Document:

This document has been translated for information purposes only; the Chinese text is the only valid document. 

Exhibit 10.9

Qing Lin

Panxing Zhuo

Fujian WangGang Dredging Construction Co.,Ltd.

Wonder Dredging Engineering LLC.

 

 

Equity Interest Pledge Agreement

  

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document. 

 

The Equity Interest Pledge Agreement (the “Agreement”) is entered into among the following parties in Fuzhou City, Fujian Province as of July 5, 2010:

The Pledgors:

 

Qing Lin (the “Pledgor A”)

 

ID No. 350128196810101911

 

Panxing Zhuo (the “Pledgor B”)

 

ID No. 350128194202211915

The Pledgee:

 

Fujian WangGang Dredging Construction Co., Ltd. (the “WOFE”)

 

Address: 16/F Zhongshan Building, 154 Hudong Road, Fuzhou City, Fujian Province, China

 

Legal representative: Qing Lin

And

 

Wonder Dredging Engineering LLC. (“Wonder Dredging”)

 

Address: Room 1705, 17/F A part of Zhongshan Building, 154 Hudong Road, Fuzhou City, Fujian Province, China

 

Legal representative: Qing Lin

As used in this Agreement, Pledgor A, Pledgor B, WOFE and Wonder Dredging are collectively referred to herein as “Parties to the Agreement”. The Pledgor A and the Pledgor B are collectively referred to herein as the “Pledgors” .

Whereas:

 

	
1.

	
Wonder Dredging is a limited company legally registered and validly existing under the laws of People’s Republic of China (PRC) with registered capital RMB 6,000,000, to which the Pledgor A contributes RMB 5,460,000 and holds ninety-one percent (91%) of equity interest in Wonder Dredging and the Pledgor B contributes RMB 540,000 and holds nine (9%) percent of equity interest in Wonder Dredging.

 

  

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2.

	
On July 5, 2010, WOFE, Wonder Dredging and Fujian Xing Gang Port Service Limited (“Fujian Xing Gang”) entered into the Contracted Management Agreement. (The “Management Agreement”) which stipulates that Fujian Xing Gang is contracted to WOFE for management and WOFE shall take full charge of their operation and management.

	
3.

	
On July 5, 2010, WOFE and Wonder Dredging entered into the Contract Relating to Exclusive Purchase Right of Equity Interest (“Purchase Agreement) which stipulates that according to the Purchase Agreement WOFE or one or more persons designated by WOFE (the “Designated Person”) have the exclusive right to purchase the equity interest in Fujian Xing Gang, provided that the transfer of the equity interest will not adversely affect Fujian Xing Gang’s business.

	
4.

	
On May 27 2010, Wonder Dredging resolved that Fujian Xing Gang will distribute the dividend RMB350, 803,477 (the “Amount”) and issued the related resolution of board of shareholders of Fujian Xing Gang. Afterwards Wonder Dredging issued a Letter of Commitment (the “Commitment”) to confirm that Wonder Dredging will not draw dividend from the Amount without the written consent from WOFE.

	
5.

	
In order to secure the performance of Wonder Dredging and Fujian Xing Gang’s obligations in Management Agreement, Purchase Agreement  (“Two Agreements”) and to secure the performance of Wonder Dredging’s Commitment, the Pledgors agree to pledge one hundred percent (100%) of their equity interest held in Wonder Dredging (the “Pledged Equity Interest”) to WOFE .

NOW THEREFORE, the Parties to the Agreement hereby agree as follows:

1. The Pledgors

 

1.1 The Pledgors to this Agreement means Pledgor A and Pledgor B. The Pledgors take joint and several liabilities for the obligations under this Agreement and benefit jointly from the rights under this Agreement.

 

  

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2. The Pledged Equity Interest

 

2.1 The Pledged Equity Interest is the rights of holders of equity interest in Wonder Dredging, Pledgor A and Pledgor B, producing from the RMB [  ] of capital contributions.

3. The Debts to be Secured

 

3.1 The debts under the Management Agreement, including the profit during the term of Management Agreement which shall be paid by Fujian Xing Gang to WOFE (the “Profit”), the losses sustained by WOFE if the payment of the Profit is delayed and the expense of exercising the right of pledge by WOFE under this Agreement.

 

3.2 The debts under the Purchase Agreement, including the whole or part of equity interest in Fujian Xing Gang which WOFE has the right to purchase, the loss sustained by WOFE for delayed performance by the other parties of Purchase Agreement and the expense of exercising the right of pledge by WOFE under this Agreement.

3.3 The debts under the Commitment, including the commitment made by Wonder Dredging, the losses sustained by WOFE if the commitment is violated by Wonder Dredging and the expense of exercising the right of pledge by WOFE under this Agreement.

4. Effective Date and the Term of Pledge

 

4.1 This Agreement comes into effect upon signing by the Parties and being lodged in Fuzhou Administration Department for Industries and Commerce (the “Department”) and terminates  upon the earlier of (i) the purchase of the entire equity interest by WOFE pursuant to the terms of the Purchase Agreement or (ii) 20  years after the date hereof. The 20 year initial term of this Agreement shall be continuously extended for consecutive additional 20 year periods in the event that the entire equity interest is not purchased by WOFE or Designated Person pursuant to the Purchase Agreement prior to the expiration of the term.

 

  

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4.2 In the event that it is failure to lodge the pledge of equity interest in the Department, WOFE shall still have the priority to receive the payment by the proceeds of disposal of pledged equity interest.

4.3 Within 30 working days, the Pledgors should complete the lodge, ie cause the pledge to be registered in the Department and the certificate of registration of the Pledged Equity Interest (the “Certificate”) to be issued. The Pledgor should deliver the Certificate to WOFE in three calendar days after it has been issued.

5. Exercise the Right of Pledge

 

5.1 During the term of the pledge, in the event that Wonder Dredging and Fujian Xing Gang have not fulfilled the obligations under the Two Agreements, according to the terms of this Agreement, WOFE has the right to dispose the Pledged Equity Interest; WOFE shall notify the Pledgors about their violation of the Agreement when exercising the right of pledge.

5.2 According to Clause 5.1 WOFE may exercise the right of the pledge in any time when or after the notice about the violation of the Agreement has been delivered.

5.3 WOFE is entitled to dispose the Pledged Equity Interest, pursuant to the legal procedure, by auction, sale, or evaluation in terms of money and have the priority in receiving the payment from the proceeds of auction and sale.

5.4 The Pledgors should provide necessary assistance to, and should not interfere with, WOFE in disposing the Pledged Equity Interest according to the stipulations of the Agreement and shall assist WOFE to realize the right of pledge.

 

  

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6. The Promises from the Pledgors and the Wonder Dredging

 

6.1 In order to secure the performance of the Agreement by Wonder Dredging, the Pledgors, as the holders of equity interest in Wonder Dredging, promise to WOFE:

 

6.1(1) Unless agreed by the Pledgors and WOFE, during the term of pledge, the Pledgors should not assign the whole or part of the equity interest held by him in Wonder Dredging, nor shall they create pledge, guaranty in any other methods, or set any other real rights granted by security, on the Pledged Equity Interest for the benefit of a third party.

6.1(2) Without prior written consent by WOFE, not to change the Constitution of Wonder Dredging in any methods.

6.1(3) Without prior written consent by WOFE, the Pledgors guarantee that they shall not commence any litigations or arbitrations or agree to settle the disputes through negotiations in any litigations or arbitrations.

6.1(4) Without prior written consent by WOFE, the Pledgors should not increase or decrease the registered capital of the Wonder Dredging, nor should they change the proportion of the equity interest or change the form of the capital contributions in Wonder Dredging.

6.1(5) Following proper finance and business standard and tradition, the Pledgors should maintain the existence of the Wonder Dredging, prudently and effectively operate its business affairs;

 

  

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6.1(6) Without prior written consent by WOFE from the date of entering into this Agreement, the pleadgors shall not at any time cause the board of directors to approve to sale, transfer, mortgage or, in any manner whatsoever, dispose Wonder Dredging’s assets, proceeds and legal benefit from the business conducts; or to approve to grant any security on it, unless otherwise required by the normal business conducts;

6.1(7) Without prior written consent by WOFE, before all the equity interest held by Wonder Dredging in Fujian Xing Gang ( “Wonder Dredging’s Equity Interest” ) has been transferred to WOFE or the Designated Persons, the Pledgors should not dispose, in any manner whatsoever, the equity interest held by the Pledgors in Wonder Dredging ( “Pledgors’ Equity Interest”) and Wonder Dredging’s Equity Interest (“Wonder Dredging’s Equity Interest” and “Pledgors’ Equity Interest” herein after referred to as simply “Equity Interest” in all ), including without limitation, transfer, pledge the Equity Interest or set up any rights of claims on them. The Pledgors guarantee that no resolutions of Wonder Dredging’s board of shareholders or board of directors will be adopted if such resolutions adversely affect WOFE to exercise the rights under the Equity Interest, including without limitation, transfer, pledge the Equity Interest or set up any rights of claim on them.

6.1(8) Without prior written consent by WOFE, the representatives of Wonder Dredging’s board of directors shall not adopt the resolution of dividend distribution.

6.1(9) Without prior written consent by WOFE, the Pledgors shall not take any actions to cause Wonder Dredging to take part in the merger and acquisition transactions with any enterprise, or cause Wonder Dredging to be liquidated, terminated, or dissolved.

6.1(10) Without prior written consent by WOFE, the Pledgors shall not adopt the board of shareholders’ resolution to approve Wonder Dredging to have any debt, or to create, success any debts or to secure any debt, unless otherwise required by normal business conducts.

 

  

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6.1(11) The Pledgors agree to appoint the persons nominated by WOFE to act as all the directors of Wonder Dredging and cause the board of directors of Wonder Dredging to appoint the persons nominated by WOFE to act as the General Manager, Chief Finance Controller and other supervisors of Wonder Dredging, who will perform their responsibilities pursuant to the Companies Law of PRC and the Constitution of Wonder Dredging..

6.1(12) The Pledgors agree to irrevocably grant the voting rights and, other rights of holders of equity interest in Wonder Dredging, to WOFE or the Designated Persons.

6.1(13)The Pledgors agree that all the funds transferred by Fujian Xing Gang or WOFE to the Pledgors shall be repatriated to WOFE. All the profit declared by Fujian Xing Gang belong to WOFE.

6.1(14)When WOFE exercise the Right of Pledge to this Agreement, the Pledgors shall waive the preemptive right of the Pledged Equity Interest.

6.2 Wonder Dredging’s Promise

 

6.2(1) Without prior written consent by WOFE, Wonder Dredging shall not distribute dividend to the Pledgors, or sell, transfer, gift, mortgage or dispose its assets by any other methods whatsoever.

6.2(2) Without prior written consent by WOFE, Wonder Dredging should not terminate the Two Agreements, not should it enter into any contracts with any enterprises or persons which will adversely affect the performance of Two Agreements.

6.2(3) Without prior written consent by WOFE, Wonder Dredging should not borrow funds from any other persons or secure the debts for the benefit of any other persons, nor should it take any liabilities outside the normal business conducts of Wonder Dredging.

 

  

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6.2(4)Without prior written consent by WOFE, Wonder Dredging shall not take part in the merger and acquisition transaction with any other enterprises.

6.2(5)Without prior written consent by WOFE, Wonder Dredging shall not transfer its assets to any other enterprises or person.

6.2(6)Without prior written consent by WOFE, Wonder Dredging shall not assist the Pledgors to assign the Pledgors’ Equity Interest.

6.2(7)Without prior written consent from WOFE, Wonder Dredging shall not waive any credit or any benefit.

6.2(8) Wonder Dredging should execute any decision made by WOFE when it exercises the right of pledge in accordance with the term of this Agreement.

7. Breach of Contract

 

7.1 In case of any loss sustained by one Party due to any misleading or false representation, (whether fraudulent or not), which leads to non-performance or partial non-performance, such breaching Party shall bear legal liabilities according to the laws and be liable for all losses sustained by the non-defaulting party(s) due to such breach.

8. Particular Stipulations

 

8.1 This Agreement shall be binding on the successors of Pledgors.

9. Governing laws and settlement of the disputes

 

	
9.1

	
The execution, validity, performance, interpretation and settlement of disputes shall be governed by PRC laws.

 

  

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9.2 If any disputes arise out of performance of this Agreement, the Parties shall firstly settle such disputes through friendly negotiations. Should such disputes fail to be settled through negotiation within 20 days after the disputes arise, each party may submit such disputes to the court with jurisdiction.

10. Miscellaneous Provisions

 

10.1 The parties to this Agreement agree that all the business materials relating to the performance of the Two Agreements are confidential and should not be disclosed to a third party unless the disclosure of materials is required by the PRC laws or administration rules and regulations or by supervising authority. Notwithstanding the foregoing, the Parties acknowledge that this Contract can be filed with the Securities and Exchange Commission in the United States.

10.2 Notices or other communications required to be delivered by any party pursuant to this Agreement shall be written. Any party should inform the other parties if its address, contact number or fax number has been changed. If such obligation is failure to be performed, the notice shall deemed to be duly served when it is delivered to the original physical address or fax number known by other parties.

10.3 The amendments (if any) duly executed by the Parties shall be part of this Agreement and shall have the same legal effect as this Agreement.

10.4 This Agreement is made in eight (8) originals in Chinese, of which each Party shall hold two. Each original has the same validity.

[Blank below]

 

  

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[Page for signatures]

	
Qin Lin

	  
	  	  
	
By

	  	  
	  	  
	
Panxing Zhuo

	  
	  	  
	
By

	  	  
	  	  
	
Fujian WangGang Dredging

Construction Co., Ltd.

	  
	  	  
	
By

	  	  
	  	  	  
	
Name:

	  
	  	  	  
	
Title:

	  
	  	  
	
Wonder Dredging Engineering LLC.

	  
	  	  
	
By

	  	  
	  	  	  
	
Name:

	  
	  	  	  
	
Title:

	  

 

  

11This document has been translated for information purposes only; the Chinese text is the only valid document.

	  

Exhibit 10.10

Fujian WangGang Dredging Construction Co., Ltd.

 

Wonder Dredging Engineering LLC.

 

Fujian Xing Gang Port Service Limited

	 
	
CONTRACT RELATING

	
TO THE EXCLUSIVE PURCHASE RIGHT OF THE

EQUITY INTEREST

	 

  

 

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This document has been translated for information purposes only; the Chinese text is the only valid document.

	  

The Contract Relating to the Exclusive Purchase Right of the Equity Interest ( the “Agreement”) is entered into among the following parties in Fuzhou City, Fujian Province as of July 5, 2010:

Wonder Dredging Engineering LLC. (“Wonder Dredging”), the transferor

 

Address: Room 1705, 17/F A part of Zhongshan Building, 154 Hudong Road, Fuzhou City, Fujian Province, China

 

Legal representative: Qing Lin

 

Fujian WangGang Dredging Construction Co., Ltd. (the “WOFE”), the transferee

 

Address: 16/F Zhongshan Building, 154 Hudong Road, Fuzhou City, Fujian Province, China

 

Legal representative: Qing Lin

 

Fujian Xing Gang Port Service Limited (the “Fujian Xing Gang”), who confirms the transfer

 

Address: 17/F Zhongshan Building, 154 Hudong Road, Fuzhou City, Fujian Province, China

 

Legal representative: Qing Lin

As used in this Agreement, the WOFE, Wonder Dredging, and Fujian Xing Gang are collectively referred to herein as the “Parties to the Contract”.

WHEREAS,

 

	
1.

	
Fujian Xing Gang is a limited liability company that is invested by a foreign-owned enterprise, duly registered and is validly existing under the laws of the People’s Republic of China (the “PRC”), specializing in dredging port and  waterways. Its registered capital is RMB 200,000,000. On June 20, 2010, the WOFE invested RMB158,587,183 in Fujian Xing Gang for its equity interest in Fujian Xing Gang. The forgoing invested amount RMB 158,597,183 is equivalent to Fujian Xing Gang’s audited net asset value (“NAV”) as of March 31, 2010 as adjusted for the payment of the dividend distributed to Wonder Dredging on May 27, 2010. After the investment by the WOFE , each of Wonder Dredging and WOFE holds a fifty percent (50%)  equity interest in Fujian Xing Gang.

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

	  

	
2.

	
On July 5, 2010 the Parties to this Agreement entered into the Contracted Management Agreement (“Management Agreement”) which stipulates that Fujian Xing Gang is contracted to the WOFE for management and the WOFE and/or the seniors officers employed by the WOFE have agreed to  take full charge of the Fujian Xing Gang’s business operations and management during the period of the contracted management.

 

NOW THEREFORE, the Parties to the Contract hereby agree as follows:

 

1.  Authorization

 

	
1.1

	
Wonder Dredging hereby irrevocably grants to the WOFE an exclusive right (“Purchase Right”) to purchase part or all of the equity interest held by Wonder Dredging in Fujian Xing Gang (“Equity Interest”).  Accordingly, the WOFE or one or more persons designated by WOFE (the “Designated Person”) are entitled to purchase all or any part of the Equity Interest from Wonder Dredging at any time, provided that the business and operations of Fujian Xing Gang will not be adversely affected by PRC law if the WOFE holds more than a 50% equity interest in Fujian Xing Gang.

	
1.2

	
Wonder Dredging promises that other than the WOFE and the Designated Persons, no other party has a right to purchase an equity interest in Fujian Xing Gang.

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

	  

2.  Transfer of Purchased Equity Interest

	
2.1

	
The Parties to this Agreement agree that the WOFE shall deliver a written notice to purchase the Equity Interest (the “Notice of Purchase Equity Interest”) at any time to Wonder Dredging, provided that the transfer of the Equity Interest will not materially and adversely affect Fujian Xing Gang’s normal business operations. Once the Notice of Purchase Equity Interest has been delivered, Wonder Dredging agrees to take all requisite action to transfer the valid ownership (the “Transfer Performance”) of the Equity Interest in Fujian Xing Gang to  the WOFE and/or the Designated Person in any applicable PRC administrative departments for industry and commerce. Subject to the laws of PRC, Wonder Dredging promises to complete Transfer Performance within ninety (90) days from the date of receiving the Notice of Purchase of Equity Interest.  During the Transfer Performance period, the Parties hereto and the Designated Person shall execute all other requisite documents and actions under the laws of PRC, including without limitation, entering into the contracts relating to the transfer of Equity Interest (“Equity Interest Transfer Contract”), holding a shareholders’ meeting and adopting shareholders’ resolutions, amending Fujian Xing Gang’s Constitution, and providing all necessary materials and information, to cause  the WOFE and/or the Designated Person to be the registered owner of the Equity Interest being transferred.

	
2.2

	
Every time upon  the WOFE’s execution of the Purchase Right, Wonder Dredging shall:

	 	
2.2(1)

	
urge Fujian Xing Gang to convene the shareholders’ meeting, and during the meeting, adopt the resolution to transfer the Equity Interest from Wonder Dredging to  the WOFE and/or the Designated Person;

 

  

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2.2(2)

	
upon the stipulations of the Contract and the Notice of Purchase of Equity Interest from the WOFE, enter into Equity Interest Transfer Contract with the WOFE and/or the Designated Person;

	 	
2.2(3)

	
with the WOFE and/or the Designated Person and Fujian Xing Gang, sign or enter into all other requisite contracts or documents, acquire all requisite approvals and consents of the government, unconditionally perform all requisite action to transfer the valid ownership of the Equity Interest to the the WOFE and/or the Designated Person and to cause the WOFE and/or the Designated Person to be the registered owner of the Equity Interest being transferred;

	 	
2.2(4)

	
take such action as required herein in a timely fashion and if an extension of the scheduled time is needed, Wonder Dredging agrees to notify the WOFE without delay.

	
2.3

	
When the Equity Interest has been transferred, all the rights and obligations thereunder shall be transferred.

	
2.4

	
Wonder Dredging shall take such action as may be necessary to cause Fujian Xing Gang to issue the certificate evidencing the capital contribution within thirty (30) days to the WOFE and/or the Designated Person after the Transfer Performance is completed.

	
2.5

	
The WOFE has the right to have Fujian Xing Gang’s accounts and records audited by the auditor.

3.  The Price of Purchase and the Payment

 

3.1 Except as may be provided by the laws at that time, the price of the purchased Equity Interest (“Price of Payment”) shall be equivalent to the NAV reflected in the latest quarterly report under US GAAP prior to the purchase.

 

  

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3.2 The WOFE and/or the Designated Person shall pay the full Price of Payment by cash or by any other form of payment in accordance with PRC laws to Wonder Dredging pursuant to the Equity Interest Transfer Contract.

4 . Representations and Warranties

 

4.1 Representations and Warranties from Wonder Dredging to the WOFE:

 

	
  

	
4.1(1)

	
Wonder Dredging is a limited company duly registered and validly existing under the laws of PRC. It has the right and ability to sign and execute and perform this Agreement and any instruments relating to this Agreement. This Agreement and the related instruments are binding upon Wonder Dredging in accordance with their terms;

	
  

	
4.1 (2)

	
Wonder Dredging has taken such appropriate and necessary action to authorize the appropriate persons to sign and execute and perform the obligations under this Agreement and has obtained any necessary approvals and authorizations;

	
  

	
4.1(3)

	
Wonder Dredging has obtained all required consents relating to the execution of this Agreement and the Transfer Performance from such parties as may be necessary, including but not limited to, the creditors of Wonder Dredging and Fujian Xing Gang and any required banks.  The execution and performance of the obligations of Wonder Dredging hereunder do not (i) violate any relevant laws or administrative rules and regulations of PRC; or (ii) breach any contracts entered into by Wonder Dredging with any third party.

	
  

	
4.1(4)

	
The Equity Interest has been legally obtained and is beneficially owned by Wonder Dredging without any security interest at the present time or in the future. For this Section to this Agreement, “Security Interest” shall mean any mortgage, pledge or any other lien on the Equity Interest for the benefit of a third party.

  

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4.2 The WOFE hereby promises Wonder Dredging:

	
  

	
4.2(1)

	
The WOFE is a limited company duly registered and validly existing under the laws of PRC. It has the right and ability to sign and execute and perform  this Agreement and any instruments relating to this Agreement. This Agreement and related instruments are binding on the WOFE in accordance with their terms.

	
  

	
4.2(2)

	
The WOFE has taken such appropriate and necessary action to authorize the appropriate persons to sign and execute and perform the obligations under this Agreement and has obtained any necessary approvals and authorizations.

	
4.3

	
Wonder Dredging and the WOFE make mutual representations and warranties that all the representations and warranties between them are authentic and accurate.

5.  Wonder Dredging and Fujian Xing Gang Promise to the WOFE:

 

	
5.1

	
Without prior consent by the WOFE, Wonder Dredging shall not, before the Equity Interest has been transferred to the WOFE and/or the Designated Person, transfer, mortgage, or dispose of the Equity Interest or any interest therein, under any circumstance or take any action which would create any type of lien on it. Wonder Dredging promises not to permit the board of shareholders or the board of directors of Fujian Xing Gang to adopt any resolutions which will effect the right of WOFE to exercise the rights proceeding from the Equity interest, including but not limit to the transfer, mortgage or pledge of the Equity Interest or create a lien on the Equity Interest.

	
5.2

	
Without prior written consent of the WOFE, Wonder Dredging and Fujian Xing Gang promise not to cause Fujian Xing Gang’s business scope to be changed or cause Fujian Xing Gang to be liquidated, terminated or dissolved.

 

  

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5.3

	
Without the prior written consent of the WOFE, Wonder Dredging and Fujian Xing Gang promise not to change the Constitution of Fujian Xing Gang in any manner whatsoever.

	
5.4

	
Without the prior written consent of the WOFE, Wonder Dredging and Fujian Xing Gang promise not to increase or decrease Fujian Xing Gang’s registered capital or change the proportion of equity interest in Fujian Xing Gang or change the form of capital contributions.

	
5.5

	
Following proper finance and business standards and traditions, Wonder Dredging and Fujian Xing Gang promise to maintain the existence of the Fujian Xing Gang, prudently and effectively operate the business of Fujian Xing Gang under the management of the WOFE in accordance with the terms of the Management Agreement;

	
5.6

	
Without prior written consent  of the WOFE, from the date of entering into this Agreement, Wonder Dredging and Fujian Xing Gang promise not, at any time, to adopt any resolutions in shareholders’ meeting to approve to sell, transfer, mortgage or dispose the Equity Interest in any manner whatsoever, or approve the grant of any other lien on it, unless otherwise directed or authorized by the WOFE in accordance with the terms of the Management Agreement;

	
5.7

	
In addition to the rights granted to the WOFE under the Power of Attorney, if requested by WOFE, Wonder Dredging agrees to appoint the persons nominated by the WOFE to act as all the directors of Fujian Xing Gang and cause the board of directors of Fujian Xing Gang to appoint the persons nominated by the WOFE to act as the general manager, chief finance controller and other supervisors of Fujian Xing Gang, who will perform all their responsibilities pursuant to Companies Law of PRC and the Constitution of Fujian Xing Gang.

 

  

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5.8

	
Fujian Xing Gang agrees that Wonder Dredging, upon the stipulations in this Contract, shall transfer the Equity Interest to the WOFE or the Designated Person.

	
5.9

	
Wonder Dredging irrevocably agrees to delegate the voting and any other power as the holder of Equity Interest in Fujian Xing Gang to the WOFE or the Designated Person, and in furtherance thereof will execute such documents as may be necessary to effectuate the foregoing including but not limited to the execution of a power of attorney.

	
5.10

	
Wonder Dredging agrees not to allow Fujian Xing Gang to commence any litigation or arbitration without the WOFE’s prior written consent and not to settle any disputes through negotiations in any litigation or arbitration without the WOFE’s prior written consent.

	
5.11

	
Wonder Dredging agrees to contribute to Fujian Xing Gang the full amount of the Price of Payment received by it pursuant to the terms of this Agreement. Wonder Dredging agrees that it will pay all taxes, costs and expenses related to the thereto.

	
5.12

	
Wonder Dredging agrees that, as of the date of entering into  this Agreement, all funds received by Wonder Dredging from Fujian Xing Gang shall be distributed to the WOFE. Any and all the dividends declared by Fujian Xing Gang belong to the WOFE.

	
5.13

	
Without prior written consent by WOFE, Fujian Xing Gang shall not sell, assign, gift, mortgage or dispose of its assets in any manner whatsoever to Wonder Dredging.

 

  

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5.14

	
Without prior written consent by WOFE, Fujian Xing Gang shall not (i) terminate the Management Agreement, or this Agreement (“Two Agreements”), or (ii) enter into any other agreement which will adversely affect the performance of the Two Agreements.

	
5.15

	
Without prior written consent by WOFE, Fujian Xing Gang shall not borrow from any other party or secure the debt for the benefit of a third party.

	
5.16

	
Without prior written consent by WOFE, Fujian Xing Gang shall not take part in a merger or acquisition transaction with any enterprise or person.

	
5.17

	
Without prior written consent by WOFE, Fujian Xing Gang shall not transfer its assets to the account of any other enterprise or person.

	
5.18

	
Without prior written by WOFE, Fujian Xing Gang shall not take any actions to assist in the transfer of the equity interest held by Wonder Dredging.

	
5.29

	
Without prior written consent by WOFE, Fujian Xing Gang shall not waive the rights to any credit or any profit.

6. Force Majeure

 

	
6.1

	
No party shall be liable if it is delayed or prevented from performing its obligation under this Agreement by Force Majeure. Force Majeure means acts of nature, fire, earthquake, war and political turmoil, and any other event that is beyond the party’s reasonable control and cannot be prevented with reasonable care.

	
6.2

	
When an event of Force Majeure arises, the affected party shall inform the other parties within 15 business days. The affected party who does not perform the obligations under this Agreement shall be responsible for any damage caused by failure of informing other parties. After an event of Force Majeure is removed, the affected party shall resume performance of this Agreement with its best efforts.

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

	  

7. Term

This Agreement shall be effective when it is entered into, with an initial term of 20 years unless it is terminated earlier pursuant to the terms herein. During the term of this Agreement the WOFE can, at any time, purchase from Wonder Dredging the Equity Interest, and this Agreement shall terminate when the Transfer Performance of all the Equity Interest is completed. The initial term of this Agreement shall be continuously extended for consecutive additional 20 year periods in the event that the entire Equity Interest is not purchased by the WOFE or the Designated Person prior to the expiration of the term.

8. Particular Stipulations

 

	
8.1

	
Without the prior written consent by WOFE, Wonder Dredging shall not assign its rights and obligations hereunder to any person.

	
8.2

	
The WOFE has the right to assign its rights and obligations to this Agreement.

	
8.3

	
This Agreement shall bind and benefit the successors of Wonder Dredging

9. Governing laws and settlement of the disputes

 

	
9.1

	
The execution, validity, performance, interpretation and settlement of disputes shall be governed by PRC laws.

 

	
9.2

	
If any disputes arise out of performance of this Agreement, the Parties shall first settle such disputes through friendly negotiations. Should such dispute fail to be settled through negotiation within 20 days after the disputes arises, each Party may submit such dispute to the court with jurisdiction.

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

	  

10. Miscellaneous Provisions

 

	
 10.1

	
The Parties to this Agreement agree that all the business materials related to this Agreement and the Management Agreement are confidential and should not be disclosed to a third party unless the disclosure of materials is required by the PRC laws or administration rules and regulations or by supervising authority.  Notwithstanding the foregoing, the Parties acknowledge that this Agreement can be filed with the Securities and Exchange Commission in the United States.

	
10.2

	
Notices or other communications required to be delivered by any party pursuant to this Agreement shall be written. Any party should inform the other parties if its address, contact number or fax number has been changed. If a Party fails to inform the other Parties of its contact information, the notice shall deemed to be duly served when it is delivered to the prior address or fax number known by other Parties.

	
10.3

	
Should all or any part of any provision hereof be held void by the court with jurisdiction or the relevant authority, then such part of the provision shall be deemed to have been deleted; provided that, such deletion shall in no way affect the legal force of any other part of the provision or any other provision hereof.

	
10.4

	
The amendments (if any) duly executed by the Parties shall be part of this Agreement and shall have the same legal effect as this Agreement.

	
10.5

	
This Agreement is made in six (6) originals, in Chinese, of which each Party shall hold two. Each original has the same validity.

[Blank below]

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

	  

[Page for signatures]

	
Wonder Dredging Engineering LLC.

	  
	
By

	  	  
	
Name:

	  
	
Title:

	  
	  	  
	
Fujian WangGang Dredging Construction Co., Ltd.

	  
	
By

	  	  
	
Name:

	  
	
Title:

	  
	  	  
	
Fujian Xing Gang Port Service Limited

	  
	
By

	  	  
	
Name:

	  
	
Title:

	  

 

  

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