Document:

solarmax_ex1043.htm

EXHIBIT 10.43
 
 
State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd.
 
Jiangsu Zhonghong Photovoltaic Electric Co., Ltd
 
Nanjing Qingchangyang New Energy Co.,Ltd
 
Xingren Almaden New Energy Co.,Ltd 
 
Southwest Guizhou Autonomous Prefecture Jinyuan New Energy Co., Ltd.
 
Xinren 30MWp Agricultural PV Power Station Project 
 
Project M&A (Cooperative Development) Agreement
 
Guiyang, China
 
August 2019
 
	 
	 
	
 
	 

 
Xinren 30MWp Agricultural PV Power Station Project 
 
M&A (Cooperative Development) Agreement
 
Party A: State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd.
 
Legal representative: Zheng Fasong
 
Domicile: Weishuang Avenue, Caohai Town, Weining County, Guizhou Province
 
Party B: Jiangsu Zhonghong Photovoltaic Electric Co., Ltd
 
Legal representative: Xu Aojun
 
Domicile: Room 1108, Chengxin Building, No. 885 Chengxin Avenue, Jiangning District, Nanjing
 
Party C: Nanjing Qingchangyang New Energy Co.,Ltd
 
Legal representative: Rui Yun
 
Domicile: Room 201, Building 2, Huijin Xintiandi square, No. 11 Shengtai Avenue, Jiangning District, Nanjing
 
Party D: Xingren Almaden New Energy Co.,Ltd 
 
Legal representative: Zhou Feng
 
Domicile: Unit 3-4, unit 20, renhejiayuan, Xingren County, buyi and miao autonomous prefecture, southwest Guizhou province
 
Party E: Southwest Guizhou Autonomous Prefecture Jinyuan New Energy Co., Ltd.
 
Legal representative: Geng Zhi
 
Domicile: 1401, Unit 1, Building 8, Century Hongyuan Community, Jushan Avenue, Xingyi City, Southwest Guizhou Autonomous Prefecture, Guizhou Province
 
	 
	- 1 -
	
 
	 

 
Whereas:
 
	1.	Party A is a joint stock company registered and legally existing in China. It is a subsidiary of State Power Investment Corporation Guizhou Jinyuan Co., Ltd. (hereinafter referred to as “Guizhou Jinyuan), which is a subsidiary of State Power Investment Corporation (hereinafter referred to as “SPIC”); Party’s main business scope includes the development, investment and operation of thermal power, hydropower, PV power generation, wind power, biomass power generation, integrated energy supply, smart grid and other projects.
	 
	 

	2.	Party B is a limited company registered and legally existing in China. It is a leading global provider of smart energy overall solution, specializing in engineering consulting and design, Engineering Procurement Construction (EPC), equipment manufacturing, microgrid and energy storage operations and management in new energy fields at home and abroad, and holding 100% equity of Party C.
	 
	 

	3.	Party C is a limited company registered and legally existing in China. It is a professional company engaged in new energy power station project investment and operation management, and technology development, technology transfer, technical consultation and technical services in the fields of wind energy, solar energy and PV systems. It holds 100% equity of Party D.
	 
	 

	4.	Party D is a limited company registered and legally existing in China. It is the investor of the Xinren 30,000 kW Agricultural PV Power Station Project (hereinafter referred to as “Target Company”).
	 
	 

	5.	Party E is a limited company registered and legally existing in China. It is a wholly-owned subsidiary of State Power Investment Corporation Guizhou Jinyuan Co., Ltd., responsible for the development, construction and production operations of Guizhou Jinyuan’s new energy project in the southwestern region of Guizhou.

 
	 
	- 2 -
	
 
	 

 
According to the “Framework Agreement for Cooperation and Development of New Energy Projects in Southwest Guizhou” signed by Guizhou Jinyuan and Solarmax Technology (Jiangsu) Co., Ltd. In 10 May 2019, the two Parties have agreed that under the same conditions, the two Parties shall take priority to cooperate with each other on the principle of substantially equal capacity.
 
On the principles of good faith, mutual benefit, fairness and voluntariness, the Parties hereto have reached the following agreement on the M&A (cooperative development) of the Xinren 30000kW Agricultural PV Power Station.
 
	I.

	Definition
	 
	 

	1.1	“Project” means “Xinren 30000kW Agricultural PV Power Station”.
	 
	 

	1.2	“This Agreement” means the agreement for the cooperation and M&A of the Project, including all its annexes and modifications and supplements to this Agreement made by the Parties hereto.
	 
	 

	1.3	“Parties” means Party A, Party B, Party C, Party D and Party E of this Agreement.
	 
	 

	1.4	“Target Company” means the project investor expressly stated in the project filing documents, that is, “Guizhou Xingren Almaden New Energy Co.,Ltd (Party D)”.
	 
	 

	1.5	“Local government” means the people’s government and other competent authorities at the level of the province (autonomous region), city and county where the Project is located.
	 
	 

	1.6	“Construction period” means the period from the commencement of the project construction to the full capacity electricity generation and grid connection of the Project.

 
	 
	- 3 -
	
 
	 

  
	II.
	Project Overview

	 
	 

	2.1	Project site: Luchuyin Town, Xinren, Southwest Guizhou Autonomous Prefecture, Guizhou Province
	 
	 

	2.2	Project scale: 35,500 kW, the actual component installation capacity is subject to the capacity designed in the approved feasibility study.
	 
	 

	2.3	Status quo of the Project: On May 17, 2018, the Project was included in the Notice of Guizhou Energy Administration on the Preliminary Work Plan for PV Power Generation Project in Guizhou Province in 2019 (New Energy of Guizhou Energy Administration [2019] No. 81), which agrees to carry out preliminary work plan for the Project. According to “Notice of the Department of General Affairs of the National Energy Administration on Publishing the Results of National Subsidy Bidding for PV Power Generation Projects in 2019” (Notice of the Department of General Affairs of NEA on New Energy [2019] No. 59) issued on July 10, 2019, the Project has been included in the list specified in the Notice. the project scale proposed is 35,500 kW, and the competitive electricity price is 0.4587 yuan / kWh. The project construction is scheduled to start in August 2019, and the Project will generate electricity and be connected to the grid at its full capacity before December 31, 2019.

       
	III.	Cooperative Decision and Exclusion
	 
	 

	3.1	Unless otherwise agreed by the Parties, Party A has the priority to carry out the M&A (cooperative development).
	 
	 

	3.2	Party B shall provide Party A with relevant information for the Project to be legally compliant. Party B shall ensure the authenticity of the information provided, ensure that the approval documents obtained meet the requirements of the competent local administration department, and provide other relevant information that has been actually obtained according to the progress of the Project. See Annex 1 for the catalogue of legal compliance documents concerning the Project.
	 
	 

	3.3	Party A shall appoint a qualified consulting entity within the State Power Investment Corporation to conduct a project feasibility study report review and obtain a feasibility study review opinion. Party A shall perform the internal project establishment procedures after Party B has provided Party A with relevant information mentioned in Clause 3.2 and this Agreement has been agreed and signed by all Parties.

  	 
	- 4 -
	
 
	 

 
	3.4	After the Project has been established and recorded by SPIC, Party A will organize to carry out legal and financial due diligence, financial audit, asset evaluation, and project technical and economic evaluation on the target company. When the project M&A conditions are met, Party A shall perform the procedures for the internal review and filing of the project M&A implementation plan. After the project M&A implementation plan has been approved and registered by SPIC, the Parties shall cooperate according to the cooperation mode specified in Clause 4 of this Agreement. If Party A’s evaluation results prove that the conditions for the M&A are not met, or if there is no evaluation result within 90 calendar days after Party A establishes the Project, then it shall be deemed that Party A has waived the M&A and cooperation, and this Agreement shall be terminated.

    	IV.	Cooperation Mode
	 
	 

	4.1	After the project M&A implementation plan has been recorded by State Power Investment Corporation and the M&A prerequisites described in Clause 6.1. have been met, Party A, Party C and Party D shall sign an agreement on the M&A of the target company based on the official reply on the asset evaluation and filing, and Party A shall hold 70% of the equity of the target company through M&A and Party C shall hold 30% of the equity. The Parties have unanimously confirmed that the date on which the market supervisory authority completes the relevant equity change registration is the completion date of the M&A. Party A and Party B shall use 40% of the total investment of the Project as the registered capital of the target company. The capital shall be subscribed according to the shareholding ratio and paid in due time according to the project construction needs upon approve by the shareholders of both Parties. The deadline for actual payment of capital shall be no later than28/02/2020; otherwise, the Party failing to make full payment of the capital shall be liable for breach of contract.
	 
	 

	4.2	After the Project has been put into operation at its full capacity for one year, all operational indices have reached the requirements specified in the project feasibility study report confirmed by two Parties, all legal compliance procedures required by the Project have been completed and other agreement between the Parties have been met, Party C may propose to transfer the equity of the target company it holds, and Party A shall have the right of first refusal. After the equity purchase price evaluation is performed in accordance with the relevant provisions of the State Power Investment Corporation, the two Parties shall sign an equity purchase agreement clarifying the specific matters based on the evaluation price recognized by both Parties, but the purchase price shall not be higher than the paid-in capital of Party C. The relevant taxes and fees shall be born by the two Parties respectively. Party A shall purchase rest of 30% equity of the target company held by Party C in 3 months after Party C make a written application . If Party A does not agree or does not reply within 3 months, it shall be deemed that Party A have waived the right of first refusal and Party A agrees that Party C may transfer the equity of the target company to a third party.

   
	 
	- 5 -
	
 
	 

    
	V.	Cooperation Related Agreement
	 
	 

	5.1	The unit static cost of the Project shall not be higher than 4218.95yuan/kW, and the static total investment of the Project shall be calculated according to the actual installed capacity. The static total investment of the Project mentioned in this clause includes all equipment and installation engineering, construction engineering, other expenses (project construction land cost, project construction management fee, farm land occupation tax, production preparation fee, survey and design fee, etc.), basic reserve fee, transmission project, SPIC Guiyang new energy production and operation center access fee, special acceptance, project settlement (including audit, etc.) and all other investment required for completing and putting into operation the Project. The static total investment of the Project shall be determined in accordance with the feasibility study jointly approved by the Parties, and the investment exceeding the agreed static total investment of the Project shall be borne by Party B. the static total investment of the project including following.
	 
	 

	5.1.1	Equipment procurement and installation project (Including SPIC production and operation platform costs)
	 
	 

	5.1.2	Constructional engineering.
	 
	 

	5.1.3	Other expenses, include but not limited to construction land fee (land acquisition, ground attachment compensate, five year land rent), project construction management fee (Pre-construction cost, construction management fee, construction supervision fee, project consulting service fee, project economic evaluation fee, construction quality inspection fee, project acceptance cost, construction insurance), production arrangements, survey and design service fee and others.

  	 
	- 6 -
	
 
	 

 
	5.1.4	Basic reserve funds
	 
	 

	5.1.5	Project overhead line
	 
	 

	5.2	The project budget estimates shall be subject to the relevant regulations and requirements of SPIC and Guizhou Jinyuan. The technical and economic review fees (design document review, technical and economic evaluation, etc.), consulting service fees (legal due diligence, financial due diligence, financial audit, asset evaluation, project settlement (including audit, etc.)) and other expenses required for Party A’s M&A (cooperative development) of the Project shall be included in the project budget estimates. The technical and economic review fee, consulting service fee, project construction management fee, production preparation fee, project construction supervision fees (including main equipment manufacturing supervision) incurred for the project M&A shall be subject to relevant contract signed by the project company upon confirmation by Party E. That is to say, in the static total investment of the Project, the fees confirmed by Party E is RMB 3.5459 million.
	 
	 

	5.3	During the project construction period, the target company appoints Party E to implement project construction quality and progress management, for which a separate agency agreement for construction management shall be signed, and the relevant expenses shall be included in the project budget estimates.
	 
	 

	5.4	The main components such as PV modules and inverters used in the Project shall be supplied by suppliers in the SPIC’s list of qualified suppliers. The equipment manufacturers shall be liable to the target company for the warranty of the PV modules and inverters and bear related liability for breach of contract; other equipment shall be purchased through tendering in accordance with the technical standards of SPIC. Party E shall propose opinions on the main equipment manufacturing supervision, engineering quality inspection, and project supervision, and the target company shall appoint qualified entities to undertake such supervision and inspection in accordance with relevant national regulations.
	 
	 

	5.5	Before Party A initiates the M&A of the target company, Party B shall, in the name of the target company, carry out project financing from banks, financial leasing companies and other financial institutions to pay the project engineering contract price. However, before the signing of financing agreement, the financing plan and agreement shall be reported to Party A for confirmation. Party A shall confirm in writing within 10 days after receiving the financing plan and agreement submitted by Party B or the target company. In the event of delay in reply, it shall be deemed that Party A agrees to the financing plan and agreement. After the completion of M&A of the target company, both Party A and Party C undertake to undertake the target company’s financing agreement or use other funds to replace the target company’s financing; if the loan amount is insufficient, the two Parties shall negotiate the settlement according to the shareholding ratio. The first round of financing fund should be received within one month after this agreement signed, otherwise should be negotiated and settled amicably by party A and party C.

 
	 
	- 7 -
	
 
	 

 
	5.6	Party C shall pledge the share of Target Company and pledge the assets of Target Company to Party A. Related management of signet shall be regulated in the payment management agreement.
	 
	 

	5.7	Funds management of share pledge
	 
	 

	5.7.1	The financing fund shall be managed by escrow account held by party C and party E, see details in payment management agreement.
	 
	 

	5.7.2	The use of financing fund as ear-marked, party A has authority of fund management.
	 
	 

	5.7.3	Before use of financing fund, Party C shall provide project contract, requisition for payment, project progress settlement table and confirmed by supervising unit and party E, the payment process shall be complied with regulation of SPIC.
	 
	 

	5.8	All the profit and loss before the Project’s grid-connection and power generation shall be borne by the original shareholders of the target company; the income rights and electricity charges after grid-connection and power generation shall be owned by the target company, and by the target company’s shareholders after the completion of M&A of the target company.
	 
	 

	5.9	After the completion of M&A of the target company, the target company will not pay dividends in 2020. Thereafter, on the premise of maintaining the target company’s normal operation, the distribution of profit of the previous year shall be completed before March 31st each year in principle according to the shareholding ratio of Party A and Party C after the financial audit of the target company and the shareholders’ meeting.

 
	 
	- 8 -
	
 
	 

 
	VI.	M&A
	 
	 

	6.1	M&A prerequisites:
	 
	 

	6.1.1	There are no any major risks and hazards with substantial influence (including but not limited to external guarantees, litigation, false assets, administrative penalties, major operational risks, etc. that are not disclosed by the target company).
	 
	 

	6.1.2	The project equipment procurement standards and construction standards meet the technical agreement (EPC) confirmed by Party E.
	 
	 

	6.1.3	The target company has signed a electricity purchase and sale contract with Guizhou Power Grid Co., Ltd. (according to the requirements of Guizhou Power Grid Co., Ltd.), which stipulates that the electricity price shall be 0.4587 yuan / kWh.
	 
	 

	6.1.4	The target company has obtained necessary approvals/licenses related to the development and construction of PV power generation projects in accordance with Chinese laws and regulation and the requirements of local administration departments, and Party B, Party C or the target company has provided Party A with the true and effective originals of relevant licenses, payment vouchers and other documents.
	 
	 

	6.1.5	The project M&A implementation plan has been recorded by SPIC
	 
	 

	6.1.6	The Project’s “EPC contract” is confirmed by Party A, or confirmed by Party A after amendment to corresponding contents thereof and the signing of supplemental agreement in accordance with the requirements of Party A.
	 
	 

	6.1.7	The target company signs an Agreement for Lease of Land with the holder of the use right of the project land. The lease area under the Agreement for Lease of Land matches the requirements of the Project for land use, and the lease term matches the project operation period.
	 
	 

	6.2	After the Project satisfies the “M&A Prerequisites” as described in Clause 6.1, and on the premise that Party B, Party C and Party D fully comply with the provisions of this Agreement, Party A will initiate the M&A of the target company.

 
	 
	- 9 -
	
 
	 

  
	VII.	Commitment and Guarantee of Parties
	 
	 

	7.1	Party A undertakes that Party A is a limited liability company legally established and validly existing under Chinese law, able to independently undertake and fulfill its responsibilities and obligations under this Agreement.
	 
	 

	7.2	Party A undertakes that Party A’s signing of this Agreement does not violate any other contractual obligations that are legally binding on Party A, and does not violate currently effective laws and regulations applicable to it.
	 
	 

	7.3	Party B undertakes that Party B is a limited liability company legally established and validly existing under Chinese law, able to independently undertake and fulfill its responsibilities and obligations under this Agreement.
	 
	 

	7.4	Party B undertakes that Party B’s signing of this Agreement does not violate any other contractual obligations that are legally binding on Party B, and does not violate currently effective laws and regulations applicable to it.
	 
	 

	7.5	Party B undertakes that the Project will generate electricity and be connected to the grid at its full capacity before December 31, 2019. It will be achieved on schedule that the electricity of the Project is sold at a competitive price of 0.4587 yuan/kW. If the actual electricity price is less than 0.4587 yuan / kWh, Party B agrees to deduct the corresponding actual loss from the Project’s EPC contract price. If the actual electricity price decrease 0.01 Yuan/kwh, EPC contract price will be going down 103 Yuan /kWh. If the actual electricity price decrease 0.02 Yuan/kwh, EPC contract price will be going down 206 Yuan /kWh. If the Project is converted to a grid parity project, Party A will neither carry out the M&A, nor bear any financial responsibility.
	 
	 

	7.6	Party B undertakes to bear responsibility for all the preliminary, construction and completion acceptance work of the Project, specifically including the following:
	 
	 

	7.6.1	Dealing with all the formalities and documents required for the construction commencement of the Project, and ensure that the Project is constructed in accordance with the law to meet the relevant requirements of national and local governments. For details, see Annex 1.
	 
	 

	7.6.2	Responsible for project environmental assessment, water conservation, fire control, agricultural planting and other special acceptance, so as to meet the project completion acceptance requirements. Letting the PV project be accepted by the local energy authority, and the agricultural planting plan be accepted (if any) by the local agricultural authority. All the above-mentioned fees are included in the static total investment of the Project, and the target company may not be required to pay separately.

 
	 
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	7.6.3	Cooperate with the settlement of project and hand over the archives in a timely manner.
	 
	 

	7.7	Party B undertakes that after the Project generates electricity and is connected to the grid at its full capacity, if the available hour using for power generation of the Project in the first year is lower over 5% than the hour stated in the feasibility study report, the amount of loss which will be deducted from quality guarantee deposit under the EPC contract. The compensation will be calculated by: [(the hour stated in the feasibility study report)*(1-0.05) - available hour using for power generation of the Project]* installed capacity*20*0.4587+ [the hour stated in the feasibility study report*(1-0.05) - available hour using for power generation of the Project]* installed capacity*5*0.3515
	 
	 

	7.8	Party B undertakes that if the total efficiency of the PV system in the first year is less than 80% of that approved in the feasibility study report, Party B agrees that for every 1% reduction in the total efficiency of the PV system, the EPC contract price will be going down 1.3% . If there is any deficiency, Party B shall be responsible for compensation.
	 
	 

	7.9	Party B undertakes that, before the signing of this Agreement, all the equity shares of the target company held by Party C are not subject to any pledge, mortgage or other security interest (excluding pledge, mortgage or other security interest agreed by Party A for the purpose of project construction financing) or shareholding entrustment, ownership disputes, etc. As of the date of signing this Agreement, there is no existing or potential dispute or risk for the Project; if there is any, Party A has the right to terminate this Agreement unilaterally, and any costs and losses arising from this Agreement or related risk shall ultimately be borne by Party B.
	 
	 

	7.10	Party B undertakes that all written materials, including project documents and materials, submitted to Party A, are complete, accurate and effective, free from material omission or false; if such written materials are the duplicate thereof, they are consistent with the original; and undertakes that the target company does not have debts and contingent liabilities that are not disclosed in the accounting books. If the undisclosed debts and contingent liabilities cause losses to the target company, Party A has the right to recover such losses from Party B.

 
	 
	- 11 -
	
 
	 

  
	7.11	Party B undertakes that if the “M&A Prerequisites” mentioned in Clause 6.1 are not completely satisfied due to reasons not attributable to Party A, Party A has no obligation to acquire and hold the equity of the target company, and has the right to unilaterally terminate this Agreement. If Party A still decides to acquire and hold the equity of the target company, Party B and Party C shall fully cooperate with Party A to complete the relevant matters concerning the M&A.
	 
	 

	7.12	Party B undertakes that if the relevant administrative license documents during the construction period of the Project are incomplete or the relevant taxes and fees (farmland occupation tax, etc.) are not paid, and thus the competent government authorities require the target company to obtain relevant licenses or pay relevant taxes and fees (farmland occupation tax, etc.) or impose administrative penalties on the target company (no matter when such penalties occur), Party B shall be responsible for dealing with such administrative license documents and bear all costs incurred therefor, including administrative penalties. If the land is confiscated and the project equipment and facilities are demolished due to administrative penalty, the losses arising therefrom shall be borne by Party B.
	 
	 

	7.13	Party C undertakes that Party C is a limited liability company legally established and validly existing under Chinese law, able to independently undertake and fulfill its responsibilities and obligations under this Agreement.
	 
	 

	7.14	Party C undertakes that Party C’s signing of this Agreement does not violate any other contractual obligations that are legally binding on Party B, and does not violate currently effective laws and regulations applicable to it.
	 
	 

	7.15	Party E undertakes that Party E is a limited liability company legally established and validly existing under Chinese law, able to independently undertake and fulfill its responsibilities and obligations under this Agreement.
	 
	 

	7.16	Party E undertakes that Party E’s signing of this Agreement does not violate any other contractual obligations that are legally binding on Party B, and does not violate currently effective laws and regulations applicable to it.
	 
	 

	7.17	Full capacity of project connect to the grid and after the acceptance conditions are met, Party B shall apply for the engineering acceptance and party E shall start to acceptance inspection in one week after receive the application .
	 
	 

	7.18	The Parties undertake that after the signing of this Agreement, they shall all fulfill the relevant responsibilities and obligations under this Agreement.

 
	 
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	VIII.	Liability for Breach of Contract and Termination of Project Cooperation
	 
	 

	8.1	If the Project fails to meet the “M&A Prerequisites” as described in Clause 6.1, or Party B fails to fulfill the commitments set out in Clauses 7.9 and 7.10 of this Agreement before Party A and Party C sign the target company M&A agreement, resulting in disputes over and obstacle to the M&A of the target company which cannot be resolved, then this Agreement is automatically terminated.
	 
	 

	8.2	After all the “M&A Prerequisites” mentioned in Clause 6.1 are met, Party A and Party C shall be obliged to complete the M&A within 90 days. If either Party fails to perform the obligation, the other party has the right to unilaterally terminate this Agreement, and the breaching party shall be liable for all losses caused thereby to the non-breaching party.
	 
	 

	8.3	If after Party A and Party C sign the agreement for M&A of the target company, Party A finds that there is a matter described in Clause 7.10 of this Agreement with significant negative influence on the follow-up cooperation and Party C fails to properly resolve the problem, causing losses to Party A, Party A has the right to recover the losses from Party C and from Party B.
	 
	 

	8.4	If Clause 6.1 are not met and Party A and Party E decide to terminate the acquisition of this project, the parties agree ,Party A and Party E shall be exemption from responsibility for breach of contract.
	 
	 

	8.5	Other than the acts mentioned in Clause 8.1, 8.2 and 8.3, if any Party hereto violates the provisions of this Agreement, it shall be deemed to constitute a breach of contract, and the breaching party shall bear the liability for breach of contract to the non-breaching party. Specifically, the non-breaching party shall have right to request the termination of this Agreement and require the breaching party to return the property or articles (if any) already paid or delivered by the non-breaching party and compensate for the loss; if the non-breaching party requires the breaching party to continue to perform this Agreement, the breaching party shall compensate the loss suffered by the non-breaching party and continue to fulfill this Agreement.

 
	 
	- 13 -
	
 
	 

 
	IX.	Miscellaneous
	 
	 

	9.1	The Parties hereto shall be obliged to keep confidential the contents of this Agreement. Unless required by national laws, regulations or relevant authorities, any Party may not disclose the details and relevant information of this cooperation to any unrelated third party without the written consent of other Parties and shall cause their respective related parties to fulfill the confidentiality obligations.
	 
	 

	9.2	If a Party fails to perform or fails to fully perform its obligations under this Agreement due to force majeure event, the Party shall not be deemed to be in breach of contract. However, the Party that is affected by the above-mentioned force majeure event shall immediately notify the other party in writing after the occurrence of the event and provide sufficient evidence to prove the occurrence and duration of the force majeure event within 15 days thereafter. In the event of force majeure, the Parties hereto shall immediately consult each other in order to seek a fair solution to minimize the influence of the force majeure event.
	 
	 

	9.3	Any dispute arising during the performance of this Agreement shall be settled through friendly negotiation; if the negotiation fails, either Party may file a law suit with the people’s court with jurisdiction over the place where the Project is located.
	 
	 

	9.4	This Agreement shall become effective upon signature by the legal representative or authorized agent of the Parties and affixation of the official seal of the Parties. This Agreement shall be made in ten copies, with each Party holding two copies, which shall have the same legal effect.

 
Annex:
 
	1.	Catalogue of legal compliance documents concerning the Project.
	 
	 

	2	General budget estimate table for construction projects
	 
	 

	3.	Budget estimate table for cost control and management

 
------------------------------------- The remainder of this page is intentionally left blank 
 
	 
	- 14 -
	
 
	 

 
(This page is the signature and seal page of the Agreement on the M&A (Cooperative Development) of the Zhonghong Yilong New District Xinqiao 70000kW Agricultural PV Power Station Project
 
Party A: State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd. (seal)
 
Legal representative (or authorized agent) (signature):
 
Party B: Jiangsu Zhonghong Photovoltaic Electric Co., Ltd (seal)
 
Legal representative (or authorized agent) (signature):
 
Party C: Nanjing Qinchangyang New Energy Co., Ltd. (seal)
 
Legal representative (or authorized agent) (signature):
 
Party D:Xingren Almaden New Energy Co.,Ltd (seal)
 
Legal representative (or authorized agent) (signature):
 
Party E: Southwest Guizhou Autonomous Prefecture Jinyuan New Energy Co., Ltd. (seal)
 
Legal representative (or authorized agent) (signature):
 
Place of signing contract: Guiyang City, Guizhou Date of signing: 
 
	 
	- 15 -
	
 
	 

 
Annex 1: Catalogue of legal compliance documents concerning the Project.
 
	No.
	Document name
	Official reply No.
	Official reply
entity
	Date of official
reply
	Remarks

	1	Project Investment and Development Agreement
	 
	 
	 
	 

	2	Project Filing Documents
	 
	 
	 
	 

	3	Feasibility study report and review opinion
	 
	 
	 
	 

	4	Solar resource assessment report and review opinion
	 
	 
	 
	 

	5	Access to system report and review opinion
	 
	 
	 
	 

	6	Transmission project approval documents
	 
	 
	 
	 

	7	Land use pre-review documents and official reply on land use
	 
	 
	 
	 

	8	EIA approval (record) document
	 
	 
	 
	 

	9	Water and soil conservation plan and official reply
	 
	 
	 
	 

	10	Project planning site selection document
	 
	 
	 
	 

	11	Construction land planning documents
	 
	 
	 
	 

	12	Forest land occupation approval
	 
	 
	 
	 

	13	Covered mineral resources assessment report and review opinions (including material submission certificate)
	 
	 
	 
	 

	14	Geological hazard risk assessment report and review opinion
	 
	 
	 
	 

	15	Safety assessment report and review and official reply
	 
	 
	 
	 

	16	Engineering quality supervision and inspection report
	 
	 
	 
	 

	17	Social stability assessment report
	 
	 
	 
	 

	18	Electricity generation approval 
	 
	 
	 
	 

	19	Environmental impact assessment report
	 
	 
	 
	 

	20	Conservation of water and soil inspection report
	 
	 
	 
	 

 
	 
	- 16 -
	
 
	 

 
Annex 2: General budget estimate table for construction projects
 
	工程总概算/ General budget estimate table for construction projects
	

	RMB 0000
	
	序号/NO
	工程或费用名称/ITEM
	设备购置费/equipment procurement cost
	装置性材料费/Mechanical material
	建安工程费/Construction and installation cost
	其他费用/others
	预备费/budget reserve
	合计/total
	占比/ratio
		
										 
	
	一
	设备及安装工程/Equipment and installation engineering
	9029.47 
	754.89 
	923.80 
		 
	10708.15 
	0.72 
	 
	
	1
	发电设备及安装/Power generation equipment and installation
	8521.82 
	576.41 
	860.23 
					 
	
	2
	升压站设备及安装/Booster station equipment and installation
	228.00 
	110.47 
	22.70 
					 
	
	3
	升压站控制保护设备及安装/Booster station control protection equipment and installation
	193.65 
	68.00 
	26.97 
					 
	
	4
	其他设备及安装/Other equipment and installation
	86.00 
	0.00 
	13.89 
					 
	
	二
	建筑工程/constructional engineering 
		 
	1360.07 
		 
	1360.07 
	0.12 
	 
	
	1
	发电场工程/Power plant engineering
		 
	1008.40 
					 
	
	2
	升压站工程/Booster station project
		 
	70.14 
					 
	
	3
	房屋建筑工程/building construction engineering
		 
	199.65 
					 
	
	4
	其他建筑工程/Other construction works
		 
	81.87 
					 
	
	三
	其他费用/others
			 
	1852.17 
	 
	1852.17 
	0.12 
	 
	
	1
	项目建设用地费/Construction land fees
			 
	279.63 
				 
	
	2
	项目建设管理费/Project construction management fee
			 
	715.89 
				 
	
	3
	生产准备费/Production preparation cost
			 
	21.66 
				 
	
	4
	勘查设计费/survey and design expense
			 
	259.99 
				 
	
	5
	其他/others
			 
	575.00 
					
	 
	(一至三部分合计)/subtotal
	9029.47 
	754.89 
	2283.87 
	1852.17 
	0.00 
	13920.40 
		 
	
	四
	基本预备费/ basic reserve funds 
				 
	278.41 
	278.41 
	0.02 
		
	 
	光伏电站静态投资(一至四)部分合计/Static investment in photovoltaic power stations
	9029.47 
	754.89 
	2283.87 
	1852.17 
	278.41 
	14198.81 
		 
	
	五
	送出线路工程/Send out line engineering
		 
	794.00 
		 
	794.00 
	0.05 
	 
	
	1
	对侧间隔/contralateral interval
		 
	80.00 
		 
	80.00 
		 
	
	2
	110kv线路工程(架空线接入220kV安龙变)/110kv line project
		 
	714.00 
		 
	714.00 
			
	 
	含送出线路工程静态投资(一至五)部分合计/Static investment in photovoltaic power stations
	9029.47 
	754.89 
	3077.87 
	1852.17 
	278.41 
	14992.81 
	1.00 
	 
	
	六
	价差预备费
			 
	0.00 
	 
	0.00 
		 
	
	七
	建设期利息/interest
			 
	146.57 
	 
	146.57 
		 
	
	八
	工程总投资(一至七)部分合计/totalinvestment
	9029.47 
	754.89 
	3077.87 
	1998.75 
	278.41 
	15139.38 
			
	 
	单位千瓦静态投资(元/KW)/Static investment per kilowatt
	2579.85 
	215.68 
	879.39 
	529.19 
	79.55 
	4218.95 
			
	 
	单位千瓦投资(元/KW)/unit investment per kilowatt
	2579.85 
	215.68 
	879.39 
	571.07 
	79.55 
	4260.20 
			

 
	 
	- 17 -
	
 
	 

 
Annex 3: Budget estimate table for cost control and management
 
	Budget estimate table for cost control and management
	

	RMB 0000
	
	序号/NO
	工程或费用名称/ITEM
	设备购置费/equipment procurement cost
	装置性材料费/Mechanical material
	建安工程费/Construction and installation cost
	其他费用/others
	预备费/budget reserve
	合计/total
	乙方管控/party B control
	甲方管控/party A control
	
										 
	
	一
	设备及安装工程/Equipment and installation engineering
	9029.47 
	754.89 
	923.80 
		 
	10708.15 
	10708.15 
	 
	
	1
	发电设备及安装/Power generation equipment and installation
	8521.82 
	576.41 
	860.23 
					 
	
	2
	升压站设备及安装/Booster station equipment and installation
	228.00 
	110.47 
	22.70 
					 
	
	3
	升压站控制保护设备及安装/Booster station control protection equipment and installation
	193.65 
	68.00 
	26.97 
					 
	
	4
	其他设备及安装/Other equipment and installation
	86.00 
	0.00 
	13.89 
					 
	
	二
	建筑工程/constructional engineering 
		 
	1360.07 
		 
	1360.07 
	1360.07 
	 
	
	1
	发电场工程/Power plant engineering
		 
	1008.40 
					 
	
	2
	升压站工程/Booster station project
		 
	70.14 
					 
	
	3
	房屋建筑工程/building construction engineering
		 
	199.65 
					 
	
	4
	其他建筑工程/Other construction works
		 
	81.87 
					 
	
	三
	其他费用/others
			 
	1852.17 
	 
	1852.17 
	1497.58 
	354.59 
	
	1
	项目建设用地费/Construction land fees
			 
	279.63 
				 
	
	2
	项目建设管理费/Project construction management fee
			 
	715.89 
				 
	
	3
	生产准备费/Production preparation cost
			 
	21.66 
				 
	
	4
	勘查设计费/survey and design expense
			 
	259.99 
				 
	
	5
	其他/others
			 
	575.00 
					
	 
	(一至三部分合计)/subtotal
	9029.47 
	754.89 
	2283.87 
	1852.17 
	0.00 
	13920.40 
		 
	
	四
	基本预备费/ basic reserve funds 
				 
	278.41 
	278.41 
	278.41 
		
	 
	光伏电站静态投资(一至四)部分合计/Static investment in photovoltaic power stations
	9029.47 
	754.89 
	2283.87 
	1852.17 
	278.41 
	14198.81 
		 
	
	五
	送出线路工程/Send out line engineering
		 
	794.00 
		 
	794.00 
	794.00 
	 
	
	1
	对侧间隔/contralateral interval
		 
	80.00 
		 
	80.00 
		 
	
	2
	110kv线路工程(架空线接入220kV安龙变)/110kv line project
		 
	714.00 
		 
	714.00 
			
	 
	含送出线路工程静态投资(一至五)部分合计/Static investment in photovoltaic power stations
	9029.47 
	754.89 
	3077.87 
	1852.17 
	278.41 
	14992.81 
		 
	
	六
	价差预备费
			 
	0.00 
	 
	0.00 
		 
	
	七
	建设期利息/interest
			 
	146.57 
	 
	146.57 
		 
	
	八
	工程总投资(一至七)部分合计/total investment
	9029.47 
	754.89 
	3077.87 
	1998.75 
	278.41 
	15139.38 
			
	 
	单位千瓦静态投资(元/KW)/Static investment per kilowatt
	2579.85 
	215.68 
	879.39 
	529.19 
	79.55 
	4218.95 
			
	 
	单位千瓦投资(元/KW)/unit investment per kilowatt
	2579.85 
	215.68 
	879.39 
	571.07 
	79.55 
	4260.20 
			

 
	
	- 18 -solarmax_ex1052.htm

EXHIBIT 10.52
 
Claims Repurchase Agreement
 
No.: HXZL-Zz-【20191661-003
 
Party A (Lessor): Huaxia Financial Leasing Co., Ltd. (seal)
 
Address: 15/F, Tower A, International Enterprise Building, No. 35, Financial Street, Xicheng District, Beijing
 
Legal representative: Ren Yongguang
 
Contact: Tian Jun
 
Contact number: 010-88091443
 
 
Party B (Repurchaser): State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd.
 
Contact address: Weishuang Avenue, Caohai Town, Weining County, Bijie City, Guizhou Province
 
Legal representative: Zheng Fasong
 
Contact: Li Dan
 
Contact number: 15186958266
 
 
Party c: 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]
 
 
Whereas:
 
1. Party A has signed the “Financial Leasing Contract” (No.: [166]) and associated schedules and annexes (hereinafter referred to as “Financial Leasing Contract”) with the Lessee (Party C), and signed the Agreement on the Transfer of Rights and Obligations (No.:) and associated annexes (hereinafter referred to as “Agreement on the Transfer of Rights and Obligations”) with the Seller and Party C according to Party C’s selection of the Lease Items and the Seller (Solarmax Technology (Jiangsu) Co., Ltd.). According to the Agreement on the Transfer of Rights and Obligations, Party A purchases the relevant Lease Items under the Agreement on the Transfer of Rights and Obligations from the Seller, and obtains the ownership thereof and leases them to Party C for use;
 
2. In order to support Party C in carrying out the financial leasing business with Party A, in accordance with this Agreement, Party B agrees to bear the repurchase obligations to Party A in respect of the “Financial Leasing Contract” signed by Party C and Party A.
 
	 
	
	
 
	 

 
To this end, Party A, Party B and Party C have reached the following agreement through negotiation on an equal basis in Xicheng District, Beijing.
 
Unless otherwise expressly provided in this Agreement, the terms defined in the Financial Leasing Contract shall have the same meaning when used in this Agreement.
 
Clause 1 Repurchase Object
 
1. The repurchase object under this Agreement is the Lease Items and leasing claims under the “Financial Leasing Contract” signed by Party C and Party A.
 
“Lease Item” means all the power plant assets purchased by Party A from the Seller according to Party C's selection and leased to Party C and used in the Zhonghong Yilong New District Xinqiao 70MWp Agricultural PV Power Station Project Project located in Southwest Guizhou Autonomous Prefecture, Guizhou Province under the Financial Leasing Contract, including PV power plant facilities and structures.
 
Leasing claim means all the claims that Party A has against Party C under the "Financial Leasing Contract", including but not limited to claims arising from all outstanding and due Pre-lease Interest, Grace Period Interest, Rent and Late Penalty, all immature Lease Loan Principal, Commission Fee, Lease Security Deposit, early termination fee, Retention Price and other amount that Party A may require Party C to pay
 
2. Ownership of Lease Items Each party agrees and confirms that the ownership of the Lease Items shall be held by Party A before Party C repays all debts under the Financial Leasing Contract or, under the circumstances that Party A requires Party B to fulfill its repurchase obligations in accordance with the provisions of this Agreement, before Party B performs the repurchase obligations in accordance with the provisions of this Agreement.
 
3. Party C is aware of the “Financial Leasing Contract” and the repurchase arrangement under this Agreement, and agrees that Party B shall perform the repurchase obligations in accordance with this Agreement.
 
Clause 2 Repurchase
 
1. Party A, Party B and Party C confirms that Party B's repurchase commitment under this Agreement is unconditional and irrevocable, and the occurrence of any of the following events shall not affect Party B's performance of its repurchase obligations under this Agreement:
 
(1) Party C and/or the actual user of the Lease Items cannot survive according to law:
 
(2) The “Financial Leasing Contract” and “Agreement on the Transfer of Rights and Obligations” are invalidated or other circumstances occur that may affect the validity, legality, or enforceability of the “Financial Leasing Contract” and “Agreement on the Transfer of Rights and Obligations” or make them defective.
 
(3) The Lease Items are lost, damaged, unrecoverable or significantly degraded in value.
 
2. Under any of the following circumstances, regardless of whether the dispute between Party A and Party C has entered the litigation or arbitration proceedings, the repurchase conditions are satisfied:
 
(1) Circumstances specified in Clause 16, paragraph 2 of the Financial Leasing Contract occur to Party C;
 
(2) Party C fails to pay all debts under the “Financial Leasing Contract” to Party A in full and on time upon expiration or early termination of performance term under the “Financial Leasing Contract”;
 
	 
	
	
 
	 

 
(3) The “Financial Leasing Contract” is invalid or is canceled or terminated early for any reason or is deemed not to constitute a legal relationship of financial leasing;
 
(4) Any of the following events occurs to Party B:
 
1) Serious deterioration in business or financial situation:
 
2) Failure to repay the due debt to any financial institution;
 
3) Party B is involved in major litigation or arbitration, or its major assets are subject to property preservation or other enforcement measures;
 
4) Party B ceases production, suspends business, is dissolved, ceases operation for rectification, is canceled, files (or is filed) for bankruptcy, goes bankrupt, or its business license is revoked;
 
(5) Party A has clear evidence proving that other circumstances occur to Party B that cause it or may cause it to lose the ability to perform the repurchase. Party C breaches the Financial Leasing Contract and/or this Agreement, or Party B breaches any commitments, representations or warranties under this Agreement.
 
Article 3 State of the Lease Items
 
1. Party A does not make any representation or warranty, expressly or explicitly, regarding the description, durability, quality, specifications, condition, marketability or suitability of the Lease Items. Party A shall not be liable for any defects (including defect of right) of the Lease Items at the time of repurchase.
 
2. Party B is aware that the Lease Items under this Agreement is controlled and used by Party C and is aware of the operating area of the Lease Items. Party B agrees to repurchase the Lease Items in an "As-Is" condition upon receipt of Party A’s “Notice of Repurchase Payment” (see Schedule 1 for details). Party B agrees that Party A shall not be liable for any defect and structural integrity problem related to the Lease Items, damage to the use or performance of the Lease Items caused by Party C's failure to repair or maintain the Lease Items as required, or any liability, claim, loss, damage or expenses incurred thereby directly or indirectly in any kind or nature, and any such circumstances shall not affect Party B’s repurchase obligations to Party A under this Agreement.
 
3. Party B further agrees that regardless of whether the Lease Items are transferred or Party C subleases the Lease Items or otherwise sets any form of third party rights or interests on the Lease Items, or the Lease Items are detained, seized, or expropriated, Party A shall not bear any responsibility arising therefrom, and Party B's repurchase obligations to Party A under this Agreement shall not be affected.
 
4. After Party B receives Party A's "Notice of Repurchase Payment ", if the Lease Items are damaged or lost, Party B and Party C shall negotiate with and claim against the relevant insurance institution and bear the corresponding consequences. In any case, Party A shall not be liable for any risks or liabilities arising from the loss or damage to the Lease Items, but before Party B pays Party A the repurchase price in accordance with Clause 4 of this Agreement, the insurance indemnity under the “Financial Leasing Contract” shall still be owned by Party A.
 
Article 4 Repurchase Price and Payment
 
1. The repurchase price under this Agreement is the sum of all the claims that Party A has against Party C under the Financial Leasing Contract at the repurchase date determined by Party A in the “Notice of Repurchase Payment ”, including all outstanding and due Pre-lease Interest, Grace Period Interest, Rent and Late Penalty, all immature Lease Loan Principal, Commission Fee, Lease Security Deposit, early termination fee, and Retention Price, as well as all direct costs incurred by Party A to realize the creditor's rights, mortgagee's rights and rights under this Agreement, including but not limited to litigation fees, property preservation fees, notary fees, travel expenses, attorney fees, execution fees, appraisal fees, auction fees, etc. Unless there is calculation error, the repurchase price shall be subject to the amount specified in the Notice of Repurchase Payment issued by Party A to Party B.
 
	 
	
	
 
	 

 
2. Party B confirms that at the time of signing this Agreement, it has fully understood the terms of this Agreement and is willing to assume the repurchase obligations and responsibilities as stipulated in this Agreement. Party B unconditionally and irrevocably undertakes that it will pay the repurchase price to the following accounts of Party A in a lump sum according to the repurchase price, payment time and method as stated in the Notice of Repurchase Payment within 10 working days after receiving the Notice of Repurchase Payment from Party A.
 
Bank name: Huaxia Financial Leasing Co., Ltd.
 
Bank of deposit: Huaxia Bank, Beijing Changan Sub-branch
 
Account No.: 10253000000525904
 
3. If this Agreement is invalidated or revoked due to the fault not attributable to Party A and thus Party A suffers losses, Party B shall be liable for compensation.
 
4. Party B and Party C confirm that the amount of the repurchase price paid by Party B to Party A shall be determined only based on the provision of paragraph 1 of this Clause, and has nothing to do with the state of the Lease Items or the fair market price at the time of the repurchase (if the repurchase price is obviously higher than the market fair value of the Lease Items at the time of repurchase, and the relevant right holder claims the right arising therefrom and thus causes loss to Party A, Party B shall bear the responsibility or Party B and Party C shall bear the joint liability for compensation; if the repurchase price is significantly lower than the fair market price of the Lease Items at the time of the repurchase, Party C requires the return of the difference, Party B shall bear the responsibility).
 
Clause 5 Delivery of Lease Items and Documents
 
1. After Party B has paid all the repurchase price to Party A in accordance with the provisions of this Agreement, the ownership of the Lease Items and Party A's leasing claims against Party C under the “Financial Leasing Contract” shall be transferred from Party A to Party B. Party A shall transfer the relevant contract documents to Party B within 10 working days after receiving all the repurchase price paid by Party B, and assist Party B to go through necessary procedures for the transfer of the leasing claims according to Party B's requirements
 
2. After receiving all the repurchase price, Party A shall notify Party C in writing of the transfer of the Lease Items and the leasing claims in the form of the Notice of Transfer of Leasing Claims (Annex 2) and request Party C to deliver the Lease Items directly to Party B and fulfill obligations and liabilities under the Financial Leasing Contract to Party B. If Party C fails to perform the delivery of the Lease Items and the repayment of the leasing claims and other related obligations under the Financial Leasing Contract, Party B shall directly file a claim against Party C, and Party A shall not bear any responsibility for any dispute arising therefrom.
 
Clause 6 Commitments and Statements
 
1. Party B hereby makes the following commitments and statements to Party A:
 
(1) It is a legal person legally established and validly existing and legally operating under the law of the People's Republic of China;
 
(2) It legally owns assets, conducts business, enters into and fulfills this Agreement, and has obtained the approvals, permits, consents, registrations and filings necessary for the signing and performance of this Agreement, and has obtained the authority authorized by the internal organ necessary for signing this Agreement;
 
	 
	
	
 
	 

 
(3) Its signing of this Agreement or fulfillment of obligations under this Agreement neither violates the law or any other agreement entered into by it or its articles of association, nor causes any legal conflict or conflict in commercial interests with any other agreements entered by it or its articles of association;
 
(4) It is not directly or indirectly involved in or will be involved in any litigation, arbitration, administrative proceedings or claims that have a material adverse effect on it, nor enters into any suspension, dissolution, liquidation, bankruptcy, restructuring, reconciliation, reorganization or similar legal proceedings;
 
(5) No rights and obligations under this Agreement may be transferred without the prior written consent of Party A;
 
(6) The validity of this Agreement shall not be affected by the "Financial Leasing Contract", "Agreement on the Transfer of Rights and Obligations" or any other agreement, and the invalidity or revokability or defects of the "Financial Leasing Contract", relevant "Agreement on the Transfer of Rights and Obligations" and any other agreement shall not affect the validity of this Agreement. The parties shall continue to perform their obligations and assume responsibilities in accordance with the provisions of this Agreement;
 
(7) Regardless of whether Party C or any third party provides Party A with any other form of guarantee, if Party C fails to pay off the debts as stipulated in the Financial Leasing Contract, Party A has the right to request Party B to perform repurchase obligations and pay Party A the repurchase price in accordance with this Agreement;
 
(8) After fulfilling the repurchase obligations, Party B shall negotiate with Party C on the recovery and disposal of the Lease Items and the leasing claims. Party A shall not bear any responsibility arising therefrom, and Party B shall not file any claim against Party A.
 
9) Party B undertakes to bear all taxes and expenses incurred for the performance of the provisions of this Agreement (including aircraft transfer, registration, etc.)
 
2. Party C hereby makes the following commitments and statements to Party A:
 
(1) It is a legal person legally established and validly existing and legally operating under the law of the People's Republic of China;
 
(2) It legally owns assets, conducts business, enters into and fulfills this Agreement, and has obtained the approvals, permits, consents, registrations and filings necessary for the signing and performance of this Agreement, and has obtained the authority authorized by the internal organ necessary for signing this Agreement;
 
(3) Its signing of this Agreement or fulfillment of obligations under this Agreement neither violates the law or any other agreement entered into by it or its articles of association, nor causes any legal conflict or conflict in commercial interests with any other agreements entered by it or its articles of association;
 
(4) It is not directly or indirectly involved in or will be involved in any litigation, arbitration, administrative proceedings or claims that have a material adverse effect on it, nor enters into any suspension, dissolution, liquidation, bankruptcy, restructuring, reconciliation, reorganization or similar legal proceedings;
 
(5) Party C shall, after receiving the “Notice of Transfer of Leasing Claims” sent by Party A, negotiate with Party B on the disposal of the Lease Items and the leasing claims. Party A shall not bear any responsibility arising therefrom, and Party C shall not file any claim against Party A.
 
	 
	
	
 
	 

 
Clause 7 Liability for Breach of Contract
 
1. If Party B fails to pay the repurchase price in accordance with the date specified in Party A's “Notice of Repurchase Payment”, it shall pay Party A a penalty at five ten thousandths of the amount in arrear for each day of delay, until the repurchase price is paid in full. For the avoidance of doubt, Party B shall continue to perform the obligation to pay the repurchase price under this Agreement to Party A after paying the Late Penalty.
 
2. Without prejudice to the provisions of paragraph 1 above, if another breach of contract occurs under this Agreement, the breaching party shall compensate the other party for all losses suffered thereby.
 
VIII. Settlement of Disputes
 
Any disputes arising out of or in connection with this Agreement shall be settled through negotiation; if the negotiation fails, either party shall have the right to submit the dispute to a court with jurisdiction over the place where this Agreement is signed.
 
Clause 9 Notice
 
1. The notices, requests or other communications under this Agreement shall be made in writing and sent to the following address, email address or fax number of the relevant party (or other address, email address or fax number the recipient may notify the relevant party at least [seven] days in advance):
 
To Party A: Huaxia Financial Leasing Co., Ltd.
 
Attn: [Tian Jun]
 
Address: 15/F, Tower A, International Enterprise Building, No. 35, Financial Street, Xicheng District, Beijing
 
Postal code: 100033
 
Email: tianjun@hxfl.com.cn
 
Fax:【010-88093447】
 
Tel: [010-88091443]
 
To Party B: State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd.
 
Attn: [Li Dan]
 
Address: [State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd., Health Care Base, Weishuang Avenue, Caohai Town, Weining County, Bijie City, Guizhou Province]
 
Postal code: [553100]
 
Email: [none]
 
Fax: [none]
 
Contact number: [15186958266]
 
To Party C: 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]
 
2. Any notice, request or other communication under this Agreement shall be deemed to be served if:
 
(1) If delivered by hand or by letter, it shall be deemed to be served on the date of receipt by the relevant party's staff;
 
(2) If sent by e-mail or fax, it shall be deemed to have been served when the transmission is completed and the receipt confirmation is received.
 
3. If Party A, Party B or Party C changes the contact address, it shall promptly notify the other parties; otherwise it shall bear the consequences and losses arising therefrom.
 
Clause 10 Miscellaneous
 
1. The validity of this Agreement is independent of the Financial Leasing Contract” and relevant “Agreement on the Transfer of Rights and Obligations”; if the “Financial Leasing Contract” and relevant “Agreement on the Transfer of Rights and Obligations” are invalidated or other circumstances occur that may affect the validity, legality, or enforceability of the “Financial Leasing Contract” and relevant “Agreement on the Transfer of Rights and Obligations”, it shall not affect the validity of this Agreement. The invalidity of any provision of this Agreement shall not affect the validity of other provisions of this Agreement.
 
2. Regardless of whether there is any form of guarantee or repurchase agreement under the “Financial Leasing Contract” or the “Agreement on the Transfer of Rights and Obligations”, Party A does not need to first recover from such guarantor or compensator or repurchaser. It may directly request Party B to perform the repurchase obligations in accordance with the provisions of this Agreement, and Party B shall not propose any defense on the grounds that there are other forms of guarantee, compensation or repurchase agreement.
 
3. The taxes and expenses (if any) arising from the repurchase or the change of ownership due to the repurchase under this Agreement shall be borne by the incurring party in accordance with the relevant laws and regulations.
 
4. When Party A transfers the rights and obligations under the “Financial Leasing Contract”, Party B shall perform the obligations stipulated in this Agreement to the transferee.
 
5. When there is any change to the provisions of the "Financial Leasing Contract", if the repurchase price is reduced, Party B shall still bear the repurchase obligations stipulated in this Agreement. If the repurchase price increases, where Party B agrees to the increase, it shall still bear the repurchase obligations stipulated in this Agreement; where Party B does not agree to the increase, it shall bear the repurchase obligations according to the repurchase price before the change, and shall not be responsible for the increase. However, the change of other provisions of the "Financial Leasing Contract" shall not affect Party B's repurchase obligations under this Agreement.
 
6. Matters not covered in this Agreement shall be settled through a supplemetnal agreement signed by the parties upon negotiation;
 
7. The annexes to this Agreement and the supplemental agreements subsequently reached by the parties are an integral part of this Agreement and have the same legal effect as this Agreement.
  
8. This Agreement is made in [six] copies, with Party A holding [three] copies, Party B holding [two] copies, and Party C holding [one] copies, which shall have the same legal effect.
 
Clause 11 Effectiveness of the Agreement
 
This Agreement shall become effective after it has been signed by the legal representatives or authorized representatives of Party A, Party B and Party C and affixed with their respective official seals.
 
(Signature Page Below)
 
	 
	
	
 
	 

 
(Signature Page)
 
This Agreement was signed by the following parties in [Xicheng] District, Beijing on October, 2019:
 
 
Party A: Huaxia Financial Leasing Co., Ltd. (seal)
 
Legal representative / authorized representative:
 
 
Party B: State Power Investment Corporation Guizhou Jinyuan Weining Energy Co., Ltd. (seal)
 
Legal representative / authorized representative:
 
 
 
Party C: 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]

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