Document:

Unassociated Document

    INVESTMENT PURCHASE
AGREEMENT

     

    THIS
INVESTMENT PURCHASE AGREEMENT is dated and made for

     

    reference
effective as of the                    
, 2010 (the "Effective
Date").

     

    BETWEEN:

     

    BRAND
NEUE CORP. with its
address for notices at c/o 1210 — 777 Hornby Street Vancouver, BC V6Z
1S4

     

    (the
"Company");

    OF THE FIRST
PART

    AND:

     

                                                                       
                     
with the address

     

    for
notice hereunder at:

     

     

      
        

      

    

    (the
"Investor");

     

    OF
THE SECOND PART

     

    (the
Investor and the Company being hereinafter singularly also referred
to as a "Party" and
collectively referred to as the "Parties" as the
context so requires).

     

    WHEREAS:

     

    
      	
              A.  

            	
              The
      Company is in the business of new product innovation dedicated to
      globally sourcing,
      developing, marketing, licensing and distributing innovative new products
      to global
      food service, retail, manufacturing and industrial application
      worldwide;

            

    

     

    
      	
              B.  

            	
              The
      Company desires investment and the Investor has determined that he will
      participate with
      the Company on the terms of this Agreement;
    and

            

    

     

    
      	
              C.  

            	
              The
      Investor is a sophisticated and accredited
  investor.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

    

    NOW
THEREFORE THIS AGREEMENT WITNESSETH that
in consideration of the mutual
promises, covenants and agreements herein contained, THE
PARTIES HERETO COVENANT
AND AGREE WITH EACH OTHER as
follows:

     

    Article
1

     

    INVESTMENT
PURCHASE

     

    1.1       
  Investment
Purchase. The Investor hereby purchases and the Company hereby sells
and
agrees to deliver a certificate or certificates
for                                                  
common shares (the
"Purchased Shares") of the Company in consideration of the payment by the
Investor of $0.50US
per Purchased Share for an aggregate price
of                                             
 US (the
"Purchase
Price").

     

    1.2       
  The Company hereby agrees to pay to the Investor certain fees from
revenue generated (the
"Fee") as
follows:

     

    
      	
            	
              (a)  

            	
              Upon the Company generating
      revenue, the Fee payable by the Company to the Investor shall consist of 75% of Gross
      Profit from Product Sales after Deduction of Direct Expenses (GPPSR), pro rated
      subject to the portion of the Purchase Price relative to the entire
    amount.

            

    

     

    
      	
            	
              (b) 

            	
              The
      75% Fee shall be paid quarterly until such time as the Fee payments are
      the equivalent
      of the Purchase Price paid by the Investor, upon which the Fee
      payments shall
      be considered paid in
full.

            

    

     

    1.3         
Investor
Acknowledgment. None of the Purchased Shares to which this Investment
Purchase
Agreement relates have been registered under the United States Securities Act of
1933, as
amended (the "1933 Act"), or any U.S. State securities laws, and, unless so
registered, none may be
offered or sold in the United States or to U.S. Persons except pursuant to an
exemption from, or
in a transaction not subject to, the registration requirements of the 1933 Act
and in each case only
in accordance with applicable state securities laws.

     

    1.4         
Repurchase
Option. The Investor hereby grants to the Company the option (the
"Option")
to purchase, subject to the terms and conditions of this Agreement, up to
one-half of the
Investors Purchased Shares at $1.00 per share (the "Option
Price").

     

    The term
(the "Option Term") of the Option shall commence on the date of this Agreement
and shall
expire on the first anniversary of the date of this Agreement (the "Expiration
Date").

     

    On or
before the Expiration Date, the Option may be exercised, from time to time, in
whole or in part (but
for the purchase of whole shares only), by delivery of a written notice (the
"Notice") from the
Company to the Investor, which Notice shall:

     

    
      	
            	
              (a)  
      

            	
              state
      that the Company elects to exercise the
Option;

            

    

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    
       

       

    

    
      	 	
              (b)  

            	
              state
      the number of shares with respect to which the Option is being exercised
      (the "Optioned Shares");

            

    

     

    
      	 	
              (c)  

            	
              state
      the date upon which the Company desires to consummate the purchase of
      the Optioned
      Shares (which date must be prior to the termination of such Option and no
      later than
      30 days from the delivery of such
  Notice);

            

    

     

    
      	 	
              (d)  

            	
              Payment
      of the Option Price for the Optioned Shares shall be made by delivery of
      cash, money
      order or a certified check to the order of the Investor in an amount equal
      to the Option
      Price; and

            

    

     

    
      	 	
              (e)  

            	
              The
      Investor shall deliver stock certificate(s) duly endorsed for transfer in
      the name of the Company (or their nominee or assigns) for the Optioned
      Shares as soon as practicable after receipt of the Notice and payment of
      the aggregate Option Price for such
Shares.

            

    

     

    Article
2

     

    WARRANTIES
AND REPRESENTATIONS BY THE COMPANY

     

    2.1          
Warranties
and Representations by the Company. In order to induce the Investor
to enter into and consummate this Agreement, the Company hereby warrants
to, represents
to and covenants with the Investor, with the intent that the Investor will rely
thereon in entering
into this Agreement and in concluding the transactions contemplated herein,
that, to the best of
the Company's knowledge, information and belief, after making due
inquiry:

     

    
      	 	
              (a)  

            	
              upon delivery of the
      Purchased Shares the Investor will be the 100% percent owner
      of the Purchased Shares without claim or lien by any other party and
      the Purchased
      Shares will be validly issued and outstanding and fully paid and non-
      assessable
      in the capital of the Company and the Purchased Shares will be
      free and
      clear of all liens, charges and encumbrances and delivered hereby to
      the Investor
      solely and to the exclusion of all other parties and
      claims;

            

    

     

    
      	 	
              (b)  

            	
              subject to the
      Investor qualifying as an accredited investor, there are no claims of
      any
      nature whatsoever affecting the rights of the Company to transfer and
      deliver the
      Purchased Shares to the Investor and such sale will not impose
      any restrictions,
      penalties or other adverse effects on the Purchased Shares other
      than as
      apply by law of general application including any hold periods imposed
      by applicable
      legislation or regulator;
  and

            

    

     

    
      	 	
              (c)  

            	
              this Agreement
      constitutes a legal, valid and binding obligation of the Company enforceable
      against the Company in accordance with its
      terms.

            

    

     

    Article
3

     

    WARRANTIES
AND REPRESENTATIONS BY THE INVESTOR

     

    3.1    
Warranties
and Representations by the Investor. In order to induce the Company to
enter
into and consummate this Agreement, the Investor hereby warrants to, represents
to and covenants
with the Company, with the intent that the Company will rely thereon in entering
into this
Agreement and in concluding the transactions contemplated herein, that, to the
best of the Investor's knowledge,
information and belief, after making due inquiry:

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

      
         

         

      

    

    
      	
            	
              (a)  

            	
              The
      Investor has full power and authority to enter into this Agreement and to
      carry out
      the transactions contemplated
  hereby;

            

    

     

    
      	 	
              (b)  

            	
              The
      Investor realizes that the investment purchase is a speculative purchase
      and that
      the Investor is able, without impairing the Investor's financial
      condition, to  effect
      the same. The Investor has such knowledge and experience in financial
      and business
      matters that the Investor is capable of evaluating the merits and risks
      of the
      prospective investment. The Investor is an accredited investor and has
      no requirement
      for regulatory approvals or over-sight for this investment.
      The Investor
      agrees that the Purchased Shares shall be subject to a one year hold
       period;
      and

            

    

     

    
      	 	
              (c)  

            	
              the
      Investor shall employ best efforts, due diligence, and good faith in
      the performance
      of this Agreement and shall conduct and conclude this
      Agreement with
      the intent of effecting the objectives hereof to the fullest extent and
      in accordance
      with the intention of this
  Agreement.

            

    

     

    Article
4

     

    CONFIDENTIAL
INFORMATION AND INVESTOR QUALIFICATION

     

    4.1         
Confidential
Information. No information in respect to the Company, the Parties
or this Agreement shall be published or disclosed to third parties by any Party
without the prior
written consent of the other Party, but such consent in respect of the reporting
of factual data
shall not be unreasonably withheld, and shall not be withheld in respect of
information required
to be publicly disclosed pursuant to applicable securities or corporation laws
or as would be
required to acquire the approvals necessary or desirable to this
Agreement.

     

    4.2         
Investor
Qualification. The Investor represents, warrants, acknowledges and
agrees to
and with the Company that:

     

    
      	 	
              (a)  

            	
              the
      Investor is a U.S. Person;

            

    

     

    
      	 	
              (b)  

            	
              the
      Investor has such knowledge and experience in financial and business
      matters as
      to be capable of evaluating the merits and risks of the transactions
      detailed in this
      Investment Purchase Agreement and it is able to bear the economic risk
      of loss
      arising from such
transactions;

            

    

     

    
      	 	
              (c)  

            	
              the
      Investor is acquiring the Purchased Shares for investment only and not
      with a view
      to resale or distribution and, in particular, it has no intention to
      distribute either
      directly or indirectly any of the Purchased Shares in the United States or
      to U.S.
      Persons; provided, however, that the Investor may sell or otherwise
      dispose of
      any of the Purchased Shares pursuant to registration thereof pursuant to
      the 1933
      Act, and any applicable State securities laws or if an exemption from
      such registration
      requirements is available or registration is otherwise not
      required under
      this 1933 Act;

            

    

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
       

       

    

    
      	 	
              (d)  
      

            	
              the
      Investor satisfies one or more of the categories indicated below
      (check
      appropriate box):

            

    

     

    
      	
            	
                                 

            	
              Category 1: An
      organization described in Section 501(c)(3) of the United States Internal
      Revenue Code, a corporation, a Massachusetts or
      similar business trust or partnership, not formed for the
      specific purpose
      of acquiring the Purchased Shares, with total assets in excess of
      US $5,000,000;

            

    

    
       

      
        	 	
                                   

              	
                Category 2: A
      natural person whose individual net worth, or joint net
      worth with that person's spouse, on the date of purchase
      exceeds US
      $1,000,000;

              

      

    

    
       

      
        	 	
                                   

              	
                Category 3: A
      natural person who had an individual income in excess of
      US $200,000 in each of the two most recent years or joint
      income with
      that person's spouse in excess of US $300,000 in each of those years
      and has a reasonable expectation of reaching the same income level
      in the current
year;

              

      

       

      
        
          	 	
                                     

                	
                  Category 4: A "bank"
      as defined under Section (3)(a)(2) of the 1933 Act
      or savings and loan association or other institution as defined
      in Section
      3(a)(5)(A) of the 1933 Act acting in its individual or
      fiduciary capacity;
      a broker dealer registered pursuant to Section 15 of the Securities
      Exchange Act of 1934 (United States); an insurance company
      as defined in Section 2(13) of the 1933 Act; an investment company
      registered under the Investment Company Act of 1940 (United
      States) or a business development company as defined in Section
      2(a)(48) of such Act; a Small Business Investment Company licensed
      by the U.S. Small Business Administration under Section
      301(c) or (d) of the Small Business Investment Act of 1958 (United
      States); a plan with total assets in excess of $5,000,000 established
      and maintained by a state, a political subdivision thereof, or
      an agency or instrumentality of a state or a political
      subdivision thereof,
      for the benefit of its employees; an employee benefit plan within
      the meaning of the Employee Retirement Income Security Act of
      1974 (United States) whose investment decisions are made by a plan
      fiduciary, as defined in Section 3(21) of such Act, which is
      either a
      bank, savings and loan association, insurance company or
      registered investment
      adviser, or if the employee benefit plan has total assets in excess
      of $5,000,000, or, if a self-directed plan, whose investment decisions
      are made solely by persons that are accredited
      investors;

                

        

        
           

          
            	 	
                                       

                  	
                    Category 5: A
      private business development company as defined in Section
      202(a)(22) of the Investment Advisers Act of 1940 (United States);

                  

          

          
             

            
              	 	
                                         

                    	
                      Category
      6: A director or executive officer of the
  Company;

                    

            

            
               

              
                
                  
                  

                

                
                  -5-

                  
                    

                  

                

                
                  
                  

                

                
                   

                   

                

              

              
                	
                      	
                                           

                      	
                        Category 7: A trust
      with total assets in excess of $5,000,000, not formed
      for the specific purpose of acquiring the Purchased Shares, whose
      purchase is directed by a sophisticated person as described in Rule
      506(b)(2)(ii) under the 1933 Act;
      or

                      

              

              
                 

                
                  	 	
                                             

                        	
                          Category 8: An
      entity in which all of the equity owners satisfy the requirements
      of one or more of the foregoing categories;
      and

                        

                

              

            

          

        

      

    

     

     

     

    
      	 	
              (e)

            	
              the Investor is not
      acquiring the Purchased Shares as a result of any form of general
      solicitation or general advertising including advertisements,
      articles, notices
      or other communications published in any newspaper, magazine or
      similar media
      or broadcast over radio, or television, or any seminar or meeting
      whose attendees
      have been invited by general solicitation or general
      advertising.

            

    

     

    4.3.         
The Investor acknowledges and agrees that:

     

    
      	 	
              (a)

            	
              if the Investor
      decides to offer, sell or otherwise transfer any of the Purchased Shares,
      it will not offer, sell or otherwise transfer any of such securities,
      directly or
      indirectly,
unless:

            

    

     

    
      	 	
              (i)  

            	
              the
      sale is to the Company;

            

    

     

    
      	 	
              (ii)  

            	
              the
      sale is made pursuant to the exemption from the registration requirements
      under the 1933 Act provided by Rule 144 there under if available
      and in accordance with any applicable state securities or
      "Blue Sky"
      laws; or

            

    

     

    
      	 	
              (iii)  

            	
              the
      Purchased Shares are sold in a transaction that does not
      require registration
      under the 1933 Act or any applicable U.S. state laws and regulations
      governing the offer and sale of securities, and it has prior
      to such
      sale furnished to the Company an opinion of counsel reasonably satisfactory
      to the Company;

            

    

     

    
      	 	
              (b)

            	
              the Investor has not
      acquired the Purchased Shares as a result of, and will not itself engage
      in any activities undertaken for the purpose of, or that could reasonably
      be expected
      to have the effect of, conditioning the market in the United States for
      the resale
      of any of the Purchased Shares; provided, however, that the Investor
      may sell
      or otherwise dispose of any of the Purchased Shares pursuant to
      registration of any
      of the Purchased Shares pursuant to the 1933 Act and any applicable
      state securities
      laws or under an exemption from such registration requirements and
      as otherwise
      provided
herein;

            

    

     

     

    
      	 	
              (d)

            	
              upon the issuance
      thereof, and until such time as the same is no longer required under the
      applicable requirements of the 1933 Act or applicable U.S. State laws and
      regulations, the certificates representing any of the Purchased Shares
      will bear a
      legend in substantially the following
      form:

            

    

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE AND HAVE BEEN
ISSUED IN RELIANCE UPON AN EXEMPTION FROM

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

      
         

         

      

    

    REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "1933 ACT"), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

     

    
      	 	
              (e)  

            	
              the
      Company may make a notation on its records or instruct the registrar
      and transfer
      agent of the Company in order to implement the restrictions on
      transfer set
      forth and described
herein;

            

    

     

    
      	 	
              (f)  

            	
              commencing
      on the first anniversary of the Closing one-quarter of the
      Purchased Shares
      shall be released to the Investor, and an additional one-quarter released
      at the
      end of each three month period thereafter, until all Purchased Shares
      have been
      released.

            

    

     

    
      	 	
              (g)  

            	
              the
      Investor, if an individual, is a resident of the state or other
      jurisdiction disclosed
      as its address in the recitals of this Investment Purchase Agreement,
      or if
      the Investor is not an individual, the office of the Investor at which the
      Investor received
      and accepted the offer to acquire the Purchased Shares is the
      address listed
      in the recitals of this Investment Purchase
      Agreement.

            

    

     

    Article
5

     

    NOTICE

     

    5.1         
Notice.
Each notice, demand or other communication required or permitted to be
given
under this Agreement shall be in writing and shall be delivered to the Party or
Parties entitled
to receive the same, at the address for such Party or Parties specified above.
The date of receipt
of such notice, demand or other communication shall be the date of delivery
thereof.

     

    5.2         
Change
of Address. Any Party may at any time and from time to time notify the
other
Party in writing of a change of address and the new address to which notice
shall be given to it
thereafter until further change.

     

    Article
6

     

    GENERAL
PROVISIONS

     

    6.1         
Entire
Agreement. This Agreement constitutes the entire agreement between
the
Parties hereto and supersedes every previous agreement, communication,
expectation, negotiation,
representation or understanding, whether oral or written, express or
implied, statutory
or otherwise, between the Parties with respect to the subject matter of this
Agreement.

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    
       

       

    

    6.2         
Enurement.
This Agreement will enure to the benefit of and will be binding upon the
Parties, their respective heirs, executors, administrators and permitted
assigns.

     

    6.3         
Time
of the Essence. Time will be of the essence of this
Agreement.

     

    6.4         
Further
Assurances. The Parties hereto hereby, jointly and severally, covenant
and agree
to forthwith, upon request, execute and deliver, or cause to be executed and
delivered, such
further and other deeds, documents, assurances and instructions as may be
required by the Parties
hereto or their respective counsel in order to carry out the true nature and
intent of this Agreement.

     

    6.5         
Invalid
Provisions.     If any provision of this Agreement is
at any time unenforceable
or invalid for any reason it will be severable from the remainder of this
Agreement and, in
its application at that time, this Agreement will be construed as though such
provision was not
contained herein and the remainder will continue in full force and effect and
be construed
as if this Agreement had been executed without the invalid or unenforceable
provision.

     

    6.6         
Counterparts.
This Agreement may be signed by the Parties hereto in as many counterparts
as may be necessary and may be signed by facsimile, each of which so signed
shall be deemed
to be an original, and such counterparts together shall constitute one and the
same instrument
and notwithstanding the date of execution will be deemed to bear the Effective
Date as set
forth on the front page of this Agreement.

     

    IN
WITNESS WHEREOF the Parties have hereunto set their hands and seals in
as of the
Effective Date. 

     

    
       

      
        
          
            
              
                
                  
                    	BRAND NEUE
    CORP.	 
      	 
      
	 	 
      	 
	Authorized
    Signatory 	 
      	
                            Investor

                          

                  

                

              

               

              
                
                  
                  

                

                
                  -8-Unassociated Document

     

    CHINA
ENERGY CORPORATION

     

    INDEPENDENT
DIRECTOR AGREEMENT

    

    This
INDEPENDENT DIRECTOR AGREEMENT (the “Agreement”) is made and entered into as of
this 31st day of May 2010 (the “Effective Date”), by and between China Energy
Corporation., a Nevada
corporation whose shares are publicly traded (the “Company”), and Paul Li, a
citizen of the United States, with the following address: Building
3, China Central Place. Jianguolu 89. Beijing, China (the “Independent
Director”).

     

    WHEREAS,
the Company desires to engage the Independent Director, and the Independent
Director desires to serve, as a non-employee director of the Company, subject to
the terms and conditions contained in this Agreement.

     

    NOW,
THEREFORE, in consideration of the mutual promises and covenants contained
herein, the receipt of which is hereby acknowledged, the Company and the
Independent Director, intending to be legally bound, hereby agree as
follows:

     

    1.           DEFINITIONS.

     

    (a)           “Corporate
Status” describes the capacity of the Independent Director with respect to the
Company and the services performed by the Independent Director in that
capacity.

     

    (b)           “Entity”
shall mean any corporation, partnership, limited liability company, joint
venture, trust, foundation, association, organization or other legal
entity.

     

    (c)           “Proceeding”
shall mean any threatened, pending or completed claim, action, suit,
arbitration, alternate dispute resolution process, investigation, administrative
hearing, appeal, or any other proceeding, whether civil, criminal,
administrative or investigative, whether formal or informal, including a
proceeding initiated by the Independent Director pursuant to Section 12 of this
Agreement to enforce the Independent Director’s rights hereunder.

     

    (d)           “Expenses”
shall mean all reasonable fees, costs and expenses, approved by the Company in
advance and reasonably incurred in connection with any Proceeding, including,
without limitation, attorneys’ fees, disbursements and retainers, fees and
disbursements of expert witnesses, private investigators, professional advisors
(including, without limitation, accountants and investment bankers), court
costs, transcript costs, fees of experts, travel expenses, duplicating, printing
and binding costs, telephone and fax transmission charges, postage, delivery
services, secretarial services, and other disbursements and
expenses.

     

    (e)           “Liabilities”
shall mean judgments, damages, liabilities, losses, penalties, excise taxes,
fines and amounts paid in settlement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (f)           “Parent”
shall mean any corporation or other entity (other than the Company) in any
unbroken chain of corporations or other entities ending with the Company, if
each of the corporations or entities, other than the Company, owns stock or
other interests possessing 50% or more of the economic interest or the total
combined voting power of all classes of stock or other interests in one of the
other corporations or entities in the chain.

     

    (g)           “Subsidiary”
shall mean any corporation or other entity (other than the Company) in any
unbroken chain of corporations or other entities beginning with the Company, if
each of the corporations or entities, other than the last corporation or entity
in the unbroken chain, owns stock or other interests possessing 50% or more of
the economic interest or the total combined voting power of all classes of stock
or other interests in one of the other corporations or entities in the
chain.

     

    2.           SERVICES
OF INDEPENDENT DIRECTOR. While this Agreement is in effect, the Independent
Director shall perform duties as an independent director and/or a member of the
committees of the Board, be compensated for such and be reimbursed expenses in
accordance with the Schedule A attached to this Agreement, subject to the
following.

     

    (a)           The
Independent Director will perform services as is consistent with Independent
Director’s position with the Company, as required and authorized by the By-Laws
and Articles of Incorporation of the Company, and in accordance with high
professional and ethical standards and all applicable laws and rules and
regulations pertaining to the Independent Director’s performance hereunder,
including without limitation, laws, rules and regulations relating to a public
company.

     

    (b)           The
Independent Director is solely responsible for taxes arising out of any
compensation paid by the Company to the Independent Director under this
Agreement, and the Independent Director understands that he/she will be issued a
U.S. Treasury form 1099 for any compensation paid to him/her by the
Company.  The Independent Director acknowledges and agrees that
because he is not an employee of the Company the Company will not withhold any
amounts for taxes from any of his payments under the Agreement.

     

    (c)           The
Company may offset any and all monies payable to the Independent Director to the
extent of any monies owing to the Company from the Independent
Director.

     

    (d)           The
rules and regulations of the Company notified to the Independent Director, from
time to time, apply to the Independent Director. Such rules and regulations are
subject to change by the Company in its sole discretion. Notwithstanding the
foregoing, in the event of any conflict or inconsistency between the terms and
conditions of this Agreement and rules and regulations of the Company, the terms
of this Agreement control.

     

    3.           REQUIREMENTS
OF INDEPENDENT DIRECTOR. During the term of the Independent Director’s services
to the Company hereunder, Independent Director shall observe all applicable laws
and regulations relating to independent directors of a public company as
promulgated from to time, and shall not: (1) be an employee of the Company or
any Parent or Subsidiary; (2) accept, directly or indirectly, any consulting,
advisory, or other compensatory fee from the Company other than as a director
and/or a member of a committee of the Board; (3) be an affiliated person of the
Company or any Parent or Subsidiary, as the term “affiliate” is defined in 17
CFR 240.10A-3(e)(1), other than in his capacity as a director and/or a member of
a committee of the Board; (4) possess an interest in any transaction with the
Company or any Parent or Subsidiary, for which disclosure would be required
pursuant to 17 CFR 229.404(a), other than in his capacity as a director and/or a
member of a committee of the Board committees; (5) be engaged in a business
relationship with the Company or any Parent or Subsidiary, for which disclosure
would be required pursuant to 17 CFR 229.404(b), except that the required
beneficial interest therein shall be modified to be 5% hereby.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    4.           REPORT
OBLIGATION. While this Agreement is in effect, the Independent Director shall
immediately report to the Company in the event: (1) the Independent Director
knows or has reason to know or should have known that any of the requirements
specified in Section 3 hereof is not satisfied or is not going to be satisfied;
and (2) the Independent Director simultaneously serves on an audit committee of
any other public company.

     

    5.           TERM
AND TERMINATION. The term of this Agreement and the Independent Director’s
services hereunder shall be from the Effective Date to the one-year anniversary
of the Effective Date, unless terminated as provided for in this Section 5 (the
“Term”).  This Agreement and the Independent Director’s services
hereunder shall terminate upon the earlier of the following:

     

    (a)           Removal
of the Independent Director as a director of the Company, upon proper Board or
stockholder action in accordance with the By-Laws and Articles of Incorporation
of the Company and applicable law;

     

    (b)           Resignation
of the Independent Director as a director of the Company upon written notice to
the Board of Directors of the Company; or

     

    (c)           Termination
of this Agreement by the Company, in the event any of the requirements specified
in Section 3 hereof is not satisfied, as determined by the Company in its sole
discretion.

     

    6.           LIMITATION
OF LIABILITY. In no event shall the Independent Director be individually liable
to the Company or its shareholders for any damages for breach of fiduciary duty
as an independent director of the Company, unless the Independent Director’s act
or failure to act involves intentional misconduct, fraud or a knowing violation
of law.

     

    7.           AGREEMENT
OF INDEMNITY. The Company agrees to indemnify the Independent Director as
follows:

     

    (a)           Subject
to the exceptions contained in Section 8(a) below, if the Independent Director
was or is a party or is threatened to be made a party to any Proceeding (other
than an action by or in the right of the Company) by reason of the Independent
Director’s Corporate Status, the Independent Director shall be indemnified by
the Company against all Expenses and Liabilities incurred or paid by the
Independent Director in connection with such Proceeding (referred to herein as
“Indemnifiable Expenses” and “Indemnifiable Liabilities,” respectively, and
collectively as “Indemnifiable Amounts”).

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (b)           Subject
to the exceptions contained in Section 8(b) below, if the Independent Director
was or is a party or is threatened to be made a party to any Proceeding by or in
the right of the Company, to procure a judgment in its favor by reason of the
Independent Director’s Corporate Status, the Independent Director shall be
indemnified by the Company against all Indemnifiable Expenses.

     

    (c)           For
purposes of this Agreement, the Independent Director shall be deemed to have
acted in good faith in conducting the Company’s affairs as an independent
director of the Company and/or a member of a committee of the Board of the
Company, if the Independent Director: (i) exercised or used the same degree of
diligence, care, and skill as an ordinarily prudent man would have exercised or
used under the circumstances in the conduct of his own affairs; or (ii) took, or
omitted to take, an action in reliance upon advise of counsels or other
professional advisors for the Company, or upon statements made or information
furnished by other directors, officers or employees of the Company, or upon a
financial statement of the Company provided by a person in charge of its
accounts or certified by a public accountant or a firm of public accountants,
which the Independent Director had reasonable grounds to believe to be
true.

     

    8.           EXCEPTIONS
TO INDEMNIFICATION. Director shall be entitled to indemnification under Sections
7(a) and 7(b) above in all circumstances other than the following:

     

    (a)      
   If indemnification is requested under Section 7(a) and it has
been adjudicated finally by a court or arbitral body of competent jurisdiction
that, in connection with the subject of the Proceeding out of which the claim
for indemnification has arisen, (i) the Independent Director failed to act in
good faith and in a manner the Independent Director reasonably believed to be in
or not opposed to the best interests of the Company, (ii) the Independent
Director had reasonable cause to believe that the Independent Director’s conduct
was unlawful, or (iii) the Independent Director’s conduct constituted willful
misconduct, fraud or knowing violation of law, then the Independent Director
shall not be entitled to payment of Indemnifiable Amounts
hereunder.

     

    (b)    
     If indemnification is requested under Section 7(b)
and

     

    (i)           
it has been adjudicated finally by a court or arbitral body of competent
jurisdiction that, in connection with the subject of the Proceeding out of which
the claim for indemnification has arisen, the Independent Director failed to act
in good faith and in a manner the Independent Director reasonably believed to be
in or not opposed to the best interests of the Company, including without
limitation, the breach of Section 4 hereof by the Independent Director, the
Independent Director shall not be entitled to payment of Indemnifiable Expenses
hereunder; or

     

    (ii)           it
has been adjudicated finally by a court or arbitral body of competent
jurisdiction that the Independent Director is liable to the Company with respect
to any claim, issue or matter involved in the Proceeding out of which the claim
for indemnification has arisen, including, without limitation, a claim that the
Independent Director received an improper benefit or improperly took advantage
of a corporate opportunity, the Independent Director shall not be entitled to
payment of Indemnifiable Expenses hereunder with respect to such claim, issue or
matter.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    9.           WHOLLY
OR PARTLY SUCCESSFUL. Notwithstanding any other provision of this Agreement, and
without limiting any such provision, to the extent that the Independent Director
is, by reason of the Independent Director’s Corporate Status, a party to and is
successful, on the merits or otherwise, in any Proceeding, the Independent
Director shall be indemnified in connection therewith. If the Independent
Director is not wholly successful in such Proceeding but is successful, on the
merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify the Independent Director
against those Expenses reasonably incurred by the Independent Director or on the
Independent Director’s behalf in connection with each successfully resolved
claim, issue or matter. For purposes of this section, the termination of any
claim, issue or matter in such a Proceeding by dismissal, with or without
prejudice, shall be deemed to be a successful result as to such claim, issue or
matter.

     

    10.         ADVANCES
AND INTERIM EXPENSES. The Company may pay to the Independent Director all
Indemnifiable Expenses incurred by the Independent Director in connection with
any Proceeding, including a Proceeding by or in the right of the Company, in
advance of the final disposition of such Proceeding, if the Independent Director
furnishes the Company with a written undertaking, to the satisfaction of the
Company, to repay the amount of such Indemnifiable Expenses advanced to the
Independent Director in the event it is finally determined by a court or
arbitral body of competent jurisdiction that the Independent Director is not
entitled under this Agreement to indemnification with respect to such
Indemnifiable Expenses.

     

    11.         PROCEDURE
FOR PAYMENT OF INDEMNIFIABLE AMOUNTS. The Independent Director shall submit to
the Company a written request specifying the Indemnifiable Amounts, for which
the Independent Director seeks payment under Section 7 hereof and the Proceeding
of which has been previously notified to the Company and approved by the Company
for indemnification hereunder. At the request of the Company, the Independent
Director shall furnish such documentation and information as are reasonably
available to the Independent Director and necessary to establish that the
Independent Director is entitled to indemnification hereunder. The Company shall
pay such Indeminfiable Amounts within thirty (30) days of receipt of all
required documents.

     

    12.         REMEDIES
OF INDEPENDENT DIRECTOR.

     

    (a)           RIGHT
TO PETITION COURT. In the event that the Independent Director makes a request
for payment of Indemnifiable Amounts under Sections 7, 9-11 above, and the
Company fails to make such payment or advancement in a timely manner pursuant to
the terms of this Agreement, the Independent Director may petition the
appropriate judicial authority to enforce the Company’s obligations under this
Agreement.

     

    (b)           BURDEN
OF PROOF. In any judicial proceeding brought under Section 12 (a) above, the
Company shall have the burden of proving that the Independent Director is not
entitled to payment of Indemnifiable Amounts hereunder.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (c)           EXPENSES.
The Company agrees to reimburse the Independent Director in full for any
Expenses incurred by the Independent Director in connection with investigating,
preparing for, litigating, defending or settling any action brought by the
Independent Director under Section 12 (a) above, or in connection with any claim
or counterclaim brought by the Company in connection therewith.

     

    (d)           VALIDITY
OF AGREEMENT. The Company shall be precluded from asserting in any Proceeding,
including, without limitation, an action under Section 12 (a) above, that the
provisions of this Agreement are not valid, binding and enforceable or that
there is insufficient consideration for this Agreement and shall stipulate in
court that the Company is bound by all the provisions of this
Agreement.

     

    (e)           FAILURE
TO ACT NOT A DEFENSE. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders)
to make a determination concerning the permissibility of the payment of
Indemnifiable Amounts or the advancement of Indemnifiable Expenses under this
Agreement shall not be a defense in any action brought under Section 12 (a)
above.

     

    13.         PROCEEDINGS
AGAINST COMPANY. Except as otherwise provided in this Agreement, the Independent
Director shall not be entitled to payment of Indemnifiable Amounts or
advancement of Indemnifiable Expenses with respect to any Proceeding brought by
the Independent Director against the Company, any Entity which it controls, any
director or officer thereof, or any third party, unless the Company has
consented to the initiation of such Proceeding. This section shall not apply to
counterclaims or affirmative defenses asserted by the Independent Director in an
action brought against the Independent Director.

     

    14.         INSURANCE.
The Company will use commercially reasonable efforts to obtain and maintain a
policy or policies of director and officer liability insurance, in an amount not
less than $5,000,000, of which the Independent Director will be named as an
insured, providing the Independent Director with coverage for Indemnifiable
Amounts and/or Indemnifiable Expenses in accordance with said insurance policy
or policies (“D&O Insurance”). Notwithstanding the foregoing, while the
D&O Insurance is valid and effective, the Company agrees that it shall
indemnify the Independent Director for the Indemnifiable Amounts and
Indemnifiable Expenses, to the extent that any Proceedings are coverable by
D&O Insurance, but in excess of the policy amount, or otherwise not covered
by the D&O Insurance, in accordance with Sections 7-13 of this
Agreement.

     

    15.         SUBROGATION.
In the event of any payment of Indemnifiable Amounts under this Agreement or the
D&O Insurance, the Company or its insurance carrier(s), as the case may be,
shall be subrogated to the extent of such payment to all of the rights of
contribution or recovery of the Independent Director against other persons, and
the Independent Director shall take, at the request of the Company, all
reasonable action necessary to secure such rights, including the execution of
such documents as are necessary to enable the Company to bring suit to enforce
such rights.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    16.         AUTHORITY.
Each party has all necessary power and authority to enter into, and be bound by
the terms of, this Agreement, and the execution, delivery and performance of the
undertakings contemplated by this Agreement have been duly authorized by each
party hereto:

     

    17.         SUCCESSORS
AND ASSIGNMENT. This Agreement shall (a) be binding upon and inure to the
benefit of all successors and assigns of the Company (including any transferee
of all or a substantial portion of the business, stock and/or assets of the
Company and any direct or indirect successor by merger or consolidation or
otherwise by operation of law), and (b) be binding on and shall inure to the
benefit of the heirs, personal representatives, executors and administrators of
the Independent Director. The Independent Director has no power to assign this
Agreement or any rights and obligations hereunder.

     

    18.         CHANGE
IN LAW. To the extent that a change in applicable law (whether by statute or
judicial decision) shall mandate broader or narrower indemnification than is
provided hereunder, the Independent Director shall be subject to such broader or
narrower indemnification and this Agreement shall be deemed to be amended to
such extent.

     

    19.         SEVERABILITY.
Whenever possible, each provision of this Agreement shall be interpreted in such
a manner as to be effective and valid under applicable law, but if any provision
of this Agreement, or any clause thereof, shall be determined by a court of
competent jurisdiction to be illegal, invalid or unenforceable, in whole or in
part, such provision or clause shall be limited or modified in its application
to the minimum extent necessary to make such provision or clause valid, legal
and enforceable, and the remaining provisions and clauses of this Agreement
shall remain fully enforceable and binding on the parties.

     

    20.         MODIFICATIONS
AND WAIVER. Except as provided in Section 18 hereof with respect to changes in
applicable law which broaden or narrow the right of the Independent Director to
be indemnified by the Company, no supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by each of the parties
hereto. No delay in exercise or non-exercise by the Company of any right under
this Agreement shall operate as a current or future waiver by it as to its same
or different rights under this Agreement or otherwise.

     

    21.         NOTICES.
All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given (a) when delivered by hand,
(b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed
by certified or registered mail with postage prepaid, on the third business day
after the date en which it is so mailed:

    If to
Independent Director, to: Paul Li, Building
3, China Central Place. Jianguolu 89. Beijing, China

       
If to the
Company, to: WenXiang Ding, President, China Energy Corporation, No. 57 Xinhua
East Street, Hohhot, Inner Mongolia, People’s Republic of China, 010010, or to
such other address as may have been furnished in the same manner by any party to
the others.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    22.         GOVERNING
LAW. This Agreement shall be governed by and construed and enforced under the
laws of the State of New York.

     

    23.         CONSENT
TO JURISDICTION. The parties hereby consent to the jurisdiction of the courts
having jurisdiction over matters arising in New York County, New York for any
proceeding arising out of or relating to this Agreement. The parties agree that
in any such proceeding, each party shall waive, if applicable, inconvenience of
forum and right to a jury.

     

    24.         AGREEMENT
GOVERNS. This Agreement is to be deemed consistent wherever possible with
relevant provisions of the By-Laws and Articles of Incorporation of the Company;
however, in the event of a conflict between this Agreement and such provisions,
the provisions of this Agreement shall control.

     

    25.         INDEPENDENT
CONTRACTOR. The parties understand, acknowledge and agree that the Independent
Director’s relationship with the Company is that of an independent contractor
and nothing in this Agreement is intended to or should be construed to create a
relationship other than that of independent contractor. Nothing in this
Agreement shall be construed as a contract of employment/engagement between the
Independent Director and the Company or as a commitment on the part of the
Company to retain the Independent Director in any capacity, for any period of
time or under any specific terms or conditions, or to continue the Independent
Director’s service to the Company beyond any period.

     

    26.         ARBITRATION.
Any dispute, controversy or claim arising out of or relating to this Agreement
or the breach thereof, shall be settled by arbitration, before one arbitrator in
accordance with the rules of the American Arbitration Association then in effect
and judgment upon the award rendered by the arbitrator may be entered in any
court having jurisdiction. The arbitrator will be selected, by the parties, from
a panel of attorney arbitrators. The parties agree that any arbitration shall be
held in New York, New York. The language of the arbitration shall be in English.
The arbitrator will have no authority to make any relief, finding or award that
does not conform to the terms and conditions of this Agreement. Each party shall
bear its own attorneys’ or expert fees and any and all other party specific
costs. Either party, before or during any arbitration, may apply to a court
having jurisdiction for a restraining order or injunction where such relief is
necessary to protect its interests. Prior to initiation of arbitration, the
aggrieved party will give the other party written notice, in accordance with
this Agreement, describing the claim as to which it intends to initiate
arbitration.

     

    27.         ENTIRE
AGREEMENT. This Agreement constitutes the entire agreement between the Company
and the Independent Director with respect to the subject matter hereof, and
supersedes all prior understandings and agreements with respect to such subject
matter.

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Independent Director
Indemnification Agreement as of the day and year first above
written.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	
                      AGREED

                    	 	
                      AGREED

                    	 
	 
      	 	 
      	 
	
                      China
      Energy Corporation

                    	 	
                      Independent
      Director

                    	 
	 
      	 	 
      	 
	
                      /s/  WenXiang
Ding

                    	 	
                      /s/ Paul Li

                    	 
	
                      Name:  WenXiang
      Ding

                    	 	
                      Name:
      Paul Li

                    	 
	
                      Title:   President
      and CEO

                    	 	 
      	 

            

          

        

      

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    SCHEDULE
A

     

    I.      
     COMPENSATION:

     

    A.  Fees.  For
all services rendered by the Independent Director pursuant to this Agreement,
both during and outside of normal working hours, including but not limited to,
attending all required meetings of the Board or applicable committees thereof,
executive sessions of the independent directors, reviewing filing reports and
other corporate documents as requested by the Company, providing comments and
opinions as to business matters as requested by the Company, the Company agrees
to pay to the Independent Director a fee in cash of Fifteen Thousand Dollars
($15,000) during the Term (the “Base Fee”).  The Base Fee (or such
prorated portion thereof) shall be paid in cash to the Independent Director in
equal, quarterly installments no later than the 30th day
following the end of the Company’s fiscal quarter during the Term (beginning the
fiscal quarter ending August 31, 2010).

     

    In addition to the Base
Fee, the Company agrees to pay the Independent Director (i) a Eight
Hundred Dollar ($800) fee for each board or committee meeting attended by
telephone; (ii) a Two Thousand Five Hundred Dollar ($2,500) fee for each board
or committee meeting attended in person. The fees in Section I(A)(i) and (ii),
above, shall be paid no later than the 30th day
following the end of the Company’s fiscal quarter in which those fees are
accrued.

    

    B.  Stock Option. On the
Effective Date the Independent Director shall be granted a 10-year option to
purchase Twenty Thousand (20,000) shares of common stock of the Company, with an
exercise price equal to the fair market value of a share of the Company’s common
stock on the date of the grant of the option.  Such option shall vest
in equal, quarterly installments on the last of the Company’s fiscal quarter
during the Term (beginning with the fiscal quarter ending August 31,
2010).  The Independent Director must be actively serving as a member
of the Board of Directors of the Company as of any applicable vesting date to
receive any stock grant as of such date.  The Independent Director’s
rights in respect to any grant shall be determined solely by the Board or, if
applicable, the Compensation Committee thereof, and are subject to execution by
Independent Director of any applicable agreements as established and requested
by the Company.

     

    C.  Expenses. During the
term of the Independent Director’s service as a director of the Company, the
Company shall promptly reimburse the Independent Director for all expenses
incurred by him in connection with attending (a) all meetings of the Board or
applicable committees thereof, (b) executive sessions of the independent
directors, and (c) stockholder meetings, as a director or a member of any
committee of the Board, which are approved by the Company in
advance.  The Company will only reimburse the Independent Director for
economy class airplane tickets.  In addition, the Independent Director
shall rely on the Company to arrange all hotel accommodations in connection with
any such meetings the Independent Director must attend. The amount of such
expenses eligible for reimbursement by the Company during a calendar year shall
not affect such expenses eligible for reimbursement by the Company in any other
calendar year, and the reimbursement of these expenses shall be made on or
before the 30th day following the end of the Company’s fiscal quarter in which
the expense was incurred.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    NO OTHER
BENEFITS OR COMPENSATION. The Independent Director acknowledges and agrees that
he/she is not granted and is not entitled to any other benefits or compensation
from the Company for the services provided under this Agreement except expressly
provided for in this Schedule
A.

    

    
      
        
          
            
              
                	
                        AGREED

                      	 	
                        AGREED

                      	 
	 
      	 	 
      	 
	
                        China
      Energy Corporation.

                      	 	
                        Independent
      Director

                      	 
	 
      	 	 
      	 
	
                        /s/  WenXiang
Ding

                      	 	
                        /s/ Paul Li

                      	 
	
                        Name:  WenXiang
      Ding

                      	 	
                        Name:
      Paul Li

                      	 
	
                        Title:   President
      and CEO

                      	 	 
      	 

              

            

          

        

      

    

     

    
      
         

      

      
        11

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