Document:

Unassociated Document

    EXHIBIT
      10.6

     

    AMENDED
      AND RESTATED CONSULTING AGREEMENT

     

    This
      Amended and Restated Consulting Agreement (this “Agreement”)
      is
      made on January 18, 2007, by and between Fujian Zhongde Technology Co., Ltd.,
      a
      People’s Republic of China corporation (“Client”),
      and
      Allstar Capital, Inc., a Maryland corporation (“Consultant”).
      In
      consideration of the respective covenants, representations, warranties and
      agreements contained in this Agreement and other good and valuable
      consideration, the receipt and sufficiency of which the parties hereby
      acknowledge, the parties agree as follows:

     

    RECITALS

     

    WHEREAS,
      Client and Consultant entered into that certain Consulting Agreement dated
      January 7, 2006 (the “Original
      Consulting Agreement”);

     

    WHEREAS,
      the Original Consulting Agreement was amended by that certain Agreement
      Amendment to Consulting Agreement dated October 16, 2006, by and between Client
      and Consultant (the “Amendment”);
      and

     

    WHEREAS,
      Client and Consultant desire to amend and restate the Original Consulting
      Agreement and the Amendment in their entirety as provided below.

     

    NOW
      THEREFORE, in consideration of the foregoing premises and the mutual covenants
      hereinafter set forth, IT IS AGREED that the Original Consulting Agreement
      and
      the Amendment are hereby amended and restated in their entirety to read as
      follows:

     

    ARTICLE
      I.

    ENGAGEMENT
      OF CONSULTANT

     

    Section
      1.01 Engagement
      of Consultant.
      Client
      hereby engages Consultant to render consulting services to Client on a
      non-exclusive basis and on the terms and for the consideration specified herein.
      As such, Consultant will familiarize itself to the extent it deems necessary
      and
      appropriate with the business, operations, condition (financial and otherwise)
      and prospects of Client and will provide advice on the capital structure of
      Client, financing options, types of financial instruments to be offered, and
      the
      likely market segment that the financial instruments are suitable. Consultant
      may identify possible investors interested in providing capital to Client or
      otherwise participating in a Transaction (as defined below) pursuant to terms
      to
      be negotiated by and among such possible investors and Client (without the
      involvement of Consultant), and, at the option of Consultant, will provide
      consulting services with respect to any Transaction. If Consultant, after
      becoming familiar with potential transactions of Client, declines to render
      advice to Client with respect to a particular Transaction, Consultant shall
      not
      enter into any other engagement with a third party with respect to such
      Transaction. Client understands that no particular result is promised or can
      be
      guaranteed by Consultant in rendering the services for any particular matter
      or
      with respect to any Transaction. Consultant undertakes to render the services
      competently and with professional skill. Client will provide Consultant with
      such factual information and materials as Consultant may require to perform
      such
      consulting services. Client shall determine the scope of the work to be
      performed, but after having agreed to perform such

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    services,
      Consultant shall determine the means, manner and method of performing these
      services. For purposes of this Agreement, a “Capital
      Transaction”
shall
      mean any private placement of any securities of Client (including debt, equity
      or any derivative or convertible securities) with investors identified by
      Consultant and any other investors who participate in such transaction through
      the direct or indirect efforts of Consultant (“Consultant
      Identified Investors”).
      For
      purposes of this Agreement, an “M&A
      Transaction”
shall
      mean (a) any acquisition of outstanding capital stock or control of the
      outstanding capital stock or all or substantially all of the assets of companies
      made by Client by one or more Consultant Identified Investors or (b) any merger,
      consolidation, tender or exchange offer, leveraged buyout, acquisition or sale
      of substantially all of Client’s assets or equity interests, recapitalization
      involving the distribution of cash, securities or property to Client’s equity
      holders or similar transactions involving all or a substantial part of the
      business, assets or equity interests of Client and/or its affiliates in one
      or
      more transactions. A “Transaction”
shall
      mean any Capital Transaction or M&A Transaction and any additional matters
      identified in advance and mutually agreed to in writing by Consultant and
      Client. 

     

    Section
      1.02 Broker
      or Dealer; Investment Advisor Status.
      

     

    (a) Consultant
      is not (i) a registered “broker” (“Broker”)
      or
“dealer” (“Dealer”)
      as
      such terms are defined in Section 3(a)(4) and 3(a)(5) of the Securities Exchange
      Act of 1934, as amended (the “Exchange
      Act”),
      or
      (ii) an investment adviser (“Investment
      Advisor”),
      as
      such term is defined in Section 202(a)(11) of the Investment Advisors Act of
      1940, as amended, and will not act to effect any transactions in securities
      for
      the account of Client. With respect thereto and notwithstanding anything set
      forth herein to the contrary, in connection with any transaction, Consultant
      shall not carry out any activity or function that (i) may be traditionally
      performed by or otherwise be deemed to include those of (A) a Broker, Dealer
      or
      Investment Adviser or (ii) would require Consultant to register itself as a
      Broker, Dealer, or Investment Advisor. In particular, Consultant shall not
      do,
      cause to be done or otherwise participate, directly or indirectly, in any of
      the
      following on behalf of Client: (a) participate in the negotiation of terms
      and
      conditions of the sale and purchase of any securities of Client; (b) assist
      Client in the distribution of materials relating to the sale of any securities
      of Client; (c) prepare any analysis or provide any advice to any potential
      investors regarding the benefits or potential return relating to the purchase
      of
      any securities of Client; (d) directly assist Client or any prospective investor
      of securities of Client with the completion of a Transaction; (e) facilitate
      the
      sale, exchange or transfer of securities of Client or any handling of any funds
      received from the potential investors for any securities of Client, (f) discuss
      the details of a proposed Transaction with a potential investor, or (g) make
      recommendations to a potential investor with respect to a Transaction.

     

    (b) Client
      understands and agrees that Client may need to retain a Broker, Dealer or
      Investment Advisor to assist Consultant in certain aspects of a Transaction.
      In
      addition, Client understands and agrees that if Client requests Consultant
      to
      undertake services causing Consultant to become or to be deemed a Broker, Dealer
      or Investment Advisor, then investors might have a right of rescission or an
      action for damages with respect to Transactions in which Consultant is deemed
      to
      be a Broker, Dealer or Investment Advisor.

    
      
        
        

      

      
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    ARTICLE
      II.

    TERM;
      TERMINATION

     

    Section
      2.01  Term.
      The
      term of this Agreement shall commence on the date hereof and shall continue
      until the two (2) year anniversary of the date set forth above (the
“Initial
      Term”).
      This
      Agreement will automatically renew for unlimited consecutive additional one
      (1)
      year periods (the commencement date of each such one (1) year renewal period
      is
      referred to herein as a “Renewal
      Date”)
      unless
      either party provides written notice of non-renewal to the other party at least
      thirty (30) days prior to the expiration of the Initial Term or any renewal
      period thereafter as the case may be (the Initial Term and such renewal period,
      if any, shall be referred to herein as the “Term”).
      

     

    Section
      2.02  Termination.
      Upon
      termination of this Agreement, except as otherwise provided herein, Client’s
      sole responsibility to Consultant shall be to pay Consultant for any unpaid
      expenses, fees or other consideration earned pursuant to this
      Agreement.

     

    ARTICLE
      III.

    COMPENSATION;
      REIMBURSEMENT

     

    Section
      3.01  Signing
      Fee.
      Upon
      execution of the Original Agreement, Client paid Consultant Twenty Thousand
      Dollars ($20,000). 

     

    Section
      3.02  Additional
      Payments.
      

     

    (a) During
      2006, Client paid consultant an aggregate of One Hundred Eighty Thousand Dollars
      ($180,000.00) in connection with services rendered hereunder.

     

    (b) On
      October 24, 2006, Client caused its parent company, China Clean Energy Inc.,
      a
      Delaware corporation (“CCE”),
      to
      issue various assignees of Client a total of Five Hundred Eighty Three Thousand
      Three Hundred Thirty Four (583,334) shares of common stock of CCE, $.001 par
      value per share.

     

    Section
      3.03 Expenses.
      Client
      shall reimburse Consultant for all reasonable costs and expenses that are
      incurred by or on behalf of Consultant in carrying out its duties or obligations
      under this Agreement and that Client has approved in advance in writing.
      Consultant’s invoices for approved costs and expenses shall be payable by Client
      within thirty (30) days of Client’s receipt of such invoices.

     

    Section
      3.04 Registration
      of Securities.
      If, at
      any time or from time to time, Client shall determine to register any of its
      equity securities, either for its own account or the account of a stockholder,
      Client shall promptly (but in no event less than thirty (30) days prior to
      registration) give Consultant written notice thereof; and shall include in
      such
      registration (and any related qualifications including compliance with Blue
      Sky
      laws), and in any underwriting involved therein, all shares of common stock
      held
      by Consultant or its designees, as specified in a written response(s) by
      Consultant, made within twenty (20) days after receipt of the written notice
      of
      registration from Client. Notwithstanding any other provision of this Section
      3.04, if the registration by Client is for a registered public offering
      involving an underwriting and the managing underwriter determines that marketing
      factors require a limitation of the number of

    
      
        
        

      

      
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    shares
      to
      be underwritten, the percentage of shares of securities to be registered for
      sale by Client and Consultant shall be equally reduced. If the registration
      by
      Client is for a registered public offering involving an underwriting, Consultant
      agrees that it shall (a) not effect any public sale or distribution (including
      sales pursuant to Rule 144) of equity securities of Client or any securities
      convertible into or exchangeable or exercisable for such securities and (b)
      provide upon request, customary lock-up agreements for itself and its affiliates
      by which they agree not to sell any of their shares of common stock for a period
      of 90 days from the effective date of the registration statement, or for such
      other length of time determined by the managing underwriter. In addition to
      the
      rights set forth above, Consultant shall be entitled to request, at any time
      and
      in any number of requests, that Client file a registration statement on Form
      S-3
      (or any successor form to Form S-3) for an offering of shares of common stock
      of
      Client held by Consultant having an aggregate market value (net of underwriters’
discounts and commissions) of at least $500,000 and the Client is a registrant
      entitled to use Form S-3 to register the shares of common stock for such an
      offering, Client shall use its commercially reasonable efforts to cause such
      shares of common stock to be registered for the offering on such form and to
      cause such shares of common stock to be qualified in such jurisdictions as
      Consultant may reasonably request. If such offer is to be an underwritten
      offering, the underwriter shall be selected by Consultant.

     

    Section
      3.05  No
      Reduction Due to Other Advisors.
      No fee
      payable to any other advisor either by Client or any other entity shall reduce
      or otherwise affect the compensation, fees, payments or reimbursements payable
      hereunder to Consultant.

     

    ARTICLE
      IV.

    WORK
      PRODUCT

     

    Consultant
      shall promptly and fully disclose to Client in writing all Work Products (as
      defined below), and the entire right, title and interest to all such Work
      Products (including, without limitation the entire right, title and interest
      to
      any renewals, reissues, extensions, substitutions, continuations, continuations
      in part, or divisions that may be filed with respect to the Work Products)
      shall
      be Client’s exclusive property and all Work Products developed by Consultant are
      hereby assigned to Client. Consultant will, at Client’s expense, give Client all
      assistance reasonably required to perfect, protect, and use the Work Products.
      The obligations of Consultant pursuant to this Article IV shall survive for
      the
      one (1) year period immediately following termination of this Agreement. As
      used
      herein, “Work
      Product”
means
      any work product, improvement, discovery, design, work or idea (whether
      patentable or not and including those which may be subject to copyright
      protection, trademark protection or other intellectual property rights
      protection) generated, conceived, created or reduced to practice by Consultant
      alone or in conjunction with others, during or after working hours, that relates
      directly or indirectly to Client’s or its subsidiaries’ businesses or to
      Client’s actual research or development.

     

    ARTICLE
      V. 

    ACCURACY
      OF DISCLOSURE

     

    Client
      agrees to cooperate with Consultant and will furnish to, or cause to be
      furnished to, Consultant all information and data concerning Client (the
“Information”)
      that
      Consultant reasonably deems appropriate in connection with the services to
      Client as provided herein and will provide Consultant with access to Client’s
      officers, directors, employees and advisors.

    
      
        
        

      

      
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    Client
      represents and warrants that all Information made available to Consultant by
      Client with respect to any Transaction included or incorporated by reference
      into a related private placement memorandum or prospectus will be complete
      and
      correct in all material respects as of the date such Information is provided,
      and as of the closing date of the related Transaction, and will not be
      misleading or violate the anti-fraud provisions of the Exchange Act in any
      material respect, and that any projections, forecasts or other Information
      provided by Client to Consultant will have been prepared in good faith and
      will
      be based upon reasonable assumptions and projections. Client agrees to promptly
      notify Consultant if Client believes that any Information that was previously
      provided to Consultant has become materially misleading. Client acknowledges
      and
      agrees that in rendering its services hereunder, Consultant will be using and
      relying on the Information (and information available from public sources and
      other sources deemed reliable by Consultant) without independent verification
      thereof or independent appraisal or evaluation of Client or any party to a
      Transaction. Consultant does not assume responsibility for the accuracy or
      completeness of the Information. If all or any portion of the business of Client
      is engaged in through subsidiaries or other affiliates, the references in this
      paragraph to Client will, when appropriate, be deemed also to include all such
      subsidiaries or other affiliates.

     

    ARTICLE
      VI.

    INDEMNIFICATION

     

    Client
      agrees to indemnify and hold harmless Consultant and its affiliates and their
      respective directors, officers, managers, attorneys, finders, agents,
      representatives, advisors, stockholders, members and employees, and each person,
      if any, who controls Consultant within the meaning of the Securities Act of
      1933, as amended (the “Securities
      Act”)
      and
      the Exchange Act (collectively, the “Consultant
      Indemnified Parties”)
      in
      accordance with the provisions for indemnification and contribution set forth
      in
      Attachment “A” hereto, which is incorporated by reference in and made a part of
      this Agreement as if fully set forth herein. 

     

    ARTICLE
      VII.

    PUBLICITY

     

    With
      the
      prior written consent of Client, which shall not be unreasonably withheld,
      Consultant shall have the right to place advertisements in mailings and
      financial and other newspapers and journals at its own expense describing its
      services hereunder to Client relating to any consummated Transaction and using
      Client’s logo, slogan, trademark, and/or service mark.

     

    ARTICLE
      VIII.

    CONFIDENTIALITY;
      MATERIAL NONPUBLIC INFORMATION

     

    Section
      8.01  Restrictions
      on Consultant.
      Consultant recognizes that its relationship with Client will give it access
      to
      non-public proprietary information, confidential information and trade secrets.
      Consequently, during the Term of this Agreement and for the two (2) year period
      immediately thereafter, Consultant will not use or disclose for itself or for
      others (except persons specifically designated by Client) any Confidential
      Information. “Confidential
      Information”
shall
      include but not be limited to, any information concerning Client’s processes,
      products, services, inventions, purchasing, accounting, marketing, selling
      methods and techniques, research and development, computer programs, purchasing
      information, ideas and

    
      
        
        

      

      
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    plans
      for
      development, historical financial data and forecasts, long range plans and
      strategies, customer lists, Information and any other information related to
      Client’s customers, and any such other information concerning the business of
      Client or its manner of operation that is not generally known in the industry.
      Confidential Information shall not include any information that: (a) is or
      subsequently becomes publicly available without Consultant’s breach of this
      Agreement; (b) was in the Consultant’s possession at the time of disclosure and
      was not acquired from Client; (c) is received from third parties, and is
      rightfully in the possession of such third parties and not subject to a
      confidentiality obligation of third parties; (d) is required by law to be
      disclosed (with prior notice to Client); or (e) is intentionally disclosed
      without restriction by Client to a third party. 

     

    Section
      8.02 Regulation
      FD Disclosure.
      Notwithstanding anything to the contrary contained herein, Client shall not,
      and
      shall cause each of its subsidiaries and each of their respective officers,
      directors, employees and agents, not to, provide Consultant with any material,
      nonpublic information regarding the Company or any of its subsidiaries without
      the express written consent of Consultant. In the event of a breach of the
      foregoing covenant by Client, and provided that Client shall have failed
      (following proper written request therefor) to make an appropriate public
      disclosure consistent with the requirements of Regulation FD, Consultant shall
      have the right to make a public disclosure, in the form of a press release,
      public advertisement or otherwise, of such material, nonpublic information
      without the prior approval by Client. Consultant shall not have any liability
      to
      Client for any such disclosure.

     

    Section
      8.03 Restrictions
      on Client.
      Client
      agrees that any advice or communication, written or oral, provided by Consultant
      pursuant to this Agreement will be treated by Client as confidential, will
      be
      solely for the information and assistance of Client in connection with its
      consideration of a Transaction and will not be used, circulated, quoted or
      otherwise referred to for any other purpose, nor will it be filed with, included
      in or referred to, in whole or in part, in any registration statement, proxy
      statement or any other communication, whether written or oral, prepared, issued
      or transmitted by Client or any affiliate, director, officer, employee, agent
      or
      representative of any thereof, without, in each instance, Consultant’s prior
      written consent. Client further agrees that it will not disclose the identity
      of
      Consultant, the existence of this Agreement or the engagement created hereby
      or
      Consultant’s role with respect to any Transaction without the prior written
      consent of Consultant, other than as may be required by applicable law or
      regulations, including any requirements imposed under the Securities Act or
      the
      Exchange Act; provided, that in the event such disclosure is required under
      applicable law or regulation, Client shall notify Consultant and provide
      Consultant with an opportunity to review and provide comments with respect
      to
      such proposed disclosure not less than two (2) business days prior to making
      such disclosure; provided, further, that if Consultant fails to respond to
      Client within two (2) business days of receipt of such proposed disclosure,
      Consultant shall be deemed to have consented to such proposed disclosure and
      waived its right to review and provided comments with respect to such
      disclosure. 

     

    Section
      8.04 Third
      Party Information.
      Client
      recognizes that Consultant has received, and in the future may receive, from
      third parties their confidential or proprietary information subject to a duty
      on
      the Consultant’s part to maintain the confidentiality of such information and to
      use it only for certain limited purposes. Consultant agrees at all times during
      the Term of this

    
      
        
        

      

      
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    Agreement,
      not to commingle the Confidential Information with other third parties’
confidential or proprietary information.

     

    Section
      8.05 Surrender
      of Material upon Termination of Agreement.
      Upon
      termination of this Agreement, Consultant shall return immediately to Client
      all
      Work Products including, but not limited to, books, records, notes, data and
      information relating to Client or its business, and will so certify in writing
      that it has done so.

     

    ARTICLE
      IX.

    CONFLICT
      WAIVER

     

    Client
      acknowledges that Consultant and its affiliates have and will continue to have
      other relationships with parties other than Client pursuant to which Consultant
      may acquire information of interest to Client. Consultant shall have no
      obligation to disclose such information to Client, or to use such information
      in
      connection with any contemplated Transaction. Client recognizes that Consultant
      is being engaged hereunder to provide the consulting services described above
      only to Client and is not acting as an agent or a fiduciary of, and shall have
      no duties or liability to, the equity holders of Client or any third party
      in
      connection with its engagement hereunder, all of which are hereby expressly
      waived. No one other than Client (and such other parties in such capacities,
      if
      any) is authorized to rely upon the engagement of Consultant hereunder or any
      statements, advice, opinions or conduct by Consultant.

     

    ARTICLE
      X. 

    MISCELLANEOUS.

     

    Section
      10.01 Notices.
      Any
      notices desired, required or permitted to be given hereunder shall be delivered
      personally or mailed, certified or registered mail, return receipt requested,
      or
      delivered by overnight courier service, to the following addresses, or such
      other addresses as shall be given by notice delivered hereunder, and shall
      be
      deemed to have been given upon delivery, if delivered personally, three (3)
      business days after mailing, if mailed, or one (1) business day after timely
      delivery to the overnight courier service, if delivered by overnight courier
      service:

     

    (a)    If
      to
      Consultant: 

     

    Allstar
      Capital Inc.

    3039
      St.
      Paul Street

    Baltimore,
      Maryland 21218

    Attn:
      Mr.
      Fred Chang

    

    (b)    If
      to
      Client: 

     

    Fujian
      Zhongde Technology Co., Ltd.

    Fulong
      Industrial Zone

    Logtian
      Town Fuqing City

    Fujian,
      China 35013

    Attn:
      Mr.
      Tai-ming Ou

    
      
        
        

      

      
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    or
      to
      such other address as such party may indicate by a written notice delivered
      to
      the other party hereto.

     

    Section
      10.02 Attorneys’
      Fees.
      If any
      party to this Agreement brings an action or proceeding directly or indirectly
      based upon this Agreement or the matters contemplated hereby against another
      party, the prevailing party shall be entitled to recover, in addition to any
      other appropriate amounts, its reasonable costs and expenses in connection
      with
      such action or proceeding, including, but not limited to, reasonable attorneys’
fees and court costs.

     

    Section
      10.03 Governing
      Law; Jurisdiction.
      It is
      the intention of the parties that this Agreement shall be subject to and shall
      be governed by and construed in accordance with the internal laws of the State
      of New York without reference to its choice of law provisions. All actions
      and
      proceedings arising out of or relating to this Agreement shall be heard and
      determined exclusively in any New York state or federal court sitting in New
      York, New York (Borough of Manhattan). The parties hereto hereby (a) submit
      to
      the exclusive jurisdiction of any such court for the purpose of any claim,
      action, suit, proceeding, arbitration, mediation or investigation (an
“Action”)
      arising out of or relating to this Agreement brought by any party hereto, and
      (b) irrevocably waive, and agree not to assert by way of motion, defense, or
      otherwise, in any such Action, any claim that it is not subject personally
      to
      the jurisdiction of the above-named courts, that its property is exempt or
      immune from attachment or execution, that the Action is brought in an
      inconvenient forum, that the venue of the Action is improper, or that this
      Agreement or the transactions contemplated hereby may not be enforced in or
      by
      any of the above-named courts.

     

    Section
      10.04 Entire
      Agreement.
      This
      Agreement sets forth the entire understanding of the parties relating to the
      subject matter hereof, and supersedes and cancels any prior communications,
      understandings and agreements between the parties with respect to the subject
      matter contemplated herein. 

     

    Section
      10.05 Amendment;
      Waiver.
      This
      Agreement may not be amended or modified except by a writing executed by both
      of
      the parties hereto. The waiver by any party hereto of any breach of any
      provision hereunder shall not operate or be construed as a waiver of any prior
      or subsequent breach of the same or any other provision hereunder.

     

    Section
      10.06 Assignability.
      Neither
      party to this Agreement may assign its rights and obligations under this
      Agreement without the prior written consent of the other party. 

     

    Section
      10.07 Binding
      Effect.
      This
      Agreement and any amendment thereto, shall be binding upon and shall inure
      to
      the benefit of the successors and assignees of the parties hereto.

     

    Section
      10.08 Relationship.
      Nothing
      in this Agreement shall be interpreted to provide that Consultant and Client
      are
      partners, joint venturers, agents or assignees of the other. Consultant is
      and
      shall remain an independent contractor providing services to Client, and is
      not
      an employee or agent of Client, and neither party shall be entitled to bind
      the
      other party in any way.

    
      
        
        

      

      
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    Section
      10.09 Headings.
      The
      section headings herein are intended for reference and shall not by themselves
      determine the construction or interpretation of this Agreement. 

     

    Section
      10.10 Severability.
      Should
      a court or other body of competent jurisdiction determine that any provision
      in
      this Agreement is invalid or unenforceable, the remaining provisions in this
      Agreement nevertheless shall be deemed valid and enforceable, and continue
      in
      full force and effect without being impaired or invalidated in any
      way.

     

    Section
      10.11 Further
      Assurances.
      The
      parties shall execute, acknowledge and deliver any further documents,
      instruments, or other assurances and shall take any other action consistent
      with
      the terms of this Agreement that may be reasonably requested by any other party
      or its counsel for the purpose of confirming or effectuating any of the actions
      contemplated by this Agreement.

     

    Section
      10.12 Remedies
      Cumulative.
      Any
      termination of this Agreement shall be without prejudice to any right or remedy
      to which a party may be entitled either by law, or in equity, or under this
      Agreement.

     

    Section
      10.13 Survival.
      Notwithstanding any termination of this Agreement, Section 2.02 and Articles
      III, IV, VI, VIII and this Article X shall survive and remain in full force
      and
      effect.

     

    Section
      10.14 Counterparts.
      This
      Agreement may be executed in one or more counterparts, all of which taken
      together shall constitute one and the same Agreement.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
      first set forth above.

     

     

    ALLSTAR
      CAPITAL INC.

     

     

    By: 
      /s/ Fred Chang
      
        

      

    

    Name:
      Fred Chang

    Title:
      President

     

     

    FUJIAN
      ZHONGDE TECHNOLOGY CO., LTD.

     

     

    By: 
      /s/ Tai-ming Ou
      
        

      

    

    Name:
      Tai-ming Ou

    Title:
      Chief Executive Officer

     

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

     

    Attachment
      “A”

     

    Indemnification
      and Contribution

     

    Client
      shall indemnify and hold harmless Consultant and each of its controlling
      persons, subsidiaries, affiliates, directors, officers, and employees
      (“Indemnified
      Persons”),
      from
      and against all losses, claims, damages and liabilities, and all suits, actions,
      claims, proceedings and investigations in respect thereof, relating to or
      arising out of the activities contemplated by Consultant’s engagement described
      in the Consulting Agreement to which this Attachment “A” is attached. The
      foregoing shall include the reasonable expenses incurred by Consultant and
      Indemnified Persons in appearing as witnesses or being deposed, producing
      documents or otherwise being involved in any suits, actions, proceedings or
      investigations. Client shall reimburse Consultant and each Indemnified Person
      for all reasonable expenses, including attorneys’ fees and disbursements, as
      they are incurred in connection with investigating, preparing for or defending
      any suit, action, proceeding or investigation, whether or not Consultant or
      such
      Indemnified Person shall be a party thereto, whether or not the same shall
      involve or result in any liability on the part of Consultant or such Indemnified
      Person; provided that Client shall advance such expenses only upon receipt
      of an
      undertaking by Consultant or such person to repay such advances if it shall
      ultimately be determined that Consultant or such person was not entitled to
      be
      indemnified. Notwithstanding the forgoing, Client shall not, however, be
      obligated to indemnify Consultant or any Indemnified Person in respect of any
      loss, claim, damage, liability or expense to the extent the same is found by
      a
      final judgment of a court of competent jurisdiction to have resulted from gross
      negligence, willful misconduct or bad faith on the part of Consultant or such
      Indemnified Person. Consultant shall have no liability to Client for any loss,
      claim, damage, liability or expense related to or arising out of the activities
      contemplated by Consultant’s engagement, except to the extent such loss, claim,
      damage, liability or expense is found by a final judgment of a court of
      competent jurisdiction to have resulted from gross negligence, willful
      misconduct or bad faith on the part of Consultant.

     

    If
      any
      suit, action, claim, proceeding or investigation is instituted against
      Consultant or any Indemnified Person aforesaid in respect of which
      indemnification may be sought hereunder, Consultant or such person shall
      promptly notify Client thereof in writing, but the omission so to notify Client
      shall not relieve Client from any liability except to the extent Client shall
      have been materially prejudiced by such omission. Neither Consultant nor any
      Indemnified Person shall be required to provide notice to Client with respect
      to
      any suit, action or proceeding in which Client is named a defendant. Client
      shall be entitled to assume the defense of any suit, action or proceeding with
      counsel reasonably satisfactory to Consultant; provided,
      however,
      that if
      the defendants in any such suit, action or proceeding include both Consultant
      or
      an Indemnified Person and Client or another indemnified person, and counsel
      for
      Consultant or such Indemnified Person shall have advised in writing that a
      conflict or potential conflict exists between Consultant or such Indemnified
      Person and Client or another indemnified person, or that there may be one or
      more legal defenses available to Consultant or an Indemnified Person that are
      different from or additional to those available to Client or another indemnified
      person, then Client shall not have the right to assume the defense of such
      suit,
      action or proceeding on behalf of Consultant or such Indemnified Person, and
      Consultant and such Indemnified Person shall have the right to select separate
      counsel to defend such suit, action or proceeding on its behalf, with costs
      to
      be borne by Client. Subject to the foregoing, Client shall not be liable for
      the

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    expenses
      of more than one separate counsel (in addition to local counsel) for Consultant
      and all Indemnified Persons similarly situated in any one suit, action or
      proceeding or substantially similar suits, actions or proceedings in the same
      jurisdiction arising out of the same general allegations or circumstances.
      Client shall not be liable for the settlement of any suit, action, claim or
      proceeding by Consultant or any Indemnified Person without Client’s prior
      written consent. Client agrees that it shall not settle any suit, action, claim
      or proceeding relating to or arising out of the activities contemplated by
      Consultant’s engagement, unless such settlement includes a provision
      unconditionally releasing Consultant and each Indemnified Person from all
      liabilities in respect of the matters which are the subject of such suit, action
      claim or proceeding. The provisions hereof are in addition to all other existing
      rights to indemnification on the part of Consultant and each Indemnified Person
      aforesaid, and shall survive any termination of Consultant’s engagement
      hereunder.

     

    In
      order
      to provide for just and equitable contribution, if a claim for indemnification
      hereunder is made, but it is found in a final judgment of a court of competent
      jurisdiction that such indemnification may not be enforced in such case, even
      though the express provisions hereof provide for indemnification in such case,
      then Client, on the one hand, and Consultant, on the other hand, shall
      contribute to the amounts paid, payable or suffered in respect of the losses,
      claims, damages, liabilities or expenses for which indemnification is
      unavailable or insufficient (i) in such proportion as appropriately reflects
      the
      relative benefits to Client, on the one hand, and Consultant, on the other
      hand,
      from the transaction contemplated by Consultant’s engagement hereunder, or (ii)
      if the allocation provided by clause (i) is not permitted by applicable law,
      in
      such proportion as appropriately reflects not only the relative benefits
      referred to in clause (i), but also the relative faults of Client, on the one
      hand, and Consultant, on the other hand, in connection with the statements,
      acts
      or omissions which resulted in such losses, claims, damages, liabilities or
      expenses, as well as any other relevant equitable considerations. It is agreed
      that it would not be just or equitable if the contribution provided for herein
      were determined by pro rata allocation or any other method which does not take
      into account the foregoing. The relative benefits to Client and Consultant
      shall
      be deemed to be in the proportion which (A) the total amount to be paid by
      Client from the transaction contemplated by Consultant’s engagement (whether or
      not consummated), bears to (B) the fees actually received by Consultant for
      its
      engagement (excluding any amounts received in reimbursement of expenses). In
      no
      event shall Consultant’s share of any liability be in excess of the fees
      actually received by Consultant for its engagement (excluding any amounts
      received in reimbursement of expenses).

     

    
      
        
        

      

      A-2Unassociated Document

    EXHIBIT
      10.8

    Reference
      Number of the bank: D/P/S1149/1007/04

    Date:
      Feb. 1, 2005

    

    Fujian
      Zhongde Technology Co., Ltd.

    Fulu
      Industry district, Longtian, Fuqing city, Fujian province, China

    

    To
      who is
      in charge:

    

    Credit
      Facility of Bank: Fujian Zhongde Technology Co., Ltd. (Borrower)

    Our
      Bank
      (DBS) informed you of the following items and conditions for credit facility.
      Our bank will check credit facility at any time but not later than January
      31,
      2006:

    

    CREDIT
      FACILITY:

    

    
      	
              1.

            	
              Circulative
                Term Loan (I) 4,500,000 RMB (could be used
                periodically)

            

    

    Use
      of
      the loan: working capital

    

    Each
      interest for each deal should be paid 30% higher of the certain legal interest
      rate according to the constantly released information by People’s Bank of China.
      The interest should not be calculated for each period during each interest
      period if there is any change of the legal interest rate. The interest should
      be
      paid on the last day of each interest period. The interest period should be
      90
      days or what our bank has approved.

     

    Regulated
      by the letter, each loan should be paid back on the last day of the interest
      period. If the borrower would like to have a new loan on the last day of the
      interest period, the borrower should pay back the balance between the new loan
      and the last loan (if have); and the borrower is deemed to have got the new
      loan.

     

    Regulated
      by the letter, if our bank received a satisfying drawing notice asking for
      more
      than 1,000,000 RMB loan before 10 am on the first working day, we would give
      the
      loan. On the premise that the abovementioned items are not affected, our bank
      would accept short-term notice period accordingly.

    

    

    Notice:

    
      	 	
              (1)

            	
              Before
                giving the loan, the borrower should hand in what is stated in item
                (a),
                (c) and (f). The borrower should hand in what is stated in item (b)
                within
                2 months after the loan is given.

            

    

    
      	 	 	 

      	 	
              (2)

            	
              After
                handing in what is stated in item (b), interest rate will be reduced
                according to the constantly released legal interest rate, and 15%
                higher
                of that interest rate would be needed.

            

      	 	 	 

    

    
      	 	
              (3)

            	
              The
                loan is used to pay back the loan of the Fujian Branch of Industrial
                and
                Commercial Bank of China.

            

    

     

    2.3.1

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	2.	
              Circulative
                Term Loan (II) 5,500,000 RMB (could be used periodically)
                

            

    

    Use
      of
      the loan: working capital

    

    Each
      interest for each deal should be paid 15% higher of the certain legal interest
      rate according to the constantly released information by People’s Bank of China.
      The interest should not be calculated for each period during each interest
      period if there is any change of the legal interest rate. The interest should
      be
      paid on the last day of each interest period. The interest period should be
      90
      days or what our bank has approved.

     

    Regulated
      by the letter, each loan should be paid back on the last day of the interest
      period. If the borrower would like to have a new loan on the last day of the
      interest period, the borrower should pay back the balance between the new loan
      and the last loan (if have); and the borrower is deemed to have got the new
      loan.

     

    Regulated
      by the letter, if our bank received a satisfying drawing notice asking for
      more
      than 1,000,000 RMB loan before 10 am on the first working day, we would give
      the
      loan. On the premise that the abovementioned items are not affected, our bank
      would accept short-term notice period accordingly.

    

    Notice:

    Before
      getting the loan, the borrower should hand in what is stated in (a) and
      (f)

    

    Premise:
      Our bank will offer credit facility after receiving satisfying related note
      of
      board meeting, and the following documents, items and attestation.

    

    
      	(a)	
              the
                common business agreement of standard form of our bank signed by
                the
                borrower

            

    

    
      	 	 

      	(b)	
              (i)
                the signed contract of land and house mortgage of standard form,
                mortgaged
                on the industry places of Fujian Zhongde Technology, Ltd at Zhentang
                village, Longtian town, Fuqing city, Fujian province, China. (state-owned
                land certificate number: Ronglong state-used (2004) the 05864th,
                the 07841, the 07842

            

    

    

    
      	
            	(ii)	
              the
                signed contract of land and house mortgage of standard form, mortgaged
                on
                the industry places of Fujian Zhongde Technology, Ltd at Zhentang
                village,
                Longtian town, Fuqing city, Fujian province, China. (state-owned
                land
                certificate number: Ronglong state-used (2004) the 05864th
                )

            

    

    

    
      	
            	(iii)	
              the
                signed contract of workhouse mortgage of standard form, mortgaged
                on the
                industry places of Fujian Zhongde Technology, Ltd at Zhentang village,
                Longtian town, Fuqing city, Fujian province, China. ( certificate
                number
                of the estate: certificate of Rongfang, R.
                0402452)

            

    

     

    2.3.1a

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	(iv)	
              the
                signed contract of workhouse mortgage of standard form, mortgaged
                on the
                industry places of Fujian Zhongde Technology, Ltd at Zhentang village,
                Longtian town, Fuqing city, Fujian province, China. ( certificate
                number
                of the estate: certificate of Rongfang, R.
                0402453)

            

    

    

    
      	
            	(v)	
              ask
                the valuation corporation approved by both parties to assess the
                abovementioned and the assess should be what our bank could
                accept.

            

    

    

    
      	
            	(vi)	
              ask
                the insurance agent approved by both parties to insure what is stated
                above.

            

    

    

    
      	(c)	
              the
                standard guarantee contract on responsibility of all liabilities
                signed by
                Yang Qin 

            

    

    
      	 	 

      	(d)	
              the
                standard guarantee contract on responsibility of all liabilities
                signed by
                Ou Taiming

            

      	 	 

    

    
      	(e)	
              the
                standard guarantee contract on responsibility of all liabilities
                signed by
                Yu Naiming

            

    

    
      	 	 

      	(f)	
              other
                required documents, items, and evidence (including the approval related
                to
                the loan, proof documents of register, suggestions of law,
                etc)

            

    

    

    Working
      day: regulated by the letter, working day refers to the working day of Shenzhen
      Branch of Industrial and Commercial Bank (except Saturday). If the day for
      payment is not the working day, our bank may ask the borrower to pay on the
      next
      working day or the last working day.

    

    Overdue
      interest: if the loan were not paid back on the due time, the borrower should
      pay the punishment till the loan is completely returned. For the interest could
      not be paid within the interest period extra interest should be given according
      to the contract monthly.

    

    Tax
      stamp: 0.01% of 10,000,000 RMB

    

    Ways
      to
      calculate the interest: regulated by the letter, interest is accumulated by
      day
      and the past day, 360 days for a year.

    

    Payment:

    

    
      	(a)	
              the
                payment should be given according to the regulation of our bank,
                paid in
                RMB or other currency. The pay should be cash payment. If not our
                bank may
                transfer it into cash, the lack should be paid to our bank, and the
                fee
                for transfer should be paid to our
                bank.

            

    

    
      	 	 

      	(b)	
              Each
                loan and its interest should be paid before the noon of the pay day,
                and
                in ways of foot item.

            

    

     

    2.3.1b

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Expenses:
      the borrower should pay the tax stamp related. The borrower should pay all
      the
      expenses what is required by our bank for all the needed documents and
      works.

    

    Promise:
      the borrower make a promise to our bank through signing the letter

    

    
      	(a)	
              the
                borrower would store and authorize accountant book and financial
                report
                based on the accountant principle in
                china

            

    

    
      	 	 

      	(b)	
              the
                borrower should:

            

      	 	 

    

    
      	 	
              (i)

            	
              hand
                in annual audit and related report within 10 months at the end of
                every
                year, and other information related to financial
                state.

            

    

    
      	 	 	 

      	 	
              (ii)

            	
              hand
                in the details of important lawsuit,
                arbitration.

            

    

    

    
      	(c)	
              the
                borrower should inform us of the change of the board , its contract
                and
                regulations.

            

    

    
      	 	 

      	(d)	
              the
                borrower should inform us of any chances of not shouldering its
                responsibilities.

            

      	 	 

    

    
      	(e)	
              the
                borrower should get approval before letting the third party use its
                estate. The borrower may be asked to reduce the loan according to
                the
                regulation of our bank on estate leasing
                mortgage.

            

    

    
      	 	 

      	(f)	
              our
                bank can ask the valuation corporation to assess the estate constantly
                and
                give the lately report. The fee is paid by the
                borrower.

            

      	 	 

    

    
      	(g)	
              the
                original approval, register, etc or the copy related to loan should
                be
                given to our bank

            

    

    
      	 	 

      	(h)	
              the
                net value of the borrower should keep not less than
                53,000,000

            

    

     

    2.3.1c

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Requiring
      to pay
      credit facility:

    

    
      	(a)	
              if
                the borrower cannot pay what should be paid or carry out the agreement
                or
                is announced bankrupted, our bank will cancel its credit facility,
                asking
                the borrower to pay back what is
                required.

            

    

    
      	 	 

      	(b)	
              Our
                bank can cancel the credit facility or ask the borrower to pay what
                is
                required at any time.

            

      	 	 

    

    
      	(c)	
              no
                matter that there is a regulation on Payment, after carrying out
                (a) and
                (b), it should:

            

    

    

    First,
      used to pay the expenses for the loan

    Then,
      used to pay the debts

    Last,
      used to pay the borrower.

    

    Responsibility
      for the breach: if the borrower violates the agreement, the borrower should
      pay
      the loss or damage, besides, including the benefit we could get if no
      violation.

    

    Transfer:

    
      	 	 

      	(a)	
              the
                borrower has no right to transfer any rights or responsibilities
                of the
                letter

            

    

     

    
      	(b)	
              Our
                bank has the right to transfer any rights or responsibilities of
                the
                letter. The other legal party or person of our bank can have the
                same
                right.

            

    

     

    2.3.1d

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Information
      policy: the borrower agrees to let us constantly give out its information
      policy, notice and such to customers but all is loan information. The
      borrower also agrees all the information should be changed all the time,
      especially:

    
      	 	 

      	(a)	
              Our
                bank can ask other organizations or people to check or provide or
                collect
                related information about the borrower.

            

      	 	 

    

    
      	(b)	
              Our
                bank has the right to transfer the information to other places beyond
                Shenzhen including Hongkong and
                Singapore

            

    

    
      	 	 

      	(c)	
              Our
                bank has the right to make a contrast between information acquired
                and
                information of the borrower to act according to the result of the
                contrast
                including actions that may have bad effect on the
                borrower.

            

      	 	 

    

    The
      borrower has agreed to be regulated by such information policy and the
      information policy and notice become part of the agreement.

    

    Relationship
      with directors: our bank is regulated by the directors of other DBS banks on
      loan. the borrower has confirmed to us that it has no relationship with
      directors or employees of the following parties: our bank or its parent
      corporation or its subsidiary. The borrower has promised to inform us in written
      forms of the unpaid situation.

    

    Others:

    

    
      	(a)	
              on
                the basis that has no effect on the other items, approved by our
                bank, the
                borrower can pay back the debts in advance at any
                time.

            

    

    
      	 	 

      	(b)	
              our
                bank has the right all the time though sometimes we don’t use the right,
                and the right stated in the letter is accumulative. The borrower
                must
                inform our bank of the change of the address if it does and such
                changes
                takes effect after being registered in our
                bank.

            

      	 	 

    

    
      	(c)	
              the
                letter is regulated by the law of the soke. The illegal and ineffective
                items in the letter have no effect on the carrying of the legal and
                effective ones in the letter.

            

    

     

    2.3.1e

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Common
      business agreement: items of common business agreement are applied to the
      letter. If there is any collision, the letter matters.

    

    Law:
      the
      letter is regulated by Law of P.R.C. if our bank is suited to the court of
      China
      for any disputes in the letter, it should be dealt on the local court charging
      our bank.

    

    Effective:
      the letter takes effect once the borrower gets the copy of the signed letter.
      If
      the letter becomes effective only after approved by some departments according
      to the provision of the regulation, the letter takes effect after
      approved.

    

    Please
      sign the copy of the letter and hand it in within a month after the date written
      in the letter, and identify the receiver as Mr. Chen Yilun. After the required
      date the letter automatically becomes ineffective because of
      overdue.

    

    Attached
      please find all the documents your corporation should sign and return. If you
      have any question please contact Mr. Chen Yilun of our bank at (775)
      2515-6243.

    

    

    It
      is our
      pleasure to do business with you.

    

    Shenzhen
      Branch of DBS

     

    /s/
      Shenzhen Branch of DBS
Authorized
      signed by

    Shenzhen
      Branch

    

    

    SW/mh

     

    2.3.1f

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Please
      notice:

    

    The
      letter is a very important lawful document. Please read carefully before
      signing. If necessary you should ask professional suggestions to know the result
      of signing on the letter. Only after you agree to be regulated by the letter
      can
      you sign on it.

    

    I
      agree
      to be regulated by the items of the letter.

    

    Fujian
      Zhongde Technology Co., Ltd.

    

    Seal
      
      
        

      

    

    Legal
      representative:

    

    Date
      the
      borrower should sign and return the letter:

     

     

     

    2.3.1g

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