Document:

Exhibit 10.26

 

Unofficial English Translation Solely for Convenience

 

Strategic Cooperation Agreement

Regarding the Joint Development of National Liquid Coal Pulp Thermal Energy Market

 

	    The   Parties:
    	    Tongchuan   Suoke Clean Energy Co., Ltd. (“Party A”)
    
	     
    	    Qingdao   Haizhong Enterprise Co., Ltd. (“Party B”)
    
	     
    	     
    
	    Place   of Execution:
    	    Xi’an   City, Shaanxi Province, China
    
	     
    	     
    
	    Date   of Execution:
    	    March 31,   2010
    

 

Whereas Qingdao Haizhong Enterprise Co., Ltd. is the largest specialized manufacturer of environment-friendly liquid coal pulp furnace in China and the only one that has obtained State qualification for manufacturing environment-friendly liquid coal pulp furnace.  It is a high-tech company dedicated to the research, manufacture and application of the environment-friendly liquid coal pulp furnace, and its “Haizhong” brand environment-friendly liquid coal pulp furnace occupies a market share of almost 85% in the country.  It is planning to apply for listing on the ChiNext board in China;

 

Whereas Suoke (Tongchuan) Clean Energy Co., Ltd. is currently the top-ranked enterprise operating in commercialization of the liquid coal pulp clean fuel in the national market.  It has integrated R&D, production, sales and technical services into one high-techl company dedicated to the investment and operation of liquid coal pulp clean fuel and the centralized provision of heat using liquid coal pulp.  It is a subsidiary of the US listed China Clean Energy Co., Ltd. (Stock symbol: SCLX.OB);

 

Therefore, Suoke (Tongchuan) Clean Energy Co., Ltd. and Qingdao Haizhong Enterprise Co., Ltd. (hereinafter “Parties A and B”), on the pre-condition that Parties A and B both aim at the huge market potential of liquid coal pulp thermal energy, with the spirit of mutual growth and in view of the nationwide liquid coal pulp thermal energy construction projects, have entered into this strategic cooperation agreement regarding the formation of close strategic partnership to engage in the comprehensive market penetration, exploration and development as follows:

 

I.              Scope and Model of Cooperation

 

1. Information Exchange

 

Either side of Parties A and B has the obligation to notify the other side of the development and demand of the liquid coal pulp thermal energy in a certain region of the country when it learns such information.

 

 

2. The two parties adopt the cooperation model of “bundling” when undertaking liquid coal pulp thermal energy construction projects.  Specifically:

 

(1) If Party B constructs liquid coal pulp thermal energy projects in regions where Party A produces liquid coal pulp products, Party B must choose liquid coal pulp products produced by Party A;

 

(2) If Party B constructs liquid coal pulp thermal energy projects in regions where Party A does not produce liquid coal pulp products, Party B has the obligation to recommend that Party A construct liquid coal pulp project or purchase liquid coal pulp production enterprises and at the same time provide to Party A corresponding market information and relevant market projection material so that Party A can make more reasonable investment decisions.  If Party A decides to invest in the construction of liquid coal pulp production factory, Party B must choose the liquid coal pulp products produced by Party A;

 

(3).If Party A constructs new liquid coal pulp enterprise in a certain region, Party A has the obligation, based on the local market circumstances, to recommend that Party B construct liquid coal pulp thermal energy projects and provide corresponding relevant market material;

 

(4) If Party A constructs liquid coal pulp thermal energy projects in a certain region, it must choose liquid coal pulp burning equipment (liquid coal pulp furnace) manufactured by Party B;

 

(5) The parties shall not choose the same type of products as those of the other party’s to engage in cooperation, agency, sales and recommendation activities in any region in the country.

 

3. For large scale investment project, the two parties may also adopt other various types of cooperation model, such as: BOT, joint lease investment model or equity investment.

 

II             The Two Parties’ Plan for Area of Cooperation

 

1. Continue to strengthen cooperation relationship between Haizhong (Shenyang) Thermal Energy and Shenyang Suo’ang Energy Co., Ltd. and expand the cooperation scale;

 

2. Starting from 2010, the two parties establish long-term strategic cooperation partner relationship in the national liquid coal pulp thermal energy market.

 

3. With Party A’s production base and technology for liquid coal pulp products as foundation and Party B’s patent and proprietary technology as support, the two parties jointly develop cooperation relationship with regard to liquid coal pulp thermal energy construction projects.

 

4. With the technology and capital of both Party A and Party B as foundation, the two parties jointly develop liquid coal pulp thermal energy construction projects or form partnership to acquire liquid coal pulp enterprises.

 

 

III            Rights and Obligations

 

1. The two parties shall both follow the provisions of cooperation with trust as core and mutual glory or shame as standards.

 

2. On the basis of the business characteristic of mutual dependency (“fuel depending on furnace and furnace depending on fuel”), the two parties must each perform its duty to protect the joint interests with the need of the customers in the market as the ultimate objective.

 

3. The two parties shall strictly maintain confidentiality regarding the business technological secrets and commercial secrets of each during the course of cooperation and shall not infringe the other’s intellectual property.  The two parties shall bear corresponding legal responsibility for any damage resulting from disclosure of such secrets without prior consent from the other party.

 

IV            Miscellaneous

 

1. This agreement may be amended or supplemented from time to time upon unanimous consent of the two parties.

 

2. Any amendment hereof and supplement hereto shall have no effect on the implementation of the unfinished project, action or plan that has been started prior to the date of such amendment or supplement.

 

3. The two parties may draft plans for specific cooperation projects on condition that they are not inconsistent with the provisions herein.

 

4. This agreement becomes effective upon the date of its execution.

 

5. This agreement has one set of quadruplicates, with two to each side and all of them have the equal legal effect.

 

	    Party   A (seal)
    	    Tongchuan   Suoke Clean Energy Co., Ltd.
    
	     
    	     
    
	    Legal   Representative:
    	    (signature   present)
    
	     
    	     
    
	    Date:   March 31, 2010
    	     
    
	     
    	     
    
	    Party   B (seal)
    	    Qingdao   Haizhong Enterprise Co., Ltd.
    
	     
    	     
    
	    Legal   Representative:
    	    (signature   present)
    

 

Date: March 31, 2010Exhibit 10.27

 

Unofficial English Translation Solely for Convenience

 

Haizhong CWSF Boiler Sales Agency Agreement

 

	    Party   A (Authorizer):
    	    Qingdao   Haizhong Enterprises Co. Ltd.
    
	     
    	     
    
	    Party   B (Agent):
    	    Shaanxi   Suo’ang Biological Science & Technology Co., Ltd.
    

 

In order to expand the market and sell “Haizhong” brand CWSF boiler, the Parties A and B, through negotiation and consent and on the basis of mutual benefit, have entered into the representative agency agreement as follows:

 

1,             Party B has the agent right to represent and sell “Haizhong” brand CWSF boiler in Tongchuan region, Xi’an, Shanxi province.  Party B shall not, during the term of this agreement, represent and sell other CWSF boiler similar to Party A’s; otherwise Party A has the right to terminate this representative agent agreement.

 

2,             To facilitate Party B in performing work externally, Party A agrees to let Party B sell “Haizhong” CWSF boiler under the name of “Qingdao Haizhong Enterprises Co. Ltd  Xi’an Business Office” and conduct business contracting and sales negotiation under Party A’s direction.  Party B shall be responsible for all [employee] benefits and labor insurance.  Party B shall not conduct any other activities under the aforementioned name; otherwise, Party B shall bear sole responsibility for the consequences.

 

3,             Party A shall actively support Party B in market business work and is obligated to provide Party B with business training and technical guidance, product introduction brochure, and timely information on new technologies and new techniques, product price and market developments.

 

4,             Party B may directly enter into boiler sales contract with customers.  However, without prior written authorization from Party A, Party B shall not use Party A’s name to enter into any other kind of letter of intent or contact directly with customers.  Party B shall make the equipment payment to Party A, in the amount stipulated in the contract entered into by Party B directly with customers, for Party A’s boiler equipment before such boiler equipment leaves Party A’s factory.

 

5,             Party B shall be responsible for the initial stage of market development and bear the market development cost on its own; Party A shall be responsible for the execution of formal sales contracts and carry out the work of equipment manufacturing, pre-sale technical support, installation tests and post-sale service set forth in the contracts.  During the term of fulfilling this agreement, Parties A and B must work with each other closely, support each other, and, especially during the construction period and in the area of recovering loans, must proactively cooperate and coordinate related work to ensure the smooth fulfillment of the contracts.

 

 

6,             Party B must notify Party A in advance when it develops business in regions beyond the one stipulated above and, with safeguarding Party A’s maximum interests as the basis, settle related matters through negotiation.

 

7,             Party B has the responsibility and obligation to maintain confidentiality for Party A on technical secrets and market secrets, promptly provide Party A with relevant information and intelligence feedback, forward usage or improvement suggestions from customers and take the initiative to offer its own suggestions according to the market developments and changes.  Party A must respond in a timely manner to matters raised by Party B.

 

8,             Whether during the term of being the representative agent or after its termination, [Party B] shall not reveal to any third party any of Party A’s commercial secrets, including IP, shall not make use of Party A’s technical documents in its own manufacturing of any product imitating Party A’s, and shall not infringe Party A’s patents and trademarks.

 

9,             With regard to the proceeds from sales completed independently by Party B, Party B confirms acceptance of the agent’s commission according to the provisions below:

 

(1)           When entering into a boiler sale contract, Party B shall receive a commission on the proceeds from the special equipment part of Haizhong boiler (boiler itself, burning device, jet gun; control panel, filter, mixer, ignition system, dust elimination device and dregs discharge device); the bottom price provided by Party A is the one 20% below Party A’s uniform price, and the portion above the bottom price is the total commission to be received by Party B (there is no commission on dust elimination device that is not manufactured by Party A).

 

(2)           In boiler sale contracts, there will be no commission from the proceeds of the sale of external auxiliary equipment for Haizhong boiler and from various contract fees (transportation fee, installation fee, engineering setup fees, customization labor fee and fees for technical support, testing, monitoring and service).

 

(3)           To maintain Party A’s market price image, Party B may raise, in its negotiation with customers, a maximum of 10% from the uniform price list on Haizhong boiler special equipment provided by Party A as the top price in the contracts, with 80% of the portion above the uniform price list as special commission to the business agent.

 

(4)           If, after contract negotiation, there are additional fees, above the standard price list, from addition of special equipment due to technical reasons, that additional fees shall not be considered the raised portion set forth in (3) above.

 

(5)           The payment of the aforementioned commission shall be made in proportion to the above rate, based on each payment amount from the customers.  Within 10 days after the payment from the customers is deposited into Party A’s account, Party B will issue formal agent’s invoice to Party A and Party A shall make corresponding commission payments to Party B (if Party B is not able to issue agent’s invoice, Party A shall withhold 6% of the total commission as invoice fee).

 

 

10,           Party B has the obligation to assist Party A in coordinating contract construction and demanding loan payments.

 

11,           Party A only has agent business management right with regard to Party B and shall have no legal liability for any economic activities beyond the scope of this agreement.

 

12,           Parties A and B must strictly carry out this agreement and have corresponding rights and obligations; either party that is in breach of this agreement shall bear responsibilities for the breach.

 

13,           This agreement shall take affect upon its execution and shall be valid for a period of 3 years after the date of execution.

 

14,           Other matters not covered in this agreement shall be settled through friendly negotiation between the two parties.

 

15,           The interests of Party B as the agent shall not be transferred.

 

16,           This agreement has one set of 2 copies, with one to each party, which are both legally binding.

 

	    Party   A:
    	    Qingdao   Haizhong Enterprises Co. Ltd.
    
	     
    	     
    
	    Legal   Representative:
    	    (Signature)
    
	     
    	     
    
	    Date   of Execution:
    	    February 11,   2008
    
	     
    	     
    
	    Party   B:
    	    Shaanxi   Suo’ang Biological Science & Technology Co., Ltd.
    
	     
    	     
    
	    Legal   Representative:
    	    (Signature)
    
	     
    	     
    
	    Date   of Execution:
    	    February 11,   2008

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