Auction
Contract

     
   

    Bidding
board number:16

       

    Auctioneer (Party A): Weifang
Xintiandi Auction Co., Ltd

    Legal representative: Sun
Sizhong

    Address: Dongfeng East Street
233, Kuiwen District, Weifang city

    Tel:
(86)5368233875

      


    Buyer (Party B): Shandong
Haiwang Chemical Stock Co., Ltd

    Address: Yangzi town, Hanting
District, Weifang city

    Tel:
(86)5367578888

    |Person on behalf of Haiwang:
Liu Shangxue

    Tel:
(86)5367578779

      


    According
to “auction law of PRC” and relevant laws and regulations, both parties enter
into this contract regarding to the auction matters upon consistent
consultation.

    
      	
              I.

            	
              Auction
      targets : fixed assets and stocks of Weifang Hanting Salt
      Farm,

            


    

    
      	
              II.

            	
              Party
      B shall pay RMB 610,000 as deposit to Party A when both parties enter into
      this contract. If Party B didn’t obtain auction objects in the case of
      non-breaching, party A shall return their deposit according to auction
      notice and other relevant
provisions.

            


    

    
      	
              III.

            	
              Party
      B will become the buyer after he obtains auction subjects. Party B shall
      pay 5% of auction price as commission to Party A and sign on the auction
      agreement. Both parties shall enter into the letter of confirmation of
      auction and perform agreed matters of it. The bidding deposit serves
      payments of auction targets or
commission.

            


    

    
      	
              IV.

            	
              If
      Party B does not perform the provisions of III, the bidding deposit shall
      be confiscated to Party A,Party B also
      shall assume relevant liability according to “auction law” and other
      relevant provisions. If Party A breached relevant provisions of this
      contract, Party B will be entitled to require Party A to
      compensate.

            


    

    
      	
              V.

            	
              Party
      B shall properly keep the bidding board. If the board of auction was lost
      or destroyed, bidder shall pay RMB 10 to Party
A

            


    

    
      	
              VI.

            	
              Other
      pending matters shall be determined by both parties through consultation
      according to “auction law”, auction notice and special
      provisions.

            


    

    
      	
              VII.

            	
              This
      contract will come into effect after both parties have signed on
      it.

            


    

    
      	
              VIII.

            	
              This
      contract will be in three copies, auctioneer and buyer will hold one copy
      each, the Commerce Bureau of Weifang city will hold one copy. The auction
      report shall be also filed with the Commerce
  Bureau.

            


    

    Signing date: July 13th,
2004

    Party
A (signature and seal): Weifang Xintiandi Auction Co., Ltd /s/

    Party
B (signature and seal): Shandong Haiwang Chemical Stock Co., Ltd/s/

    This
auction is supervised by administrative department of Weifang Commerce
Bureau.


    
      
         


      

      
         


        
          

        

      

      
         


      

    

      


    Letter
of confirmation of the auction

      

    Bidding board number:
16

    
      Trade item: fixed assets and
stock r of Weifang Hanting salt farm.

    

    Transaction price: RMB
7,037,500

    Commission: RMB
6,875

    Amount payable: RMB
7,044,375

        


    Buyer (signature and seal):
Shandong Haiwang Chemical Stock Co., Ltd/s/

    Auctioneer (signature and
seal): Weifang Xintiandi Auction Co., Ltd/s/

        


    Contract date: July 13th,
2004.