Document:

Unassociated Document

    EXCLUSIVE
OPTION AGREEMENT

     

    BETWEEN

     

    China
New Energy Investment Co., Ltd.

     

    AND

     

    Beijing
Fengyin Xianghe Scientific Technology Co., Ltd.

    

     

    Beijing,
CHINA

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXCLUSIVE
OPTION AGREEMENT

     

    This
Exclusive Option Agreement (the “Agreement”) is entered into as of _________,
2010 between the following parties in Beijing.

     

    Party A:

    Name:
China New Energy Investment Co., Ltd.

    Registered
Address:

    Legal
Representative:

    

    Party B:

    Name:
Beijing Fengyin Xianghe Scientific Technology Co., Ltd.

    Registered
Address:

    Legal
Representative:

    

    丙方Party C:

    Name:
Zhuolu Dadi Gas Co. Ltd.

    Registered
Address: Zhuolu County, Zhangjiakou, Hebei Province

    Legal
Representative: Tang Zhixiang

    

    In this
Agreement, Party A and Party B are called collectively as the
“Parties”.

     

    WHEREAS:

    

    
      	
              1.

            	
              Party
      A is a wholly foreign-owned enterprise incorporated under the laws of the
      People’s Republic of China (the
“PRC”);

            

    

     

    
      	
              2.

            	
              Party
      B is a liability limited company incorporated in Beijing and with business
      license issued by the Beijing Municipal Administration of Industry and
      Commerce;

            

    

     

    
      	
              3.

            	
              Party
      C is a liability limited company incorporated in Zhuolu County,
      Zhangjiakou, Hebei Province.

            

    

    

    
      	
              4.

            	
              Party
      A and Party B have reached Equity Transfer Agreement on 70% Equity of
      Zhuolu Dadi Gas Co. Ltd. (hereinafter referred to as “ETA”) in connection
      with Party B transferring 70% equity of Party C to Party
  A.

            

    

    

    NOW, THEREFORE, the Parties
through mutual negotiations hereby enter into this Agreement according to the
following terms and conditions:

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
              1.

            	
              THE
      GRANT AND EXERCISE OF PURCHASE
OPTION

            

    

     

    
      	
            	
              1.1

            	
              Grant:

            

    

    Party B
grants Party A an irrevocable exclusive purchase option. After the completion of
the Transfer under the ETA Party A has right to purchase remaining 30% the
shares of Party C currently owned by Party B. This purchase option is
irrevocable and shall be exercised only by Party A.

    

    
      	
            	
              1.2

            	
              Exercise
      Procedures:

            

    

    
      	
               
      

            	
              1.2.1

            	
              Both
      Party shall sign Equity Transfer Agreement on 70% Equity
      of  Zhuolu Dadi Gas Co. Ltd(as
      attached)on the date
      of execution of this Agreement.

            

    

    
      	
               
      

            	
              1.2.2

            	
              Upon
      payment of the 2nd Payment (as defined in the ETA), Party A shall notify
      Party B in writing within 3 working days regarding its intention of
      exercising the Option (the “Option Notice” hereinafter). After the
      mentioned period, if the Transferee does not provide the notice to
      Transferor, it will deem as the Transferee gives up the option
      right.

            

    

    
      	
               
      

            	
              1.2.3

            	
              Upon
      delivery of the Option Notice, Party B shall execute other necessary
      documents (collectively, the “Transfer Documents”) with Party A (or the
      qualified person appointed by Party A) in order to effectuate the transfer
      of shares.

            

    

    
      	
               
      

            	
              1.2.4

            	
              Party
      B shall assist Party A to complete the necessary procedures such as
      governmental approval, permission, registration, documentations and other
      related procedure to complete the
transfer.

            

    

    

    
      	
              2、

            	
              Price
      of Option

            

    

    The
option price shall be RMB 65 million for the 30% of Party C’s equity owned by
Party B.

    

    
      	
              3.

            	
              REPRESENTATIONS
      AND WARRANTIES

            

    

    

    
      	
            	
              3.1

            	
              Each
      party hereto represents to the other parties that: (1) it has all the
      necessary rights, powers and authorizations to enter into this Agreement
      and perform its duties and obligations hereunder; and (2) the execution or
      performance of this Agreement shall not violate any significant contract
      or agreement to which it is a party or by which it or its assets are
      bounded.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              3.2

            	
              Party
      B represents to Party A that: (1) they are legally registered shareholders
      of Party C and have paid the full amount of their respective portions of
      Party C's registered capital required under the PRC laws; (2) Party B has
      not mortgaged or pledged its shares of Party C, nor has it granted any
      security interest or borrowed against its shares of Party C in any form;
      and (3) Party B has not sold nor will sell to any third party its equity
      interests in Party C.

            

    

    

    
      	
              4.

            	
              ASSIGNMENT
      OF AGREEMENT

            

    

    

    
      	
            	
              4.1

            	
              Party
      B shall not transfer their rights and obligations under this Agreement to
      any third party without the prior written consent of the Party
      A.

            

    

     

    
      	
            	
              4.2

            	
              Party
      B hereby agrees that Party A shall have the right to transfer all of its
      rights and obligation under this Agreement to any third party whenever it
      desires. Any such transfer shall only be subject to a written notice sent
      to Party B.

            

    

     

    
      	
              5. 

            	
              CONFIDENTIALITY

            

    

    

    The
Parties acknowledge and confirm that any oral or written materials exchanged by
the Parties in connection with this Agreement are confidential. The Parties
shall maintain the secrecy and confidentiality of all such materials. Without
the written approval by the other Parties, any Party shall not disclose to any
third party any relevant materials, but the following circumstances shall be
excluded:

    

    
      	
               
      

            	
              a.

            	
              The
      materials is known or will be known by the public (except for any
      materials disclosed to the public by the Party who receives such
      materials);

            

    

     

    
      	
               
      

            	
              b.

            	
              The
      materials are required to be disclosed under the applicable laws or the
      rules or provisions of stock exchange;
or

            

    

     

    
      	
               
      

            	
              c.

            	
              The
      materials disclosed by each Party to its legal or financial consultant
      relate to the transaction contemplated under this Agreement, and such
      legal or financial consultant shall comply with the confidentiality set
      forth in this Section. The disclosure of the confidential materials by an
      employee of any Party shall be deemed disclosure of such materials by such
      Party, and such Party shall be liable for breaching the contract. This
      Article shall survive this Agreement even if this Agreement is invalid,
      amended, revoked, terminated or unenforceable by any
    reason.

            

    

     

    
      	
              6. 

            	
              BREACH
      OF CONTRACT

            

    

    

    Any
violation of any provision hereof, any incomplete or mistaken performance of any
obligation provided hereunder, any misrepresentation made hereunder, any
material nondisclosure or omission of any material fact, or any failure to
perform any covenants provided hereunder by any Party shall constitute a breach
of this Agreement. The breaching Party shall be liable for any such breach
pursuant to the applicable laws.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              7. 

            	
              APPLICABLE
      LAW AND DISPUTE RESOLUTION

            

    

    

    
      	
            	
              7.1

            	
              Applicable
      Law

            

    

     

    The
execution, validity, interpretation and performance of this Agreement and the
disputes resolution under this Agreement shall be governed by the laws of
PRC.

    

    
      	
            	
              7.2

            	
              Dispute
      Resolution

            

    

     

    The
parties shall strive to settle any dispute arising from the interpretation or
performance of this Agreement through friendly consultation. In case no
settlement can be reached through consultation within thirty (30) days after
such dispute is raised, each party can submit such matter to China International
Economic and Trade Arbitration Commission Beijing Branch (the “CIETAC”) in
accordance with its rules. The arbitration shall take place in Beijing. The
arbitration award shall be final, conclusive and binding upon both
parties.

     

    
      	
              8. 

            	
              EFFECTIVENESS
      AND TERMINATION

            

    

    

    
      	
            	
              8.1

            	
              This
      Agreement shall be effective upon the execution hereof by all Parties
      hereto and shall remain effective
thereafter.

            

    

    

    
      	
            	
              8.2

            	
              This
      Agreement may not be terminated without the consent of Party A and Party B
      except that Party A may, by giving thirty (30) days prior notice to the
      other Parties hereto, terminate this
Agreement.

            

    

    

    
      	
              9. 

            	
              MISCELLANEOUS

            

    

    

    
      	
            	
              9.1

            	
              Amendment,
      Modification and Supplement

            

    

     

    Any
amendment and supplement to this Agreement shall be made by the Parties in
writing. The amendment and supplement duly executed by each Party shall be
deemed an integral part of this Agreement and shall have the same legal effect
as this Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              9.2

            	
              Entire
      Agreement 

            

    

     

    The
Parties acknowledge that this Agreement, General Framework Agreement for
Cooperation, ETA, Supplementary Agreement for the Escrow Terms and Conditions
for the First Installment and all ancillary agreements to each constitutes the
entire agreement of the Parties with respect to the subject matters therein and
supersedes and replaces all prior or contemporaneous agreements and
understandings in oral or written form.

     

    
      	
            	
              9.3

            	
              Severability

            

    

      

    If any
provision of this Agreement is adjudicated to be invalid or non-enforceable
according to relevant PRC laws of the PRC, such a provision shall be deemed
invalid only to the extent the PRC laws are applicable in China, and the
validity, legality and enforceability of the other provisions hereof shall not
be affected or impaired in any way. The Parties shall, through consultation
based on the principal of fairness, replace such invalid, illegal or
non-enforceable provision with valid provision so that any substituted provision
may bring the similar economic effects as  those intended by the
invalid, illegal or non-enforceable provision.

     

    
      	
            	
              9.4

            	
              Headings

            

    

     

    The
headings contained in this Agreement are for the convenience of reference only
and shall not in any other way affect the interpretation, explanation or the
meaning of the provisions of this Agreement.

     

    
      	
            	
              9.5

            	
              Language
      and Copies

            

    

      

    This
Agreement is executed in Chinese in six (6) copies; each Party holds two and
each original copy has the same legal effect.

     

    
      	
            	
              9.6

            	
              Successor

            

    

     

    This
Agreement shall bind and benefit the successor or the transferee of each
Party.

     

    IN WITNESS THEREFORE, the
parties hereof have caused this Agreement to be executed by their duly
authorized representatives as of the date first written
above.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    [No Text
Below, Signature Page Only]

     

    PARTY
A: China New Energy Investment Co., Ltd (Seal)

    

    Legal Representative/Authorized Representative(Signature):

     

    
      
        

      
 

    PARTY
B: Beijing Fengyin Xianghe Scientific Technology Co., Ltd. (Seal)

    

    Legal Representative/Authorized Representative(Signature):

    
       

      
        
          

        
  
PARTY
C: Zhuolu Dadi Gas Co., Ltd. (Seal)

    

    Legal Representative/Authorized Representative(Signature):

    
       

      
        
          

        

      

    
 

    
      
         

      

      
        6Unassociated Document

    

      Equity
Transfer Agreement on

      30% Equity of Zhuolu Dadi Gas Co.
Ltd.

      

      This
Agreement is entered by and between the Transferor, the Transferee and the Related
Party of Transferor in  Beijing  on the day of
________________.

      

      Transferor:

      Beijing
Fengyin Xianghe Scientific Technology Co., Ltd.

      

      Transferee:

      China New
Energy Investment Co.,Ltd

      Authorized
Representative:

      ID
No.:

      

      Related
Party of Transferor:

      Tang
Zhixiang (ID No.110227195610211817)

      

       (The
Transferor, the Transferee and the Related
Party of Transferor shall hereinafter be referred to individually as the
"Party" and collectively as the "Parties".)

      

      Target
Company:

      

      Zhuolu
Dadi Gas Co. Ltd., (hereinafter referred to as “Zhuolu Company” or the “Target
Company”), a limited company established and existing under the laws of China,
with its registered address at Zhuolu County, Zhangjiakou, Hebei Province, with
its legal representative of Tang Zhixiang.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      Whereas:

      
        1)

      

      The
shareholding structure of the Target Company is as follows:

      
        
          
            
              	
                      Name

                    	 	
                      Percentage of Equity

                      Holding

                    	 
	
                      Transferee

                    	 	 	70	%
	 
      	 	 	30	%
	
                      Total

                    	 	 	100	%

            

          

        

      

      

      
        	
                2)

              	
                The
      Related Party of Transferor is the actual controller of the
      Transferor;

              

      

      
        	
                3)

              	
                The
      Transferee may purchase 30% equity of the Target Company from the
      Transferor upon its option granted by the Transferor of acquiring such
      equity; and

              

      

      
        	
                4)

              	
                The
      Transferor agrees to transfer 30% equity of the Target Company held by it
      to the Transferee upon the exercise the Transferee’s option of acquiring
      such equity.

              

      

      

      Pursuant
to the Company Law of the
People's Republic of China and Contract Law of the People's
Republic of China and other applicable laws and regulations the
Transferor, the Transferee and the Related Party of Transferor, after friendly
consultations, conclude this Agreement regarding the equity transfer as
follows:

      

      1.
Transferred Equity

      
        	
                1.1

              	
                The
      Transferee agrees to purchase the 30% equity interest of the Target
      Company from the Transferor.

              

      

      
        	
                1.2

              	
                The
      Transferor agrees to sell 30% equity interest of the Target Company held
      by it to the Transferee after the execution of this
    Agreement.

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
        	
                1.3

              	
                After
      the completion of registration in AIC for this equity transfer of equity
      the Transferee will enjoy the shareholder's rights, and undertake
      obligations and responsibilities of shareholder in accordance with
      applicable China laws and the provisions of the Articles of Association of
      the Target Company.

              

      

      

      
        	
                2.

              	
                Preconditions
      of Transfer of Equity

              

      

      
        	
                2.1

              	
                The
      Parties agree that the following conditions shall be satisfied prior to
      the performance of respective obligations of the Transferor and the
      Transferee to effect the sale and purchase of the Transferred Equity and
      the Completion:

              

      

      
        	
                 
      

              	
                (1)

              	
                that
      all necessary permissions, instructions, consents, licenses, approval or
      authorization of any governmental
      authority, bureau, agency or other body required in connection with the
      legality, validity or enforceability of the sale and purchase of the
      Transferred Equity have been obtained or
made;

              

      

      
        	
                 
      

              	
                (2)

              	
                that
      all necessary procedures, formalities and steps and regulatory
      requirements relating to the sale and purchase of the Transferred Equity
      have been completed or complied with (including but not limited to,
      approval for the transfer of equity of local authority of MOC have been
      obtained and the corresponding alteration of AIC have been
      completed);

              

      

      

      
        	
                3.

              	
                Consideration
      and Payment Schedule

              

      

      
        
          	
                	
                  3.1

                	
                  Both
      the Transferor and the Transferee agree that the consideration of 30%
      equity of the Target Company (hereinafter referred to as the
      "Consideration") shall be RMB 65,000,000.00 (including tax). In any cases,
      the amount of the Consideration will not be adjusted. But if any party
      breaches this Agreement, the breaching party shall take the corresponding
      liabilities of breach.

                

        

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
        	
              	
                3.1.1

              	
                The
      Consideration shall be paid in Renminbi or equivalent US Dollars (the
      exchange rate between RMB and USD shall be the rate upon the payment) in
      one installment.

              

      

      
        	
              	
                3.2

              	
                Payment

              

      

      

      The
Parties agree that the Consideration shall be paid according to the following
Payment Schedule:

      
        	
              	
                3.2.1

              	
                The
      precondition of payment is that all conditions set forth in Section 2.1
      are satisfied.

              

      

      
        	
              	
                3.2.2

              	
                The
      Transferor shall submit original certificates or documents on satisfaction
      of above conditions after obtained. After the Transferee has received all
      the certificates and documents, the Transferee shall issue a written
      confirmation immediately. The day on which such written confirmation is
      issued is the satisfaction day of such payment precondition.
      Notwithstanding aforesaid, the Transferee shall issue the written
      confirmation when such certificates and documents submitted by the
      Transferor are true, necessary and sufficient.  Above-mentioned
      payment precondition shall be satisfied or fulfilled within 30 days after
      the day the Transferee sending a writing notice of exercise option to the
      Transferor.

              

      

      

      
        	
              	
                3.3

              	
                The
      Transferee agrees that, except as otherwise provided in this Agreement,
      when making the payment of the consideration to the Transferor, the
      Transferee will make the payment to the bank account instructed by the
      Transferor. The Transferor agrees that, such payment following the
      Transferor’s payment instruction shall be considered as the payment to the
      Transferor.

              

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      
        	
                4.

              	
                Completion
      of the Transfer

              

      

      

      The
Parties agree that the satisfaction day of the payment precondition set forth in
Article 3.2 is the Completion Day of the Transfer.

      

      
        	
                5.

              	
                Undertakings
      and Warranties

              

      

      
        	
                5.1

              	
                Both
      the Transferor and the Related Party of Transferor jointly and severally
      undertake and warrant that:

              

      

      
        	
              	
                5.1.1

              	
                The
      Transferor legally owns 30% of the equity of the Target Company. Should
      any third Party claim any ownership or other interest in the aforesaid
      equity, the Transferor shall assume full responsibility and shall be
      liable to compensate the Transferee for any loss incurred
      hereof.

              

      

      
        	
              	
                5.1.2

              	
                The
      Transferred Equity shall not subject to any restriction under any laws and
      agreements beyond the ones stipulated expressly in this Agreement. Should
      any third Party produce effective evidence that the transfer by the
      Transferor is subject to any restriction under any laws and agreements,
      the Transferor shall assume full responsibility and shall be liable to
      compensate the Transferee for any loss incurred
  hereof.

              

      

      
        	
              	
                5.1.3

              	
                Upon
      the performance of this Agreement, the Transferred Equity purchased by the
      Transferee and its subsidiary rights and interests or those to be
      generated from the equity are free of any rights and interests of any
      third Party.

              

      

      
        	
              	
                5.1.4

              	
                The
      above-mentioned undertakings and warranties are made as of the Completion
      Day of the Transfer and shall survive after the Completion Day of the
      Transfer.

              

      

      
        	
                5.2

              	
                The
      Transferee undertakes and warrants
that:

              

      

      
        	
              	
                5.2.1

              	
                The
      Transferee is a legal entity established and legally existing under the
      laws of P.R.C..

              

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
        	
              	
                5.2.2

              	
                The
      Transferee will negotiate with the Transferor on matters concerning equity
      transfer not mentioned herein in accordance with PRC laws and regulations
      and relevant policies.

              

      

      
        	
              	
                5.2.3

              	
                The
      Transferee shall be responsible for the above mentioned undertakings and
      warranties. If the Transferor have fulfilled its obligations under the
      Agreement, the Transferee shall also bear relevant obligations and pay
      Consideration to the Transferor as stipulated in this
      Agreement.

              

      

      

      
        	
                6.

              	
                Liability
      for breach of the Agreement

              

      

      
        	
                6.1

              	
                The
      Parties mutually agree that, unless otherwise provided under this
      Agreement, if a Party is in material breach of this Agreement ("breaching
      Party"), then the other Party (“observant Party”) has the right to
      terminate this Agreement according to the Contract Law of People's
      Republic of China and applicable judicatory interpretations and claims
      damages arising from the breach.

              

      

      
        	
                6.2

              	
                The
      Parties confirm simultaneously that, unless otherwise provided in this
      Agreement, if a Party is in breach of their undertakings, warranties and
      facts stated in the Section 5 under the Agreement, the observant Party has
      the right to terminate this Agreement and claim damages arising from the
      breach.

              

      

      
        	
                6.3

              	
                Unless
      this Agreement is otherwise provided, if the Transferor have performed all
      the provisions of this Agreement strictly; however the Transferee
      unilaterally terminates by violating this Agreement, the Transferee shall
      compensate the Transferor for their direct damages rising
      hereby.

              

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
        	
                7.

              	
                Termination of this
      Agreement

              

      

      The
Parties mutually agree that unless otherwise provided in this Agreement, this
Agreement shall be terminated only under following situations:

      
        	
                7.1

              	
                This
      Agreement shall be terminated upon the consent of the
    Parties;

              

      

      
        	
                7.2

              	
                Transferee
      is entitle to terminate this Agreement at its own discretion under any of
      the following situations:

              

      

      
        	
              	
                7.2.1

              	
                Transferee
      is unable to complete the transaction due to relevant policies and rules
      of the State;

              

      

      
        	
              	
                7.2.2

              	
                Necessary
      governmental approvals are unable to obtain for this transaction (if
      necessary);

              

      

      
        	
              	
                7.2.3

              	
                Transferee
      discovers that there are material defects of the Transferred Equity or
      Transferor are unable to transfer the Targets of this
      transaction;

              

      

      
        	
                7.3

              	
                Transferor
      is entitle to terminate this Agreement at its own discretion under any of
      the following situations:

              

      

      
        	
              	
                7.3.1

              	
                On
      conditions that there is no freeze,
      distrain, pledge, mortgage, or other right limitations against the
      Transferred Equity, Transferor is unable to complete the transaction due
      to relevant policies and rules of the
State;

              

      

      
        	
              	
                7.3.2

              	
                Necessary
      governmental approvals are unable to obtain for this transaction (if
      necessary).

              

      

      

      
        	
                8.

              	
                Assignment
      of this Agreement

              

      

      Both the
Transferor and the Related Party of Transferor jointly and severally agrees
that, Transferee is entitled to transfer its entire or partial rights and/or
obligations to any third party designated by Transferee who is affiliated with
Transferee without the consent of the Transferor and the Related Party of the
Transferor for such transfer, but the Transferee will notify. Both the
Transferor and the Related Party of Transferor jointly and severally further
agrees that, such third Transferee aforesaid may be person, legal entity or
other economic organizations. Transferee has the right to designate one natural
person, legal entity or other economic organization or two or more natural
persons, legal entities or other economic organizations as such third Transferee
its own discretion.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      
        	
                9.

              	
                Tax
      Issues

              

      

      
        	
                9.1

              	
                Unless
      otherwise provided under this Agreement, Transferee and Transferor shall
      bear relevant payable taxes and expenses in connection with the
      performance of this Agreement and this transaction respectively. If
      required by law, Transferee will withhold and remit tax when making
      payment (if any).

              

      

      

      
        	
                10.

              	
                The
      Related Party of the Transferor undertakes that all the liabilities which
      shall be performed by the Transferor set forth in this Agreement shall be
      applicable to the Related Party of the Transferor as well. Further more,
      the Related Party of the Transferor will take joint guarantee liability
      for the liabilities which shall be performed by the Transferor set forth
      in this Agreement.

              

      

      

      
        	
                11.

              	
                Force
      Majeure

              

      

      Any delay
in the performance of any of the duties or obligations of either party shall not
be considered a breach of this Agreement, and the time required for performance
shall be extended for a period equal to the period of such delay, if such delay
has been caused by or is the result of acts of God; acts of public enemy;
insurrections; riots; injunctions; embargoes; labor disputes, including strikes,
lockouts, job actions, or boycotts; fires; explosions; earthquakes; floods;
shortages of energy; governmental prohibition or restriction; or other
unforeseeable causes beyond the reasonable control and without the fault or
negligence of the party so affected.  The party so affected shall
immediately notify the other party of such inability and of the period for which
such inability is expected to continue.  The party giving such notice
of a force majeure event, shall be excused from the performance, or the punctual
performance, of such obligations, as the case may be, from the date of such
notice, up to a maximum of nine (9) calendar months, after which time the party
who is not able to perform, may terminate this Agreement.  To the
extent possible, each party shall use reasonable efforts to minimize the
duration of any force majeure.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

      
        	
                12.

              	
                Confidentiality

              

      

      

      Either
Party of this Agreement shall not disclose any information related to this
Agreement to any person, entity or company during the term of the Agreement or
five years after the expiration of the Agreement, no matter the person, entity
or company has a competitive relationship with the other Party or not, except
following circumstances:

      (1)Such
disclosure is made in accordance with the governing laws or requested by the
competent government, justice authority;

      (2)The
information has been publicized and such publicizing is not a result of any
breach or violation of a contract, agreement or other binding
documents;

      (3)The
Party of such disclosure has already obtained such Information without any
confidentiality limitation from other parties when it receives the Information
from the other Party;

      (4)Disclose
to the employees, directors, management, consult, CPA, agent and representative
of any party, or its affiliates and the employees, directors, management,
consultant, accounts, agent and representative of such
affiliates.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      In case
any Party is in breach of the provision of the confidentiality and causes the
other Party suffering from economic damages and losses, the breaching Party
shall assume relevant liabilities of such breach to the other Party. But the
information disclosed pursuant to the applicable law or compulsory requirements
of the court or any other authorities will not be applied.

      

      
        	
                13.

              	
                Notices

              

      

      
        	
                13.1

              	
                Any
      and all notices shall be delivered in writing, including by facsimile,
      letter, courier service delivered letter, and notices shall be deemed to
      have been delivered at the 7th
      days after the written notice delivered. The notifying date of unwritten
      notice (telephone or email, etc) shall be the date of written confirmation
      of the receiver.

              

      

      
        	
                13.2

              	
                Either
      Party may change its particulars for receipt of notices by notice given to
      the other Party within 3 days after such change. If the Party fails to
      notice the other party its changes on its particulars for receipt of
      notices, it shall take all legal liability for all results rising
      hereof.

              

      

       

      If to the
Transferor, notices shall be delivered as follows:

       

      Addressee:
                        
Position:                         

       

      Address:
                        
Post Code:                         

       

      Facsimile:
                        
Email:                                              

       

      If to the
Transferee, notices shall be delivered as follows:

       

      Addressee:
                        
Position:                         

       

      Address:
                        
Post Code:                        

       

      Facsimile:
                        
Email:                                             

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      If to the
Related Party of the Transferor, notices shall be delivered as
follows:

       

      Addressee:
                        
Position:                         

       

      Address:
                        
Post Code:                         

       

      Facsimile:
                        
Email:                                              

      

      
        	
                13.3

              	
                All
      notices and relevant expenses under this Agreement shall be processed by
      either Party respectively in accordance with laws and regulations at their
      own cost.

              

      

      

      
        	
                14.

              	
                Governing
      Law

              

      

      The
formation, validity, interpretation and/or performance of this Agreement shall
be governed by PRC LAWS.

      

      
        	
                15.

              	
                Settlement
      of Dispute

              

      

      

      Any
disputes arising from or in connection with this Agreement shall be settled
through friendly negotiation among the Parties. If the dispute cannot be
resolved by negotiation, then any Party may submit the dispute to China
International Economic and Trade Arbitration Committee located in Beijing for
arbitration according to and regulations in effect at the time of applying for
arbitration. The arbitration award shall be final and binding on all
parties.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

      
        	
                16.

              	
                Severability

              

      

      Any
provision of the Agreement shall be deemed as severable. If any provision of the
Agreement is invalid, it shall not affect the validity of the rest of the
provisions of this Agreement.

      

      
        	
                17.

              	
                Non-waiver

              

      

      Either
Party's failure to insist the other Party on the performance of any provision of
the Agreement at any time shall not be deemed to waive such provision or waive
the right to request the other Party on execution of such provision in
future.

      

      
        	
                18.

              	
                Transcript

              

      

      The
formal text of the Agreement shall be written in CHINESE. Any provision of such
Agreement shall be interpreted under the usual meaning of the words in the
Chinese version.

      

      
        	
                19.

              	
                Title
      and Subtitles

              

      

      All tile
and subtitles of the Agreement are in the convenience of the reference only and
shall not limit or affect any provision provided in the Agreement.

      

      
        	
                20.

              	
                Entire
      agreement

              

      

      
        	
                20.1

              	
                Entire
      Agreement of this transaction include this Agreement, General Framework
      Agreement for Corporation, Exclusive Option Agreement, as well as all
      ancillary agreements to each related to the subject of this Agreement and
      supersedes any and all previous written or oral agreements and/or
      memorandums concluded by any consultation relating to the subject of this
      agreement. Unless this agreement is otherwise provided expressly, any
      other condition, definition, guarantee or statement related to the subject
      of this agreement shall not be binding on the
  Parties.

              

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      
        	
                20.2

              	
                Any
      correction, amendment, replacing or modification of this Agreement shall
      be made in writing and shall be ascertained that it is relevant to the
      Agreement and shall be signed by the representatives or designated
      person(s) of the Parties of the
Agreement.

              

      

      
        	
                20.3

              	
                Both
      the Transferor and the Transferee mutually agree that in the convenience
      of processing the procedure of the alteration registration related to the
      equity transfer hereof with the local industry and commercial bureau, both
      parties may enter into a simpler equity transfer agreement. The content of
      such simple equity transfer agreement shall not be controversial with this
      Agreement hereof. In case of any controversy, this Agreement shall
      prevail.

              

      

      

      
        	
                21.

              	
                This
      Agreement is formed upon the execution of the Parties and shall become
      into effective subject to all following conditions are
      satisfied:

              

      

      
        	
                21.1

              	
                The
      Transferee send a writing notice of exercise option of acquiring the
      remaining equity of the Target Company to the Transferor within 30 days
      after the second installment for the transaction of 70% equity transfer of
      the Target Company;

              

      

      
        	
                21.2

              	
                This
      Agreement has been approved by the
government.

              

      

      

      
        	
                22.

              	
                This
      Agreement is executed in [4] counterparts. Each Transferor holds [1], the
      Transferee holds [1] and the Related Party of the Transferor holds
      [1].

              

      

       

      (This
page is blank below)

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      Signature
Page

      

      Transferor:

      Beijing
Fengyin Xianghe Scientific Technology Co., Ltd.

      
 

      Authorized
Representative:

      

      Transferee:

      China New
Energy Investment Co.,Ltd

      

      Authorized
Representative:

      

      Related
Party of Transferor:

      Tang
Zhixiang (Singature):

      

      Date:

      
        
           

        

        
          14

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