英文版合作意向书 LOI English

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英文版合作意向书LOIEnglish

HenanCBMDevelopmentandUtilizationCo.,Ltd

And

DartEnergyPTELTD

And

HongKongProsperousCleanEnergyCompanyLtd

LetterofIntentonCooperativeDevelopmentofUnconventionalGas

Dated:May20,2013

CooperatingParties:

PartyA:HenanCBMDevelopmentandUtilizationCo.,Ltd

PartyB:DartEnergyPTELTD

PartyC:HongKongProsperousCleanEnergyCompanyLtd

A.PreconditiontotheCooperation

1.PartyAisabusinessentityincorporatedundertheapprovalofHenanProvincial

Government.Itisresponsibleexclusivelyforcoalbedmethane(CBM)exploration,extractionandproduction,developmentandutilizationinHenanProvinceandisthefirstprovincialCBMdevelopmentandutilizationcompanyinChina.PartyAhasobtainedthequalificationtoexclusivelycooperatewithforeignenterprises.

2.PartyBisacompanyincorporatedandoperatingunderthelawsofSingapore.The

companyhasthetechnicalandcapitalcapabilitiesoftassessingCBMresources,designingappraisalandpilotdrillingprogramsandsubjecttotechnicalsuccessofthoseprograms,movingtodevelopingandproducingcommerciallyviableCBM.Ithasdevelopedinnovative,lowcosthorizontalandverticaldrillingtechnologythatisinstrumentalinestablishingthesustainablegrowthofcommercialCBMproductionandpre-drainageofseveralcoalminingareas.

3.PartyCfocusesoncleanenergyandisengagedindevelopmentandutilizationof

automotivenewenergy,includingLPG,CNGandCBM.NowthecompanyhaseightCNGgasstations,twoLPGgasstationsandoneL-CNGgasstationinoperation.

4.ItistheintentionofthepartiesthatPartyAandPartyBwillcooperateandcarryout

explorationworkinthe6CBMblocksundertheprincipleof“easierblock/cherry-pickdevelopmentfirst”subjecttotheconditionthatthechoiceisbeneficialtoallparties.

5.AspartoftheprocessofenteringintothePSCs,thepartieswishtocommencea

technicalevaluationwithaviewtodeterminingthefeasibilityandscaleofCBMexplorationanddevelopmentwithinthecorrespondingareas.Tothisend,allpartiesagreetoincludeaconfidentialityclauseinthisLOIwiththeaimoffacilitatingtheprovidingandsharingofappropriatedata.

6.PartyBandPartyCagreetocoverthecoststocarryoutthetechnicalduediligence

andevaluation,andthepartiesagreetoformulatetheindicativetimetableforthenegotiationofthePSCindetailsafterthecompletiondetailsafterthecompletionofthetechnicalduediligenceandevaluation.

B.CooperationIntention

1.Evaluation.Thepartiesproposetocarryoutatechnicalcommercial&legal

evaluationofthefeasibleareaselectedbyPartyAtodeterminethepotentialforCBMresources.Theevaluationshallalsoidentifyapreliminaryviewofthemostpromisingareasforinitialexplorationactivities,follow-upappraisalandpotentialdevelopmentofafull-scaleCBMprojectinthecorrespondingarea.

2.Technicaldata.PartyAwilluseitsbestendeavorstocoordinatethecollectionof

technicaldataforthecooperatedareas,asmaybenecessarytoconductthetechnical,commercialandlegalevaluation.Atthesametime,PartyAwillalsoarrangeforPartyBandPartyCtocarryoutsiteandundergroundminevisit(s)ofthecorrespondingareasasappropriateand,ifpossible,carryoutanalysisofphysicalcoalsamplesandavailabledrillcoresavailablefrompreviousdrillcoreprogramsundertakeninrespectofthecorrespondingareas.

PartyAshallendeavortoarrangeappropriatestaffandpartyBandPartyC’stechnicalpersonneltoworktogether,inordertocompleteallthetechnical,commercialandlegalevaluation,andefficientlyhandlethemutualinterferenceissuesthatmaybeoccurintheevaluationandminingwork.

3.Thepartiesshallusetheirbestendeavorstoworkco-operativelyatalltimeswithin

thescopeofthecontentofthecooperationandshall,wherepossible,openlyshareinformationbetweenthemthatwillassistinaccomplishingtheobjectiveandpurposesofthisLOI.

4.ProductionSharingContract.Allpartiesshallusetheirbestendeavorstoconclude

andsignthePSCs.TherightsandobligationsofeachpartywillbedefinedinPSCs.

ThePSCsshallbereportedtothevariouscompetentgovernmentauthoritiesafterbeingsigned,andshallsubjecttotheapprovaloftherelevantregulatoryauthoritiesandtheMinistryofcommerceofthePeople’sRepublicofChinaandothergovernmentauthorities.

5.JointVenture.ThreepartiesplantosetupajointventurecompanyoutsideofChina,

theproportionoftheJointVenturetentativelyis:

(1)HenanCBM38%,PartyB/PartyC62%,PartyBhastherighttobringinastrategic

partner,PartyB’sfinalshareratiomustbenotlessthan31%.

(2)TheJointVenturewillsignthePSCwithHenanCBM,theparticipatinginterestin

DevelopmentperiodwillbeHenanCBM20%andtheJointVenture80%respectivelyConfidentiality

1.ThepartiesshallensurethatallDatareferredtoinClause2aboveanddataobtained

fromanysubsequentjointevaluationactivityrelatingtothecooperation,includinganyphysicalsamplinganalysisinformation:

(1)IsusedsolelyforthepurposesstatedinthisLOI;

(2)Isonlydisclosedtoitsemployees,officers,consultantsanddirectorsfor

achievingthecooperationpurposewhoshallexecuteconfidentialityagreement.

2.Nopartyshalldisclosetoanypersonorinstitutionwithoutpriorconsentofall

partiesanyinformation,includingbutnotlimitedtothecooperationpartnersandcontent,technology,operatingmethods,legaldocumentsandanyotherinformation.

3.Ifanypartybreachestheconfidentialityterms,thenon-defaultpartywillprosecute

againstthedefaultpartyforlegalliabilitiesandclaimforcompensationforitslosses.

C.Miscellaneous

http://./doc/38351816783e0912a2162a8b.htmlerningLaw.ThislOIshallbegovernedby,andconstruedaccordingto,theLaws

ofChina.

2.Termination.ThisLOIshallterminate:

(1)AftersixmonthsofexecutiondateofthisLOI;

(2)signthePSC

Theconditionofitem(1)andItem(2)thatoccursthelatershallprevail.Theconfidentialitytermsinclause3shallsurvivetheterminationofthisLOI.

3.WhereasPartyAisaState-ownedenterpriseunderthesupervisionofHenan

provinceofthePeople’sRepublicofChina,accordingtotherelevantlawsandregulations,rulesandpolicies,ifthemattersofthecooperationandcontentthereofneedtobeapprovedorrecored,theyshallbesubjecttotheapprovaloftheadministrativeautho