Document:

Unassociated Document

    Transfer
Agreement

    

    Transferee:
Shandong Haiwang Chemical Stock Co., Ltd (Party A)

    Transferor:
Weifang Xinglongda Chemical Co., Ltd (Party B)

    

    Party A
agrees to acquire the assets and ancillary facilities of Party B’s bromine plant
(located in the east of Bailang River dyke and in the north of Fengtai village,
Yangzi town). In order to clarify the rights and obligations, both parties reach
the following agreement upon mutual agreement.

    

    
      	
               
      

            	
              I.

            	
              Items
      of transfer:

            

    

    

    
      	
               
      

            	
              i.

            	
              The
      items under this transfer agreement include Party B’s fixed assets,
      inventory, raw materials, low-value consumables. and 239 brine wells, and
      11 electric transformers.( Breakdown see attached handover item
      list)

            

    

    

    
      	
               
      

            	
              ii.

            	
              Party
      B’s mineral permit, and the area covered by the mineral permit is
      indicated in the attached overlay.

            

    

    

    
      	
               
      

            	
              II.

            	
              Transfer
      price and type of payment

            

    

    

    
      	
               
      

            	
              The
      price of assets mentioned above is RMB24.5 million to be paid in cash.
      After this agreement is signed, Party A first pays 12 million to Party B,
      the balance will be paid after Party B assists Party A in completing the
      transfer of mining permits and all related official
    documents

            

    

    

    III.
Date and way of handover

    

    
      	
               
      

            	
              i.

            	
              The
      assets included in the items of this transfer shall be taken over by Party
      A and the plant should commence productions from 12 am, March.26th,
      2007.

            

    

    

    
      	
               
      

            	
              ii.

            	
              Both
      parties should check and accept all items listed on handover list at the
      time of the handover. The transfer price is adjustable once the actual
      status of listed items differs from that is stated in the
      list,

            

    

    

    
      	
               
      

            	
              III.

            	
              Claims
      and Debt

            

    

    

    Party B
should be responsible for all debts, wages and salary payable to its employee,
taxes, administrative expenses and other expenses and debts incurred before 12
am , March.26th, 2007. If Party B ceased operation or can’t afford
above-mentioned expenses, shareholders of Party B should step in to assume.
Party A would not bear any of them in any circumstance.
  

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              IV.

            	
              The
      power supply facility and electric
charges

            

    

    

    The power
supply facilities and related assets(including high and low voltage electric
line, electric transformers) of Party B should be transferred to Party A. All
electric charges incurred before 12 am, March.26th, 2007 should be borne by
Party B.

    VI.
Handover and change of relevant documents.

    

    
      
        	
              	
                i.

              	
                Governmental
      approval documents, mineral permits, safety production permits on the
      bromine plant and land use right agreements signed between local
      government agencies and Party B should be taken over by Party A.. Under
      the condition of keeping terms of documents and agreements invariable,
      Party B should coordinate with relevant governmental agencies to make Part
      A succeed to these documents and
agreements.

              

      

    

    

    
      
        	
              	
                ii.

              	
                Agreements
      of extracting water from surrounding salt pans, fee agreement should be
      taken over by Party A. .Under the condition of keeping terms of agreements
      invariable, Party B should coordinate with related parties to make Part A
      succeed to these documents and
agreements.

              

      

    

    

    
      	
               
      

            	
              iii.

            	
              Party
      B should assist Party A in the above-mentioned transfer procedures, and
      transfer its vehicles to Part A, if there is any losses to Party A caused
      by failure of transfer, Party B should be liable and make compensations to
      Party A

            

    

    

    
      	
               
      

            	
              iv.

            	
              Party
      B should transfer breakdown of equipments of bromine plant and relevant
      materials including underground cable profile and underground brine pipe
      profile to Party A.

            

    

    

    
      	
               
      

            	
              VII.

            	
              Settlement
      of employee

            

    

    

    Party B
should be responsible for settling its employees. Part A shall not relate to
previous employee any more.

    

    
      	
               
      

            	
              VIII.

            	
              Beach
      of the agreement

            

    

    

    
      If any
party breaches the agreement, he should compensate to the other party, who could
also load a law suit against the breaching party at local
court.

    

    

    
      	 	
              IX.

            	
              This
      agreement shall be in duplicate, both parties will hold one copy
      each.

            

    

    

    
      	 	
              X

            	
              This
      agreement shall become effective after the transferor and the
      transferee have affixed their
      signatures on it.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
    

    Attachment: Handover item
list

                Layout
of the area under the mineral permit

     

    Party A: Shandong Haiwang
Chemical Stock Co., Ltd (signature and seal)

    /s/
Chunbin Yang

    
    

    Party B: Weifang Xinglongda
Chemical Co,. Ltd (signature and seal)

    Representative
(signature):

    /s/
Hailong Xue

     
Zhenzhong Li

     
Zhenguo Li

     
Guangqing Xu

         

    March
26th,
2007.Transfer
Agreement

    

    Transferee:
Shandong Haiwang Chemical Stock Co., Ltd (Party A)

    Transferor:
Shandong Yuyuan Group Co., Ltd (Party B)

    

    Party B
owns a bromine plant, which is located i in the east of Mi River within Hanting
District to be transferred. Party A agrees to acquire it upon negotiation. In
order to clarify the rights and obligations, both parties enter into the
following agreement.

    

    
      
        	
              	
                I

              	
                The
      transfer price is RMB 9 million. Party A firstly shall pay RMB 3 million
      when both parties enter into this contract, while the remaining balance
      shall be paid off on the next day after signing the contract in cash and
      bank acceptance, (including party A pays 4 million in cash and pays
      5million in bank acceptance). If party A can’t pay off the balance, it
      will not be allowed to
produce.

              

      

    

    

    
      
        	 	
                ii

              	
                The
      inventory, fixed assets, low value consumables, finished goods and
      scraps will be owned by party A from 12 AM, Dec. 24th,
      2006. The bromine produced before the handover will be owned by Party
      B.

              

      

    

    

    
      
        	 	
                iii

              	
                Party B
      should be responsible for all claims, debts, employees’ salaries,
      taxes, administrative expenses, mining fees, fees of extracting brine
      water from surrounding saltpans incurred before 12AM, Dec. 24th,
      2006.

              

      

    

    

    
      
        	 	
                iv

              	
                Party
      B uses electricity form Haihua Power Supply bureau, Haihua Power Company
      and Hanting Power Supply bureau. Party B’s power supply facilities and
      assets should be transferred to party A.. Electricity charges incurred
      before 12AM, Dec. 24th,
      2006 should be paid off by Party
  B.

              

      

    

    

    
      
        	 	
                v

              	
                The
      agreements that Party B signed regarding the salt pans and the land
      use right, utilizing brine water should be succeeded by Party
      A.

              

      

    

    

    
      
        	 	
                vi

              	
                Party
      B shall coordinate with all parties to make Part A successfully succeed
      governmental approval documents, mineral permits, safety production
      permits on the bromine plant and if
      there is any losses to Party A caused by fault of Party B, Party B should
      be liable and make compensations to Party
  A

              

      

    

    

    
      
        	 	
                vii

              	
                The key
      equipment profile and underground cable line profile should be
      transferred to Party A.

              

      

    

    

    
      
        	 	
                viii

              	
                Party B is
      responsible for settling current employees. Party A does not hold
      any responsibility under any
circumstances.

              

      

    

    

    
      
        	 	
                ix

              	
                Once any
      party beaches the contract, the other has the right to file a
      lawsuit against the breaching
party.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              X

            	
              If any party
      breaches the agreement, non-breaching party should institute
      legal proceedings
      to local law institution.

            

    

    

    
      	 	
              XI

            	
              This
      agreement shall be in duplicable, and each party shall hold one
      copy.

            

    

    

    
      	 	
              XII

            	
              This
      agreement will become effective since both parties put the
      signatures on it.

            

    

    

    Party A: (seal) Shandong
Haiwang Chemcial Stock Co., Ltd

      

    /s/
Tongjiang Sun

      

    Party B: (seal) Shandong
Yuyuan Group Co., Ltd

      

    /s/
Jiang Zhang

      

    Dec.
24th,
2006.

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