Most recent 8-k:
On December 31, 2009, the Company’s subsidiary, Shenzhen Zhaoheng Hydropower Co., Ltd. (“ Shenzhen Zhaoheng ”) entered into an equity transfer agreement (the “ Equity Transfer Agreement ”) with Weiqiang Liang, an employee of the Company, pursuant to which Shenzhen Zhaoheng agreed to acquire 40% of the equity interest in Guangxi Laibin City Xinyuan Hydropower Co., Ltd. (“ Xinyuan ”), a company engaged in the operation and development of Qingshuihe Hydropower Station, from Weiqiang Liang.
Equity Transfer Agreement
The following is a summary of the material terms of the Equity Transfer Agreement.
This Equity Transfer Agreement was entered into by and between Shenzhen Zhaoheng and Weiqiang Liang.
Pursuant to the Equity Transfer Agreement, Shenzhen Zhaoheng has agreed to pay a total consideration of RMB3,552,300 to Weiqiang Liang in exchange for a 40% equity interest in Xinyuan (the “ Equity Transfer ”). Shenzhen Zhaoheng has agreed to pay the total amount of consideration within three working days from the date the Equity Transfer is registered with the Administration for Industry and Commerce of Laibin City. In the event that Shenzhen Zhaoheng fails to pay Weiqiang Liang the consideration for the equity transfer, Shenzhen Zhaoheng shall pay Weiqiang Liang a penalty at a rate of 0.5% of the overdue balance per day. If the payment is overdue for more than 60 days, Weiqiang Liang has the right to terminate the Equity Transfer Agreement.
About Guangxi Laibin City Xinyuan Hydropower Co., Ltd.
Xinyuan owns the Qingshuihe Hydropower Station. The station is located in Laibin City of the Guangxi Province in China and is still under development. The expected completion time is June 2010. Specifications for the Qingshuihe Hydropower Station consist of six units, installed capacity of 3.78MW and is expandable to 10.4MW.
