Document:

Unassociated Document

    
      EXHIBIT
        10.2

       

      OPERATING
        AGREEMENT

       

      This
        Operating Agreement ("Agreement") is entered into on June 24, 2005, by and
        among
        the following parties: 

       

      PARTY
        A: TAIYUAN PUTAI BUSINESS CONSULTING CO., LTD.

      LEGAL
        ADDRESS: 426 Xuefu Street, Taiyuan, Shanxi Province, China

       

      PARTY
        B: SHANXI PUDA RESOURCES
        CO., LTD.

      LEGAL
        ADDRESS: 426 Xuefu Street, Taiyuan, Shanxi Province, China

      

      PARTY
        C: Zhao Ming

      ADDRESS:
        16-1 Tianditan Wuxiang, Xinghualing District, Taiyuan, Shanxi Province,
        China

       

      PARTY
        D: Zhao Yao

      ADDRESS:
        Meiyun Jiashu Yuan, Liulin County, Shanxi Province, China.

      

      WHEREAS,
        Party A
        is a wholly foreign owned enterprise registered in The People's Republic
        of
        China (the "PRC") under the laws of the PRC;

       

      WHEREAS,
        Puda
        Investment Holding Limited (“Puda”), an International Business Company
        incorporated in the British Virgin Islands, owns all of the registered capital
        of Party A;

       

      WHEREAS,
        Party B
        is a domestic company with exclusively domestic capital registered in the
        PRC
        and is engaged in the business of coal crushing,
        preparation and cleaning (“Business”);

       

      WHEREAS,
        Party A
        has established a business relationship with Party B by entering into an
        Exclusive Consulting Agreement dated as of the same date hereof (“Consulting
        Agreement”) and a Technology License Agreement dated as of the same date hereof
        (“License Agreement”);

       

      WHEREAS,
        Party B
        is an affiliated Chinese entity of Party A; 

       

      WHEREAS,
        pursuant to the Consulting Agreement and License Agreement between Party
        A and
        Party B, Party B shall pay Party A certain fees as set forth in the Consulting
        Agreement and the License Agreement (“Other Fees”), and Party B’s daily
        operations will have a material effect on its ability to pay the fees payable
        to
        Party A;

       

      WHEREAS,
        Party C
        presently owns 80% of the registered capital of Party B;

       

      WHEREAS,
        Party D
        presently owns 20% of the registered capital of Party B; and

       

      WHEREAS,
        Party
        A, Party B, Party C and Party D agree to further clarify matters relating
        to the
        operation of Party B and its Business pursuant to provisions of this
        Agreement.

       

      NOW
        THEREFORE,
        Party
        A, Party B, Party C and Party D through negotiations hereby agree as
        follows:

       

      
        	1.	
                During
                  the term of this Agreement, in order to ensure the normal operation
                  of
                  Party B and its Business, Party A agrees that subject to Party
                  B’s
                  satisfaction of the provisions of this Agreement described below,
                  Party A
                  shall guarantee the performance of contracts, agreements and transactions
                  executed by Party B related to its Business (“Party B’s Obligations”); and
                  in return, Party B agrees to pay to Party A a fee (“Fee”) equal to 50% of
                  Party B’s cash flows from operating activities (“Operating Cash Flow”).
                  The
                  Fee shall be paid monthly by Party B to Party A within 10 days
                  following
                  the end of each month based on the Operating Cash Flow for such
                  month as
                  estimated by Party A and Party B in good faith (“Estimated Monthly
                  Amount”). Within sixty (60) days after the end of each fiscal quarter,
                  Party A and Party B shall make a final determination of the actual
                  Operating Cash Flow for such quarter (“Final Quarterly Amount”) based on
                  the financial statements of Party B, which have been reviewed or
                  audited
                  by the Parties’ registered certifying accountant for U.S. financial
                  reporting purposes (“Accountant”). To the extent the Final Amount is
                  greater than the Estimated Monthly Amounts for such quarter, the
                  Fee shall
                  be adjusted and Party B shall promptly remit to Party A the additional
                  Fee
                  due and owing. To the extent the Final Amount is less than the
                  Estimated
                  Monthly Amounts for such quarter, the Fee shall be adjusted and
                  Party A
                  shall promptly remit to Party B the amount by which the Fee was
                  overpaid.
                  

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Notwithstanding
        anything to the contrary contained in this Agreement, for each fiscal year
        of
        Party B, (i) in the event that 50% of Party’s B Net Income (as defined below)
        for the fiscal year is less than the Fee for such fiscal year, the Fee shall
        be
        adjusted such that it shall be equal to 50% of Party B’s Net Income for such
        fiscal year, and (ii) in the event that 50% of Party B’s Net Income is greater
        than the Fee for such fiscal year, the Fee shall be increased such that it
        shall
        be equal to 50% of Party B’s Net Income for such fiscal year. 

       

      For
        purposes of this Agreement, the determination and calculation of Net Income
        and
        Operating Cash Flow shall made in accordance with U.S. generally accepted
        accounting principles (“U.S. GAAP”) as reflected on Party B’s U.S. GAAP
        financial statements, which have been reviewed or audited by the Accountant,
        before giving effect to the Fee paid or payable hereunder and the Other Fees
        paid or payable under the Consulting Agreement and the License Agreement.
        Any
        disputes with respect to the determination or calculation of the Fee, Net
        Income
        or Operating Cash Flow shall be resolved by the Accountant, and such
        determination shall be final. 

       

      As
        further consideration for Party A’s guarantee of Party B’s Obligations
        hereunder, Party B  hereby
        pledges all of its accounts receivable and assets to Party A as security
        for the
        payment of  Party
        B’s
        Obligations under the guarantee. Upon the request of Party A at any time
        and
        from  time
        to
        time, Party B will execute  such
        further pledge and/or guarantee contracts in favor of  Party
        A
        and will take any and all  actions
        necessary to register such pledge and/or guarantee  contracts
        with the appropriate PRC government authorities. 

       

      According
        to the aforementioned performance guarantee arrangements, Party A shall execute
         written
        guarantee contracts separately with the other parties to Party B’s contracts,
        agreements  and
        transactions as Party B’s performance guarantor, as required in order to
        undertake  liabilities
        as guarantor. 

       

      
        	2.	
                In
                  consideration of the requirements of Article 1 herein and to ensure
                  the
                  performance of the Consulting Agreement, the License Agreement
                  and this
                  Agreement between Party A and Party B, and to ensure the payment
                  of all
                  amounts owed by Party B to Party A, Party B together with its shareholders
                  Party C and Party D hereby jointly and severally agree that Party
                  B shall
                  not conduct any transaction which may materially affect its assets,
                  obligations, rights or the Business unless it obtains a prior written
                  consent from Party A, including without limitation the following
                  actions:

              

      

       

      
        	
              	2.1	
                To
                  borrow money from any third party or assume any
                  debt;

              

      

       

      
        	
              	2.2	
                To
                  sell to any third party or acquire from any third party any assets
                  or
                  rights, including without limitations, any plant, equipment, real
                  property
                  or personal property, or any intellectual property
                  rights;

              

      

       

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      
        	
              	2.3	
                To
                  provide any guaranty for any third party obligations;
                  

              

      

       

      
        	
              	2.4	
                To
                  assign to any third party any agreements related to the
                  Business;

              

      

       

      
        	
              	2.5	
                To
                  engage in any other business consulting agreements with any third
                  party or
                  to engage in any other business activities other than the Business;
                  and
                  

              

      

       

      
        	
              	2.6	
                To
                  pledge any of its assets or intellectual property rights to any
                  third
                  party as a security interest. 

              

      

       

      
        	3.	
                To
                  ensure the performance of the Consulting Agreement, the License
                  Agreement
                  and this Agreement between Party A and Party B, and to ensure the
                  payment
                  of all amounts owed by Party B to Party A, Party B together with
                  its
                  shareholders Party C and Party D hereby jointly and severally agree
                  to
                  accept the operation guidance set by Party A on, including but
                  not limited
                  to, business and marketing strategies, business planning, business
                  operation guidance, the appointment and dismissal of its directors
                  and
                  officers (as described in Article 4 below), the hiring and firing
                  employees, its daily operation of the Business, and its financial
                  and
                  budgeting system.

              

      

       

      
        	4.	
                Party
                  B together with its shareholders Party C and Party D hereby jointly
                  and
                  severally agree that Party B, Party C and Party D shall appoint
                  personnel
                  recommended by Party A as the directors of Party B, and Party B
                  shall
                  appoint those candidates recommended by Party A as Party B's General
                  Manager, Chief Financial Officer, and other high level managerial
                  positions. 

              

      

       

      
        	5.	
                Any
                  amendment and supplement of this Agreement shall come into force
                  only
                  after a written agreement
                  in the English language is signed by all parties. The amendment
                  and
                  supplement duly executed
                  by all parties shall
                  be part of this Agreement and shall have the same legal effect
                  as
                  this
                  Agreement.

              

      

       

      
        	6.	
                This
                  Agreement shall be governed by and construed in accordance with
                  the PRC
                  laws.

              

      

       

      
        	7.	
                The
                  parties shall strive to settle any dispute arising from  the
                  interpretation or performance, or in connection with this Agreement
                  through friendly  negotiation.
                  In case no settlement can be reached through negotiation, except
                  as
                  provided in Article 1, either party may submit  such
                  dispute to China International Economic and Trade Arbitration Commission
                  ("CIETAC") for arbitration in accordance with the current rules
                  of CIETAC.
                  The arbitration proceedings shall take place in Hong Kong and shall
                  be
                  conducted in English. The arbitration award shall be final and
                  binding
                  upon the parties.

              

      

       

      
        	8.	
                Any
                  notice which is given by the parties hereto for the purpose of
                  performing
                  the rights, duties  and
                  obligations hereunder shall be in writing in the English language.
                  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 from
                  time to
                  time. The writing form includes facsimile and
                  telex.

              

      

       

      
        	9.	
                This
                  Agreement shall be executed by a duly authorized representative
                  of each
                  party and shall  become
                  effective as of the date first written above. The term of this
                  Agreement
                  is ten (10) years,  unless
                  early termination occurs in accordance with the relevant provisions
                  herein.

              

      

       

      This
        Agreement shall be automatically renewed for additional ten (10) year periods
        upon the  expiration
        of the initial term hereof or any renewal term, unless this Agreement has
        been
 previously
        terminated as provided herein. 

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	10.	
                During
                  the term of this Agreement or any renewal term, Party B, Party
                  C and Party
                  D shall not  terminate
                  this Agreement. Notwithstanding the above stipulation, Party A
                  shall have
                  the right to  terminate
                  this Agreement at any time by issuing a thirty days prior written
                  notice
                  to Party B,  Party
                  C and Party D.

              

      

       

      
        	11.	
                This
                  Agreement is executed in English only, and the executed English
                  language
                  Agreement shall prevail in all cases. This Agreement may be executed
                  in
                  counterparts, each of which  shall
                  constitute one and the same agreement, and by facsimile or electronic
                  signature.

              

      

       

      
        
          	12.	
                  Any
                    provision of this Agreement that is invalid or unenforceable
                    in any
                    jurisdiction shall, as to  such
                    jurisdiction, be ineffective to the extent of such invalidity
                    or
                    unenforceability, without  affecting
                    in any way the remaining provisions hereof in such jurisdiction
                    or
                    rendering that any  other
                    provision of this Agreement invalid or unenforceable in any other
                    jurisdiction

                

        

        
          	 	 

        

      

       

      [Remainder
        of this page intentionally left bank.]

       

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF the parties hereto have caused this Agreement to be duly
        executed on their behalf by a duly authorized representative as of the date
        first written above.

       

      
        PARTY
          A: TAIYUAN PUTAI BUSINESS CONSULTING CO., LTD

      

       

      

      By:  
        /s/ Zhao Ming

      
        
          

        

      

      Zhao
        Ming, Chairman and CEO

      

      

       

      PARTY
        B: SHANXI PUDA RESOURCES CO., LTD.

       

      

      By:  
        /s/ Zhao Ming

      
        
          

        

      

      Zhao
        Ming, Chairman and CEO

      

       

      PARTY
        C: 

       

       

      /s/
        Zhao
        Ming

      
        
          

        

      

      Zhao
        Ming 

      

       

      PARTY
        D: 

       

      

      /s/
        Zhao
        Yao

      
        
          

        

      

      Zhao
        Yao

       

       

      
        
          
          

        

        -5-EXHIBIT
        10.3

       

      EXCLUSIVE
        CONSULTING AGREEMENT

       

      This
        Exclusive Consulting Agreement (the "Agreement") is entered into as of June
        24,
        2005, between the following two parties:

       

      PARTY
        A: TAIYUAN PUTAI BUSINESS CONSULTING CO., LTD.

      LEGAL
        ADDRESS: 426 Xuefu Street, Taiyuan, Shanxi Province, China 

      

      PARTY
        B: SHANXI PUDA RESOURCES
        CO., LTD.

      LEGAL
        ADDRESS: 426 Xuefu Street, Taiyuan, Shanxi Province, China

      

      WHEREAS,
        Party A
        is a wholly foreign-owned enterprise registered in The People's Republic
        of
        China (the "PRC") under the laws of PRC and owns resources to provide business
        consulting services;

       

      WHEREAS,
        Puda
        Investment Holding Limited (“Puda”), an International Business Company
        incorporated in the British Virgin Islands, owns all of the registered capital
        of Party A;

       

      WHEREAS,
        Party B
        is a domestic company with exclusively domestic capital registered in the
        PRC
        and is engaged in the business of coal crushing,
        preparation and cleaning (“Business”);

       

      WHEREAS,
        Zhao
        Ming and Zhao Yao together own all of the capital stock of Puda and all of
        the
        registered capital of Party B, and as such have common control over Puda
        and
        Party B;

       

      WHEREAS,
        Party A
        has established a business relationship with Party B by entering into an
        Operating Agreement dated as of the same date hereof (“Operating Agreement”) and
        a Technology License Agreement dated as of the same date hereof (“License
        Agreement”);

       

      WHEREAS,
        pursuant to the Operating Agreement and License Agreement between Party A
        and
        Party B, Party B shall pay Party A certain fees as set forth in the Operating
        Agreement and the License Agreement (“Other Fees”);

       

      WHEREAS,
        Party B
        is an affiliated Chinese entity of Party A; and 

       

      WHEREAS,
        Party A
        desires to be the provider of business consulting and related services to
        Party
        B, and Party B hereby agrees to accept such business consulting and
        services;

       

      NOW
        THEREFORE,
        the
        parties agree as follows:

       

      1.    BUSINESS
        CONSULTING AND SERVICES; EXCLUSIVITY

       

      	1.1  	
              During
                the term of this Agreement, Party A agrees to, as the exclusive business
                consulting services provider of Party B, provide the business consulting
                services to Party B (which consulting services are more specifically
                described in Appendix 1). 

            

       

      	1.2  	
              Party
                B hereby agrees to accept such business consulting services and Party
                A’s
                appointment as the exclusive business consulting services provider
                of
                Party B. Party B further agrees that, during the term of this Agreement,
                it shall not utilize any third party to provide such business consulting
                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 rights, title and
                interests
                to any and all intellectual property rights arising from the performance
                Party A’s services under this Agreement, including, but not limited to,
                any trade secrets, copyrights, patents, know-how, un-patented methods
                and
                processes and otherwise, whether developed by Party A or Party B
                based on
                Party A's services provided under this Agreement. Party A and Party
                B
                understand and agree that the terms and conditions of this Agreement
                are
                subject to the terms and restrictions of a Technology License Agreement
                between Party A and Party B dated as of the same date hereof, as
                may be
                amended from time to time. 

            

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      2.    CONSULTING
        FEES 

       

      During
        the term of this Agreement, Party B shall pay to Party A a consulting fee
        (“Fee”) for the services provided by Party A under this Agreement equal to 30%
        of Party B’s cash flows from operating activities (“Operating Cash Flow”).
The
        Fee
        shall be paid monthly by Party B to Party A within 10 days following the
        end of
        each month based on the Operating Cash Flow for such month as estimated by
        Party
        A and Party B in good faith (“Estimated Monthly Amount”). Within sixty (60) days
        after the end of each fiscal quarter, Party A and Party B shall make a final
        determination of the actual Operating Cash Flow for such quarter (“Final
        Quarterly Amount”) based on the financial statements of Party B, which have been
        reviewed or audited by the Parties’ registered certifying accountant for U.S.
        financial reporting purposes (“Accountant”). To the extent the Final Amount is
        greater than the Estimated Monthly Amounts for such quarter, the Fee shall
        be
        adjusted and Party B shall promptly remit to Party A the additional Fee due
        and
        owing. To the extent the Final Amount is less than the Estimated Monthly
        Amounts
        for such quarter, the Fee shall be adjusted and Party A shall promptly remit
        to
        Party B the amount by which the Fee was overpaid. 

       

      Notwithstanding
        anything to the contrary contained in this Agreement, for each fiscal year
        of
        Party B, (i) in the event that 30% of Party’s B Net Income (as defined below)
        for the fiscal year is less than the Fee for such fiscal year, the Fee shall
        be
        adjusted such that it shall be equal to 30% of Party B’s Net Income for such
        fiscal year, and (ii) in the event that 30% of Party B’s Net Income is greater
        than the Fee for such fiscal year, the Fee shall be increased such that it
        shall
        be equal to 30% of Party B’s Net Income for such fiscal year. 

       

      For
        the
        purposes of this Agreement, the
        determination and calculation of Operating Cash Flow and Net Income shall
        made
        in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”)
        as reflected on Party B’s U.S. GAAP financial statements, which have been
        reviewed or audited by the Accountant, before giving effect to the Fee paid
        or
        payable under this Agreement and the Other Fees paid or payable under the
        Operating Agreement and License Agreement. Any disputes with respect to the
        determination or calculation of the Fee, Net Income or Operating Cash Flow
        shall
        be resolved by the Accountant, and such determination shall be final.

       

      3.     REPRESENTATIONS
        AND WARRANTIES

       

      3.1    PARTY
        A
        HEREBY REPRESENTS AND WARRANTS AS FOLLOWS:

       

      
        	 	
                3.1.1
                  

              	
                Party
                  A is a wholly foreign owned enterprise duly registered and validly
                  existing under the laws of the PRC and is authorized to engage
                  in the
                  business of consulting services.

              

      

       

      
        	 	
                3.1.2

              	
                Party
                  A has full right, power, authority and capacity and all consents
                  and
                  approvals of any other third party and government necessary to
                  execute and
                  perform this Agreement, which shall not be against any enforceable
                  and
                  effective laws or contracts.

              

      

       

      
        	 	
                3.1.3
                  

              	
                Once
                  this Agreement has been duly executed by both parties, it will
                  constitute
                  a legal, valid and binding agreement of Party A and is enforceable
                  against
                  it in accordance with its terms upon its
                  execution.

              

      

       

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      3.2    PARTY
        B
        HEREBY REPRESENTS AND WARRANTS AS FOLLOWS:

       

      
        	
              	3.2.1	
                Party
                  B is a domestic company with exclusively domestic capital duly
                  registered
                  and validly existing under the laws of the PRC and is authorized
                  to engage
                  in the Business.

              

      

       

      
        	
              	3.2.2	
                Party
                  B has full right, power, authority and capacity and all consents
                  and
                  approvals of any other third party and government necessary to
                  execute and
                  perform this Agreement, which shall not be against any enforceable
                  and
                  effective laws or contracts.

              

      

       

      
        	
              	3.2.3	
                Once
                  this Agreement has been duly executed by both parties, it will
                  constitute
                  a legal, valid and binding agreement of Party B and is enforceable
                  against
                  it in accordance with its terms upon its
                  execution.

              

      

       

      4.    CONFIDENTIALITY

       

      
        	
              	4.1	
                Party
                  B agrees to use all reasonable means to protect and maintain the
                  confidentiality of Party A's confidential data and information
                  acknowledged or received by Party B by accepting the exclusive
                  consulting
                  and services from Party A (collectively the “Confidential Information").
                  Party B shall not disclose or transfer any Confidential Information
                  to any
                  third party without Party A's prior written consent. Upon termination
                  or
                  expiration of this Agreement, Party B shall, at Party A's option,
                  deliver
                  any and all documents, information or software containing any of
                  such
                  Confidential Information to Party A or destroy it or delete all
                  of such
                  Confidential Information from any memory devices, and cease to
                  use
                  them.

              

      

       

      
        	
              	4.2	
                Section
                  4.1 shall survive after any amendment, expiration or termination
                  of this
                  Agreement.

              

      

       

      5.    INDEMNITY

       

      Party
        B
        shall indemnify and hold harmless Party A from and against any loss, damage,
        obligation and cost arising out of any litigation, claim or other legal
        procedure against Party A resulting from the contents of the business consulting
        and services demanded by Party B under this Agreement.

       

      6.    EFFECTIVE
        DATE 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.

              

      

       

      
        	
              	6.2	
                This
                  Agreement shall be automatically renewed for additional ten (10)
                  year
                  periods upon the expiration of the initial term hereof or any renewal
                  term, unless this Agreement has been previously terminated as provided
                  herein. 

              

      

       

      7.    TERMINATION

       

      
        	
              	7.1	
                Early
                  Termination

              

      

       

      During
        the initial term of this Agreement or any renewal term, Party B shall not
        terminate this Agreement. Notwithstanding the above stipulation, Party A
        shall
        have the right to terminate this Agreement at any time by issuing a thirty
        days’
        prior written notice to Party B. 

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

      
        	
              	7.2	
                Survival.

              

      

       

      Article
        4
        and 5 shall survive after the termination or expiration of this
        Agreement.

       

      8.    SETTLEMENT
        OF DISPUTES

       

      The
        parties shall strive to settle any dispute arising from the interpretation
        or
        performance in connection with this Agreement through friendly negotiation.
        In
        case no settlement can be reached through negotiation, except as provided
        in
        Article 2, each party can submit such matter to China International Economic
        and
        Trade Arbitration Commission (the "CIETAC"). The arbitration shall follow
        the
        current rules of CIETAC, and the arbitration proceedings shall be conducted
        in
        English and shall take place in Hong Kong. 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 acts of governments, acts of nature, fire,
                  explosion, typhoon, flood, earthquake, tide, lightning, 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, both parties agree
                  to resume
                  performance of this Agreement with their best
                  efforts.

              

      

       

      10.    NOTICES

       

      Notices
        or other communications required to be given by any party pursuant to this
        Agreement shall be written in English and shall be deemed to be duly given
        when
        it is delivered personally or sent by registered mail or postage prepaid
        mail or
        by a recognized courier service or by facsimile transmission to the address
        of
        the relevant party or parties set forth below.

       

      Party
        A:
        Taiyuan Putai Business Consulting Co., Ltd.

       

      426
        Xuefu
        Street, Taiyuan, Shanxi Province, China 

       

      Party
        B:
        Shanxi Puda Resources Co., Ltd.

       

      426
        Xuefu
        Street, Taiyuan, Shanxi Province, China 

       

      11.    NO
        ASSIGNMENT OR SUBLICENSE BY THE LICENSEE

       

      Party
        A
        and Party B may not assign their rights or obligations under this Agreement
        to
        any third party without the prior written consent of the other
        party.

       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      12.    SEVERABILITY

       

      Any
        provision of this Agreement that is invalid or unenforceable in any jurisdiction
        shall, as to such jurisdiction, be ineffective to the extent of such invalidity
        or unenforceability, without affecting in any way the remaining provisions
        hereof in such jurisdiction or rendering that any other provision of this
        Agreement invalid or unenforceable in any other jurisdiction.

       

      13.    AMENDMENT
        AND SUPPLEMENT

       

      Any
        amendment and supplement of this Agreement shall come into force only after
        a
        written agreement in the English language is signed by both parties. The
        amendment and supplement duly executed by both 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 PRC
        laws.

       

      15.    LANGUAGE

       

      This
        Agreement is executed in English only, and the executed English language
        Agreement shall prevail in all cases. This Agreement may be executed in
        counterparts, each of which shall constitute one and the same agreement,
        and by
        facsimile or electronic signature.

       

       

      [Reminder
        of this page intentionally left blank.]

       

       

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      IN
        WITNESS THEREOF,
        the
        parties hereto have caused this Agreement to be duly executed on their behalf
        by
        a duly authorized representative as of the date first set forth
        above.

       

      
         

        PARTY
          A: TAIYUAN PUTAI BUSINESS CONSULTING CO., LTD

      

       

      

      By:  
        /s/ Zhao Ming

      
        
          

        

      

      Zhao
        Ming, Chairman and CEO

      

      

      PARTY
        B: SHANXI PUDA RESOURCES CO., LTD.

       

      

      By:  
        /s/ Zhao Ming

      
        
          

        

      

      Zhao
        Ming, Chairman and CEO

      

       

      
 

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      APPENDIX
        1: DESCRIPTION OF BUSINESS CONSULTING AND SERVICES

       

      	1.  	
              providing
                business consulting on the Business of Party
                B;

            

       

      	2.  	
              providing
                business consulting on management, marketing, and business planning
                of
                Party B;

            

       

      	3.  	
              training
                of managerial personnel of Party B; and

            

       

      	4.  	
              providing
                other business consultation and services that Party B may reasonably
                request. 

            

       

       

      
        
           

        

          -7-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]