Document:

Exhibit 10.1

    Exhibit
      10.1

    

    

    AMENDMENT
      NO. 1 TO AGREEMENT AND PLAN OF MERGER

    

    

    THIS
      AMENDMENT NO. 1 TO AGREEMENT AND PLAN OF MERGER
      (this
“Amendment”) is entered into as of the 15th day of November, 2006, among
      MILLSTREAM II ACQUISITION CORPORATION, a Delaware corporation (“Parent”),
      MILLSTREAM II MERGER SUB, INC., a Pennsylvania corporation and a wholly owned
      subsidiary of Parent (“Sub”),
      and
      SPECIALTY SURFACES INTERNATIONAL, INC., a Pennsylvania corporation (the
“Company”).

    

    WHEREAS,
      Parent,
      Sub and the Company entered into an Agreement and Plan of Merger dated August
      11, 2006 (the “Merger
      Agreement”),
      pursuant to which the Company will be merged with and into Sub (the
“Merger”)
      and
      the sole shareholder of the Company shall be entitled to receive cash and shares
      of common stock of Parent in exchange for each share of common stock of the
      Company; and

     

    WHEREAS,
      Parent,
      Sub and the Company wish to amend certain terms of the Merger
      Agreement.

     

    NOW,
      THEREFORE,
      the
      parties hereto agree as follows:

    

    1.  Capitalized
      Terms.
      Capitalized terms used but not defined in this Amendment shall have the meanings
      as set forth in the Merger Agreement.

     

    2.  The
      fifth
“WHEREAS” clause is hereby deleted in its entirety.

     

    3.  The
      sixth
“WHEREAS” clause is hereby deleted in its entirety and replaced with the
      following:

     

    “WHEREAS,
      simultaneously with the execution and delivery of this Agreement, Parent and
      Henry A. Julicher (“H.
      Julicher”)
      are
      entering into an employment agreement (the “Employment
      Agreement”),
      relating to his employment by Parent on and after the Effective
      Time;”

     

    4.  Section
      2.1(c) of the Merger Agreement is deleted in its entirety and replaced with
      the
      following text:

     

    “Conversion
      of Company Common Stock.
      (i)
      Subject to Section 2.1(b), each share of Company Common Stock shall be converted
      into the right to receive (A) the number of shares of fully paid and
      nonassessable shares of Parent Common Stock equal to (1) 1,500,000 divided
      by
      (2) the number of issued and outstanding shares of Company Common Stock (the
      “Outstanding
      Shares”),
      (B)
      $8,000,000 in cash divided by the number of Outstanding Shares, (C) the Delayed
      Cash Consideration, if any, divided by the number of Outstanding Shares, (D)
      the
      Delayed Stock Consideration, if any, divided by the number of Outstanding
      Shares, (E) the Delayed Receivable 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Consideration,
      if any, divided by the number of Outstanding Shares, and (F) the Additional
      Delayed Merger Consideration, if any, divided by the number of Outstanding
      Shares. “Delayed
      Cash Consideration”
means
      an amount equal to $10.00 for each $1.00 that EBITDA exceeds $4,600,000 for
      the
      fiscal year ended December 31, 2007 (“Fiscal
      2007”),
      or
      $6,500,000 for the fiscal year ended December 31, 2008 (“Fiscal
      2008”),
      but
      not to exceed $2,000,000 in the aggregate for Fiscal 2007 and Fiscal 2008
      combined. “Delayed
      Stock Consideration”
means
      (a) for Fiscal 2007, an amount equal to 12⁄3 shares of Parent Common Stock for
      each $1.00 that EBITDA exceeds $4,800,000 for Fiscal 2007, or (b) for Fiscal
      2008, an amount equal to a number of shares equal to the 2008 Stock Formula
      for
      each $1.00 that EBITDA exceed the 2008 EBITDA Threshold, but not to exceed
      2,000,000 shares in the aggregate for Fiscal 2007 and Fiscal 2008 combined.
      “2008 Stock Formula” means the quotient of one divided by the quotient of (i)
      the difference between $8,500,000 minus the 2008 EBITDA Threshold divided by
      (ii) the difference between 2,000,000 million shares and the number of shares,
      if any, of Delayed Stock Consideration earned in Fiscal 2007. “2008
      EBITDA Threshold”
means
      an amount equal to $6,500,000 plus the quotient of (a) the difference between
      $2,000,000 minus the amount of Delayed Cash Consideration earned in Fiscal
      2007
      divided by (b) ten. “Delayed
      Receivable Consideration”
means
      an amount equal to $0.50 for each $1.00 collected in respect of amounts owed
      by
      the Obligated Parties at any time prior to the two year anniversary of the
      Closing Date in respect of amounts owed by the Obligated Parties to the Company
      as of the date of this Agreement. “Additional
      Delayed Merger Consideration”
means
      an amount equal to two percent of the increase in annual Net Sales of Parent
      for
      the Fiscal 2007, Fiscal 2008 and fiscal year ending December 31, 2009 over
      Parent’s Net Sales for the immediately preceding fiscal year (i.e., the increase
      of 2007 Net Sales over 2006 Net Sales, the increase of 2008 Net Sales over
      2007
      Net Sales and the increase of 2009 Net Sales over 2008 Net Sales); provided
      that
      the amount of Additional Delayed Merger Consideration shall not exceed $600,000
      in any year. For purposes of this Agreement, “Net
      Sales”
shall
      mean gross sales as set forth on Parent’s audited annual financial statements
      less promotional discounts and allowances to the extent such discounts and
      allowances are included in gross sales. For the fiscal year ending December
      31,
      2006, the Net Sales of the Company prior to the Effective Time and of the
      Surviving Corporation after the Effective Time shall constitute Net Sales of
      Parent. For purposes of this Agreement, “EBITDA”
shall
      mean operating income derived from the operations of the Surviving Corporation
      for the specified period plus depreciation and amortization attributable to
      the
      operations of the Surviving Corporation for such period minus
      any
      amounts included in EBITDA (a) derived from the sale of the Company’s interest
      in TurfStores.com, Inc. d/b/a Turf Store Co. and (b)
      collected from the Obligated Parties in respect of amounts owed by the Obligated
      Parties to the Company as of the date of this Agreement; provided, however,
      that
      in the event the Surviving Company shall have acquired, either through the
      acquisition of substantially all of the assets, all of the stock or by merger
      or
      otherwise, an operating business (the “Target
      Business”)
      the
      amount of operating income plus depreciation and amortization (the “Target
      Income”)
      generated from the Target Business that shall be included for purposes of
      calculating EBITDA will be the amount by which the Target Income generated
      during the period between the date of the acquisition through the end of the
      fiscal year in question (the “Measurement
      Period Target Income”)
      exceeds the Target Income in the comparable prior year period (the “Comparable
      Period Target Income”);
      provided, further, that in the event the acquisition of the Target Business
      took
      place during the Fiscal 2007, the Measurement Period Target Income will be
      the
      Target Income generated from January 1, 2008 through December 31, 2008 and
      the
      Comparable 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Period
      Target Income will be the Target Income generated from January 1, 2007 through
      December 31, 2007 for purposes of the EBITDA calculation for the Fiscal 2008;
      provided, further, that in the event the Measurement Period Target Income is
      less than the Comparable Period Target Income, the amount of such difference
      will be deducted for purposes of calculating EBITDA. EBITDA shall be as
      determined by Parent’s certified public accountants from the audited financial
      statements for the specified period. The parties acknowledge and agree that
      the
      obligation to pay any Delayed Cash Consideration, Delayed Stock Consideration,
      Delayed Receivable Consideration and/or Additional Delayed Merger Consideration
      shall be binding upon any and all successors and assigns of the Surviving
      Corporation, including, without limitation, any purchaser of all or
      substantially all of the assets of Surviving Corporation and any surviving
      company in a merger, consolidation or similar event involving the Surviving
      Corporation (a “Successor”).
      Parent, Sub and the Surviving Corporation shall use commercial reasonable
      efforts to ensure that Successor keeps books and records reasonably sufficient
      to determine whether the conditions to such payment have been met.
      Notwithstanding anything to the contrary contained herein, in the event the
      payment of any Delayed Cash Consideration, Delayed Receivable Consideration
      or
      Additional Delayed Merger Consideration would cause the value of the shares
      of
      Parent Common Stock received by the shareholder of the Company in the Merger
      to
      be less than forty percent (40%) of the total value of all consideration
      received by the shareholder of the Company in the Merger for purposes of Section
      368(a)(2)(D) of the Code (the “Total Value”), then the Surviving Corporation and
      Parent shall pay an amount of Delayed Cash Consideration, Delayed Receivable
      Consideration or Additional Delayed Merger Consideration in shares of Parent
      Common Stock necessary such that the value of the shares of Parent Common Stock
      in lieu of cash received by the shareholder of the Company in the Merger is
      equal to forty percent (40%) of the Total Value. In the event Parent and
      theSurviving Corporation issue shares of Parent Common Sock in lieu of the
      payment of Delayed Cash Consideration, Delayed Receivable Consideration or
      Additional Delayed Merger Consideration in cash pursuant to the immediately
      preceding sentence and thereafter amounts of Delayed Stock Consideration become
      payable, then Parent and Surviving Corporation shall thereafter, in lieu of
      issuing shares of Parent Common Stock in payment of the obligation to pay
      Delayed Stock Consideration, pay an amount of Delayed Stock Consideration in
      cash equal to the lesser of (i) the value of the Delayed Cash Consideration,
      Delayed Receivable Consideration and Additional Delayed Merger Consideration,
      as
      the case may be, that was paid in stock pursuant to the immediately preceding
      sentence and (ii) an amount such that its payment would not make the value
      of
      shares of Parent Common Stock issued in the Merger be less than forty percent
      (40%) of Total Value. The value of each share of Parent Common Stock to be
      received in the Merger shall equal the last closing sale of a share of Parent
      Common Stock on the day prior to the date of issuance; provided, however, for
      purposes of determining the number of shares to be issued in lieu of the payment
      of Delayed Cash Consideration, Delayed Receivable Consideration or Additional
      Delayed Merger Consideration in cash, such value shall equal the average of
      the
      last closing sale price of Parent Common Stock for the ten trading days
      immediately preceding the date of issuance.”

     

    5.  The
      first
      sentence of Section 2.1(c)(ii) of the Merger Agreement is hereby deleted in
      its
      entirety and replaced with the following:

     

    “The
      shares of the Parent Common Stock to be issued, including the Delayed Stock
      Consideration, if any, and all cash payable including the Delayed Cash
      Consideration, if any, the Delayed Receivable Consideration, if any, and the
      Delayed Merger 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Consideration,
      if any, upon the conversion of the Company Common Stock pursuant to Section
      2.1(c), are referred to collectively as “Merger
      Consideration”.”

     

    6.  Section
      2.1(c)(iii) of the Merger Agreement is hereby deleted in its
      entirety.

     

    7.  Section
      2.2(b) of the Merger Agreement is hereby deleted in its entirety and replaced
      with the following:

     

    “Exchange
      Procedures.
      Immediately following the Effective Time, (x) Parent shall pay to the holders
      of
      the outstanding Company Common Stock the $8,000,000 to which such holders are
      entitled as the portion of the Merger Consideration described in clause (B)
      of
      Section 2.1(c)(i) and (y) the Exchange Agent shall deliver to the holders of
      shares of Company Common Stock certificates representing the number of shares
      of
      Parent Common Stock into which such shares shall have been converted in
      accordance with clause (A) of Section 2.1(c)(i). The Delayed Cash Consideration,
      if any, and the Delayed Stock Consideration, if any, shall be paid to the
      holders of the shares of Company Common Stock that were converted into the
      right
      to receive the Merger Consideration within ten days after the issuance of the
      audited financial statements of Parent for each of the fiscal years ending
      2007
      and 2008. The Delayed Receivable Consideration, if any, shall be paid to the
      holders of the shares of the Company Common Stock that were converted into
      the
      right to receive the Merger Consideration with thirty days of receipt of
      immediately available funds from the Obligated Parties in respect of amounts
      owed by the Obligated Parties to the Company as of the date of this Agreement.
      The Additional Delayed Merger Consideration, if any, shall be paid to the
      holders of the shares of Company Common Stock that were converted into the
      right
      to receive the Merger Consideration within ten days after the issuance of the
      audited financial statements of Parent for each of the fiscal years ending
      2007,
      2008 and 2009. Each share of Company Common Stock shall be deemed at any time
      after the Effective Time to represent only the right to receive the Merger
      Consideration as contemplated by this Section 2.2.”

     

    8.  All
      references in the Merger Agreement to Delayed Merger Consideration are hereby
      deleted and replaced with Additional Delayed Merger Consideration.

     

    9.  Parent,
      Sub and the Company hereby agree that the Indemnification Agreement is hereby
      terminated.

     

    10.  All
      references in the Merger Agreement to the Indemnification Agreement are hereby
      deleted.

     

    11.  Section
      6.4 is amended to delete the following text:

     

    “;
      provided, however, that Parent shall not indemnify H. Julicher for any act
      or
      omission to the extent such act or omission causes “Parent Losses” (as defined
      in the Indemnification Agreement)”

     

    12.  Section
      6.13(b) of the Merger Agreement is hereby deleted in its entirety

     

    13.  A
      new
      Section 7.1(h) is added to the Merger Agreement as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “(h)
      Stock
      Value.
      The
      value of the shares of Parent Common Stock to be received in the Merger (at
      the
      Effective Time, and without regard to the possibility of the payment of Delayed
      Cash Consideration, Delayed Stock Consideration, Delayed Receivable
      Consideration and Additional Delayed Merger Consideration) can not be less
      than
      forty percent (40%) of the total value of all consideration to be received
      by
      the shareholder of the Company in the Merger for purposes of Section
      368(a)(2)(D) of the Code. For purposes of this condition, the value of each
      share of Parent Common Stock to be received in the Merger shall equal the last
      closing sale of a share of Parent Common Stock on the day prior to the
      Merger.

     

    14.  No
      Further Modifications.
      Except
      as expressly set forth in this Amendment, the Merger Agreement shall be
      unmodified and remain in full force and effect.

     

    15.  Governing
      Law.
      This
      Amendment shall be governed by, and construed in accordance with, the internal
      laws of the Commonwealth of Pennsylvania, applicable to contracts made and
      to be
      performed entirely within the Commonwealth of Pennsylvania (without giving
      effect to principles of choice of law or conflict of laws that would require
      application of the laws of a jurisdiction other than the Commonwealth of
      Pennsylvania).

     

    [SIGNATURES
      APPEAR ON THE FOLLOWING PAGE]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    IN
      WITNESS WHEREOF,
      Parent,
      Sub and the Company have duly executed this Amendment, all as of the date first
      written above.

    

    
      	 	
              MILLSTREAM
                II ACQUISITION CORPORATION

            
	 	 	 	 
	 	 	 	 
	 	
              By:

            	
              /s/
                Arthur Spector

            
	
               

            	 	
              Name:

            	
              Arthur
                Spector

            
	
               

            	 	
              Title:

            	
              Chairman,
                Chief Executive

            
	 	
               

            	 	
              Officer
                and President

            
	 	 	 	 
	 	 	 	 
	 	
              MILLSTREAM
                II MERGER SUB, INC.

            
	 	 	 	 
	 	 	 	 
	 	
              By:

            	
              /s/
                Arthur Spector

            
	 	
               

            	
              Name:

            	
              Arthur
                Spector

            
	 	
               

            	
              Title:

            	
              Chairman,
                Chief Executive

            
	 	
               

            	 	
              Officer
                and President

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
              SPECIALTY
                SURFACES INTERNATIONAL, INC.

            
	 	 	 	 
	 	 	 	 
	 	
              By:

            	
              /s/
                Henry Julicher

            
	 	
               

            	
              Name:

            	
              Henry
                Julicher

            
	 	
               

            	
              Title:

            	
              Chief
                Executive OfficerExhibit 10.20

Contract Registration No.:
------ --- ---- --- --- ---- --- --- ----
------ --- ---- --- --- ---- --- --- ----

                         Technical Development Contract

Project Name:  Development of the process of producing nano calcium carbonate by
micro-mixing reactor

Entrusting Party (Party A): Shandong Haize Nanomaterials Co., Ltd

Address: Youth Development Zone, Tai'an City

R&D Party (Party B): Tsinghua University (Department of Chemical Engineering)

Address: Haidian District, Beijing

This Contract is signed in Beijing.

This Contract is signed on January 12, 2005

Period of Validity: January 2005 - May 31, 2006

          Supervised by the State Scientific and Technology Commission

<PAGE>

In accordance  with the  provisions of Contract Law of the People's  Republic of
China and after  discussions  and  negotiations  about  the  development  of the
process of producing nano calcium carbonate by micro-mixing reactor based on the
existing  technology  of producing  nanometer  granule by  micro-mixing  reactor
developed by Party B, the two parties agree to enter into this contract.

I. The Content, Form and Requirements of the Target Technology:

Based on the existing  production  conditions provided by Party A, Party B shall
carry out the study of the  producing  method of nano  calcium  carbonate by the
micro-mixing  reactor,  find the proper  reacting  condition,  and carry out the
tests on small-scale  test,  pilot scale  experiment and commercial test for the
realization of industrial production.

1. The process of producing nano calcium carbonate by micro-mixing reactor

Based on the raw materials  provided by Party A, Party B shall find out the laws
by studying how the flow rate,  reaction  temperature and the  concentration  of
white lime milk will affect the size and appearance of the obtained nano calcium
carbonate  and the flow law inside  the  micro-mixing  reactor,  in order to get
prepared  for  designing  the  equipment  for  pilot  scale  experiments.  After
finishing  the above  technical  experiments,  Party B shall  submit a  research
report,  and  discuss  with  the  technical  personnel  from  Party A about  the
feasibility of pilot scale experiments.

2.  Determination  of the reacting  conditions  and key  parameters  of relevant
equipment for carbonization reactions in pilot scale experiments

After getting  permission from Party A to carry out the pilot scale experiments,
based on the research result of small-scale  tests,  Party B shall determine the
reacting conditions of the carbonization  reactor and key parameters of relevant
equipment for  carbonization  reactions,  and design the production  process for
pilot scale  experiments and relevant  equipment by cooperating  with the design
organization invited by Party A.

3. Pilot scale experiments

After  getting  permission  from  Party A about  the  stipulations  in the above
provision,  Party B  shall  provide  a  micro-mixing  reactor  for  pilot  scale
experiments. Party A shall provide the necessary equipment coordinating with the
micro-mixing  reactor as well as other  conditions  required  in the pilot scale
experiments, and carry out such tests under the instructions of Party B.

<PAGE>

Pilot scale experiments are designed to study how the gas-liquid phase ratio and
the  concentration of white lime milk will affect the size and appearance of the
obtained nano calcium  carbonate,  and check the stable operating  conditions of
equipment.  If there are  problems  affecting  the  technical  stability  of the
micro-mixing  reactor  during  the  pilot  scale  experiments,  Party B shall be
responsible for fixing them.

Party B shall submit a report of the pilot scale experiments.  Party A shall ask
experts to conduct  the check and  acceptance  of the result of the pilot  scale
experiments.

4. Commercial tests

After getting  permission from Party A to carry out the commercial tests,  based
on the research results of pilot scale experiments,  Party B shall determine the
reacting conditions of the micro-mixing  reactors and key parameters of relevant
equipment for  carbonization  reactions,  and design the production  process for
commercial  tests  and  relevant   equipment  by  cooperating  with  the  design
organization invited by Party A.

Commercial  tests are designed to study how the  gas-liquid  phase ratio and the
concentration  of white  lime milk will  affect the size and  appearance  of the
obtained nano calcium  carbonate,  and check the stable operating  conditions of
equipment.  If there are  problems  affecting  the  technical  stability  of the
micro-mixing  reactor during the pilot scale  experiments,  Party B shall assist
Party B to fix them.

Party A and Party B shall jointly submit the report of commercial tests. Party A
shall ask  experts  to  conduct  the check and  acceptance  of the result of the
commercial tests.

While working at the location of Party B, the board and lodging  expenses of the
staff of Party A shall be  covered  by Party A. If some staff of Party B need to
go  the  locale  of  Party  A  and  do  necessary  work  for  the  sake  of  the
implementation  of this project,  the travel expenses arising from this shall be
covered by Party A.

II. Required Technical Indicators and Parameters:

(I)   Required technical indicators and parameters for small-scale tests

1.    The granule diameter of the primary granule of the nano calcium  carbonate
      obtained by this technical  method shall be less than 60  nanometers.  The
      granules  whose  diameters are more than 60 nanometers  shall account less
      than 5% of the total mass.

<PAGE>

2.    When the process reaches the stage of  carbonization,  the pH value of the
      white lime shall not be higher than 8.5 within 4 hours.

(II)  Required technical indicators and parameters for pilot scale experiments

1.    All the above required technical  indicators and parameter for small-scale
      tests shall have been satisfied.
2.    The composition of the kiln gas for carbonization should be: CO2 (28%), O2
      (4%) and CO (2%).  The other  ingredients  are mainly N2,  small amount of
      water vapor and soot.  The  utilization  ratio of CO2 during the  reacting
      process should be >/= 80%.
3.    The  carbonization  temperature  will be  acceptable  within  the range of
      30iA10iae for the convenience of control and operation.
4.    This process shall guarantee the whiteness after carbonation will be 1.5 -
      2.0 degrees higher than that before carbonation.
5.    The  concentration  of white  lime  milk for  carbonization  shall be >/+=
      60g/l.

(III) Required technical indicators and parameters for commercial tests

1.    All the above  required  technical  indicators  and parameter for tests on
      small-scale tests and pilot scale experiments shall have been satisfied.
2.    The producing method in this process can be used in industrial production,
      with the annual output for single equipment being more than 3,000 tons.

III.  Plans for Research and Development

1.    The small-scale  tests shall be carried out and completed  within 3 months
      after this contract has become effective.
2.    The pilot scale  experiments  shall be carried out and completed  within 3
      months after receiving the first fund for pilot scale experiments.
3.    The enlarged  commercial test shall be carried out and completed  within 3
      months after receiving the first fund for commercial  tests. The producing
      conditions shall be technically satisfied.

As the above R&D plans will be carried  out at the  location of Party A and that
of Party B respectively and the two parties will take joint responsibilities, so
the parties  shall  closely  cooperate  with each other in the  execution of the
plans.  In case that the pilot  plant or  commercial  plant  cannot be  prepared
timely,  the research plans shall be postponed.  The changes of the R&D schedule
shall be determined after the negotiations of the two parties.

<PAGE>

IV.   R&D Expenses, Remuneration and Mode of Payment or Settlement

(I) R&D expenses refer to the costs needed for the R&D.  Remuneration  refers to
the royalty of the  achievement  developed by this project and the allowance and
subsidies for the R&D staff.

R&D expenses and remuneration  for this project total at RMB 1,500,000.00  yuan,
that is, RMB one million and five hundred thousand yuan exactly.

Among which:

1.    Party A shall pay RMB two hundred and fifty  thousand  yuan to Party B for
      the research work of small-scale tests (item 1 of Article 1).
2.    After  small-scale tests have been finished and accepted by Party A, Party
      A shall  pay RMB six  hundred  thousand  yuan to Party B for  pilot  scale
      experiments  of this project  (item 2 of Article 1). When  personnel  from
      Party B work at the location of Party A for the execution of this project,
      the relevant  boarding and lodging  expenses  shall be covered by Party A,
      but the expenses shall be subject to Party A's examination.
3.    After pilot scale  experiments have been finished and accepted by Party A,
      Party A shall pay RMB six hundred and fifty  thousand  yuan to Party B for
      the enlarged  commercial tests of this project (item 4 of Article 1). When
      personnel  from Party B work at the location of Party A for the  execution
      of this  project,  the  relevant  boarding and lodging  expenses  shall be
      covered  by Party A,  but the  expenses  shall  be  subject  to Party  A's
      examination.

(II)  Mode of Payment and time limit for expenditures and remuneration:

1.    Party A shall pay RMB two hundred  thousand  yuan to Party B within 7 days
      after this contract has been signed and sealed by both parties.
2.    Party A shall  organize  the check and  acceptance  within  ten days after
      Party B has submitted the report for technological test. Party A shall pay
      RMB  fifty  thousand  to Party B within  seven  days  after  the check and
      acceptance  has  passed.  If  Party A fails  to  organize  the  check  and
      acceptance within one month, it shall be deemed as having been accepted.
3.    Party A shall pay RMB three hundred  thousand yuan to Party B within seven
      days after  Party A has  informed  Party B in formal  written  form of the
      commencement of the pilot scale experiments.
4.    Party A shall  pay RMB one  hundred  and  fifty  thousand  yuan to Party B
      within seven days after Party B has  submitted  the report for pilot scale
      experiments.
5.    Party A shall  organize  the check and  acceptance  within one month after
      receiving  the report for pilot  scale  experiments  from Party B. Party A
      shall pay RMB one hundred and fifty  thousand yuan to Party B within seven
      days  after the  check  and  acceptance  has  passed.  If Party A fails to
      organize the check and acceptance  within one month, it shall be deemed as
      having been accepted.

<PAGE>

6.    Party A shall pay RMB three  hundred  and fifty  thousand  yuan to Party B
      within  seven days after Party A has  informed  Party B in formal  written
      form of the commencement of the commercial tests.
7.    Party A shall  pay RMB one  hundred  and  fifty  thousand  yuan to Party B
      within  seven days after Party B has  submitted  the report for  technical
      commercial tests.
8.    Party A shall  organize  the check and  acceptance  within one month after
      receiving the report for commercial  tests from Party B. Party A shall pay
      RMB one  hundred  and fifty  thousand  yuan to Party B after the check and
      acceptance  has  passed.  If  Party A fails  to  organize  the  check  and
      acceptance within one month, it shall be deemed as having been accepted.

(III) Exclusive Use Right

After the check and  acceptance  for this project has been done,  Party B agrees
that all the technology and/or patent license arising from the execution of this
contract  will be  exclusively  used by Party  A.  Party A shall  pay an  annual
royalty of RMB five hundred  thousand  yuan and the charge for using the patents
arising from the execution of this contract  (exclusive use royalty) to Party B.
All the royalties and charges for a year shall be paid before  January 31 of the
year. In the year when the commercial  tests were checked and accepted,  Party A
can be exempted from paying  royalties and charges.  Unless permitted by Party A
in a written form,  Party B shall not authorize any other third party to use all
the technology and/or patents arising from the execution of this contract

V.    Ownership of the  Equipment,  Materials  and Data  Purchased  with the R&D
Expenses

All the equipment,  materials and data purchased by Party B with R&D fund belong
to Party B. All the  equipment,  materials  and data  purchased  by Party A with
other fund belong to Party A.

VI.   Term of the Contract, Site and Mode of Performing the Contract

This  contract  will be  performed  starting  from  January  2005 in Beijing and
Tai'an.

The mode of performing  the contract is that Party A provides the  expenditures,
and Party B is  commissioned  to cooperate with Party A to develop the method of
producing nano calcium carbonate by micro-mixing reactor.

<PAGE>

VII.  * Confidentiality of Technological Information and Data

1.    Both  parties  shall  have the  obligation  of keeping  the  technological
      information  and data  provided  by the  other  party  confidential.  This
      article  shall  remain  in  effective  for long even if this  contract  is
      amended, canceled or terminated.

VIII. Contents of the Technological Cooperation and Instruction

1.    Party  A shall  provide  the  technological  process,  composition  of raw
      materials,  technical  indicators,  as well as the  analyzing  and testing
      method and method of producing  nano calcium  carbonate  currently used by
      Party A, and  provide  Party B with the  relevant  technological  know-how
      required during the technology developing process.
2.    Party A shall provide samples of its existing products.
3.    The  parties  shall hold one  working  meeting at each stage  (small-scale
      tests,  pilot scale experiments and commercial tests), and main persons in
      charge and technical personnel, to discuss the progress of the project and
      discuss  what work should be done in the future and define the pace of the
      project.

IX.   The Assuming of Responsibility of Risks

During the execution of this contract, if technological difficulties that cannot
be overcome by using current technologies lead to partly or total failure of the
research and  development,  the  responsibility  of risks for the losses thereof
shall be reasonably assumed by the parties, that is, each party shall bear their
respective  responsibility  according to the  manpower,  material  resources and
financial resources it has invested into the R&D project.

X.    Ownership and Share of Technological Achievements

1.    The  two  parties  hereby  agree  that  during  the  performance  of  this
      technological  development  contract,  the  technological  achievements of
      producing nano calcium carbonate by micro-mixing reactor shall be owned by
      the parties on a 50%-50% basis. In the case of applying for patent,  right
      to apply for a patent  shall be jointly  owned by the two  parties.  While
      applying for a patent,  the name of Party A shall be put first.  The title
      to patent shall be shared by the two parties on a 50%-50%  basis,  and the
      expenditures in applying for a patent shall also be covered by the parties
      on a 50%-50% basis.
2.    For the  technological  achievements  under this contract  (including  the
      patent  obtained  from  the  target  technology),  in the  year  when  the
      commercial  tests were  checked and  accepted,  Party A has the  exclusive
      right and can use it free of charge in that year.  In other  years,  after
      paying the annual  royalty for  exclusive use to Party B, Party A owns the

<PAGE>

      exclusive  right of the  technological  achievements  under this  contract
      (including the patent obtained from the target technology) for the year in
      question.  Any party  shall not  transfer  this  technology  unilaterally.
      Transfer  of the  technology  must be  agreed by both  parties,  while the
      proceedings  of the transfer  shall be shared by both parties on a 50%-50%
      basis.

      If Party A fails to pay all the R&D expenses and the royalty for exclusive
      use  pursuant to the  stipulations  in this  contract,  starting  from two
      months after the due date of each payment, the exclusive rights of Party A
      shall be  changed  into  common-use  rights,  and Party B has the right to
      transfer the target technology under this contract as it pleases.

      If Party A fails to put the target  technology into industrial  production
      within  two years  after the tests  for  industrial  production  have been
      checked  and  accepted,  Party B has the  right  to  transfer  the  target
      technology  as it  pleases.  However,  if Party A has paid off all the R&D
      expenses,  the earnings  obtained from the transfer (with costs  deducted)
      shall be shared by the two parties on a 50%-50% basis.

3.    If the achievement in scientific research needs to be reported for being a
      candidate of prize-competition, the two parties shall make the application
      jointly.  Party B shall be put first  when  filing the  application;  when
      filling the names of the research staff,  the name of the person in charge
      of the project from Party B shall be put in the first  place,  followed by
      the person in charge of the project from Party A, and then followed by the
      research   staff  from  both  parties   according   to  their   respective
      contribution to the project in a cross spreading manner.

XI.   Acceptance Criteria and Mode of Check and Acceptance

The technological achievements of the research and development shall satisfy all
the  technical  indicators  listed  in  Article  2 of this  contract,  submitted
together with a complete test report. If need to, experts will be asked to check
and  discuss  the report,  Party A shall  produce  documents  for  checking  and
accepting the technological project.

XII.  Computing Mode for Penalty or Compensation for Losses

If a  breach  of  this  contract  occurs,  the  party  in  breach  shall  assume
corresponding   liabilities   for  breaching   the  contract   pursuant  to  the
stipulations in the Contract Law.

<PAGE>

(I) If there is a breach of Article 4 of this  contract  on the part of Party A,
Party A shall assume the  liabilities  for breaching the contract.  Overdue fine
shall be  collected by 2ie of the overdue  amount for one delaying  day, and the
time limit for  performing the contract  shall be postpone  accordingly.  If the
overdue  expenditures are delayed for two months,  Party A shall pay off all the
expenditures and overdue fine as well as the penalty in the amount of 10% of the
value of contract. Meanwhile, Party B has the right to terminate the contract.

(II) If there is a breach of Article 1, 2 and 3 of this  contract on the part of
Party B, Party B shall assume the liabilities for breaching the contract.  Party
B shall pay the  penalty to Party A, with the  ceiling  amount  being 60% of the
paid amount. If the project fails as a result of Party B's breach, Party B shall
compensate Party A with 100% of the paid amount.

(III) If there is a breach  of other  articles  of this  contract,  the party in
breach shall pay the penalty, with the ceiling amount being the amount that have
been paid by Party A.

XIII. Settlement of Disputes

      Should any disputes  between the parties  arising out of or in  connection
with this contract  occur,  the parties shall resolve through  negotiation.  The
disputes can also be raised to the supervision department for conciliation.
      If any party would not like to resort to negotiation or  conciliation,  or
such negotiation or conciliation  fails, the parties shall submit the dispute to
the Beijing Arbitration Commission for arbitration.

XIV.  Miscellaneous

1.    This contract is made into ten originals.  It shall become  effective upon
      being signed by the legal  representatives of both parties and the arrival
      of the first amount of expenditure (RMB two hundred  thousand yuan).  Each
      party shall hold five copies, and all of them have the same legal effect.
2.    Any  amendment,  supplementation  or changes shall become  effective  only
      after the parties have concluded a written agreement and signed on it.

<PAGE>
<TABLE>
<CAPTION>

----------------- -------------------- --------------------------------------------------------------------
<S>               <C>                  <C>                               <C>               <C>
                  Name                 Shandong Haize Nanomaterials Co., Ltd (seal)
Entrusting        -------------------- --------------------------------------------------------------------
Party             Legal                /s/ Jia Hongping                  Authorized        /s/ Li Xuewen
(Party A)         representative       (signature)                       Proxy             (signature)
                  -------------------- --------------------------------- ---------------- -----------------
                  Contact person         Du Lei                                            (signature)
                  -------------------- --------------------------------------------------------------------
                  Location             Youth Development Zone, Tai'an City
                  (postal address)
                  -------------------- --------------------------------------------------------------------
                  Telephone            13395389680                       Cable address
                  -------------------- --------------------------------- ---------------- -----------------
                  Bank of
                  deposit
                  -------------------- --------------------------------------------------------------------
                  Account No.                                            Post Code        271000
----------------- -------------------- --------------------------------- ---------------- -----------------
                  Name                 Tsinghua University  (seal)
Entrusted         -------------------- --------------------------------------------------------------------
Party             Legal                /s/ Ji Shishan                    Authorized        /s/ Wang Xigong
(Party B)         representative       (signature)                       Proxy             (signature)
                  -------------------- --------------------------------- ---------------- -----------------
                  Contact person        Luo Guangsheng, Wang Yujun                    (signature)
                  -------------------- --------------------------------------------------------------------
                  (postal address)
                  -------------------- --------------------------------------------------------------------
                  Telephone            62783870                          Cable address    1331
                  -------------------- --------------------------------- ---------------- -----------------
                  Bank of              ICBC Haidian Township Branch
                  deposit
                  -------------------- --------------------------------------------------------------------
                  Account No.                                            Post Code        100084
----------------- -------------------- --------------------------------- ---------------- -----------------
Broker            Name                                                                (official seal)
                                                                                      Date:
                  -------------------- --------------------------------------------------------------------
                  Legal                                                  Authorized
                  representative       (signature)                       Proxy            (signature)
                  -------------------- --------------------------------- ---------------- -----------------
                  Contact person                                                    (signature)
                  -------------------- --------------------------------------------------------------------
                  Location
                  (postal address)
                  -------------------- --------------------------------------------------------------------
                  Telephone                                              Cable address
                  -------------------- --------------------------------- ---------------- -----------------
                  Bank of
                  deposit
                  -------------------- --------------------------------------------------------------------
                  Account No.                                            Post Code
----------------- -------------------- --------------------------------- ---------------- -----------------
</TABLE>

<PAGE>

                       Sticking Place for the Fiscal Stamp
                       -----------------------------------

--------------------------------------------------------------------------------
Column  for  examination  and  registration  to be  filled  by the  registration
authority:

         Registration Authority for Technical Contracts (official seal)

Prepared by:                     (signature)                     Date:
--------------------------------------------------------------------------------

<PAGE>

                             Supplemental agreement

Party A: Shandong Haize Nanomaterials Co., Ltd
Party B: Tsinghua University

      The parties entered a Technological  Development  Contract  (Project Name:
Development of the process of producing nano calcium  carbonate by  micro-mixing
reactor, Contract No. of Tsinghua University: 2005129) on January 12, 2005. With
regard to this contract, the parties hereby make further explanation as follows:

1.    "Period of Validity: January 2005 - May 31, 2006" listed on the cover page
      (page 1) of the  Technological  Development  Contract  refers  to the time
      needed  to  carry  out  the  R&D of the  technology  concerned  (including
      small-scale  tests,  pilot scale  experiments and commercial tests) by the
      parties. The relevant terms ("exclusive right by Party A" in Article 4 (3)
      of the  Contract  and  "the  ownership  and  share  of  the  technological
      achievements" in Article 10 of the Contract) are beyond the restriction of
      the  "period  of  validity"  listed  on the  cover  page  (page  1) of the
      Technological Development Contract.
2.    The term "technology" used in Article 10 of the Technological  Development
      Contract  (the  ownership  and  share of the  technological  achievements)
      refers to the propriety right and the right of using the technology.
3.    This Agreement will become effective  immediately upon being signed by the
      legal  representatives  of both parties.  This  Agreement is made into ten
      originals, and each party shall hold five copies.

Confirmed by:

Party A: Shandong Haize Nanomaterials Co., Ltd
Authorized Representative: /s/ Jia Hongping
Signature:
Date:

Party B: Tsinghua University
Authorized Representative: /s/ Wang Xigong
Signature: Wang Yujun
Date: May 10, 2005

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]