Document:

Assets
swap Agreement

    
       

      Party
A: Shandong Haiwang Chemical Stock Co., Ltd (“Haiwang Chemical” or “Party
A”)

       

    

    Address:
Yangzi Town, Hanting District, Weifang city

    
    

    Legal
representative: Yang Chunbin Chairman of the company

    
    

    Party
B: Weigang Kehai Chemical Co., Ltd (“Haike Chemical” or “Party B”)

     

    Address:
Yangzi Town, Hanting District, Weifang city

    
    

    Legal
representative: Liu Shangxue  Chairman of the company

       

    Regarding:

    1.
Shandong Haiwang Chemical Co., Ltd (“ Shandong Haiwang”)  is a stock
Co., Ltd in accordance with Company Law of China, Shandong Haiwang invested
RMB12 million in Weifang Haitai Engineering Investment Co., Ltd (“Haitai”),
representing 60% ownership in the latter. Shandong Haiwang also invested RMB4.05
million in Shandong Haijing Photoelectricity Co., Ltd (“Haijing “), representing
60% ownership in the latter. Shandong Haiwang is the majority shareholder of
Haitain and Haijing. Shandong Haiwang is a large chemical enterprise, in the
business of manufacturing and selling chemical products, such as crude salt,
bromine and hydrobromic acid.

    

    2.
Weifang Haike Chemical Co., Ltd (“Haike”) is incorporated in accordance with
Company Law of China as a limited liability company, with a registered capital
of RMB12.12 million. Haike is in the business of manufacturing and selling basic
materials, crude salt and coenzyme Q.

    

    3.
Haitai’s shareholders include Shandong Haiwang and 4 individuals. It is engaged
in development and sale of real estate, and engineering project investment with
its own funds.

    

    4.
Haijing’s shareholders include Shandong Haiwang and Shanghai Xinhai Industrial
Co., Ltd. Haijing is engaged in production and sales of photoelectric components
and sales of electric instruments. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In order
to consolidate Shandong Haiwang’s strength and boost its profitability, Part A
and Part B, on a negation basis, reaches an agreement to swap Party A’s equity
inteests in Haijing and Haitai with Haike’s assets as following:

    

    Clause
1:Paraphrase

     

    1.1 Definition

     

    Except
otherwise refereed to, the following words has specific meaning as
following:

      

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Agreement:

                                	 	
                                  The
      asset swap Agreement

                                
	 
      	 	 
      
	
                                  Haiwang
      Chemcial:

                                	 	
                                  Haiwang
      Chemical means Shandong Haiwang Chemical Stock Co.,
Ltd;

                                
	 
      	 	 
      
	
                                  Haike
      Chemcial:

                                	 	
                                  Weifang
      Haike Chemical Co., Ltd;

                                
	 
      	 	 
      
	
                                  Haitai:

                                	 	
                                  Weifang
      Haitai Engineering Investment Ltd;

                                
	 
      	 	 
      
	
                                  Haijing:

                                	 	
                                  Shandong
      Haijing Photoelectricity Co., Ltd;

                                
	 
      	 	 
      
	
                                  Swap-out
      assets:

                                	 	
                                  60%
      equity interest in Haitai and 60% equity interest in Haijing owned by
      Haiwang Chemical(See affix 1, valuation report)

                                
	 
      	 	 
      
	
                                  Swap-in
      assets:

                                	 	
                                  Operating
      fixed assets for operating purpose owned by assets Haike Chemical
      (breakdown See affix 2- valuation report)

                                
	 
      	 	 
      
	
                                  Swap
      :

                                	 	
                                  Haiwang
      Chemcial shall swap its equity interest in Haitai and Haijing’s operating
      fixed asset

                                
	 
      	 	 
      
	
                                  Valuation
      date:

                                	 	
                                  Oct.31st,2007.

                                
	 
      	 	 
      
	
                                  Signing
      date:

                                	 	
                                  The
      date Haike Chemical and Haiwang Chemcial sign the agreement after
      competent decision-making bodies within Haiwang Chemcial, Haitai, Haijing
      and Haike approve the agreement

                                
	 
      	 	 
      
	
                                  Effective
      date:

                                	 	
                                  The
      date when the requirement under item 1-4 under clause 1 of No.6 Articles
      are met

                                
	 
      	 	 
      
	
                                  Settlement
      day:

                                	 	
                                  Tenth
      day after this agreement becomes effective.

                                
	 
      	 	 
      
	
                                  Valuer
      of swap-out asset:

                                	 	
                                  Beijing
      Dexiang Asset Valuation Co., Ltd;

                                
	 
      	 	 
      
	
                                  Valuer
      of swap-in asset:

                                	 	
                                  Beijing
      Dexiang Asset Valuation Co.,
Ltd;

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Valuation
      report for swap-out asset:

                            	 
      	
                              The
      asset valuation report (Jing Delu Ping 2007. No. 43 and 45) in which the
      valuer valued the swap-out assets

                            
	 
      	 
      	 
      
	
                              Valuation
      report for swap-in asset:

                            	 
      	
                              The
      asset valuation report (Jing Delu Ping 2007. No. 44) in which the valuer
      valued the swap-in assets

                            
	 
      	 
      	 
      
	
                              Subsidiary:

                            	 
      	
                              Any
      company of other forms of legal person that is controlled directly or
      indirectly by either party of the Agreement. For this agreement purpose,
      control is defined as 50% ownership held by either party in the Agreement,
      or as the right, directly or indirectly, to appoint the majority of the
      directors or other management staff, or control exerted in other ways such
      as voting-rights shares, contract

                            
	 
      	 
      	 
      
	
                              Limit
      on rights:

                            	 
      	
                              Pledge,
      collateral, lien, option, preemptive rights, preference option, third
      party’s rights or equity, other limit on rights or any form of guarantee,
      or other preference arrangements with likewise effect

                            
	 
      	 
      	 
      
	
                              China
      :

                            	 
      	
                              People’s
      Republic of
China.

                            

                    

                  

                

              

            

          

        

        
        

      

    

     

    1.2
Explanation

    
    

     

    1.2.1 The attachment
of this agreement is a integral part of this agreement and has the same legal
effect as this agreement.

    
    

     

    1.2.2 The agreement
refers to this agreement as a whole, not a particular clause, attachment or
other part. The clause herein refers to the clause or time of this
agreement.

    
    

     

    1.2.
3  The title of each clause and attachment is set for convenience
purpose, and should be be misrepresented as the explanation or implication of
each particular clause.

    
    

     

    1.2.4
Laws and regulations in the Agreement refers to the prevailing laws and
regulations in force except otherwise stated.

    
    

     

    1.2.5 One
party refers to either party of the agreement. Both parties refer to both
parties that enter into this agreement

    
    

     

    1.2.6Year,
month, day in this agreement means calendar year, month, day.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Clause
2:Pricing of
the Swap

     

    2.1 According to
terms and conditons of this agreement, Haiwang Chemical agrees to transfer
designated assets and all accompanying interest to Haike Chemical; Haike also
transfer designated assets and all accompanying interest to to Haiwang
Chemical.

    
    

     

    2.2 Both Parties
agree that the pricing of the asset swap is determined by :

     

    2.2.1 The
value of swap-out assets should be determined at the value determined by October
31, 2007 by Beijing Dexiang Asset Valuation Co., Ltd on the valuation report
(Jingdelu
Ping No.(2007) No.043、045号)at
RMB19,026,991.85;

     

    2.2.2 The value of
swap-IN assets should be determined at the value determined by October 31, 2007
by Beijing Dexiang Asset Valuation Co., Ltd on the valuation report (Jingdelu Ping
No.(2007) No.044)at
RMB14,386,581.73;

    

    Clause 3
Treatment on the difference of prices of swap-in and swap-out
assets

    

    The
difference between the above figures is RMB4,640,410.12, which is paid by Haike
Chemical to Haiwang Chemical within 1 moths after the effective date of this
agreement.

    

    Clause
4:Treatment
on swap-in assets

     

    4.1 Haike Chemical
must acquire the commitment letter that all creditors agree to transfer his
claim within 10 days after both parties enter into this agreement;

     

    4.2 Land use right,
and the rights to buildings and affiliated facilities in this agreement are
delivered along with assets

     
    

    4.3 Haike Chemical
agrees to deliver intangible assets, such as patents, proprietary technology,
trademarks, professional qualification and trade names along with
assets.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
 

    

    Clause
5:Precodition
of delivery of assets

    
    

     

    Both
parties agree and confirm following pre-conditions are met prior to the asset
swap:

    
    

     

    1.The
decision-making body in Haiwang Chemical, Haiting, Haijing, and Haike Chicla has
approved the agreemnt

     

    2、The guarantees in
this agreement are truthful, true and are not misleading

      

    Clause
6:Delivery

     

    6.1 Both parties
agree that the delivery date should be the 10th day
since the validity of this agreement

    
    

     

    6.2  Both
parties agree for the delivery of assets in this transactions ( especially the
delivery of ownership of assets, approval documents and filing with local State
Administration of Industry and Commerce), both parties shall closely coordinate
with each other to take necessary actions to complete the procedures regarding
the asset transfer as specified in this agreement.

    
    

     

    6.3 This
agreement deems the asset swap-out delivery date as when the ownership of the
swap-out assets shall be transferred to Haike Chemical to the extent any legal
procedures regarding the asset ownership transfer shall be completed. The asset
swap-in date shall be the date when Haiwang has essentially control and has
obtained the documents supporting the ownership of swap-in assets, and is
entitled to the rights and obligations of swap-in assets.

    
    

     

    6.4 If
any significant situations occurred between the agreement validity date and
asset delivery date that adversely impact the swap-in and swap-out assets, both
parties shall notify each party in written form. The situation herein includes,
but not limited to, any litigation, arbitration, investigation and any other
legal proceeding, or any government agencies’ approval documents or
instructions, or any matter that cause the target asset to be lost or be
destroyed.

    
    

     

    If any of
above situations occurs, both parties would negotiate whether or not to proceed
with the asset transfer

    

    Clause 7
Treatment on claims and debts on the swap-in assets

     

    7.1 The
claims on the swap-in assets should be taken over by Haiwang Chemical or its
designated third-party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

       

    7.2  The
liability on the swap-in assets should be taken over by Haiwang Chemical or its
designated third-party.

    
    

     

    7.3 Any
pending contracts or agreements relating to swap-in assets should be taken over
by Haiwang Chemical or its designated third party;

    
    

     

       Haike
Chemical assures and guarantees he shall notify the pending contracts or
agreements on the swap-in assets to Haiwang chemical.

    

    Clause8  The
change in the asset between valuation date and asset delivery date

    
    

     

    8.1
Swap-out sssets

    
    

     

    8.1.1
Haiwang chemical shall maintain the status quo of swap-out assets and shall not
dispose of these assets.

    
    

     

    8.1.2 If
Haiwang Chemical has to dispose of the swap-out assets, it shall obtain the
written consent of Haike Chemical.

    
    

     

    8.1.3
Between the valuation date and actual delivery date, If there shall be any
immaterial change in the assets and the changes have been approved by Haike
Chemical, the asset value should be re-determined by both parties at the
delivery date.

    
    

     

    8.2 Swap-in
assets

    
    

     

    8.2.1
Haike chemical shall maintain the status quo of swap-in assets and shall not
dispose of these assets.

    
    

     

    8.1.2 If
Haike Chemical has to dispose of the swap-in assets, it shall obtain the written
consent of Haiwang Chemical.

     

    8.1.3
Between the valuation date and actual delivery date, If there shall be any
immaterial change in the assets and the changes have been approved by Haiwang
Chemical, the asset value should be re-determined by both parties at the
delivery date.

    

    Clause 9
Representation, guarantee and commitment by Shandong Haiwang

    
    

     

    The
following representation, guarantee and commitment are valid till the asset
delivery date

    
    

     

    9.1 Haiwang Chemical
is a on-going operating legal person in accordance with Chinese
regulation.

    
    

     

    9.2 Authorization
and validity

     

    
    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
  

    

    Haiwang
Chemcial shall make necessary actions to authorize and execute this agreement,
and Haiwang Chemical is entitled to rights and obligations under this agreement.
If this agreement is valid, it would be legally binding on Haiwnag.

     

    9.3Compliance and
non-default

    
    

     

    This
agreement shall not contravene Chinese laws, regulations and Chinese government
regulations.

    
    

     

    9.4approval

    
    

     

    Besides
authorization procedures within Haiwang Chemcial, the approval, permit,
authorization have been appropriately obtained.

    
    

     

    9.5 Ownership and
unsecured real right

    
    

     

    Haiwang
Chemical guarantees that it has full ownership to the swap-out assets, and has
the rights to own, operate and dispose of the assets. There shall be any legal
limitations on the swap-out assets.

    
    

     

    9.6 No particular
changes

    
    

     

    Between
valuation date and asset delivery date, Haiwang Chemical shall use the assets as
before in a legal way, and guarantees no significant loss, destroy caused to the
assets.

    
    

     

    9.7 No
dispute

    
    

     

    Except
for disclosed in written form, Haiwang Chemcial guarantees no lawsuits,
arbitration, disputes or other legal proceedings are ongoing on the swap-out
assets.

    
    

     

    9.8
Claims

    
    

     

    After the
asset delivery date, shall any third party has any objections or claims on the
swap-out assets due to circumstances occurring before asset delivery date,
Haiwang chemical would be liable to such objections or claims.

    
    

     

    9.9 T ruthful
disclosure

    
    

     

    Haiwang
chemical represents the information materials are truthful and
complete.

    
    

     

    9.10
Validity

    
    

     

    The
representations, guarantees are valid in this clause after the contract signing
date.

    
    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

     

    Clause 10
Representation, guarantee and commitment by Haike Chemical

    
    

     

    The
following representation, guarantee and commitment are valid till the asset
delivery date

    
    

     

    9.1 Haike Chemical
Chemical is a on-going operating legal person in accordance with Chinese
regulation.

    
    

     

    9.2 Authorization
and validity

    
    

     

    Haike
Chemical shall make necessary actions to authorize and execute this agreement,
and Haike Chemical is entitled to rights and obligations under this agreement.
If this agreement is valid, it would be legally binding on Haike
Chemical

    
    

     

     9.3Compliance and
non-default

    
    

     

    This
agreement shall not contravene Chinese laws, regulations and Chinese government
regulations.

    
    

     

    9.4approval

    
    

     

    Besides
authorization procedures within Haike Chemical, the approval, permit,
authorization have been appropriately obtained.

    
    

     

    9.5 Ownership and
unsecured real right

    
    

     

    Haike
Chemical guarantees that it has full ownership to the swap-in assets, and has
the rights to own, operate and dispose of the assets. There shall be any legal
limitations on the swap-out assets.

    
    

     

    9.6 No particular
changes

    
    

     

    Between
valuation date and asset delivery date, Haike Chemical shall use the assets as
before in a legal way, and guarantees no significant loss, destroy caused to the
assets.

    
    

     

    9.7 No
dispute

    
    

     

    Except
for disclosed in written form, Haike Chemical guarantees no lawsuits,
arbitration, disputes or other legal proceedings are ongoing on the swap-in
assets.

    
    

     

    9.8
Claims

    
    

     

    After the
asset delivery date, shall any third party has any objections or claims on the
swap-out assets due to circumstances occurring before asset delivery date, Haike
Chemical would be liable to such objections or claims.

    
    

     

    9.9 T ruthful
disclosure

    
    

     

    Haike
Chemical represents the information materials are truthful and
complete.

     

    
    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

     

    9.10
Validity

        

    The
representations, guarantees are valid in this clause after the contract signing
date.

        

    Clause
11:Taxation

    

    11.1|The taxation
incurred on swap-out assets should be borne by Haiwang Chemcial

    
    

     

    11.2 The taxation
incurred on swap-out assets should be borne by Haike Chemcial

    
    

     

    11.3  Other
taxes would be borne by both parties in half

     

    Clause
12:Liability

    
    

     

    Any party
who breached this agreement or any representation or guarantees to bring any
damage to the other party, should compensate the other non-breaching
party.

    

    Clause
13:Effect,
suspension and termination

    
    

     

    13.1 The contract
shall be effective once the legal representative or authorized person signs off
and stamps.

    
    

     

    13.1.2 The
decision-making body of each party approves;

    
    

     

    13.2 Suspension or
termination:

    
    

     

    13.2.1.  Natural
disaster and other unforeseeable, non-preventable situation;

    
    

     

    13.  2.
2Both parties agree to terminate this agreement.

    
    

     

    13.2.3 If one party
beached this agreement, resulting in the other party cannot execute it, the
other party could be titled to terminate the agreement.

    
    

     

    13.3 The termination
of this agreement shall not exempt the liability of the contract-breaching
party.

    

    Clause
14:Dispute
settlement

    
    

     

    14.1  This
agreement is governed by Law of the People’s Republic China and its
interpretations

     

    
    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    14.2 Each party
should first settle all disputes related to this agreement on a friendly
negotiation basis. Otherwise any party can file legal lawsuit.

     

    Clause
15:Others

    
    

     

    15.1
Should any clause if judged to be non-effective, cancellable or
non-executable,  the validity of other clauses shall not be
affected.

    
    

     

    15.2  Each
party only shall make amendment, revision or changes to the agreement only if
the party has express his intention to do so in written form which are approved
by both parties in seal. If each party shall give up any rights under certain
clauses in the agreement, he shall provide an written waiver of such rights, and
the waiver is not deemed as waiver of other rights not mentioned.

    
    

     

    15.3 Any party shall
not transfer all or part of the agreement without prior written consent of the
other party.

    
    

     

    15.4 The titles of
terms of this agreement are for the purpose of reading conveniently. They are
not a part of this agreement and cannot affect the meaning or interpretation of
this agreement in any way.

    
    

     

    15.5 This agreement
should be made in six copies

     

    Shandong
Haiwang Chemical Stock Co., Ltd

    /seal/

    Legal
representative:

    /s/
Chunbin Yang

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Weifang
Haike Chemical Co., Ltd

    /s/

    Legal
representative:

    /s/
Shangxue Liu

    

    Contract
Date:

    

    December
8, 2007Dongying
Haihui Industry& Commerce Co., Ltd

      

    Equity
Transfer Agreement

     

    Party A
(transferor): Chen Yong ( Shareholder of Dongying Haihui Industry and Commerce
Co., Ltd)

    Party B
(transferee): Shandong Haiwang Chemical Stock Co.,Ltd

    

    According
to “company law” and the relevant provisions of articles of incorporation, both parties
reached the following agreement regarding equity transfer matters on a voluntary
and equal basis upon the approval of all shareholders.

       

    
      	
               
      

            	
              I.

            	
              Party
      A, upon the shareholders’ consent, will transfer his portion of
      shareholding with a par value of RMB 800,000(representing 40% shareholding
      rights) in Dongying Haihui Industry& Commerce Co., Ltd to Party B in
      accordance with Chinese laws.

            

    

    

    
      	
               
      

            	
              II.

            	
              The
      way of transfer: Party B should pay RMB 800,000 in cash one-time to Party
      A.

            

    

    

    
      	
            	
              III.

            	
              This
      agreement will comes into force when both parties sign and seal, the
      rights and obligations of Party A in Dongying Haihui Industry&
      Commerce Co., Ltd shall cease to be effective automatically, and
      creditors’ right and obligation subsequent to the transfer agreement
      should be assumed by Party B. Party B should conform to article of
      incorporation and the relevant
provisions.

            

    

    

    
      	
            	
              IV.

            	
              This
      agreement is quadruplicate, the transferor and the transferee each shall
      hold one copy, local State Administration of Industry and Commerce and the
      company shall hold one copy each for
reference.

            

    

    

    Party A
(signature):_____________________

    /s/ Chen
Yong

    

    Party B
(seal of the company): Shandong Haiwang Chemical
Stock Co., Ltd

    /s/ Yang
Chunbin

    

    November
6th,
2009.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

       

    Dongying
Haihui Industry& Commerce Co., Ltd

     

    Equity
Transfer Agreement

     

    Party A
(transferor): Gao Jian ( Shareholder of Dongying Haihui Industry and Commerce
Co., Ltd)

    Party B
(transferee): Shandong Haiwang Chemical Stock Co.,Ltd

    

    According
to “company law” and the relevant provisions of articles of incorporation, both parties
reached the following agreement regarding equity transfer matters on a voluntary
and equal basis upon the approval of all shareholders.

       

    
      	
               
      

            	
              V.

            	
              Party
      A, upon the shareholders’ consent, will transfer his portion of
      shareholding with a par value of RMB 1,200,000(representing 60%
      shareholding rights) in Dongying Haihui Industry& Commerce Co., Ltd to
      Party B in accordance with Chinese
laws.

            

    

    

    
      	
            	
              VI.

            	
              The
      way of transfer: Party B should pay RMB 1,200,000 in cash one-time to
      Party A.

            

    

    

    
      	
            	
              VII.

            	
              This
      agreement will comes into force when both parties sign and seal, the
      rights and obligations of Party A in Dongying Haihui Industry&
      Commerce Co., Ltd shall cease to be effective automatically, and
      creditors’ right and obligation subsequent to the transfer agreement
      should be assumed by Party B. Party B should conform to article of
      incorporation and the relevant
provisions.

            

    

    

    
      	
            	
              VIII.

            	
              This
      agreement is quadruplicate, the transferor and the transferee each shall
      hold one copy, local State Administration of Industry and Commerce and the
      company shall hold one copy each for
reference.

            

    

    

    Party A
(signature):_____________________

    /s/ Gao
Jian

    

    Party B
(seal of the company): Shandong Haiwang Chemical
Stock Co., Ltd

    /s/ Yang
Chunbin

    

    November
6th,
2009.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]