shares under the same terms and conditions.

Whereas, the Transferee is willing to further invest into the Target
Company, subject to the terms and conditions of the Agreement, to construct an acetic acid/acetic anhydride/propionic acid project
(“New Project”) at the ZZ Plant.

Whereas, ZZ Plant signed an “Operation and Management Agreement”
(“Operation and Management Agreement”) with Shandong Saikong Automatic Equipment Company Ltd. (“Saikong”)
on June, 14th, 2015, according to which when the Transferor receives the 1st installment of transfer price (definition
is set below), the Transferee will be authorized by the board of directors of ZZ Plant to authorize Saikong execute the operation
and management of ZZ Plant.

     

     

    

Therefore, the Parties agree as follows:

Article 1 Definitions

1.1 Target Shares: has the meaning set forth in
the second paragraph of the preamble.

1.2 Transfer Price: has the meaning set forth in
Article 2.2.

1.3 Investment: has the meaning set forth in Article
4.

Article 2 Transfer of the Target Shares

2.1 The Transferor agrees
to transfer the Target Shares to the Transferee under the terms and conditions of the Agreement, and the Transferee agrees to
accept the Target Shares under the same terms and conditions.

2.2 As the consideration for the acquisition
of the Target Shares, the Transferee will pay a total amount of $10 million (“Transfer Price”) to the Transferor.

Article 3 Payment schedule of “Transfer Price” 

3.1 The Transfer Price payment schedule and the corresponding shareholding
percentage to be acquired by the Transferee agreed by the Parties are as follows:

	
        Payment detail

        \Transfer Price
	Timing	Amount	Shareholding percentage acquired by the Transferee with this payment	Accumulated shareholding percentage acquired by the Transferee
	1st installment of Transfer Price”	Within 15 days after the execution of the Agreement 	$1.6 million	9.76%	9.76%
	2nd installment of Transfer Price”	Before Nov. 15, 2015, but no later than Dec 15,
    2015	$4 million	24.4%	34.16%
	3rd installment of Transfer Price”	Before Mar. 31, 2016, but no later than May 1, 2016	$3 million	18.3%	52.46%
	4th installment of Transfer Price”	On or before Dec. 1, 2016	$1.4 million	8.54%	61%

     

     

    

3.2 After the Transferor
receives each installment of payment above from the Transferee, the Parties shall cause the Target Company to complete all formalities
required under the laws of Mauritius for the transfer of the Target Shares as well as causing such notifications or applications
as are mandatory under the laws of Mauritius to reflect the change in shareholding of the Target Company as well as the corresponding
change within the board of directors of the Target Company in proportion with the shareholding percentage of the Target Company
owned by the Transferee with the following approach: the Transferee will appoint one director after payment of 1st  installment
of Transfer Price; the Transferee will appoint an additional director after payment of 2nd  installment
of Transfer Price; after payment of 3rd  installment of Transfer Price there will be 3 directors
appointed by the Transferee, and the Transferee is entitled to appoint the chairman of the board; after payment of the 4th 
installment of Transfer Price and the USD investment of no less than RMB 40 million equivalent set
forth in Article 4, the number of directors appointed by the Transferee will reach 4, the final number of directors will be 7,
and the Transferee will have decision right and controlling right of the operation and management of the ZZ Plant. The Parties
will also amend the constitution (“Constitution”) of the Target Company accordingly and execute an amended Constitution
based on the board resolution. The Target Company shall file a copy of the amended Constitution with the Registrar of Companies
of Mauritius promptly after its signature.

Pursuant to Article 3.1, as the Transferee gains
the Target Company’s shares with each installment of Transfer Price, the Transferee will own the shares of ZZ Plant indirectly
through its ownership of shares in the Target Company. The Transferee is entitled to appoint one director after each installment
of Transfer Price for the first three installments of the Transfer Price. When the Transferee gains control of the Target Company,
the Transferee will have appointed three directors, one of which will be appointed as the chairman of the board after payment
of the 4th installment of Transfer Price and the USD investment of no less than RMB 40 million equivalent set forth
in Article 4; the Transferor shall appoint two directors (allowing one non-Chinese foreign director) and Xuecheng Energy shall
appoint one. ZZ Plant’s board of directors will consist of six directors in total. In case pros and cons equal in voting,
the chairman has the decision power. ZZ Plant will carry out procedures of alteration of board members and legal representative
with the relevant government authority according to the PRC legal requirements.

     

     

    

The Transferor agrees that the Transferee
can pay each installment of Transfer Price in advance provided that the Transferee shall give prior notice to the Transferor so
that the Transferor can coordinate the share transfer procedures of the Target Company.

3.3 Pursuant to Article 3.1, after the Transferor receives
the 1st installment of Transfer Price from the Transferee, the Parties agree to implement the operation and management of the ZZ
Plant following the Operation and Management Agreement. A project team will be established in the ZZ Plant to be responsible for
New Project preparation and project approval; the cost for project approval, license fee and other cost for New Project will be
paid by Saikong as loan, and will be paid back only by products sales income of New Project. Saikong will assume all the fees,
profits and losses of ZZ Plant and methanol plant. The shortage of fund will be paid by Saikong as loan and paid on a monthly basis,
and will be paid back only by products sales income of New Project. The profits can only be used for equipment purchase and production
and operation of ZZ Plant.

3.4 The Transferor agrees that the Transferee shall
secure the required financing support either in total or in partial for the New Project construction and retrofit of existing equipment
of ZZ Plant, utilizing the ZZ Plant assets as collateral once the 1st installment of Transfer Price of $1.6 million
has been received by the Transferor. When financing has been secured, Rui Feng shall use its own funds to pay the Transferor the
2nd installment of Transfer Price stipulated in the Agreement within 10 days of receiving the first installment of financing
funds. If the financing funds equal to or exceed two times of the total remaining unpaid Transfer Price due to the Transferor,
Rui Feng shall pay the Transferor the full balance of Transfer Price within 10 days by using its own fund. If Rui Feng can’t
pay the whole unpaid amount at one time, after Rui Feng pays the next installment of Transfer Price by using its own funds, the
board of directors of ZZ Plant will authorize Rui Feng to use the loan equal to such installment for ZZ Plant New Project construction
and retrofit of existing equipment.

3.5 Subject to applicable PRC laws and regulations
applicable to the ZZ Plant, the distributable after-tax profits (“Profits”) will be distributed to the ZZ Plant shareholders
according to their shareholding percentage respectively. For the first three years of New Project operation (starting from the
date any New Project products being produced), in order for the Transferee to recover its capital investment in the New Project,
the Parties agree that Rui Feng will receive equal to 90% of the Profits of ZZ Plant from the distribution made to the target
company, and SES BVI will receive the balance. After the first three year period expires, the Profits of the Target Company will
be distributed based upon respective shareholding percentage of the shareholders.

     

     

    

3.6 If the Transferee fails to pay Transfer Price
to the Transferor according to the payment schedule stipulated in the Agreement, Article 3.5 above is not applicable. Based on
the actual Transfer Price received by SES, the Profits of ZZ Plant will be distributed based on shareholding percentage of the
shareholders.

3.7 The bank information for Transferee payment
and Transferor receiving payment is as follows:

Transferee:

Payer name: Rui Feng Enterprises Limited

Bank and address: 19/F, China Merchants Bank Tower, No. 7088
Shennan Boulevard, Shenzhen, P.R. China, SWIFT: CMBCCNBS

USD Account No.: OSA7559 1993 9632 106

 

Transferor:

Receiver name: SYNTHESIS ENERGY SYSTEMS INC BVI

Bank and address:  JPMorgan Chase Bank, N.A. (TX)

707 Travis Street, 7th
Floor, Houston, Texas 77002, US

Account No.: 754280618

Article 4 Investment

4.1 The Transferee agrees to invest in the
Target Company based on the terms under the Agreement. By investing in the Target Company the Transferee will invest in ZZ Plant’s
New Project, the total investment amount of which is estimated to be RMB 100 million.

4.2 The Transferee agrees that within two year
after execution of the Agreement, it will invest in the Target Company with no less than RMB 40 million USD in equivalence as capital
to construct ZZ Plant New Project as well as improve relevant facilities of gasification equipment of ZZ Plant and gain another
14% shares of the Target Company. The Parties will carry out the shareholding alteration procedures within one month after the
Transferor receives the entire investment amount from the Transferee.

4.3 After the Transferee has paid the entire
Transfer Price and invested no less than RMB 40 million equivalent USD and the New Project has completed construction and started
commissioning, the Transferee can have up to 75% of shares in the Target Company and finally own 73.53% of shares in ZZ Plant.

4.4 For the avoidance of doubt, after Article
4.3 is fulfilled, if the Parties plan to increase the investment and output capacity, the investment plan and shareholding adjustment
will be discussed by the Parties separately.

     

     

    

Article 5 Closing conditions

5.1 The Parties agree that each share transfer
of the Target Shares under the Agreement shall be subject to the satisfaction of the following closing conditions. The Parties
agree to use reasonable best effort to cause the satisfaction of the following closing conditions. For the avoidance of doubt,
the following closing conditions apply to the Transferee’s each installment of Transfer Price.

5.1.1 The representations and warranties made by the Parties pin
Article 6 are in all respects true, accurate and complete on the Execution Date and each Closing Date (see definition below).

5.1.2 The Agreement and the transaction under the Agreement have
been approved by the Parties’ internal decision making body.

5.1.3. There is no injunction or order issued by any government
authority that prohibits, restricts or changes the terms and conditions of the Agreement or imposes additional conditions on the
proposed transaction under the Agreement, unless each party has been notified in advance and has, its sole discretion, consented
in writing to such changes or additional conditions.

5.2 The Parties shall notify the other Party
about the satisfaction of the closing conditions on the next working day of the satisfaction of the closing conditions for which
it is responsible and obtaining of related legal documents, and send a copy of such documents to the other Party.

5.3 On the date the Target Company finishes
shareholding alteration registration for each share transfer (“Closing Date”), the Transferor’s related shareholder
rights and obligations in the Target Company will be enjoyed or borne by the Transferee.

Article 6 Representations and Warranties

 

6.1 On the execution date of this Agreement,
the Transferor represents and warrants to the Transferee as follows:

6.1.1 The Transferor has the authority to carry out the transaction
under the Agreement, and has taken all necessary corporate and legal actions to authorize the execution and performance of the
Agreement;

6.1.2 The Transferor legally owns the Target Shares and the rights
to enter into transaction for the Target Share on the Execution Date of the Agreement; the Transferee will legally own the corresponding
percentage of shares in the Target Company after paying Transfer Price and completing shareholding alteration procedures according
to the Agreement.

     

     

    

6.1.3 The Target Shares are free from and clear of any pledge or
charge. The Target Company has not provided any security to any third party;

6.1.4 To the Transferor’s knowledge, there is no pending litigation
or arbitration related to the Target Company as of the Execution Date of the Agreement;

6.1.5 Currently the Target Company’s debts are internal accounts
between the Transferor and the Target Company; the Transferor shall hold the Transferee harmless against any form of recourse and
interference (litigation, arbitration or other form) from persons who are the creditors of the Target Company before the Execution
Date of the Agreement.

6.1.6 The Target Company currently has invested in two companies
in the PRC, which are ZZ Plant and SES-GCL (Inner Mongolia) Coal Chemical Co., Ltd. (“SES-GCL”). SES-GCL’s creditor’s
rights, debts and any other legal obligations will be fully assumed by the Transferor, not relevant to the Transferee. The Transferor
shall hold the Transferee and the Target Company harmless against any form of recourse and interference (litigation, arbitration
or other form) related to SES-GCL.

6.1.7 The representations and warranties made by the Transferor
to the Transferee are limited to the content explicitly stipulated above.

6.2 On the Execution Date of the Agreement,
the Transferee represents and warrants to the Transferor as follows:

6.2.1 The Transferee has the authority to carry out the transaction
under the Agreement, and has taken all necessary corporate and legal actions to authorize the execution and performance of the
Agreement;

6.2.2 The Transferee undertakes that it has the fund required to
purchase the shares and the source of the fund complies with the applicable laws and regulations;

6.2.3 The
Transferee warrants that any patent, technical know-how, information and trade secret related to New Project which will be used
by ZZ Plant, including but not limited to invention patent “catalyst of low water carbonylation synthetic acetic acid and
its preparation method and application” (patent number: ZL 2011 1 0182509.9), have obtained full authorization from the relevant
intellectual property right holders, who have authorized ZZ Plant to use the intellectual property during the whole process of
the New Project exclusively.

6.3 The above representations and warranties made
by the Transferor and the Transferee to each other shall be applied repeatedly at each installment of Transfer Price paid by the
Transferee.

     

     

    

Article 7 Expenses

7.1 The Transferee shall assume and pay all
bank expenses incurred due to the Transfer Price under the Agreement.

7.2 The Target Company shall assume the registration
expenses incurred in relation to the Target Shares transfer.

7.3 The tax incurred due to Target Shares transfer
shall be assumed according to relevant laws. If not explicitly provided in the laws, the tax shall be borne by the Transferor.

Article 8 Intellectual Property

8.1 After the Transferee becomes the controlling
shareholder of the Target Company and ZZ Plant, the ZZ Plant must remain in compliance with the various intellectual property rights
currently deployed on site and any future technology deployments, expansions, or changes from technology provider and any license
or other agreement related to such rights which is effective until the date of the Agreement. U-GAS gasification technology IP
rights belongs to the Transferor, the ZZ Plant only has usage right during its operation. Any new technology IP rights related
to gasifiers during operation belong to the ZZ Plant, but the Transferor has the right to use it for free.

8.2 For the purpose of marketing of U-GAS
gasification technology, the Transferor has the right to take coal test, customer examination and visiting in ZZ Plant without
affecting its normal operation. But the Transferor shall not disclose information about acetic acid and propionic acid production
process, and ZZ Plant doesn’t allow any visits and introduction about acetic acid and propionic acid production process.

8.3 Based on Article 6.2.3, the Transferor
and the Transferee acknowledge and agree to keep confidential certain patents, technical know-how, information and trade secret
relating to acetic acid technology which Mr. Jiang Xiaochuan owns and controls.

Article 9 Non-competition

The Transferee agrees that their affiliated
and related companies shall not compete in any ways with SES BVI with respect to fluidized bed gasification technology.

     

     

    

Article 10 Termination

10.1 If any of the below issues occurs, and
within 10 days of notice from one Party the issue is not resolved, then the Party issuing notice (“Notifying Party”)
can issue a written notice to the other Party to terminate the Agreement (“Termination Notice”). When the notice reaches
the other Party the Agreement is terminated:

10.1.1 The other Party materially breaches any obligation under
the Agreement especially that the Transferee fails to pay the Transfer Price and invest in the Target Company.

10.1.2 The other Party is incapable to perform the Agreement due
to bankruptcy, dissolution or dissolution by the law, which makes it impossible to fulfill the Agreement objectives.

10.2 If the Agreement is terminated pursuant
to Article 10.1 or by applicable laws, the Agreement is no longer enforceable or effective. However, each Party shall not be exempted
from any liabilities caused by its breach of the Agreement or misrepresentation under the Agreement, and such termination shall
not be regarded as a waiver of any remedy (including specific performance, if available) available for such breach of the Agreement
or misrepresentation under the Agreement.

Article
11 Liability for Breach of Contract and Compensation

Both Parties agree that if any party breaches any representations
or warranties made in the Agreement which causes any loss to the other Party, the breaching party shall compensate the non-breaching
party for all direct loss.

Article 12 Applicable Laws

The formation, effectiveness or interpretation
of the Agreement shall be governed by PRC laws.

Article 13 Dispute Resolution

All disputes related to the Agreement shall
be submitted to Shanghai International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration
rules effective at the time. The arbitration award is final and binding upon both Parties.

Article 14 Notices

Notices under the Agreement issued by any
Party shall be made in writing, and shall be deemed to have been effectively given to the following addresses upon receiving or
being handed over for delivery if delivered by prepaid regular mail, express delivery or registered mail:  

     

     

    

14.1 to the Transferor, by the following address:

Attention: Hu Yifang

Address: Room 910, No. 2 building, No. 711,
Yishan Road, Shanghai, PRC

Post code: 200233

Phone No.: (86-21) 5496 2299

14.2 to the Transferee, by the following address:

Attention: Liu Wei

Address: Room 506, Building A, Lushang Plaza,
No. 19288 Jingshi Road, Lixia District, Jinan, PRC.

Phone No.: (86-531) 82562006

Article 15 Miscellaneous 

15.1 The Agreement may be amended only by
a written instrument signed by duly authorized representatives of both Parties.

15.2 Unless otherwise provided laws or relevant
regulatory authority, during the term of the Agreement and for ten years thereafter both Parties shall keep confidential the commercial
information of the other Party related to the Agreement.

15.3 During the term of the Agreement, any
extension given by one Party to the other Party due to the other Party’s breach or delay in performance of the Agreement,
shall not affect, harm or limit the non-breaching party’s rights under the Agreement and as a creditor according to any relevant
laws and regulations. Such extension shall not be regarded as waiver of rights of the non-breaching party to claim against the
breach of contract by the breaching party or any other similar breach in the future.

15.4 The Agreement constitutes the entire
agreement and understanding between the Parties with respect to the subject matter of the Agreement and supersedes all prior agreements,
understanding and arrangements between them.

15.5 During the performance of the Agreement, the
Parties shall cooperate in good faith to ensure the smooth performance of the Agreement. All matters not stipulated in the Agreement
shall be settled by Parties fairly and reasonably through bona fide negotiation.

     

     

    

15.6 During the term of the Agreement, the
board of directors, as the highest authority of ZZ Plant, shall exercise the decision-making power regarding the asset operation
of ZZ Plant. After commissioning of the New Project, members of the board of directors shall use reasonable efforts to ensure convening
board meeting at least once per quarter.

15.7 If the Agreement is terminated, the
Operation and Management Agreement will be terminated automatically.

15.8 The Agreement is made in Chinese and
English. Both Chinese version and English version have the same legal effect. The Agreement is executed in 6 copies, with each
party holding one copy, one copy for filing of the Target Company, and the rest being submitted to relevant administrative departments.
The Chinese version shall prevail in the event of any discrepancy between the Chinese version and English version.

 

  

     

     

    

(Signature Page of the Share Purchase and Investment Agreement)

 

	Transferor:	 	Transferee:
	 	 	 
	Synthesis Energy Systems, Inc.	 	Rui Feng Enterprises Limited
	 	 	 
	Legal Representative or	 	Legal Representative or
	 	 	 
	Authorized Representative:	 	Authorized Representative:
	 	 	 
	 	 	 
	 	 	 
	/s/ Robert Rigdon	 	/s/ Wei Liu
	 	 	 
	Date: June 14th, 2015	 	Date: June 14th, 2015Exhibit 10.43

 

Operation and Management Agreement49

 

This operation and management agreement “the
Agreement ”) was entered into on June 13th, 2015 by the following parties in Shanghai, the People’s Republic
of China (the “PRC”).

Party A: Synthesis Energy Systems (Zaozhuang) New
Gas Company LTD., a Sino-foreign cooperative joint venture in the form of limited liability company incorporated and existing in
accordance with the laws of the PRC, with its registered address at No. 2 Hengshan Road, Xuecheng District, Zaozhuang, Shandong(“ZZ
Plant”);

Party B: Shandong Saikong Automatic Equipment Company Ltd., a limited
liability company incorporated and existing in accordance with the laws of the PRC, with its registered address as 2-301, No. 4
building, Weidongxindu No. 1 area, Shizhong district, Jinan, Shandong (“Saikong”);

The above parties are referred to as a “Party” individually and as “Parties”
collectively in the Agreement.

 

Whereas

		1.	Synthesis Energy Systems Investments, Inc. (“SESI”) and Shandong Wejiao Group Xuecheng
Energy Co., Ltd. (“Xuecheng Energy) hold 98.05% and 1.95%ofshares of the ZZ Plant respectively. The ZZ Plant owns the physical
assets of the gasification plant and also holds the operation rights of Shandong Xuejiao Chemical Co. Ltd. (“Methanol Plant”)owned
by Xuecheng Energy according to the “Cooperation Agreement” signed with Xuecheng Energy which started performance on
September 2013. During the term the Methanol Plant is operated by the ZZ Plant, the provisions related to operation and management
of the ZZ Plant also apply to the Methanol Plant.

		2.	Synthesis Energy Systems, Inc. (“SESBVI”) as SESI’s parent company,
has entered into a share purchase and investment agreement with Rui Feng Enterprises Limited (“Rui Feng”) on June 14th,
2015. According to this agreement, SES will sell 61% of the shares in SESI to Rui Feng, and Rui Feng will invest additional funds
into SESI to be used to expand the ZZ Plant by constructing an acetic acid/acetic anhydride/propionic acid project (“New
Project”) as well as improve relevant facilities of the ZZ Plant (“Share Purchase And Investment Agreement”).Unless
otherwise stipulated, the terms in the Agreement have the same meanings set forth in the Share Purchase and Investment Agreement.

		3.	Saikong is Rui Feng’s affiliated company. Rui Feng authorizes Saikong and Saikong accepts
the authorization to appoint a general manager (“GM”) and a management team to be responsible for the overall operation
and management of ZZ Plant. Saikong will provide day to day management and supervision for ZZ Plant operation and maintenance.

 

The Parties have reached the following terms through negotiation:

		1	Operation and management

The operation and management under the Agreement is to entrust
GM and his/her team (“Management Team”) appointed by Saikong to run the overall day to day operation and management
of ZZ Plant and Methanol Plant during the period set forth in the Agreement. The Management Team shall exercise its management
function under the direction of the board of directors of ZZ Plant (“the Board”). The compensation of the Management
Team during the operation and management period under the Agreement will be advanced by Saikong and will be paid back only by products
sales income of New Project. The compensation plan of the Management Team will be formulated by Saikong and submitted to the Board
for approval. Vice chief engineer and chief financial officer will be appointed by SESBVI. ZZ Plant shall continue to implement
the financial management system and accounting principles in effect prior to the effectiveness of the Agreement. Chief financial
officer shall perform the works under the Board authorization and within duty scope, and perform the duty of supervising the Management
Team. If chief financial officer violates the laws and policies on financial management or other company management policies, the
Management Team has the right to ask the Board to replace the chief financial officer. The seals such as company stamp of ZZ Plant
shall be controlled by the chief financial officer during the term of the Agreement.

     

     

    

		2	Agreement term

The term of operation and management under the Agreement
will begin from the date of GM appointment letter being signed by the Board, and will terminate once Rui Feng has obtained 52.46%
shares of SESI.

		3	Rights and obligations of the Parties

During the term of the Agreement, the Parties shall
perform their respective obligations as agreed below:

	3.1		The GM appointed by Saikong shall be responsible for the daily operation and management
of ZZ Plant. ZZ Plant shall implement the general manager responsibility system under the authorization of the Board. The Board
shall give written authorization to the GM, who may not conduct management exceeding the authorization scope. The GM shall prepare
plans on business, personnel and operation fund usages based on the authorization and submit to the Board for approval. Technical
plan for innovation project and related fund usage shall be submitted to the Board and implemented only after approval of the
Board.

	3.2		Technical innovation of facilities in ZZ Plant and Methanol Plant, and the transfer,
lease, mortgage and provision of security of the existing assets in the plants and other matters which will cause change of existing
assets must be submitted to the Board and implemented upon the approval of the Board.

	3.3		Under the condition of commissioning of the New Project after construction or achieving
profit from methanol production, the Parties agree to operate gasification facilities in ZZ Plant upon satisfaction of one of
the afore said conditions.

	3.4		The original key production, administration and supporting personnel who worked in
ZZ Plant before the Agreement comes into effect will be retained in principle, and all of the gasification shop floor employees
will be retained in principle so that there is no talent loss on gasification facility operation. Their salary and benefits level
in general would not be lower than those before the Agreement comes into effect. Based on the concept of streamlined administration,
Management Team has the right to make adjustment on current positions and personnel in its sole discretion, and has the right
to dismiss any redundant personnel according to applicable laws, company management policies and labor contract.

	3.5		A project team will be established in ZZ Plant to be responsible for the New Project
preparation and project approval. The cost for project approval and license and other expenses for the New Project will be paid
by Saikong as loan, and will be paid back only by products sales income of New Project.

	3.6		Saikong will assume all the fees, profits and losses of ZZ Plant and Methanol Plant.
The shortage of fund will be paid by Saikong as loan and paid on a monthly basis, and will be paid back only by products sales
income of New Project. The profits can only be used for equipment purchase and production and operation of ZZ Plant.

	3.7		Saikong shall be responsible for the production safety of the ZZ Plant and Methanol
Plant and assume all the losses of the ZZ Plant and Methanol Plant caused by safety accidents except for those caused by force
majeure.

	3.8		During the term of the Agreement, any extension given by one Party to the other Party
due to the other Party’s breach or delay in performance of the Agreement, shall not affect, harm or limit the non-breaching
party’s rights under the Agreement and as a creditor according to any relevant laws and regulations. Such extensions shall
not be regarded as waiver of rights of the non-breaching party to claim against the breach of contract by the breaching party
or any other similar breach in the future.

	4		Representations and Warranties

	4.1		During the term of the Agreement, ZZ Plant warrants to Saikong as follows:

	(1)		Cooperate with GM appointed by Saikong on daily production and operation;

	(2)		Not to dispose of any assets of the ZZ Plant and Methanol Plant, not
to allocate any funds, except for those approved by the Board;

	(3)		Not to use the license, permits and other materials of the ZZ Plant and
Methanol Plant to create any new debts on the ZZ Plant and Methanol Plant, in the name of the ZZ Plant and Methanol Plant, other
than as mutually agreed and approved by the Board;

     

     

    

	(4)		To provide timely and adequate convenience for the production, operation,
and management of the ZZ Plant and Methanol Plant, and to help with the communication and coordination with relevant regulatory
authorities.

	(5)		To cooperate with necessary works of New Project approval.

	4.2		During the term of the Agreement, Saikong warrants to ZZ Plant as follows:

	(1)		To operate according to laws, to adopt good practices to run the ZZ Plant and Methanol
Plant and to maintain the ZZ Plant and Methanol Plant in good operating condition;

	(2)		Not to conceal any production safety accidents and casualties of the ZZ Plant and
Methanol Plant;

	(3)		Not to conceal any debts or contingent liability of the ZZ Plant and Methanol Plant;

	(4)		Not to dispose of any assets of the ZZ Plant and Methanol Plant, except for the items
being approved by the Board;

	(5)		Not to use the assets (including land, building, plant facilities, equipment, intangible
assets, etc.) of the ZZ Plant and Methanol Plant for mortgage or provision of security to any other parties, except those approved
by the Board;

	(6)		Not to conceal any litigation, arbitration (including labor arbitration), administrative
penalties of the ZZ Plant and Methanol Plant;

	(7)		Be responsible for the preparation and submission for approval of New Project’s
feasibility study report.

	(8)		Not to use the license, permits and other materials of the ZZ Plant and Methanol Plant
to create any new debts on the ZZ Plant and Methanol Plant, in the name of the ZZ Plant and Methanol Plant, other than as mutually
agreed and approved by the Board;

4.3  If either Party breaches the representations and warranties
stated in 4.1 and 4.2, the breaching party should rectify it in a timely manner after the non-breaching party’s request for
rectification, or the Parties shall negotiate in good faith to find a solution. During such period the Parties shall continue to
perform the obligations according to the Agreement.

5 Confidentiality

Unless otherwise stipulated by the laws or relative regulatory
authority, Saikong may not provide or disclose any materials or information related to ZZ Plant business to any company, enterprise,
organization or individual without the prior written consent of the other Party.

6 Termination

6.1 If any of the below issues occurs, and within 10 days of notice
from one Party the issue is not resolved, then the Party issuing notice (“Notifying Party”) can issue a written notice
to the other Party to terminate the Agreement (“Termination Notice”).When the notice reaches the other Party the Agreement
is terminated:

		(1)	Fails to continue performing the Agreement substantively because of force majeure;

		(2)	Loss is occurred during operation and management period under the Agreement, and Saikong fails
to advance payment as agreed in order to maintain the operation of ZZ Plant and Methanol Plant;

		(3)	During operation and management period under the Agreement, the Management Team violates safety,
environment protection laws and any other related laws, or violates the obligations under the Agreement, or acts exceeding the
scope authorized by the Board, resulting in loss of Plant and Methanol Plant.

6.2 If the Agreement is terminated pursuant to Article 6.1 or
applicable laws, the Agreement is no longer enforceable or effective on any Party. But each Party shall not be exempted from any
liabilities caused by its breach of the Agreement or misrepresentation under the Agreement, and such termination shall not be regarded
as a waiver of any remedy (including specific performance, if available) available for such breach of the Agreement or misrepresentation
under the Agreement.

     

     

    

	7		Notices

Notices under the Agreement issued by any Party shall be in writing,
and shall be deemed to have been effectively given to the following addresses upon receiving or being handed over for delivery
if delivered by regular mail ,express delivery or registered mail:  

7.1 to the ZZ Plant, by the following address:

Attention: Hu Yifang

Address: Room 910, No. 2 building, No. 711,
Yishan Road, Shanghai, PRC

Post code: 200233

Phone No.: (86-21) 5496 2299

7.2 to Saikong by the following address:

Attention: Liu Wei

Address: Room 506, Building A, Lushang Plaza,
No. 19288Jingshi Road, Lixia District, Jinan, PRC.

Phone No.: (86-531) 82562006

	8		Liability for Breach

	8.1		Either Party shall indemnify, defend and hold harmless the other Party from and against
any direct or indirect loss caused by the breach of obligations under the Agreement by s2uch Party, including but not limited
to related benefits and reasonable legal expenses. Besides, the breaching party should continue to perform other obligations in
the Agreement.

	8.2		Either party shall indemnify, defend and hold harmless the other Party from and against
any direct or indirect loss caused by the breach of representations and warranties under the Agreement by such Party, including
but not limited to related benefits and reasonable legal expenses.

	8.3		

	8.4		For any liability for breach of contract by Saikong under the Agreement, Rui Feng
shall assume joint liability for compensation with all of its assets, rights and interests inside and outside the PRC.

		9	Force Majeure

	9.1		“Force Majeure Event” means an event that is unforeseeable at the execution
of the Agreement, the occurrence and result of which cannot be avoided and overcome, and occurs after the execution of the Agreement,
which interrupts the performance of the Agreement in whole or in part. The Force Majeure Event shall include earthquakes, typhoons,
flood, fire, war, national or international transportation disruption, acts of government or public body, epidemic, civil war,
strikes and any other instances which are accepted as Force Majeure Event in general international commercial practice.

	9.2		If Force Majeure Event occurs, the Party affected by the event (“Affected Party”)
shall inform the other Party immediately and provide formal written notice within 15 days including the description of the event,
the reason why it cannot fulfill its obligation, the estimated duration of the event and relevant supporting documents. The Affected
Party shall use all reasonable effort to continue performing its obligations under the Agreement which is not affected by the
Force Majeure Event.

	9.3		If Force Majeure Event occurs, the Parties shall hold the meeting to find out a fair
solution immediately, and all reasonable effort to mitigate the consequences of the Force Majeure Event.

		10	Applicable Law and Dispute Resolution

	10.1		The formation, execution, performance, termination and dispute resolution of the Agreement
shall be governed by and interpreted in accordance with the PRC law.

	10.2		Any dispute arising from the Agreement, the Parties shall first try to solve by friendly
consultation and negotiation. If the dispute cannot be resolved within 30 days after one Party issuing the written notice requesting
for consultation, the Party issuing the notice can submit the dispute to the Shanghai International Economic and Trade Arbitration
Commission (“Arbitration Commission”) for arbitration in Shanghai in accordance with valid arbitration rules at the
time of the arbitration. The arbitration tribunal shall consist of three arbitrators, one appointed by the applicant, one appointed
by the other Party, the third arbitrator (“Chief Arbitrator") appointed based on agreement between the Parties, or
by the Arbitration Commission if the Parties cannot agree on the third arbitrator. Any decision or award of the arbitration tribunal
shall be final and binding upon both Parties.

     

     

    

		11	Effectiveness and miscellaneous

		11.1	The Agreement will come into force when all of the following conditions are met:

		(1)	signed by legal representatives or authorized representatives of the Parties and stamped by the
Parties;

		(2)	Rui Feng becomes the shareholder of SESI

		(3)	As authorized by Rui Feng, Saikong appoints a GM and receives appointment letter from the Board.

		11.2	The Parties may continue to negotiate and sign related supplement agreement, memorandum or other
binding documents on other matters not stipulated in the Agreement after the execution of the Agreement in accordance with the
basic principles of the Agreement. Such documents constitute an integral part of the Agreement and have same legal effect with
the Agreement. If the contents of such documents are inconsistent with the Agreement, the Agreement shall prevail.

		11.3	The Agreement is written in both Chinese and English with 4originals, 2 for each party. The Chinese
version shall prevail in the event of any discrepancy between the Chinese and English versions.

 

 

 

Synthesis Energy Systems (Zaozhuang)
New Gas Company LTD.

 

/s/ Huang Dali                                            

Name: Huang Dali

Title: Authorized Director

 

 

Shandong Saikong Automatic Equipment Company Ltd.

 

/s/ Li Qinghua                                             

Name: Li Qinghua

Title: Chairman

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