The parties have agreed that, before incorporation of the JV Company, Xi’an Xilan will arrange the design, planning and construction of the LNG fueling stations (subject to Dezhong’s approval of the same), which will be transferred to the JV Company following its incorporation.
Xi’an Xilan will also deal with the training and hiring of the employees at the LNG stations, with such task to be undertaken by the JV Company after its incorporation. In addition, Xi’an Xilan will also provide to the JV Company a stable and long term supply of LNG at a pre-determined price in accordance with the provisions of the Agreement.
Moreover, Dezhong will be in charge of arranging the necessary land required for the project and of the necessary governmental permits and licenses for the operation for the LNG fueling stations. The capitalization of the JV Company will occur at such time as Dezhong and Xi’an Xilan may mutually determine, but in any event not later than March 11, 2013.
Source: Delong Holdings Limited
