Document:

exv10w26

Exhibit
10.26

CONFIRMATION OF UNDERSTANDING

March 31, 2010

WHEREAS, Eastern Well Holdings Limited, a Hong Kong company (“Eastern Well”), previously issued a
Warrant to Sun Kwok Ping (), holder of Hong Kong document of identity No. DA9001901 (the
“Founder”) to purchase certain ordinary shares from Eastern Well and a Warrant No. 1 and a Warrant
No. 2 to China Environment Fund III, L.P. (“CEF”) to purchase series A preferred shares from
Eastern Well, each dated June 24, 2009 (collectively the “Warrants”), as part of the valuation
adjustment mechanism in the series A preferred share financing arrangements of Eastern Well
mutually agreed between the Founder and CEF (the “Valuation Adjustment Mechanism”);

WHEREAS, CEF, the Founder and Eastern Well entered into an Option Agreement No. 1, an Option
Agreement No. 2 and an Option Agreement No. 3, each dated December 31, 2009 (collectively the
“December Agreements”) to replace the Warrants;

WHEREAS, pursuant to the December Agreements, either CEF or the Founder may have a right to
purchase a certain number of ordinary shares or series A preferred shares of Eastern Well held by
the Founder or CEF, respectively, based on the terms and conditions in the December Agreements;

WHEREAS, at the time of the December Agreements, CEF held series A preferred shares of Eastern Well
and the Founder held ordinary shares of Eastern Well;

WHEREAS, in connection with a share exchange (the “Share Exchange”) consummated pursuant to a Share
Exchange Agreement entered into on January 15, 2010 by and among the Founder, CEF, Nobao Renewable
Energy Holdings Limited, a Cayman Islands company (“Nobao”) and other parties thereto, the December
Agreements were terminated and in connection therewith, CEF, the Founder and Nobao entered into an
Option Agreement No. 1, an Option Agreement No. 2 and an Option Agreement No. 3, each dated January
15, 2010 (collectively the “January Agreements”);

WHEREAS, pursuant to the January Agreements either CEF or the Founder may have a right to purchase
a certain number of ordinary shares or series A preferred shares of Nobao held by the Founder or
CEF, respectively, based on the terms and conditions in the January Agreements;

WHEREAS, at the time of the January Agreements, CEF held series A preferred shares of Nobao and the
Founder held ordinary shares of Nobao; and

WHEREAS, the parties to the December Agreements and January Agreements wish to clarify their
understanding and intent with respect to the shares subject to the right of purchase under each
such agreement.

NOW, THEREFORE, the undersigned, being all of the parties to the Warrants, the December Agreements
and January Agreements, hereby acknowledge and confirm that:

1. notwithstanding anything to the contrary in the December Agreements and the January Agreements,
it was the understanding and intent of the parties to the December Agreements and the January
Agreements, as of December 31, 2009 and January 15, 2010, respectively, and thereafter, that the
replacement of the Warrants by the December Agreements (and replacement thereof by the January
Agreements) was for the purpose of restructuring the Valuation Adjustment Mechanism to be an
arrangement between the Founder and CEF only and to relieve Eastern Well from any obligation to
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any new share or re-designate any of its outstanding shares as a result of any shareholding
adjustment arising out of the Valuation Adjustment Mechanism;

2. notwithstanding anything to the contrary in the December Agreements, it was the understanding
and intent of the parties to the December Agreements, as of December 31, 2009 and thereafter, that
the ordinary shares or series A preferred shares of Eastern Well subject to the relevant purchase
right under each of the December Agreements, upon any such purchase, shall not be re-designated
into another class or series of shares of Eastern Well; and

3. notwithstanding anything to the contrary in the January Agreements, it was the understanding and
intent of the parties to the January Agreements, as of January 15, 2009 and thereafter, that the
ordinary shares or series A preferred shares of Nobao subject to the relevant purchase right under
each of the January Agreements, upon any such purchase, shall not be re-designated into another
class or series of shares of Nobao.

[Signature Page Follows]

 

 

IN WITNESS WHEREOF this Confirmation of Understanding has been signed by the duly authorised
representatives of the parties on the date first written above.

	 	 	 	 	 
	 	 	 
	 	                       /s/ SUN KWOK PING
 	 
	 	SUN KWOK PING 	 
	 	 	 	 
	 
	 	EASTERN WELL HOLDINGS LIMITED

 	 
	 	By:  	/s/ SUN KWOK PING
 	 
	 	 	Name:  Sun Kwok Ping 	 
	 	 	Title:  Director 	 
	 
	 
	 	NOBAO RENEWABLE ENERGY HOLDINGS LIMITED

 	 
	 	By:  	/s/ SUN KWOK PING
 	 
	 	 	Name:  Sun Kwok Ping 	 
	 	 	Title:  Director 	 
	 
	 
	 	CHINA ENVIRONMENT FUND III, L.P.

 	 
	 	By:  	/s/ DONALD CHANG YE
 	 
	 	 	Name:  Donald Chang Ye 	 
	 	 	Title:  Authorized Signatoryexv10w27

Exhibit 10.27

DEED OF TRANSFER AND TERMINATION

This DEED OF TRANSFER AND TERMINATION (this “Deed”) is made on April 8, 2010 (the “Effective
Date”) among China Environment Fund III, L.P. (“CEF”), Sun Kwok Ping (), holder of Hong Kong
document of identity No. DA9001901 (“Founder”) and Nobao Renewable Energy Holdings Limited, a
Cayman Islands company (the “Company”). Each of CEF, the Founder and the Company shall hereinafter
individually be referred to as a “Party” and collectively as the “Parties”.

WHEREAS

	(A)	 	The Parties have entered into the following agreements (the “Agreements” and each, an
“Agreement”):

	 	 	 	Option Agreement No. 1 dated January 15, 2010 (“Option Agreement No. 1”); and
	 
	 	 	 	Option Agreement No. 3 dated January 15, 2010 (“Option Agreement No. 3”).

	(B)	 	Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to
them in the Agreements.
	 
	(C)	 	Pursuant to the terms of the Agreements, either CEF or the Founder may have a right to
purchase a certain number of shares in the Company from the Founder or CEF, respectively,
based on the Adjusted Post Money Valuation determined pursuant to the Agreements.
	 
	(D)	 	The Parties desire to enter into this Deed and terminate the Agreements.

NOW IT IS HEREBY AGREED BY THE PARTIES AS FOLLOWS:

	1.	 	SHARE TRANSFER
	 
	1.1	 	On the date hereof, the Founder shall transfer to CEF, for an aggregate consideration of one
United State dollar, 274,382 ordinary shares, par value US$0.001 per share, of the Company
(the “Adjustment Shares”).
	 
	1.2	 	In connection with the transfer contemplated in Section 1.1 above, the Founder shall deliver
to CEF duly executed instruments of transfer of the Adjustment Shares in favour of CEF
together with the share certificates therefor.
	 
	1.3	 	The Parties shall procure that a written resolution of all directors of the Company be passed
at which the following shall be approved: (i) the transfer of the Adjustment Shares and (ii)
the entries of transfer of the Adjustment Shares from the Founder to CEF into the register of
members of the Company.

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	1.4	 	CEF and the Founder hereby waive all rights of first refusal, co-sale rights, liquidation
preference rights, pre-emption and similar or other rights over the transaction contemplated
hereunder to which they or any other person may be entitled, including without limitation any
such rights under the Memorandum of Association and Articles of Association of the Company,
the Shareholders Agreement among the Parties and certain other parties thereto dated January
15, 2010 and the Right of First Refusal and Co-Sale Agreement among the Parties and certain
other parties thereto dated January 15, 2010.
	 
	2.	 	TERMINATION OF AGREEMENTS
	 
	2.1	 	Each of the Parties hereby agrees, on behalf of itself and on behalf of its parent,
subsidiaries, assigns, transferees, representatives, principals, agents, officers or
directors, not to sue, commence, voluntarily aid in any way, prosecute or cause to be
commenced or prosecuted against any other Party or its parent, subsidiaries, assigns,
transferees, representatives, principals, agents, officers or directors, any action, suit,
arbitration or other proceeding, or to take any other action, concerning any and all actions,
claims, rights, demands and set-offs, in any jurisdiction, whether or not presently known to
the Parties or to the law, and whether in law or equity, that such Party, its parent,
subsidiaries, assigns, transferees, representatives, principals, agents, officers and
directors or any of them ever had, may have or hereafter can, shall or may have against such
other Party or any of its parent, subsidiaries, assigns, transferees, representatives,
principals, agents, officers or directors arising out of or in connection with the Agreements
(collectively, the “Claims”). Upon execution of this Deed, each Party shall be deemed to
release and forever discharge any and all Claims.
	 
	2.2	 	Notwithstanding anything else to the contrary herein, each of the Parties hereby agree that
each of the Agreements shall be deemed terminated and cease to have any effect upon execution
of this Deed.
	 
	3.	 	NO ADMISSION
	 
	3.1	 	This Deed is entered into in connection with the compromise of disputed matters and in the
light of other considerations. It is not, and shall not be represented or construed by the
Parties as, an admission of liability or wrongdoing on the part of any Party to this Deed or
any other person or entity.
	 
	4.	 	SEVERABILITY
	 
	4.1	 	If any provision of this Deed is found to be void or unenforceable, that provision shall be
deemed to be deleted from this Deed and the remaining provisions of this Deed shall continue
in full force and effect and the Parties shall use their respective reasonable endeavours to
procure that any such provision is replaced by a provision which is valid and enforceable, and
which gives effect to the spirit and intent of this Deed.

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	5.	 	ENTIRE AGREEMENT
	 
	5.1	 	This Deed constitutes the entire understanding and agreement between the Parties in relation
to the subject matter of this Deed.
	 
	6.	 	GOVERNING LAW AND DISPUTE RESOLUTION
	 
	6.1	 	This Deed shall be governed by, and construed in accordance with, the laws of the Hong Kong
Special Administrative Region of the People’s Republic of China (“Hong Kong”).
	 
	6.2	 	The Parties agree to negotiate in good faith to resolve any dispute between them regarding
this Deed. If the negotiations do not resolve the dispute to the reasonable satisfaction of
the Parties, then each Party that is an entity shall nominate one (1) authorized officer as
its representative. The Parties or their representatives, as the case may be, shall, within
thirty (30) days of a written request by any Party to call such a meeting, meet in person and
alone (except for one (1) assistant for each Party) and shall attempt in good faith to resolve
the dispute. If the disputes cannot be resolved in such meeting, the Parties agree that they
shall, if requested in writing by any Party, meet within thirty (30) days after such written
notification for one (1) day with an impartial mediator and consider dispute resolution
alternatives other than formal arbitration. If an alternative method of dispute resolution is
not agreed upon within thirty (30) days after the one (1) day mediation, any Party may begin
formal arbitration proceedings to be conducted in accordance with Section 6.3 below. This
procedure shall be a prerequisite before taking any additional action hereunder.
	 
	6.3	 	In the event the parties are unable to settle a dispute between them regarding this Deed in
accordance with Section 6.2 above, such dispute shall he referred to and finally settled by
arbitration at the Hong Kong International Arbitration Centre in accordance with the Hong Kong
International Arbitration Centre Administered Arbitration Rules in effect, which rules are
deemed to be incorporated by reference into this Section 6.3, subject to the following: (i)
the arbitration tribunal shall consist of three (3) arbitrators to be appointed according to
the Hong Kong International Arbitration Centre Administered Arbitration Rules; and (ii) the
language of the arbitration shall be English. Notwithstanding anything in this Agreement or
in the Hong Kong International Arbitration Centre Administered Arbitration Rules or otherwise,
the arbitration tribunal shall not have the power to award injunctive relief or any other
equitable remedy of any kind against any Party unless such award both (x) is expressly
appealable to and subject to de novo review by the courts of Hong Kong, and (y) would not, if
upheld, have the effect of impairing, restricting, or imposing any conditions on the right or
ability of such Party or its affiliates to conduct its respective business operations or to
make or dispose of any other investment. The prevailing party shall be entitled to reasonable

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	 	 	attorney’s fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.
	 
	7.	 	COUNTERPARTS
	 
	7.1	 	This Deed may be executed in separate counterparts, each of which shall constitute an
original and all of which taken together shall constitute one and the same instrument.
Transmission by facsimile of an executed counterpart of this Deed shall be deemed to
constitute due and sufficient delivery of such counterpart. The Parties shall deliver to each
other an original counterpart of this Deed.
	 
	8.	 	VARIATION
	 
	8.1	 	Any variation of this Deed shall be in writing and signed by or on behalf of each Party.

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     IN WITNESS whereof the Parties have executed this Deed as a deed on the day and year first written
above.

	 	 	 	 	 
	EXECUTED AS A DEED

in the name of

CHINA ENVIRONMENT FUND III, L.P.

by its duly authorized

representative Donald Chang Ye ()

in the presence of:

	 	)

)

)

)

)

)
	 	/s/ Donald Chang Ye
	 
	 	 	 	 
	EXECUTED AS A DEED

in the name of

Sun Kwok Ping ()

in the presence of:

	 	)

)

)

)
	 	/s/ Sun Kwok Ping
	 
	 	 	 	 
	EXECUTED AS A DEED

in the name of

NOBAO RENEWABLE ENERGY

HOLDINGS LIMITED

by its duly authorized

representative Sun Kwok Ping ()

in the presence of:

	 	)

)

)

)

)

)

)
	 	/s/ Sun Kwok Ping

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