Document:

Unassociated Document

    Translation
of Qujing Gas Co. Ltd. Sponsors’ Agreement

    

    Parties:

    (1)
Yunnan Investment Group

    (2) Sino
Gas International Holdings, Inc.

    (3)
Qujing Development Investment Co. Ltd.

    

    According to PRC Company Law
(Company Law) and
PRC
Contract Law (Contract Law), three parties found Gas Co. (Company) ,in accordance with the
principles of equality and mutual benefit, in Qujing City, Yunan Province, China.
After negotiation, three Parties reach
the agreement.

    

    Chapter 1
Parties of Investment

    Section 1
Parties of the agreement

    The
following three parties will be bound by this agreement:

    (1)
Yunnan Investment Group, Chinese Corporate is established according to the laws
of the Peoples’ Republic of China

    Representative:
Bao Ming Hu

    Position:
Sole Board of Director

    Address:
No. 15 Tuodong Rd, Kunming, Yunnan

    Tel:
0871-3185874

    Fax:
0871-3171420

    

    (2) Sino
Gas International Holdings, Inc., Foreign Corporate is established according to
the laws of the Peoples’ Republic of China

    Representative:
Liu Yu Chuan

    Position:
Sole Board of Director

    Address:
Area A Caizhi Building, No. 18 Zhongguancun East Rd, Haidian,
Beijing

    Tel:
010-8260038

    Fax:
010-8260042

    

    (3)
Qujing Development Investment Co. Ltd., Chinese Corporate is established
according to the laws of the Peoples’ Republic of China

    Representative:
Zhan Hong Bin

    Position:
Sole Board of Director

    Address:
No. 183 Qilin South Rd, Qujing

    Tel:
0874-312388

    Fax:
0874-3124698

    

    Section 2
Parties of Investment

    Three
parties decide to invest in Qujing, Yunnan together, and found Gas Company. The
share held by Party (1) will be resolved and separate to the other parties.
After the separation, each shareholder’s total shares held can not excess the
shares hold by Party (2).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Chapter 2
Summary of the Company

    Section 3
Name and Address

    Chinese
Name: 曲靖燃气有限公司

    English
Name: Qujing Gas Co. Ltd

    Address:
Qujing, Yunnan

    

    Section 4
Legal Form of Company

    The legal
form of company is Co., Ltd. be response to liabilities as company’s assets. The
parties of the agreement are response to liabilities as the investment amount or
equivalent.

    

    Chapter 3
Registration Capital of Company

    Section 5
Registration Capital

    The
registration capital is ¥30,000,000.00.

    The
registration fund is ¥30,000,000.00 and
is 100% of the total registration capital

    

    Section 6
Investment of Shareholders

    The
followings are the name of shareholders, the amount of registration fund, the
manner of investment, the amount of first investment and the due date of
promised investment:

     

    
      
        
          
            
              
                
                  
                    	
                            shareholders

                          	
                            registration
      fund

                          	
                            percentage

                          	
                            first
      investment

                          	
                            manner
      of investment

                          	
                            due
      date

                          
	
                            Yunnan
      Investment Group

                          	
                            ¥15,300,000

                          	
                            51%

                          	
                            ¥15,300,000

                          	
                            cash
      in RMB

                          	
                            in
      60 days after sign the agreement and get the promise of open bank accounts
      from Trade and Industry Bureau

                          
	
                            Sino
      Gas International Holdings, Inc.

                          	
                            ¥11,700,000

                          	
                            39%

                          	
                            ¥11,700,000

                          	
                            cash
      in RMB

                          
	
                            Qujing
      Development Investment Co. Ltd.

                          	
                            ¥3,000,000

                          	
                            10%

                          	
                            ¥3,000,000

                          	
                            cash
      in
RMB

                          

                  

                

              

            

          

        

      

    

     

    Section 7
Responsibility about Breach of Contract for Registration
Fund

    The shareholders will pay certain amount of fine if do not follow the Section 6 of
this agreement. The party breach of contract
will pay the fine to the
other parties follow this agreement. The amount is calculate by the
formula, fine = the amount should be invest but
does not * 5‰ per day * days of late. If that party does not pay the investment
in 30 days after due date, the other parties have right to end this agreement
and have right to require the party breach of contract to compensate all the
losses.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Chapter 4 Company’s Scale of Investment and Source of
Company’s Capital

    Section 8 Company’s Scale of
Investment

    The company should satisfy the increasing demand of gas in Qujing.
The project needs three terms investment. The total amount of three terms
investment is ¥399,990,000, which include ¥88250000 in first term, ¥99190000 in second term and ¥219750000 in third term

    

    Section 9 Source of Company’s Capital

    The
investment required for the project will be invested by shareholders base on the
percentage of shares owned according to the requirement of the project’s
construction. The excess part will be solved by company’s loan and each
shareholder will provide the warrants base on the percentage of shares
owned.

    

    Section
10 Founding of Shareholders’ Commitment

    Shareholders’
Commitment is the authorization of the company.

    When
shareholders meeting held, shareholders’ representative by law or by special authorization will
attend the meeting. However, the resolution should be available after stamped by each shareholder.

    

    Section
11 Responsibility of Shareholders’ Commitment

    The
following are the responsibilities of shareholders’ commitment:

    
      	
              1.  

            	
              decide
      company’s strategies , investment plans and significant
      adjustments

            

    

    
      	
              2.  

            	
              elect
      and replace the directors and supervisors, decide the payments to
      directors and supervisors

            

    

    
      	
              3.  

            	
              examine
      and approve the report of board of
directors

            

    

    
      	
              4.  

            	
              examine
      and approve the report of board of supervisors or
    supervisors

            

    

    
      	
              5.  

            	
              examine
      and approve company’s annual financial budget, actual plan and related
      significant adjustment

            

    

    
      	
              6.  

            	
              examine
      and approve the plan about company’s distribution of profit and recovery
      of loss

            

    

    
      	
              7.  

            	
              decide
      the decision about increase or reduce the registration capital of the
      company

            

    

    
      	
              8.  

            	
              decide
      the decision about issue of company’s
bond

            

    

    
      	
              9.  

            	
              decide
      the decision about the add or deduct the shareholders, merger, separate,
      discrete, liquate or change the
company

            

    

    
      	
              10.  

            	
              decide
      the decision about the company’s
rule

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              11.  

            	
              examine
      and approve the warrants of Section
23

            

    

    
      	
              12.  

            	
              consider
      the purchasing and selling of company’s asset, which exceeds 30% of the
      company’s audited net asset in the current period within one
      year

            

    

    
      	
              13.  

            	
              consider
      CSOP (Compensation Stock Option
Plan)

            

    

    
      	
              14.  

            	
              consider
      administrative regulations, departmental rules and regulations, and other
      matters should be decide by board of directors set by the
      regulations

            

    

    No
meeting for shareholders’ commitment is required if shareholders unanimously
agree the item listed above in written form. Decision can be decided directly,
and signed or stamped by all shareholders on the decision.

    

    Section
12 Rules for Shareholders’ Commitment discussion

    
      	
              1.  

            	
              First
      meeting for shareholders’ commitment will be called and held by the
      shareholder who invests the most.

            

    

    
      	
              2.  

            	
              Meetings
      for shareholders’ commitment include scheduled meeting and temporary
      meeting. Scheduled meeting should be held on time according to the
      schedule set based on company’s regulation. Temporary meeting should be
      held when Representatives of more than one-tenth of the shareholders the
      right to vote, more than one third of the directors, the board of
      supervisors proposal to temporary
meetings

            

    

    
      	
              3.  

            	
              Shareholders
      meeting convened by the board of directors. Sole board of directors will
      hold. If sole board of directors cannot performing his duties or do not
      performing his duties, vice sole board of directors will hold. If vice
      sole board of directors cannot perform his duties or do not performing his
      duties, the director who appointed by more than half of directors will
      hold. The board of directors cannot or does not performing their duties,
      the board of supervisors will host the meeting. If board of supervisors do
      not host, representatives of more than one-tenth of the shareholders the
      right to vote, more than one third of the directors can
    host.

            

    

    
      	
              4.  

            	
              The
      annual meeting for shareholders’ commitment should be announced to all the
      shareholders’ 20 days before the meeting. The temporary meeting should be
      announced to shareholders 15 days before the
  meeting.

            

    

    
      	
              5.  

            	
              Shareholders’
      commitment should record all the decision about contains discussed during
      the meeting. All the participated shareholders’ should have signature on
      the record.

            

    

    
      	
              6.  

            	
              the
      decision discuss on meeting, about changing on the company’s regulation,
      increasing or decreasing the registration capital, and company’s merging,
      separating, or changing the format of company, and issuing company’s loan,
      must have 2/3 and above to agree.

            

    

    

    Section
13 Board of Directors’ Number of People and Appointment

    The board
of directors will have 5 people. 2 people from Party (1), 3 people from Party
(2).

    Board of
directors has one sole board of directors, and one vice sole board of directors.
The sole board of directors will be appointed by Party (1). Vice sole board of
directors will be appointed by Party (2).

    The day
company register will be the day of founding of board of directors.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Section
14 Duties of Board of Directors

    Board of
directors is responsible to shareholders’ commitment and is responsible for the
following duties:

    
      	
              1.  

            	
              Call
      for the shareholders’ commitment meeting and report the
    work.

            

    

    
      	
              2.  

            	
              Executive
      the decision of shareholders’ commitment
  meeting.

            

    

    
      	
              3.  

            	
              Decide
      company’s operation plan and investment
plan.

            

    

    
      	
              4.  

            	
              Make
      company’s annual budget and actual financial
  plan.

            

    

    
      	
              5.  

            	
              Make
      company’s plan about the separation of profit and coverage of
      loss.

            

    

    
      	
              6.  

            	
              Make
      company’s plan about increasing or decreasing registration capital and
      issuing company’s loan.

            

    

    
      	
              7.  

            	
              Make
      company’s plan about separating, merging, diluting, and changing company’s
      format.

            

    

    
      	
              8.  

            	
              Decide
      the setting of company’s internal
  authorizations.

            

    

    
      	
              9.  

            	
              Appoint
      general manager of the company. According to managers’ require to appoint
      or dismiss vice general manager.

            

    

    
      	
              10.  

            	
              Develop the company's basic
      management system.

            

    

    
      	
              11.  

            	
              Develop
      charter amendment proposal.

            

    

    
      	
              12.  

            	
              Listen to reports on the work of manager, and
      inspect manager’s
  work

            

    

    
      	
              13.  

            	
              Laws and administrative
      regulations, departmental rules and regulations or the statute of the
      other powers conferred.

            

    

    

    Section 15 Board of Directors’ Rules for Procedure

    
      	
              1.  

            	
              Board
      of directors should have meeting at least twice per year. Sole board of
      directors will call, announce to all the directors and supervisors 10 work
      days before the meeting and deliver contains for the meeting. Representative of 1 / 3 or more than the right to vote,
      the shareholders, 1 /
      3 or more than the directors or board
      of supervisors can propose to hold temporary Board of Directors
      meeting. Sole board of directors should call and hold the meeting in 10
      days from the day gets the
proposal.

            

    

    
      	
              2.  

            	
              Board of directors meeting will be called and held by
      sole board of directors. If sole board of directors cannot
      performing his duties or do not performing his duties, vice sole board of
      directors will hold. If vice sole board of directors cannot perform his
      duties or do not performing his duties, the director who appointed by more
      than half of directors will hold.

            

    

    
      	
              3.  

            	
              Board
      of directors should record items for discussion should be on the meeting
      made the decision.

            

    

    
      	
              4.  

            	
              voting
      for board of directors’ decision is one vote per
  person

            

    

    
      	
              5.  

            	
              Board
      of directors’ decision will be available after more than half of the
      directors agree.

            

    

    
      	
              6.  

            	
              The meeting for board of directors
      will be announcing 10 work days before the meeting
      and deliver contains for the
meeting.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    Section 16 Duties for General Manager

       1. Company management implemented under the
leadership of the board of directors, general manager responsibility system.
General Manager is responsible for
company’s regular operation and
management.

    
      	
              2.  

            	
              General Manager for company will be
      appointed by Party (2).

            

    

    
      	
              3.  

            	
              General Manager is responsible to the
      following duties:

            

    

    
      	
              a)  

            	
              Host company’s production, operation and
      management. Organize and executive the decision
      of the board of directors.

            

    

    
      	
              b)  

            	
              Organize and executive
      company’s annual operation plan and investment
      plan.

            

    

    
      	
              c)  

            	
              Develop internal management authorizations set up plan.

            

    

    
      	
              d)  

            	
              Develop company’s internal basic management
      rules.

            

    

    
      	
              e)  

            	
              Set company’s
    regulation.

            

    

    
      	
              f)  

            	
              Require
      to appoint or dismiss vice manager, CFO, and chief
    accountant

            

    

    
      	
              g)  

            	
              Decide
      to appoint or dismiss the other managers not decide by board of
      directors

            

    

    
      	
              h)  

            	
              The other duties given by this
      agreement or board of
directors.

            

    

    

    Section 17 Managers for Finance

    
      	
              1.  

            	
              Company set CFO and chief accountant as
      mangers for finance.

            

    

    
      	
              2.  

            	
              Chief accountant will be appointed by
      Party (1), CFO will be appointed by Party (2).

            

    

    
      	
              3.  

            	
              When party (2) needs to provide
      financial statement according to the requirement of foreign authorization,
      CFO will be sign and be responsible as managers for finance; otherwise, chief accountant will
      be responsible for company’s regular financial job.

            

    

    

    Section 18 Board of Supervisors’ Number of people and
Appointment

    Board of supervisors will have 5
supervisors. Party (1) appoints 2 supervisors, Party (2) appoint 1, and Party
(3) appoints 1

    Board of supervisors will have one
president, which will be appointed by Party (3) and will bee
voted more than half supervisors. President will call and hold meetings for board of supervisors.
If president cannot or do not perform his
duties, another supervisors who appointed by more than half of supervisors will
call and hold meetings for
board of supervisors.

    

    Section 19 Duties for Board of
Supervisors

    Board of supervisors performs the
following duties:

    
      	
              1.  

            	
              Check company’s finance.

            

    

    
      	
              2.  

            	
              Monitor
      directors and senior managers in the execution of the duties of the
      company. Recall directors and senior managers who are in violation of the law,
      Administrative regulations, this agreement and
      shareholders’ commitment’s
  decision.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              3.  

            	
              When directors and senior managers’ action harm the company, require them to correct
      it.

            

    

    
      	
              4.  

            	
              Propose the convening of temporary
      shareholders’ meeting. When the board of directors
      does not perform
      their duties set by Company’s
      Law, hold and call
      for the shareholders’
  meeting.

            

    

    
      	
              5.  

            	
              Sue directors and senior managers
      according to Company’s
      Law.

            

    

    
      	
              6.  

            	
              Do the research when
      they find abnormal
      operation of the company. Require accounting firm and lawyer
      firm to provide
      assistance, the cost will be paid by
  company.

            

    

    

    Section 20 Board of Supervisors’
Rules of Procedure

    
      	
              1.  

            	
              Board
      of supervisors will call for a meeting at least every 6 months.
      Supervisors can propose for temporary supervisors’
  meeting.

            

    

    
      	
              2.  

            	
              Board
      of supervisors will set board of supervisors’ rules of procedure, clear the board of supervisors of
      procedure and voting procedures and make sure work
      efficiency and scientific decision-making of the board of
      supervisors.

            

    

    
      	
              3.  

            	
              Board of supervisors under the
      rules of procedure of the board of supervisors held and voting procedures
      will be approved by shareholders as annex of this
      section.

            

    

    
      	
              4.  

            	
              Board of supervisors should record all the decision
      discussed during the meeting.
      All the supervisors who
      participated should sign on the
record.

            

    

    
      	
              5.  

            	
              Supervisors have right to require a
      described record for his speak during the
      meeting on the record. Board of supervisors’ meeting record will be saved as
      company’s document for at least 10
      years.

            

    

    
      	
              6.  

            	
              announcements for board of supervisors’ meeting should include the
      following items:

            

    

    
      	
              (1)  

            	
              date, place and meeting
      deadline

            

    

    
      	
              (2)  

            	
              subject and
      topic

            

    

    
      	
              (3)  

            	
              date of issue the
      notice

            

    

    

    Chapter 6 Finance, Accounting, Auditing and Separation of Profit of the Company

    Section 21

    Company will pay the tax and expense according
to the law

    

    Section 22

    The financial years for the company begin
on January 1st each year until year end December
31st.

    

    Section 23

    Net profit of the company will
separate at
January of next year
according to shareholders’ share percentage.

    

    Section 24

    The company’s financial audit request outsourcing,
and audited by the accounting firm appointed by board of
directors.

    One month before financial year end of
each year, general manager
will organize to prepare balance sheet and income statement of the year, and
provide to accounting firm for auditing. After getting the auditors’ report from accounting firm, it will be
provide to directors with balance sheet and income statement for pre-auditing, and in the review by the
board of directors.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Section 25

    All the shareholders have right to audit and check
company’s account and
operation.

    

    Chapter 7 Set up Limited

    Section 26 Company Preparatory
Committee

    
      	
              1.  

            	
              In 3 days of sign this agreement,
      Party (1), Party (2)
      and Party (3) agree to found “Qujing Gas Co. Ltd
      Preparatory Committee”.

            

    

    
      	
              2.  

            	
              Preparatory committee’s member will be appointed by
      Party (1), Party (2) and Party
(3).

            

    

    
      	
              3.  

            	
              Preparatory committee is responsible to all
      the services relate to found company.

            

    

    
      	
              4.  

            	
              The expenses related to found company
      will borrow from Party (1), Party (2) and Party (3), and will be
      committed by company after found. If the company cannot found, the
      expenses will be committed by Party (1), Party (2) and Party (3) according
      to the shares
      percentage.

            

    

    
      	
              5.  

            	
              Members of preparatory committee do not count wages,
      after company set up will give appropriate subsidies.

            

    

    
      	
              6.  

            	
              When the company meets resistance for
      set up, preparatory committee bring to Party (1), Party (2) and Party
      (3)’s resolution. Only when Party (1), Party (2) and
      Party (3) agree to do not set up the company, the company preparatory
      committee can stop set up the
company

            

    

    
      	
              7.  

            	
              When company get license, the preparatory committee will
      dissolute.

            

    

    

    Section 27 Security of Registration
Fund

    
      	
              1.  

            	
              Since the formal signing of this
      Agreement after the entry into force, Party (1), Party (2) and Party
      (3) or their representatives will open a
      common bank account after reach the agreement.
      If all the shareholders or their
      representatives do not sign, no one allow using the funds in the bank
      account.

            

    

    
      	
              2.  

            	
              Party (1), Party (2) and Party (3)
      should follow Section 6 of this agreement, and put first payment into the
      bank account

            

    

    
      	
              3.  

            	
              In 3 days of the company set up,
      Party (1), Party (2) and Party (3) or their representatives
      will dissolute manage
      the common account. People from company preparatory
      committee will transfer registration fund to company’s basic
    account

            

    

    
      	
              4.  

            	
              If Limited Co. cannot set up, in 2
      days Party (1), Party (2) and Party (3) decide not to set up the company,
      Party (1), Party (2)
      and Party (3) or their representatives will dissolute manage the common
      account. People from company preparatory
      committee will return registration fund to Party (1), Party (2) and Party
      (3)’s basic
      account.

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    Section 28 Privacy

    Each party of this agreement has obligation to keep
the privacy due to knowing the secret of the business

    

    Section 29 Change and
disarmament

    
      	
              1.  

            	
              This agreement can be changed
      according to
      changes in existing
      laws, sets in new
      laws, new local regulations and agreement reached by parties after equal
      negotiation. If one party proposes to change this agreement, it
      should announce other parties in written documents in 30 days, only after Party (1),
      Party (2) and Party
      (3)’s negotiation and reach agreement,
      this agreement can be
      changed.

            

    

    
      	
              2.  

            	
              this agreement can be disarmament
      before the Limited Co. because of the following
      situation:

            

    

    
      	
              a)  

            	
              the parties reach agreement after
      negotiation, disarm the
    agreement

            

    

    
      	
              b)  

            	
              any parties cannot
      perform their duties
      and obligations In accordance with the manner and timing of this
      agreement

            

    

    
      	
              c)  

            	
              After
      disarmament of this agreement, each party’s duties and obligations under
      this agreement ended immediately, however, the parties which cause the
      disarmament of this agreement will be responsible for
      defaulting.

            

    

    

    Section 30 Irresistible Factors

    
      	
              1.  

            	
              “Irresistible factors” mean the factors cannot be
      avoided causing any parties cannot fully
      or partially perform their duties set by this agreement before sign this
      agreement. This kind of factors include
      earthquake, typhoon, flood, fire, war, domestic or international traffic accident, government or public authority’s behaviors, disease, civil unrest, strike, and
      unpredictable, unavoidable, unfeasible
  situation.

            

    

    
      	
              2.  

            	
              When irresistible factors happen, the
      party’s duties is affected by the
      irresistible
      factors and causing
      delay of the duties. The duties should be extension automatically. The
      party will not be responsible for breach of contract
      responsibility.

            

    

    
      	
              3.  

            	
              The party relates to irresistible
      factors should announce to the other parties
      immediately in
      written form, and provide the proof of causing and period of irresistible
      factors.

            

    

    
      	
              4.  

            	
              When irresistible factors happen, each
      party should
      negotiate for find fair plan of solution in time, and try best to reduce
      the effect to the lowest
level.

            

    

    

    Section 31 Dispute Resolution and Applicable Law

    
      	
              1.  

            	
              This agreement applies the law in the
      People’s Republic of China.

            

    

    
      	
              2.  

            	
              In the course of the agreement to
      the dispute, the parties should first be resolved through
      consultation.
      If the consultation is
      not
      successful, any
      parties can propose arbitration to China International Economic and Trade
      Arbitration Commission. The outcome of arbitration have the force of
      law to all investment
      parties

            

    

    
      	
              3.  

            	
              The result of arbitration will be executive by
      People’s
  court.

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    Section 32 Notice and Service

    
      	
              1.  

            	
              The
      parties to this agreement due to the implementation of this agreement is
      made or to provide each other all the notice, documents, data, are send to
      the address and fax list on Section 1 of this agreement. If one party
      change address and phone number, the party should notice to other parties
      in 3 days in written form. The loss due to delaying notice, the party made
      mistake will be responsible for the
mistake.

            

    

    
      	
              2.  

            	
              Personally delivered the document
      considered in the delivery of service. Served in a fax served as by facsimile. Service delivered by mail will be
      considered at when registered sent or post for the
    day.

            

    

    

    Section
33 Agreement’s Validation

    This
agreement will be valid since the day sign by all parties and will be end when
stop set up the company or when lifting of this agreement.

    

    Section
34 Appendix Agreement

    The
contain does not cover in this agreement, can be signed an appendix agreement by
Party (1), Party (2) and Party (3), and has equal force of law as this
agreement.

    

    Section
35 Text

    This
agreement has 6 copies, and each party has 2 copies. All of 6 copies has equal
force of law.

    

    Dated:
April 22, 2008

    

    /s/ Yuannan Investment
Group

    Yunnan
Investment Group

    

    /s/ Sino Gas International
Holdings, Inc.

    Sino Gas
International Holdings, Inc.

    

    

    /s/ Qujing Development
Investment Co. Ltd.

    Qujing
Development Investment Co. Ltd.

     

    
      
         

      

      
        10Unassociated Document

    Translation
of Equity Interest Transfer Agreement

    

    This
Equity Interest Transfer Agreement (the “Agreement”) is made and entered into as
of April 23, 2008, by and among each of the four sellers listed on the signature
page hereto (each, a “Seller” and collectively, the “Sellers” or “Party A”), and
Beijing Zhong Ran Wei Ye Gas Co.,
Ltd., a company organized
under the laws of the People’s Republic of China (the
"Purchaser" or “Party B”).

    

    WHEREAS,
Sellers are legal and beneficial
owners of Tongshan Hengxin Jiaye Co.,
Ltd. (the “ Company ”) and hold 100% equity interest
in the Company;

    

    WHEREAS,
Sellers wish to sell, and Purchaser wishes to purchase 100% equity interest in
the Company pursuant to the terms and provisions of this Agreement;

    

    NOW,
THEREFORE, in consideration of the premises and the
mutual covenants and agreements hereinafter contained, the parties hereby agree
as follows:

     

    Article I  Definitions

     

    1 Definitions

     

    Unless
the context otherwise requires, the following terms shall have the
meanings specified in
this
Section 

     

    
      
        
          	“Related
      Corporation”   	
                  a corporation bearing a
      relationship to another corporationwhere the corporation (a) directly or indirectly
      controlsanother corporation; (b) is controlled by another
      corporation;or (c)
      and another corporation are both controlled by the same
      corporation

                

        

         

      

    

    
      
        	“Control”	
                a corporation has more than half of the voting
      power orholds more
      than half of the issued share capital of another corporation

              

      

       

    

    
      	
              “PRC”

            	
              the
      People’s Republic of China, which, for the purpose of this announcement,
      excludes Hong Kong, the Macau Special Administrative Region of the
      People’s Republic of China and
Taiwan

            

    

     

    
      
        	“Execution Date”	
                the day upon which Party A and Party B to sign this
      Agreementduly execute this
Agreement

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	
              “Encumbrance”

            	
              any
      security interest, pledge, mortgage, deed of trust, lease, right-of-way,
      easement, servitude, encroachment, option, lien (including, without
      limitation, environmental and Tax liens), charge, encumbrance, adverse
      claim, right of first refusal, preferential arrangement, restriction or
      limitation of any kind, including, without limitation, any restriction on
      the use, voting, transfer, receipt of income or other exercise of any
      attributes of ownership

            

    

     

    
      	“Company” 	Tongshan Hengxin Jiaye Co.,
Ltd.

    

    
      
        

        
          	“RMB” 	Renminbi, the lawful currency of the
  PRC

        

        
          
            

            
              	“The Third Party”	Any individual, company, organization, or other
      entity otherthan the two parties who have
      entered into this Agreement

            

             

          

        

      

    

    
      	
              “Business Day”

            	
              any day that is not a Saturday, a Sunday or other day on which
      banks are required or authorized by law to be closed in Beijing, China

            

    

    

    Article II Transfer of the Equity Interest

    

    2 Equity Interest Transfer

    

    Subject
to the terms and conditions set forth in this Agreement and upon the basis of
the representations, warranties and covenants contained in this Agreement, Party
B agrees to acquire from Party A and Party A agrees to transfer to Party B, free
and clear of any and all its Encumbrances whatsoever, (a) 100% equity interest
in the Company and (b) all the rights and obligations of the Company in respect of Equity Interest Transfer.

    

    3
Purchase Price

    

    3.1 The aggregate purchase price paid
for the 100% equity interest in the Company shall be RMB
32.600.000

    

    3.2 The Purchase Price shall be allocated in
accordance with the percentage of equity interest Sellers own in the Company.

    (a) Song
Tiegang shall dispose of and transfer its 40% interest in the registered capital
of the Company at a consideration of RMB 13,040,000.

    (b) Liu
Lisan shall dispose of and transfer its 30% interest in the registered capital
of the Company at a consideration of RMB 9.780,000.

    (c) Zhu
Quanhong shall dispose of and transfer its 22% interest in the registered
capital of the Company at a consideration of RMB 7,172,000.

    (d) Wuhan
Shicheng Estate Development Co., Ltd. shall dispose of and transfer its 8%
interest in the registered capital of the Company at a consideration of RMB
2,608,000.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.3 The
Cash Consideration shall be paid by installments.

    (a) an
amount of RMB 13,040,000 shall be paid in cash within five (5) Business Days
after Execution Date; (“The First
Installment”)

    (b) an
amount of RMB 13,040,000 shall be paid in cash within five (5) Business Days
after the Transfer Effective
Date following Party A’s accomplishing the equity transfer
procedures; (“The Second Installment”)

    (c) the remaining balance of RMB
6,520,000 shall be paid within six (6) months after The Second
Installment.

    

    4
Closing

    

    4.1 The sale and purchase of the equity interest, as well as the consummation of
the other transactions contemplated hereby, shall take place at a
closing (the “Closing”) to be held within twenty Business Days following the date upon which
The First Installment listed in Section 3.3
(a) have been
received. (the day on which the Closing takes
place being the “Closing Date”)

    

    4.2 On or prior to the Closing Date, each Seller shall
deliver or cause to be delivered (a) a validly executed deeds of transfer or other document or
instrument to the Purchaser
evidencing the transfer of each Seller’s equity interest to the Purchaser; (b) other documents required for the sale, conveyance, transfer
and delivery of the equity interests; together with (c) any other customary transfer and Closing documents
as Purchaser shall reasonably request.

    

    5 Taxes

    

    Each
party hereto shall comply with their own tax filing obligations in connection with the preparation,
execution and delivery of this Agreement pursuant to all applicable laws relating to the
withholding and payment of taxes in PRC.

    

    ARTICLE III Representations and
Warranties of Each Party

    

    6
Representations and Warranties of Each Party

    

    6.1 Each Party represents and warrants to
the other that this Agreement constitutes legal, valid and binding obligations of
and may be enforced against, as the case may be, the Sellers and the Purchaser as of Execution
Date.

    

    6.2 All the copies of the organizational
documents of whatsoever
kind each party previously made available to the other before Execution Date are true, correct and
valid.

    

    6.3 Effective as of Execution Date, any equity transfer agreement entered into by and
among Party A and Party B before Execution Date is hereby
terminated.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    6.4 Effective as of Closing
Date, the Sellers will no longer have any of the rights and obligations herein
with respect to equity interest. The sale and delivery of equity interest to
Purchaser pursuant to this Agreement will vest in Purchaser rights and
obligations with respect to equity interest.

    

    ARTICLE IV Representations and
Warranties of Party A

    

    7
Disclosures Representations and Warranties of Party A

    

    The Sellers hereby severally represents and
warrants to the Purchaser as follows:

    

    7.1 Neither information nor any
fact related to the Comapny, nor any report, certificate or instrument furnished
to Party B in connection with the transactions contemplated by this Agreement,
when read together, contains or will contain any material misstatement of fact
or omits or will omit to state a material fact necessary to make the statements
contained herein or therein not misleading. Party A knows of no information or
fact that has or would have a material adverse effect on the business, prospects
or condition (financial or otherwise) of Party A that has not been disclosed to
Party B in writing.

    

    7.2 There
are no actions by or against Party A or Party A's ability to consummate the
transactions contemplated hereby pending by or before any Governmental Authority
(or, to the knowledge of Party A, threatened to be brought by or before any
Governmental Authority) which, if determined adversely, would have a material
adverse effect on the ability of Party A to consummate the transactions
contemplated hereby. Neither Party A's equity interest nor Party A is subject to
any Governmental Order (nor, to the knowledge of Party A, are there any such
Governmental Orders threatened to be imposed by any Governmental Authority)
which has or is likely to have a material adverse effect on the ability of Party
A to consummate the transactions contemplated hereby.

    

    8 General
Representations and Warranties of Party A

    

    8.1 To
the extent that the Sellers are natural persons, the Sellers have the capacity
to enter into Contracts and fulfill obligations set out in this
Agreement.

    

    8.2 The
execution, delivery and performance of this Agreement to which the Sellers are a
party do not and will not (a) conflict with or violate the articles of
organization, articles of incorporation or the bylaws or operating agreement of
the Company, (b) conflict with or violate any Governmental Orders to which
the Sellers are a party or by which the Company is bound, (c) conflict with
or violate in any material respect any provision of any material law applicable
to the Sellers, (d) in any material respect, conflict with, violate any
material contract or agreement to which the Sellers are a party or by which the
Company is bound.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    8.3 The Company is a limited liability company duly
organized, validly existing and in good standing under the Laws of PRC.

    

    8.4 The
Company has obtained, and is in compliance in all material respects with the
terms of, all industrial and environmental permits required under applicable
laws to operate the natural gas business of the Company as currently operated by
the Company, and all necessary
documents, certificates and other relevant filings in connection with such
intangible assets have been
timely filed with the relevant Governmental Authorities in PRC as the case may
be, for the purpose of maintaining such intangible assets and all issuances, registrations and
applications therefor.

    

    8.5 To the knowledge of the Company, the Company will make available to Purchaser all valid franch ise rights and priority
rights in the possession or control of the Company with respect to the local policies as of the Execution Date;

    

    8.6 To the knowledge of the Company, the land-use rights of the
Company are
valid and non-infringed.

    

    8.7 There exist no notices of deficiency
or adjustment proposed,
asserted or assessed for any amount of tax by any Taxing Authority against the
Company. To the Company's knowledge, there is no material dispute
or claim concerning tax liability of the Company.

    

    9 Ownership of Equity
Interest

    

    9.1 Party A has all requisite limited liability company
power and authority to own, lease and operate its properties and to carry on its
business as now conducted.

    

    9.2 Party A is the legal and beneficial owner of
100% of the limited liability company equity interest of the Company.

    

    9.3 Party A is the sole beneficial owner of
the Sellers’ equity interest, free and clear of all
Encumbrances. There are no options, warrants,
convertible or exchangeable
securities relating to the Sellers’ equity interest. The Company has
not issued, sold, assigned, transferred, redeemed, conveyed, leased, mortgaged,
pledged or otherwise disposed of or encumbered any equity interests or other
securities of the Company or granted any options, warrants, calls or other
rights to purchase or otherwise acquire any equity interest or other securities
of the Company.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    ARTICLE V Representations and
Warranties of Party B

    

    7
Disclosures Representations and Warranties of Party B

    

    The Purchaser hereby severally represents and
warrants to the Sellers as follows:

    

    10.1 Party B is a limited liability company duly
organized, validly existing and in good standing under the Laws of
PRC.

    

    10.2 The execution, delivery and
performance of this Agreement to which the Purchaser is a party do not and will
not (a) conflict with or violate the articles of organization, articles of
incorporation or the bylaws or operating agreement of the Purchaser,
(b) conflict with or violate any Governmental Orders to which the Purchaser
is a party or by which the Purchaser is bound, (c) conflict with or violate
in any material respect any provision of any material law applicable to the
Purchaser, (d) in any material respect, conflict with, violate any material
contract or agreement to which the Purchaser is a party or by which the
Purchaser is bound.

    

    ARTICLE VI Confidentiality

    

    11 Confidentiality

    

    11.1 The information related to business operation and
financial conditions and
other proprietary information (collectively, the
“Proprietary
Information”) furnished or disclosed by either party
(“Discloser”) to the other party (“Receiver”) hereunder shall be deemed confidential
and solely for the use of Receiver.

    

    11.1.1 Receiver will take all reasonable care,
as with its own
confidential information,
to ensure that Proprietary Information, regardless of form, received from Discloser
shall not be used for any purpose not reasonably contemplated by this
Agreement.

    

    11.1.2 Receiver will take all reasonable care,
as with its own
confidential information,
to ensure that Proprietary
Information shall not be
disclosed to third parties except insofar as such Proprietary Information is required by employees and counsels to whom Receiver may grant applicable
rights.

    

    11.2 In addition to the foregoing, the
confidentiality obligations in Section 11.1 will not apply to Proprietary Information as follows:

    

    11.2.1 Proprietary Information which is developed by Receiver independently of
any disclosures by Discloser;

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    11.2.2 Proprietary Information which is or becomes available to the public
without the fault of
Receiver;

    

    11.2.3 Proprietary Information which corresponds in substance to information
furnished to Receiver by any third party not known to have any duty of
confidentiality to Discloser.

    

    11.3 The entire of
the undertakings and obligations of confidentiality set out in Article VI shall survive termination of
this Agreement for any reason.

    

    ARTICLE
VII Indemnification

    

    12 Breach of Representations and
Warranties

    

    12.1 The representations and warranties of
both Parties contained in this Agreement shall be
true and correct in all
material respects on the date hereof. Both Parties shall not take any
action that would breach or cause to be inaccurate any of the representations
and warranties set forth in this Agreement. Each Party agrees to indemnify, defend and hold harmless the other Party from and against any and all losses,
liabilities, claims, damages, penalties, fines, judgments, awards, settlements,
Taxes, costs, fees, expenses and disbursements actually sustained by any such
Person resulting from, arising out of or relating to any breach by such
Party of any of the representations or
warranties of such Party.

    

    13 Breach of Agreement

    

    13.1 Each Party agrees to indemnify, defend and hold harmless
the other Party from and against any and all losses,
liabilities, claims,
damages, penalties, fines, judgments, awards, settlements, Taxes, costs, fees,
expenses and disbursements actually sustained by any such Person resulting from,
arising out of or relating to any breach by such Party of this Agreement.

    

    13.2 Notwithstanding Section 13.1 in this
Agreement, no party to this agreement shall be liable to or otherwise
responsible to any other party hereto for indirect damages and losses related to this
Agreement.

    

    ARTICLE
VIII Force
Majeure

    

    14
Force
Majeure

    

    
      14.1 "An Event of Force Majeure” is an event or circumstance which is beyond the control
and without the fault or negligence of the party affected and which by the
exercise of reasonable diligence the party affected was unable to prevent
provided that event or circumstance is limited to the
following:

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

    

    
      (a) riot, war,
invasion, act of foreign enemies, hostilities acts of terrorism, civil war,
rebellion, revolution, insurrection of military or usurped power, requisition or
compulsory acquisition by any governmental or competent authority; 

    

    
      (b) earthquakes, flood, fire or other physical natural disaster,
but excluding weather conditions regardless of severity; and

    

    
      (c) strikes at national level or
industrial disputes at a national level.

    

    
      

    

    
      14.2 Neither party is responsible for any failure to perform its
obligations under this Agreement, if it is prevented or delayed in
performing those obligations by an Event of Force
Majeure.

    

    
      

    

    
      14.3 Where there is an Event of Force
Majeure, the party prevented from or delayed in performing its obligations under this
Agreement must immediately notify the other party
giving full particulars of the Event of Force Majeure and the reasons for the
Event of Force Majeure preventing that party from, or delaying that party in
performing its obligations
under this Agreement and that party must use its reasonable
efforts to mitigate the effect of the Event of Force Majeure upon its or
their performance of the Agreement and to fulfill its or their obligations under the
Contract.

    

    
      

    

    
      14.4 Upon completion of the Event of Force
Majeure, the party affected must as soon as
reasonably practicable recommence the performance of its obligations under this
Agreement. Both Parties will provide a revised program and schedule to minimize the effects of the
prevention or delay caused
by the Event of Force Majeure.

    

    

    ARTICLE IX Dispute Resolution

    

    15 Arbitration

    

    15.1 In the event that any dispute, claim,
question or difference arises with respect to this Agreement or its performance,
enforcement, breach, termination or validity, the parties will use
their reasonable efforts to attempt to settle
such dispute. Except as expressly set forth in
this Agreement, if the parties do not resolve the Dispute within a period of
30 Business Days following the
first notice of the dispute by one party to the other, then upon
written notice by one party to the other, the dispute shall be finally settled by
arbitration in China
International Economic and Trade Arbitration Commission.

    

    16 Award of
Arbitration

    

    In the
event of arbitration, the parties agree that the award of the arbitrator shall
be (a) the sole and exclusive remedy between them regarding any claims,
counterclaims, or issues presented to the arbitrator; (b) final and subject to
no judicial review.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    17
Costs

    

    The arbitrator shall award to the prevailing party in the
arbitration, if any, as determined by the arbitrator, all costs incurred by it
in connection with the arbitration.

    

    ARTICLE X Governing Law

    

    19 Governing Law

    

    This Agreement shall be governed by and
construed and enforced in
accordance with the laws of PRC without regard to principles of
conflicts of law.

    

    ARTICLE X I MISCELLANEOUS

    

    20 Waiver

    

    No failure on the part of any party to
exercise, and no delay in exercising, any right, power or remedy hereunder shall
operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy
by such party preclude any other or further exercise thereof or the exercise of
any other right, power or remedy.

    

    21 Assignment

    

    No assignment of this
Agreement or of any rights
or obligations hereunder may be made by either Seller or Purchaser without the
prior written consent of the other parties hereto and any attempted assignment
without the required consents shall be void.

    

    22 Amendments

    

    22.1 This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted
assigns.

    

    22.2 No
amendment, deletion or addition to this Agreement shall be effective unless in
writing and executed by each party hereto.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    23 Severability

    

    If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any Law or
public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially
adverse to any party.

    

    24
Counterparts

    

    This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument when each of the parties has signed and delivered to
the other parties one or more counterparts (including, without limitation,
delivery by facsimile).

    

    25 Entire
Agreement

    

     This
Agreement and the exhibits and schedules hereto and the certificates or other
instruments delivered hereunder constitute the entire agreement between the
parties hereto with respect to the subject matter hereof and supersede all prior
understandings of the parties, except for the nondisclosure agreement entered
into between the parties in connection with this Agreement and the transactions
contemplated hereby.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed by their respective duly authorized officers, as
of the date first written above.

    

    SELLERS:

    

    /s/
Song
Tiegang                                                                                   

    SONG TIEGANG

    

    

    /s/
Liu
Lisan                                                                                          
 

    LIU LISAN

    

    

    /s/
Zhu
Quhong                                                                                     

    ZHU QUANHONF

    

    

    /s/ Wuhan Shicheng Estate
Development Co.,
Ltd.                         

    WUHAN
SHICHENG ESTATE DEVELOPMENT CO., LTD.

    

    

    PURCHASER:

    

    /s/
Beijing
Zhong Ran Wei YeGas Co.,
Ltd.                             

    BEIJING
ZHONG RAN WEI YE GAS CO., LTD.

     

    
      
        
        

      

      
        11

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