Document:

Exclusive
Technical Consulting

    and
Services Agreement

     

    between

     

    Beijing
Xin Fu Industry Consulting Co., Ltd.

    (北京信赋兴业咨询有限公司)

    

    and

     

    Beijing
Wowjoint Machinery Co., Ltd.

    (北京万桥兴业机械有限公司)

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    This
Exclusive Technical Consulting and Services Agreement (the “Agreement”) is made
and entered into on the date of August 25, 2009 between the following two
parties in Beijing:

     

    
      	
              Party
      A:

            	
              Beijing
      Xin Fu Industry Consulting Co., Ltd. (北京信赋兴业咨询有限公司)

            

    

    
      	
              Legal
      Address:

            	
              B2-D2-301
      A Block Tiancheng Mansion, #2, Xinfeng Road, Deshengmenwai Street, Xicheng
      Dist., Beijing, P.R.China 100088

            

    

     

    
      	
              Party
      B:

            	
              Beijing
      Wowjoint Machinery Co., Ltd. (北京万桥兴业机械有限公司)

            

    

    
      	
              Legal
      Address:

            	
              1108
      A Block Tiancheng Mansion, #2 Xinfeng Road, Deshengmenwai Street, Xicheng
      Dist. Beijing P.R. China 100088

            

    

     

    WHEREAS:

     

    
      	
              1.

            	
              Party
      A, a wholly foreign-owned enterprise organized in People’s Republic of
      China (the “PRC”) under the Laws of the PRC, owns resources to provide the
      technical consulting, management services, business consulting and
      possessing the relevant business experience and
  resources.

            

    

     

    
      	
              2.

            	
              Party
      B, a limited liability company registered in the PRC and is approved by
      the competent governmental authorities to carry on the business of
      manufacturing and installation of tailored construction equipment and
      machinery.

            

    

     

    
      	
              3.

            	
              Party
      A agrees to provide Party B with technical consulting and related services
      set forth in this Agreement, and Party B agrees to accept such technical
      consulting and services provided by Party
A;

            

    

     

    NOW THEREFORE, the parties
through mutual negotiations agree as follows:

     

    
      	
              1.

            	
              Technical
      Consulting and Services;
Exclusivity

            

    

     

    
      	
               
      

            	
              1.1

            	
              During
      the term of this Agreement, Party A agrees to, as the exclusive technical
      consulting and services provider of Party B, provide the exclusive
      technical consulting and services to Party B set forth on Appendix
      1.  Party A further agrees that, during the term of this
      Agreement, it shall not provide any technical consulting and services to
      any other third parties without Party B’s prior written consent, with the
      exception to the affiliates of Party
B.

            

    

     

    
      	
               
      

            	
              1.2

            	
              Party
      B hereby agrees to accept such exclusive technical consulting and services
      provided by Party A.  Party B further agrees that, during the
      term of this Agreement, it shall not accept any third parties to provide
      such technical consulting and services for such above-mentioned business
      without the prior written consent of Party
A.

            

    

     

    
      	
               
      

            	
              1.3

            	
              Party
      A shall be the sole and exclusive owner of all right, title and interests
      to any and all intellectual property rights arising from the performance
      of this Agreement, including but not limited to, copyrights, patent,
      know-how, trade secrets and others no matter whether it is developed by
      Party A or by Party B based on Party A’s intellectual property
      right.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    2.        
  Calculation and Payment of the Fee for Technical Consulting and
Services (the “Fee”)

     

    The
parties agree that the Fee under this Agreement shall be determined according to
the terms set forth in Appendix 2.

     

    3.       
   Representations, Warranties and Covenants

     

    
      	
               
      

            	
              3.1

            	
              Party A hereby represents and
      warrants as follows:

            

    

     

    
      	
               
      

            	
              3.1.1

            	
              Party
      A is a company duly registered and validly existing under the Laws of the
      PRC;

            

    

     

    
      	
               
      

            	
              3.1.2

            	
              Party
      A has the power, has been duly authorized by all necessary action, and has
      obtained all third party and governmental consents and approvals to
      execute and perform this Agreement.  The execution, delivery and
      performance of this Agreement and does not and will not result in any
      violation of enforceable or effective laws or contractual
      limitations;

            

    

     

    
      	
               
      

            	
              3.1.3

            	
              The
      Agreement constitutes a legal, valid and binding obligation of Party A,
      enforceable against it in accordance with its terms upon its execution;
      and

            

    

     

    
      	
               
      

            	
              3.14

            	
              No
      lawsuit, arbitration or other judicial or administrative proceeding is
      pending that would affect Party A’s ability to perform its obligation
      under this Agreement, and to its knowledge, no such proceeding is
      threatened

            

    

    

    
      	
               
      

            	
              3.2

            	
              Party B hereby represents and
      warrants as follows:

            

    

     

    
      	
               
      

            	
              3.2.1

            	
              Party
      B is a company duly registered and validly existing under the Laws of the
      PRC and is licensed to engage in the business of the information service
      on the value-added communication
services.

            

    

     

    
      	
               
      

            	
              3.2.2

            	
              Party
      B has the company power, within the business scope, has been dully
      authorized by all necessary action, has been obtained all consents and
      approvals from any third parties and governments to execute and perform
      this Agreement, and do not and will not result in any violation of
      enforceable or effective laws or contractual
  limitations.

            

    

     

    
      	
               
      

            	
              3.2.3

            	
              The
      Agreement constitutes a legal, valid and binding obligation of Party B,
      enforceable against it in accordance with its terms upon its
      execution.

            

    

     

    
      	
               
      

            	
              3.2.4

            	
              No
      lawsuit, arbitration or other judicial or administrative proceeding is
      pending that would affect Party B’s ability to perform its obligation
      under this Agreement, and to its knowledge, no such proceeding is
      threatened; and

            

    

     

    
      	
               
      

            	
              3.2.5

            	
              Party
      B has disclosed to Party A all contracts, government approvals, permits or
      other documents to which Party B is a party or by which Party B (or any of
      its properties, assets or business) is subject or bound, which may have a
      material adverse effect on its ability to fully perform its obligations
      under this Agreement, and the documents provided by Party B to Party A
      does not contain any statement of or omit to state any material
      fact.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
            	
              3.3

            	
              Party
      B further covenants to Party A as
follows:

            

    

    

    
      	
               
      

            	
              3.3.1

            	
              Party
      B shall pay the Fee as set forth in Appendix 2 in a timely manner to Party
      A in accordance with the terms of this
  Agreement.

            

    

    

    
      	
               
      

            	
              3.3.2

            	
              During
      the Term of this Agreement, Party B shall continuously maintain the
      validity of its business licenses, permits and qualifications; and
      actively cooperate with Party A in the provision of the Services as set
      forth in Appendix 1.

            

    

    

    4.      
    Confidentiality

     

    
      	
               
      

            	
              4.1

            	
              Prior
      to and during the term of this Agreement, a Party (“Disclosing Party”) may
      have disclosed or may disclose certain confidential information to the
      other Party (“Recipient”) from time to time. The Recipient shall keep
      confidential such confidential information and shall not use such
      confidential information for any purpose other than those specifically
      provided for under this Agreement. The foregoing confidentiality
      obligation shall not apply to the information: (a) that was already in the
      Recipient’s possession prior to such disclosure, as demonstrated by
      documentation prepared prior to such disclosure; (b) that has entered the
      public domain through no breach of this Agreement by the Recipient; and
      (c) that was obtained by the Recipient from a third party who did not
      commit a breach of confidence with respect to such
      information.

            

    

     

    
      	
               
      

            	
              4.2

            	
              The
      parties agree that this Article 4 shall survive no matter whether this
      Agreement is amended, cancelled or
terminated.

            

    

     

    5.      
    Indemnity

     

    Party B
shall indemnify and hold harmless Party A from and against any loss, damage,
obligation and expenses arising out of any litigation, claim or other legal
procedure against Party A arising out of the performance of this
Agreement.

     

    6.     
     Effectiveness and Term

     

    
      	
               
      

            	
              6.1

            	
              This
      Agreement shall be executed and come into effect as of the date first set
      forth above.  The term of this Agreement is ten (10) years
      unless earlier terminated as set forth in this Agreement (the
      “Term”).  Party A and Party B shall review this Agreement every
      three (3) months to determine whether any amendment or supplement to the
      Agreement is necessary after considering the
  circumstances.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    7.  
        Termination

     

    
      	
               
      

            	
              7.1

            	
              Termination;
      extension

            

    

     

    This
Agreement shall terminate automatically upon expiration of the Term unless a
written notice of extension from Party A is provided to Party B upon or prior to
expiration of the Term.  Under such circumstance, the Term shall
automatically renew for a period specified in Party’s notice up to ten (10)
years.

     

    
      	
               
      

            	
              7.2

            	
              Early
      Termination

            

    

     

    During
the Term, Party B may not terminate this Agreement except in the case of gross
negligence, fraud or other illegal acts or bankruptcy of Party
A.  Notwithstanding the foregoing, Party A may terminate this
Agreement at any time with a written notice to Party B thirty (30) days before
such termination.

     

    
      	
               
      

            	
              7.3

            	
              Survival

            

    

     

    All
rights and obligations under Article 4 and Article 5 shall survive after the
termination of this Agreement.

     

    8.    
      Dispute Resolution

     

    The
parties shall strive to settle any dispute arising from the interpretation or
performance in connection with this Agreement through friendly
consultation.  In case no settlement can be reached through
consultation, each Party can submit such matter to Hong Kong International
Arbitration Centre (the “HKIAC”) for arbitration in Hong Kong under the current
effective rules of HKIAC.  The arbitration tribunal shall comprise of
three (3) arbitrators.  Each party shall be entitled to appoint one
(1) arbitrator and the arbitrators so appointed shall appoint a third (3rd)
arbitrator who shall preside as Chairman.  The arbitration proceedings
shall be conducted in Chinese.  The arbitration award shall be final
and binding upon the parties and shall be enforceable in accordance with its
terms.

     

    9.      
    Force Majeure

     

    
      	
               
      

            	
              9.1

            	
              Force
      Majeure, which includes, but not limited to, acts of governments, acts of
      nature, fire, explosion, typhoon, flood, earthquake, tide, lightning or
      war, means any event that is beyond the party’s reasonable control and
      cannot be prevented with reasonable care.  However, any shortage
      of credit, capital or finance shall not be regarded as an event of Force
      Majeure.  The affected party who is claiming to be not liable to
      its failure of fulfilling this Agreement by Force Majeure shall inform the
      other party, without delay, of the approaches of the performance of this
      Agreement by the affected party.

            

    

     

    
      	
               
      

            	
              9.2

            	
              In
      the event that the affected party is delayed in or prevented from
      performing its obligations under this Agreement by Force Majeure, only
      within the scope of such delay or prevention, the affected party will not
      be responsible for any damage by reason of such a failure or delay of
      performance.  The affected party shall take appropriate means to
      minimize or remove the effects of Force Majeure and attempt to resume
      performance of the obligations delayed or prevented by the event of Force
      Majeure. After the event of Force Majeure is removed, the parties agree to
      resume performance of this Agreement with their best
    efforts.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    10.          Notices

     

    All
notices or other communications provided for hereunder shall be written in
English and Chinese and shall be personal delivery or by registered or postage
prepaid mail, recognized courier service or facsimile transmission to the
address of the relevant party or parties set forth below.

     

    
      	
            	
              If
      to Party A:

            	
              Beijing Xin Fu Industry
      Consulting Co., Ltd.

            

    

    
      	
            	
               
      

            	
              B2-D2-301
      A Block Tiancheng Mansion, #2, Xinfeng Road, Deshengmenwai Street, Xicheng
      Dist., Beijing, P.R.China 100088

            

    

     

    
      	
            	
              If
      to Party B:

            	
              Beijing Wowjoint Machinery Co.,
      Ltd.

            

    

    
      	
            	
               
      

            	
              1108
      A Block Tiancheng Mansion, #2 Xinfeng Road, Deshengmenwai Street, Xicheng
      Dist. Beijing P.R. China 100088

            

    

     

    11.     
   Assignments

     

    Party B
may not assign its rights and obligations under this Agreement to any third
parties without the prior written consent of Party A.

     

    12.    
    Severability

     

    If any
provision contained in this Agreement is held invalid or unenforceable under
applicable, such provision shall be invalid or unenforceable as to such
jurisdiction and the remaining provisions hereof shall not be in any way
impaired.

     

    13.    
    Amendment and Supplement

     

    Any
amendment and supplement of this Agreement shall be effective only if it is made
in writing and signed by the parties hereto.  The amendment and
supplement duly executed by the parties shall be part of this Agreement and
shall have the same legal effect as this Agreement.

     

    14.    
    Governing Law

     

    This
Agreement shall be governed by and construed in accordance with the laws of the
PRC.

     

    15.    
    Miscellaneous

     

    This
Agreement is executed in English.

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their
representatives hereunto duly authorized as of the date first set forth above
written.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Exclusive
Technical Consulting and Services Agreement

    

    [No text
on this page]

    

    
      
        	
                By:  

              	
                /s/ Ya Bin Liu

              
	
                Party A : Beijing Xin Fu
      Industry Consulting Co., Ltd.( 北京信赋兴业咨询有限公司)

              
	
                (Affix
      Seal)

              
	 
      
	
                Legal
      Representative:   Ya Bin Liu

              
	 
      
	
                By:

              	
                /s/ Ya Bin Liu

              
	
                Party
      B: Beijing Wowjoint Machinery Co., Ltd. (北京万桥兴业机械有限公司)

              
	
                (Affix
      Seal)

              
	 
      
	
                Legal
      Representative:   Ya Bin
Liu

              

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Appendix
1: The list of Technical Consulting and services

     

    Party A
shall provide Party B with the following technical consulting and
services:

     

    
      	
              1.

            	
              Provide
      technical services for the designs in plan of constructions, equipment
      blueprint and modification.

            

    

    
      	
              2.

            	
              Conducting
      marketing research and providing marketing-research related consulting
      services;

            

    

    
      	
              3.

            	
              Verifying
      and confirming project offers valued at or more than $100,000 USD and
      tendering with combined signature.

            

    

    
      	
              4.

            	
              Providing
      the planning, design, evaluation and confirmation consulting support with
      regard to the development of new
products.

            

    

    
      	
              5.

            	
              Providing
      the consulting services and support with regard to the labor and
      employment matters of Party B, including but not limited to the
      designation and training of Party B’s business personnel, administrative
      and management personnel, assist in the establishment of a sound human
      resource management system.

            

    

    
      	
              6.

            	
              Providing
      management-related consulting services and support; introduce advanced
      management concept and models to Party
B.

            

    

    
      	
              7.

            	
              Provide
      technical indications for product development, modification, issues with
      testing and installation and other technical support services as needed by
      Party B.

            

    

    
      	
              8.

            	
              Such
      other services as may be agreed between the
  Parties.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Appendix
2: Calculation and Payment of the Fee for Consulting and Services

     

    Party B
shall pay a consulting service fee in amount of 12% to 20% of its revenue per
year to Party A.  The actual applicable rate of the Fee in a given
year shall be determined by Party A at its sole discretion based on the
financial and business conditions of Party B.

     

    The Fee
should be calculated and collected within 90 days after the end of each fiscal
year of Party B.  Party B shall wire the Fee within such period to a
bank account designated by Party A.Equity
Pledge Agreement

     

    among

     

    Beijing
Xin Fu Industry Consulting Co., Ltd.

    (北京信赋兴业咨询有限公司)

    

    Li
Anning, Liu Liguo, Liu Yabin, Liu Yasheng, Wang Pingyi, Zhang Fude, Beijing Wan
Qiao Mechanical and Electrical Equipment Co., (北京市万桥机电设备公司) and
Ding Ting

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This Equity Pledge
Agreement (the “Agreement”) is
entered into on the day of August 25, 2009 by and among the following
parties:

     

    
      Pledgee:

    

     

    
      Beijing
Xin Fu Industry Consulting Co., Ltd. (北京信赋兴业咨询有限公司)

    

     

    
      	
              Legal
      Address:

            	
              B2-D2-301
      A Block TIANCHENG MANSION, #2 XINFENG Road DESHENGMENWAI Street, XICHENG
      Dist. Beijing P.R.China, 100088

            

    

     

    
      Pledgor:

    

     

    
      	
              (1)

            	
              Li
      Anning whose China's ID number is 110102580802234, with her principal
      domicile at 15 The 8TH
      Floor of #1 Building South Street, Fuxingmen Wai, Xicheng District,
      Beijing, China.

            

    

     

    
      	
              (2)

            	
              Liu
      Liguo, whose China's ID number is 130302197102082511, with his principal
      domicile at 72 Haiyang Road, Haigang District, Qinhuandao City, Hebei,
      China.

            

    

     

    
      	
              (3)

            	
              Liu
      Yabin, whose China's ID number is 110108580617601, with his principal
      domicile at 22 Daliushu Village, Haidian District, Beijing,
      China.

            

    

     

    
      	
              (4)

            	
              Liu
      Yasheng, whose China's ID number is 110108196106268910, with his principal
      domicile at 7 the 15th
      Floor West Gate of the No. 2 Building, the East of Jimenli Haidian
      District, Beijing, China.

            

    

     

    
      	
              (5)

            	
              Wang
      Pingyi, whose China's ID number is 110101540701404, with his principal
      domicile at 46 West Street of East 4, Dongcheng District,
      Beijing.

            

    

     

    
      	
              (6)

            	
              Zhang
      Fude, whose China's ID number is 110108560127601, with his principal
      domicile at 131 1 of the West Building, Beijing Jiaotong University,
      Shangyuan Village, Haidian District,
Beijing.

            

    

     

    
      	
              (7)

            	
              Ding
      Ting, whose China's ID number is 110101197910034058, with his principal
      domicile at 301 The First Gate in the 76th
      of Dengshikou Street, Dongcheng District,
  Beijing.

            

    

     

    
      	
              (8)

            	
              Beijing
      Wan Qiao Mechanical and Electrical Equipment Co., (北京市万桥机电设备公司,
      herein referred to as “Wan Qiao”) a
      limited liability company incorporated and established in Beijing, China
      with its registered address at 2102 The Third Building of Lihengmingyuan,
      the No. 23 of Nanbinminghe Road, Xuan Wu District,
  Beijing.

            

    

     

    Li
Anning, Liu Liguo, Liu Yabin, Liu Yasheng, Wang Pingyi, Zhang Fude, Beijing Wan
Qiao Mechanical and Electrical Equipment Co., and Ding Ting are collectively
referred to as the “Pledgors”.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS,

     

    
      	
              1.

            	
              Li
      Anning, Liu Liguo, Liu Yabin, Liu Yasheng, Wang Pingyi, Zhang Fude and
      Ding Ting, the citizens of the People's Republic of China ("PRC”) and
      Beijing Wan Qiao Mechanical and Electrical Equipment Co., a limited
      liability company in China, are the shareholders of  Beijing
      Wowjoint Machinery Co., Ltd (“Beijing
      Wowjoint”), holding 0.7% (representing RMB199,500 in the registered
      capital), 4.09% (representing 1,165,650 in the registered capital), 37.78%
      (representing RMB 10,767,300 in the registered capital), 8.18%
      (representing RMB 2,331,300 in the registered capital), 0.7% (representing
      RMB199,500in the registered capital), 33.55% (representing RMB9,561,750 in
      the registered capital), 9% (representing RMB2,565,000 in the registered
      capital) and 6% (representing RMB1,710,000 in the registered capital) of
      the equity interests of Beijing Wowjoint respectively.  Beijing
      Wowjoint is a company registered in Beijing carrying on the business of
      manufacturing and installation of specialist construction equipment and
      machinery, whose registered capital is RMB
  28,500,000.

            

    

     

    
      	
              2.

            	
              The Pledgee, a
      wholly foreign-owned company registered in Beijing,
      PRC,  and Beijing Wowjoint enter into Exclusive Technical Consulting
      and Service Agreement (the “Service
      Agreement”) on August 25,
2009.

            

    

     

    
      	
              3.

            	
              In
      order to ensure that the Pledgee collects consulting and service fees from Beijing
      Wowjoint, each of the Pledgors is willing to pledge all its Equity
      Interest in
      Beijing Wowjoint to the Pledgee as a security for the Pledgee to
      collect technical consulting and service fees under the Service
      Agreement.

            

    

     

    In order
to define each Party’s rights and obligations, the Pledgee and the Pledgors
through mutual negotiations hereby enter into this Agreement based upon the
following terms:

     

    
      	
              1.

            	
              DEFINITIONS AND
      INTERPRETATIONS

            

    

     

    Unless
otherwise provided in this Agreement, the following terms shall have the
following meanings:

     

    
      	
               
      

            	
              1.1

            	
              Pledge
      has the meaning assigned to it in Article
2.2.

            

    

     

    
      	
               
      

            	
              1.2

            	
              Equity
      Interest means all its 100% equity interests in Beijing Wowjoint legally
      held by the Pledgors.

            

    

     

    
      	
               
      

            	
              1.3

            	
              Rate
      of Pledge means the ratio between the value of the pledge under this
      Agreement and the technical consulting and service fees under the Service
      Agreement.

            

    

     

    
      	
               
      

            	
              1.4

            	
              Term
      of Pledge means the period provided for under Article 3.2
      hereunder.

            

    

     

    
      	
               
      

            	
              1.5

            	
              Service
      Agreement means the Exclusive Technical Consulting and Service Agreement
      entered into by and between Beijing Wowjoint and the Pledgee on August 25,
      2009.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              1.6

            	
              Event
      of Default means any event in accordance with Article 7
      hereunder.

            

    

     

    
      	
               
      

            	
              1.7

            	
              Notice
      of Default means the notice of default issued by the Pledgee in accordance
      with this Agreement.

            

    

     

    
      	
               
      

            	
              1.8

            	
              The
      definitions of terms herein shall apply equally to the singular and
      plural forms of the terms defined.

            

    

     

    
      	
              2.

            	
              PLEDGE

            

    

     

    
      	
               
      

            	
              2.1

            	
              Each
      of the Pledgors agrees to pledge all his/her/its Equity Interest in Beijing Wowjoint
      to the Pledgee as a guarantee for the technical consulting and
      service fees payable to the Pledgee under the Service
      Agreement.  Specifically, Li Anning agrees to pledge 0.70% of
      the Equity Interest, representing RMB199,500 of the registered capital of
      Beijing Wowjoint, to the Pledgee;  Liu Liguo agrees to pledge
      4.09% of the Equity Interest, representing RMB1,165,650 of the registered
      capital of Beijing Wowjoint, to the Pledgee;  Liu Yabin agrees
      to pledge 37.78% of the Equity Interest,
      representing  RMB10,767,300 of the registered capital of Beijing
      Wowjoint, to the Pledgee; Liu Yasheng agrees to pledge 8.18% of the Equity
      Interest, representing RMB 2,331,300 of the registered capital of Beijing
      Wowjoint; Wang Pingyi agrees to pledge 0.70% of the Equity Interest,
      representing RMB 199,500 of the registered capital of Beijing Wowjoint;
      Zhang Fude agrees to pledge 33.55% of the Equity Interest, representing
      RMB 9,561,750 of the registered capital of Beijing Wowjoint; Wang Qiao
      agrees to pledge 6% of the Equity Interest, representing RMB1,710,000 of
      the registered capital of Beijing Wowjoint; Ding Ting agrees to pledge 9%
      of the Equity Interest, representing RMB2,565,000 of the registered
      capital of Beijing Wowjoint to the
Pledgee.

            

    

     

    
      	
               
      

            	
              2.2

            	
              Pledge
      under this Agreement refers to the rights owned by the Pledgee who shall
      be entitled to have priority in receiving payment or proceeds from the
      auction or sale of the equity interests pledged by the Pledgors to the
      Pledgee.

            

    

     

    
      	
              3.

            	
              RATE OF PLEDGE AND TERM OF
      PLEDGE

            

    

     

    
      	
               
      

            	
              3.1

            	
              The
      Rate of Pledge

            

    

     

    
      	
               
      

            	
              3.1.1

            	
              The
      Rate of Pledge shall be 100%.

            

    

     

    
      	
               
      

            	
              3.2

            	
              The
      Term of Pledge

            

    

     

    
      	
               
      

            	
              3.2.1

            	
              The
      Pledge of the Equity Interest under this Agreement shall take effect as of
      the date when the Equity Interest under this Agreement are recorded in the
      Register of Shareholder of Beijing
      Wowjoint and registered with the competent Administration for
      Industry and Commerce.  The Term of the Pledge is the same as
      the term of Service Agreement.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              3.2.2

            	
              During
      the Term of Pledge, the Pledgee shall be entitled to dispose of the Pledge
      in accordance with this Agreement in the event that Beijing
      Wowjoint fails to pay exclusive technical consulting and service
      fees in accordance with the Service
Agreement.

            

    

     

    
      	
               
      

            	
              3.3

            	
              Value
      of Guaranteed Debt

            

    

     

    The
parties agree that the estimated value of the debt guaranteed by this Pledge is
about RMB 300,000,000.

     

    
      	
              4.

            	
              PHYSICAL POSSESSION OF
      DOCUMENTS

            

    

     

    
      	
               
      

            	
              4.1

            	
              The
      Pledgee shall be entitled to collect the dividends accrued on the Equity
      Interest.

            

    

     

    
      	
              5.

            	
              WARRANTIES AND REPRESENTATIONS
      OF THE PLEDGORS

            

    

     

    
      	
               
      

            	
              5.1

            	
              Each
      of the Pledgors is the legal owner of their respective Equity
      Interest.

            

    

     

    
      	
               
      

            	
              5.2

            	
              Except
      as otherwise provided hereunder, the Pledgee shall not be interfered with
      by any parties at any time when the Pledgee exercises its rights in
      accordance with this Agreement.

            

    

     

    
      	
               
      

            	
              5.3

            	
              Except
      as otherwise provided hereunder, the Pledgee shall be entitled to dispose
      of or assign the Pledge in accordance with this
  Agreement.

            

    

     

    
      	
               
      

            	
              5.4

            	
              The
      Pledgors will not pledge or encumber the Equity Interest to any other
      person except for the Pledgee.

            

    

     

    
      	
              6.

            	
              COVENANT OF THE
      PLEDGORS

            

    

     

    
      	
               
      

            	
              6.1

            	
              During
      the term of this Agreement, each of the Pledgors covenants to the Pledgee
      that each of the Pledgors shall:

            

    

     

    
      	
               
      

            	
              6.1.1

            	
              Except
      for the transfer of the Equity Interest by the Pledgors, as subject to the
      Exclusive Call
      Options Agreement entered into among the Pledgors, Beijing Wowjoint
      and the
      Pledgee, to the Pledgee or the person designated by the Pledgee,
      not transfer or assign the Equity Interest, create or permit to be
      created any pledges which may have an adverse affect on the rights or
      benefits of the Pledgee without prior written consent from the
      Pledgee;

            

    

     

    
      	
               
      

            	
              6.1.2

            	
              Comply
      with and implement laws and regulations with respect to the pledge of
      rights, present to the Pledgee the notices, orders or suggestions with
      respect to the Pledge issued or made by the competent authority within
      five (5) days upon receiving such notices, orders or suggestions and
      comply with such notices, orders or suggestions, or object to the
      foregoing matters at the reasonable request of the Pledgee or with consent
      from the Pledgee.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              6.1.3

            	
              Timely
      notify the Pledgee of any events or any received notices which may affect
      the Equity Interest or any part of the right of the Pledgors as
      shareholders of Beijing Wowjoint, and any events or any received notices
      which may change any of the Pledgors’ covenant and obligation under this
      Agreement or which may affect the Pledgors’ performance of their
      obligations under this Agreement.

            

    

     

    
      	
               
      

            	
              6.2

            	
              Each
      of the Pledgors agrees that the Pledgee’s right to exercise the Pledge
      obtained from this Agreement shall not be suspended or hampered through
      legal procedure by any of the Pledgors or any successors of the Pledgors
      or any person authorized by the
Pledgors.

            

    

     

    
      	
               
      

            	
              6.3

            	
              Each
      of the Pledgors warrants to the Pledgee that in order to protect or
      perfect the security over the payment of the technical consulting and
      service fees under the Service Agreement, each of the Pledgors shall
      execute in good faith and cause other parties who have interests in the
      Pledge to execute all the title certificates, contracts including but not
      limited to all documents required to register the Pledge with the
      competent Administration of Industry and Commerce, and perform and cause
      other parties who have interests to take action as required by the Pledgee
      and make access to exercise the rights and authorization vested in the
      Pledgee under this Agreement, and execute all the documents with respect
      to the changes of certificate of the Equity Interest with the Pledgee or
      the person (natural person or legal entity) designed by the Pledgee, and
      provides all the notices, orders and decisions regarded as necessary by
      the Pledgee with the Pledgee within the reasonable
  time.

            

    

     

    
      	
               
      

            	
              6.4

            	
              Each
      of the Pledgors warrants to the Pledgee that each of the Pledgors will
      comply with and perform all the guarantees, covenants, agreements,
      representations and conditions for the benefits of the
      Pledgee.  The Pledgors shall compensate all the losses suffered
      by the Pledgee for the reasons that any of the Pledgors does not perform
      or fully perform its/his/her guarantees, covenants, agreements,
      representations and conditions.

            

    

     

    
      	
              7.

            	
              EVENTS OF
      DEFAULT

            

    

     

    
      	
               
      

            	
              7.1

            	
              The
      following events shall be regarded as the event of
  default:

            

    

     

    
      	
               
      

            	
              7.1.1

            	
              Beijing Wowjoint
      fails to make full payments of the exclusive technical consulting
      and service fees as scheduled under the Service
  Agreement;

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              7.1.2

            	
              Any of the Pledgors
      makes any material misleading or fraudulent representations or
      warranties under Article 5 herein, and/or any of the Pledgors is in
      violation of any warranties under Article 5
  herein;

            

    

     

    
      	
               
      

            	
              7.1.3

            	
              Any
      of the Pledgors violates the covenants under Article 6
    herein;

            

    

     

    
      	
               
      

            	
              7.1.4

            	
              Any
      of the Pledgors violates any terms and conditions
  herein;

            

    

     

    
      	
               
      

            	
              7.1.5

            	
              Any
      of the Pledgors waives the pledged Equity Interest or transfers or assigns
      the pledged Equity Interest without prior written consent of the Pledgee,
      except as provided in Article 6.1.1 of this
  Agreement;

            

    

     

    
      	
               
      

            	
              7.1.6

            	
              Any
      of the Pledgors’ external loan, security, compensation, covenants or any
      other compensation liabilities (1) are required to be repaid or performed
      prior to the scheduled date; or (2) are due but can not be repaid or
      performed as scheduled and thereby cause the Pledgee to deem that the
      Pledgors’ capacity to perform the obligations herein is
      affected;

            

    

     

    
      	
               
      

            	
              7.1.7

            	
              Any
      of the Pledgors is incapable of repaying the general debt or other
      debt;

            

    

     

    
      	
               
      

            	
              7.1.8

            	
              This
      Agreement is illegal for the reason of the promulgation of the related
      laws or any of the Pledgors' incapability of continuing to perform the
      obligations herein;

            

    

     

    
      	
               
      

            	
              7.1.9

            	
              Any
      approval, permits, licenses or authorization from the competent authority
      of the government needed to perform this Agreement or validate this
      Agreement are withdrawn, suspended, invalidated or materially
      amended;

            

    

     

    
      	
               
      

            	
              7.1.10

            	
              The
      property of any of the Pledgors is adversely changed and causes the
      Pledgee to deem that the capability of the Pledgors to perform the
      obligations herein is affected;

            

    

     

    
      	
               
      

            	
              7.1.11

            	
              The
      successors or assignees of Beijing Wowjoint are only entitled to perform a
      portion of or refuse to perform the payment liability under the Service
      Agreement;

            

    

     

    
      	
               
      

            	
              7.1.12

            	
              Other
      circumstances whereby the Pledgee is incapable of exercising the right to
      dispose the Pledge in accordance with the related
  laws.

            

    

     

    
      	
               
      

            	
              7.2

            	
              The
      Pledgors shall immediately give a written notice to the Pledgee if the
      Pledgors become aware of or find that any event under Article 7.1 herein
      or any events that may result in the foregoing events have happened or is
      going on.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              7.3

            	
              Unless
      the event of default under Article 7.1 herein has been solved to the
      Pledgee's satisfaction, the Pledgee, at any time when the event of default
      happens or thereafter, may give a written notice of default to the
      Pledgors and require Beijing Wowjoint to immediately make full payments of
      the outstanding service fees under the Service Agreement and other
      payables or dispose the Pledge in accordance with Article 8
      herein.

            

    

     

    
      	
              8.

            	
              EXERCISE OF THE RIGHT OF THE
      PLEDGE

            

    

     

    
      	
               
      

            	
              8.1

            	
              None
      of the Pledgors shall transfer or assign the Equity Interest without prior
      written approval from the Pledgee prior to the full repayment of the
      consulting and service fees under the Service
  Agreement.

            

    

     

    
      	
               
      

            	
              8.2

            	
              The
      Pledgee shall give the Notice of Default to the Pledgors when the Pledgee
      exercises the right of Pledge.

            

    

     

    
      	
               
      

            	
              8.3

            	
              Subject
      to Article 7.3, the Pledgee may exercise the right to dispose the Pledge
      at any time when the Pledgee gives the Notice of Default in accordance
      with Article 7.3 or thereafter.

            

    

     

    
      	
               
      

            	
              8.4

            	
              The
      Pledgee is entitled to have priority in receiving payment or proceeds from
      the auction or sale of whole or part of the Equity Interest pledged herein
      in accordance with legal procedure until the outstanding technical
      consulting and service fees and all other payables under the Service
      Agreement are repaid.

            

    

     

    
      	
               
      

            	
              8.5

            	
              The
      Pledgors shall not hinder the Pledgee from disposing the Pledge in
      accordance with this Agreement and shall give necessary assistance so that
      the Pledgee could realize his
Pledge.

            

    

     

    
      	
              9.

            	
              TRANSFER OR
      ASSIGNMENT

            

    

     

    
      	
               
      

            	
              9.1

            	
              None
      of the Pledgors may donate or transfer his/her/its rights and obligations
      herein without prior consent from the
Pledgee.

            

    

     

    
      	
               
      

            	
              9.2

            	
              This
      Agreement shall be binding upon and inure to the benefit of the successors
      of the Pledgors and be effective to the Pledgee and his each successor and
      assignee.

            

    

     

    
      	
               
      

            	
              9.3

            	
              The
      Pledgee may transfer or assign all or any of its rights and obligations
      under the Service Agreement to any individual (natural person or legal
      entity) at any time.  In this case, the assignee shall enjoy and
      undertake the same rights and obligations herein of the Pledgee as if the
      assignee is a party hereto.  When the Pledgee transfers or
      assigns the rights and obligations under the Service Agreement, at the
      request of the Pledgee, the Pledgors shall execute the relevant agreements
      and/or documents with respect to such transfer or
    assignment.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              9.4

            	
              After
      the Pledgee’s change resulting from the transfer or assignment, the new
      parties to the pledge shall re-execute a pledge
  contract.

            

    

     

    
      	
              10.

            	
              TERMINATION

            

    

     

    This
Agreement shall not be terminated until the consulting and service fees under
the Service Agreement are paid off and Beijing Wowjoint no
longer needs to undertake any obligations under the Service
Agreement.  The Pledgee shall then cancel or terminate this Agreement
within reasonable time as soon as practicable.

     

    
      	
              11.

            	
              FORMALITIES FEES AND OTHER
      EXPENSES

            

    

     

    
      	
               
      

            	
              11.1

            	
              The
      Pledgors shall be responsible for all the fees and actual expenditures in
      relation to this Agreement, including but not limited to legal fees, cost
      of production, stamp tax and any other taxes and charges.  If
      the Pledgee pays the relevant taxes in accordance with the laws, the
      Pledgors shall fully indemnify such taxes paid by the
    Pledgee.

            

    

     

    
      	
               
      

            	
              11.2

            	
              The
      Pledgors shall be responsible for all the fees (including but not limited
      to any taxes, formalities fees, management fees, litigation fees,
      attorney's fees, and various insurance premiums in connection with
      disposition of Pledge) incurred by the Pledgee for the reason that (1) the
      Pledgors fail to pay any payable taxes, fees or charges in accordance with
      this Agreement; or (2) the Pledgee has recourse to any foregoing taxes,
      charges or fees by any means for other
reasons.

            

    

     

    
      	
              12.

            	
              FORCE
      MAJEURE

            

    

     

    
      	
               
      

            	
              12.1

            	
              If
      any party to this Agreement is delayed in or prevented from performing
      his/her/its obligations hereunder in the event of Force Majeure (“Event of Force
      Majeure”), only within the limitation of such delay or prevention,
      the affected party is absolved from any liability under this
      Agreement.  Events of Force Majeure, which includes acts of
      governments, acts of nature, fire, explosion, typhoon, flood, earthquake,
      tide, lightning, war, means any unforeseen events beyond the prevented
      party’s reasonable control and cannot be prevented with reasonable
      care.  However, any shortage of credit, capital or finance shall
      not be regarded as an event beyond a party’s
      reasonable control.  The Pledge affected by Event of Force
      Majeure who claims for exemption from performing any obligations under
      this Agreement or under any Article herein shall notify the other party of
      such exemption promptly and advice him of the steps to be taken for
      completion of the performance.

            

    

     

    
      	
               
      

            	
              12.2

            	
              The
      party affected by Event of Force Majeure shall not assume any liability
      under this Agreement.  However, subject to the party affected by
      Event of Force Majeure having taken its reasonable and practicable efforts
      to perform this Agreement, the party claiming for exemption of the
      liabilities may only be exempted from performing such liability as within
      limitation of the part performance delayed or prevented by Event of Force
      Majeure.  Once causes for such exemption of liabilities are
      rectified and remedied, both parties agree to resume performance of this
      Agreement with their best efforts.

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	
              13.

            	
              DISPUTE
      RESOLUTION

            

    

     

    
      	
               
      

            	
              13.1

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of the PRC.

            

    

     

    
      	
               
      

            	
              13.2

            	
              The
      parties shall
      strive to settle any dispute arising from the interpretation or
      performance, or in connection with this Agreement through friendly
      consultation. In case no settlement can be reached through consultation,
      each party can submit such matter to Hong Kong International Arbitration
      Centre (the “HKIAC”) for
      arbitration in Hong Kong under the current effective rules of HKIAC. The
      arbitration tribunal shall comprise of three (3)
      arbitrators.  The Pledgors collectively and the Pledgee shall
      each be entitled to appoint one (1) arbitrator and the arbitrators so
      appointed shall appoint a third (3rd)
      arbitrator who shall preside as Chairman. The arbitration proceedings
      shall be conducted in Chinese.  The arbitration award shall be
      final and binding upon the parties.

            

    

     

    
      	
              14.

            	
              NOTICE

            

    

     

    
      	
               
      

            	
              14.1

            	
              Any
      notice which is given by the parties hereto for the purpose of performing
      the rights, duties and obligations hereunder shall be in
      writing.  Where such notice is delivered personally, the time of
      notice is the time when such notice actually reaches the addressee; where
      such notice is transmitted by telex or facsimile, the notice time is the
      time when such notice is transmitted. If such notice does not reach the
      addressee on business date or reaches the addressee after the business
      time, the next business day following such day is the date of
      notice.  The delivery place is the address first written above
      of the parties hereto or the address advised in writing including
      facsimile and telex from time to
time.

            

    

     

    
      	
              15.

            	
              EFFECTIVENESS

            

    

     

    
      	
               
      

            	
              15.1

            	
              This
      Agreement and any amendments, modification, supplements, additions or
      changes hereto shall be in writing and come into effect upon being
      executed and sealed by the parties
hereto.

            

    

     

    
      	
               
      

            	
              15.2

            	
              This
      Agreement is executed in English and Chinese with the same legal
      effect.

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Equity
Pledge Agreement Signature Page

     

    (No text
on this page)

     

    
      The
Pledgee:

    

     

    
      Beijing
Xin Fu Industry Consulting Co., Ltd.

    

    
      (北京信赋兴业咨询有限公司)

    

    
      (Affix
Seal)

    

     

    
      
        
          
            
              
                	
                        By:

                      	
                        /s/ Liu
      Yabin

                      
	Name:
      Liu Yabin
	Title:
      Legal
Representative

              

            

          

        

      

    

     

    The
Pledgor:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      By:

                                                    	
                                                      /s/ Li
      Anning

                                                    	 
      	
                                                      By:

                                                    	
                                                      /s/ Liu
      Liguo

                                                    
	
                                                      Li
      Anning

                                                    	 
      	Liu
      Liguo
	 
      	 
      	 
      	 
      	 
      
	
                                                      By:

                                                    	
                                                      /s/ Liu
      Yabin

                                                    	 
      	
                                                      By:

                                                    	
                                                      /s/ Liu
      Yasheng

                                                    
	
                                                      Liu
      Yabin

                                                    	 
      	
                                                      Liu
      Yasheng

                                                    
	 
      	 
      	 
      	 
      	 
      
	
                                                      By:

                                                    	
                                                      /s/ Wang
      Pingyi

                                                    	 
      	
                                                      By:

                                                    	
                                                      /s/ Zhang
      Fude

                                                    
	
                                                      Wang
      Pingyi

                                                    	 
      	
                                                      Zhang
      Fude

                                                    
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	Beijing
      Wan Qiao Mechanical and Electrical Equipment Co.,  (北京市万桥机电设备公司)
      (Affix
      Seal)
	 
      	 
      	 
      	 
      	 
      
	
                                                      By:

                                                    	
                                                      /s/ Ding
      Ting

                                                    	 
      	
                                                      By:

                                                    	
                                                      /s/ Liu
      Yabin

                                                    
	
                                                      Ding
      Ting

                                                    	 
      	
                                                      Name:
      Liu Yabin

                                                    
	 
      	 
      	
                                                      Title:
      Legal
Representative

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]