Document:

Unassociated Document

    

    CONSULTING
      SERVICES AGREEMENT

     

    This
      Consulting Services Agreement (this “Agreement”) is dated on December 28, 2005,
      and is entered into in Shanghai, China by and among Haie Hi-tech Engineering
      (Hong Kong) Company Limited, with a registered address at FLAT/RM B 20/F Public
      Bank Centre, 120 Des Voeux Road Central, HK, China (“Party
      A”),
      and
      Shanghai Hai Lu Kun Lun Hi-tech Engineering Co., Ltd. with a registered address
      at No.1111, Northern Zhong Shan Er Road, Shanghai, China (“Party B”). Party A
      and Party B are referred to collectively in this Agreement as the
“Parties.”

     

    RECITALS

    

    
      	(1)  	
              Party
                A, a limited company incorporated under law of Hong Kong, has the
                expertise in the business of Engineering and Investment.
                

            

    

     

    
      	(2)  	
              Party
                B is a limited company incorporated in China, and is engaged in FOUR
                TECHNOLOGY SERVICES’ (development, transfer, consultation and other
                services regarding technologies) in chemical engineering, energy
                saving,
                computer and other professional technical fields; development and
                sale of
                computer hardware; sale of heat recovery boiler and auxiliary equipments,
                materials and equipments of chemical engineering (hazardous materials
                exclusive) and blueprint; installation and process of chemical engineering
                devices (the “Business”);

            

    

     

    
      	(3)  	
              The
                Parties desire that Party A provide technology consulting services
                and
                relevant services to Party B;

            

    

     

    
      	(4)  	
              The
                Parties are entering into this Agreement to set forth the terms and
                conditions under which Party A shall provide consulting services
                to Party
                B. 

            

    

     

    NOW
      THEREFORE, the Parties agree as follows: 

     

    1.
      DEFINITIONS

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    1.1
      In
      this Agreement the following terms shall have the following
      meanings:

     

    “Affiliate,”
      with respect to any Person, shall mean any other Person that directly or
      indirectly controls, or is under common control with, or is controlled by,
      such
      Person. As used in this definition, “control” shall mean possession, directly or
      indirectly, of power to direct or cause the direction of management or policies
      (whether ownership of securities or partnership or other ownership interests,
      by
      contract or otherwise);

     

    “Consulting
      Services Fee” shall be as defined in Clause 3.1;

     

    “Indebtedness”
      shall mean, as to any Person, without duplication, (i) all indebtedness
      (including principal, interest, fees and charges) of such Person for borrowed
      money for the deferred purchase price of property or services, (ii) the face
      amount of all letters of credit issued for the amount of such Person and all
      drafts drawn thereunder, (iii) all liabilities secured by any Lien on any
      property owned by such person, whether or not such liabilities have been assumed
      by such Person, (iv) the aggregate amount required to be capitalized under
      leases under which such Person is the lessee and (v) all contingent obligations
      (including, without limitation, all guarantees to third parties) of such
      Person;

     

    “Lien”
      shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement,
      encumbrance, lien (statutory or other), preference, priority or other security
      agreement of any kind or nature whatsoever (including. without limitation,
      any
      conditional sale or other title retention agreement, any financing or similar
      statement or notice filed under recording or notice statute, and any lease
      having substantially the same effect as any of the foregoing);

     

    “Person”
      shall mean any individual, corporation, company, voluntary association,
      partnership, joint venture, trust, unincorporated organization, entity or other
      organization or any government body;

     

    “PRC”
means
      the People’s Republic of China;

     

    “Services”
      means the services to be provided under the Agreement by Party A to Party B,
      as
      more specifically described in Clause 2; In this Agreement a reference to a
      Clause, unless the context otherwise requires, is a reference to a clause of
      this Agreement.

     

    1.2
      The
      headings in this Agreement shall not affect the interpretation of this
      Agreement.

     

    2.
      RETENTION
      AND SCOPE OF SERVICES

     

    2.1
      Party
      B hereby agrees to retain the services of Party A, and Party A accepts such
      appointment, to provide to Party B services in relation to the current and
      proposed operations of Party B’s business in the PRC upon the terms and
      conditions of this Agreement. The services subject to this Agreement shall
      include, without limitation:

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (a)
      General Business Operation. Advice and assistance relating to development of
      technology and provision of consultancy services, particularly as related to
      travel services.

     

    (b)
      Human
      Resources. 

     

    (i)
      Advice and assistance in relation to the staffing of Party B, including
      assistance in the recruitment, employment and secondment of management
      personnel, administrative personnel and staff of Party B;

     

    (ii)
      Training of management, staff and administrative personnel;

     

    (iii)
      Assistance in the development of sound payroll administrative controls in Party
      B;

     

    (iv)
      Advice and assistance in the relocation of management and staff of Party
      B;

     

    (c)
      Research and Development

     

    (i)
      Advice and assistance in relation to research and development of
      Party
      B;

     

    (ii)
      Advice and assistance in industry development; and

     

    (d)
      Other. Such other advice and assistance as may be agreed upon by the
      Parties.

     

    2.2
      Exclusive
      Services Provider.
      During
      the term of this Agreement, Party A shall be the exclusive provider of the
      Services. Party B shall not seek or accept similar services from other providers
      unless the prior written approval is obtained from Party A.

     

    2.3
      Intellectual
      Properties Related to the Services.
      Party A
      shall own all intellectual property rights developed or discovered through
      research and development, in the course of providing Services, or derived from
      the provision of the Services. Such intellectual property rights shall include
      patents, trademarks, trade names, copyrights, patent application rights,
      copyright and trademark application rights, research and technical documents
      and
      materials, and other related intellectual property rights including the right
      to
      license or transfer such intellectual properties. If Party B must utilize any
      intellectual property, Party A agrees to grant an appropriate license to Party
      B
      on terms and conditions to be set forth in a separate agreement. 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    2.4  Pledge.
      Party B
      shall permit and cause Party B’s shareholders to pledge the equity interests of
      Party B to Party A for securing the Fee that should be paid by Party B pursuant
      to this Agreement. 

     

    3.
      PAYMENT

     

    3.1
      General. 

     

    (a)
      In
      consideration of the Services provided by Party A hereunder, Party B shall
      pay
      to Party A during the term of this Agreement a consulting services fee (the
      “Consulting Services Fee”), payable in RMB each quarter, equal to all of its
      revenue for such quarter based on the quarterly financial statements provided
      under Clause 5.1 below. Such quarterly payment shall be made within 15 days
      after receipt by Party A of the financial statements referenced
      above.

     

    (b)
      Party
      B will permit, from time to time during regular business hours as reasonably
      requested by Party A, or its agents or representatives (including independent
      public accountants, which may be Party B’s independent public accountants), (i)
      to conduct periodic audits of books and records of Party B, (ii) to examine
      and
      make copies of and abstracts from all books, records and documents (including,
      without limitation, computer tapes and disks) in the possession or under the
      control of Party B (iii) to visit the offices and properties of Party B for
      the
      purpose of examining such materials described in clause (ii) above, and (iv)
      to
      discuss matters relating to the performance by Party B hereunder with any of
      the
      officers or employees of Party B having knowledge of such matters. Party A
      may
      exercise the audit rights provided in the preceding sentence at any time,
      provided that Party A provides ten days written notice to Party B specifying
      the
      scope, purpose and duration of such audit. All such audits shall be conducted
      in
      such a manner as not to interfere with Party B’s normal operations.

     

    3.2
      Party
      B shall not be entitled to set off any amount it may claim is owed to it by
      Party A against any Consulting Services Fee payable by Party B to Party A unless
      Party B first obtains Party A’s written consent.

     

    3.3
      The
      Consulting Services Fee shall be paid in RMB by telegraphic transfer to Party
      an
      Account No______________, to such other account or accounts as may be specified
      in writing from time to time by Party A.

     

    3.4
      Should Party B fail to pay all or any part of the Consulting Service’s Fee due
      to Party A in RMB under this Clause 3 Within the time limits stipulated, Party
      B
      shall pay to Party A interest in RMB on the amount overdue based on the three
      (3) month lending rate for RMB announced by the Bank of China on the relevant
      due date.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    3.5
      All
      payments to be made by Party B hereunder shall be made free and clear of and
      without deduction for or on account of tax, unless Party B is required to make
      such payment subject to the deduction or withholding of tax.

     

    4.
      FURTHER
      TERMS OF COOPERATION

     

    4.1
      All
      business revenue of Party B shall be directed in full by Party B into a bank
      account(s) nominated by Party A.

     

    5.
      UNDERTAKINGS OF PARTY A

     

    Party
      B
      hereby agrees that, during the term of the Agreement:

     

    5.1
      Information Covenants. Party B will furnish to Party A:

     

    5.1.1
      Preliminary
      Monthly Reports.
      Within
      five (5) days of the end of each calendar month the preliminary income
      statements and balance sheets of Party B made up to and as at the end of such
      calendar month, in each case prepared in accordance with the PRC generally
      accepted accounting principles, consistently applied;

     

    5.1.2
      Final
      Monthly Reports.
      Within
      ten (10) days after the end of each calendar month, a final report from Party
      B
      on the financial position and results of operations and affairs of Party B
      made
      up to and as at the end of such calendar month and for the elapsed portion
      of
      the relevant financial year, setting forth in each case in comparative form
      figures for the corresponding period in the preceding financial year, in each
      case prepared in accordance with the PRC generally accepted accounting
      principles, consistently applied;

     

    5.1.3
      Quarterly
      Reports. As soon as available and in any event
      within
      forty-five (45) days after each Quarterly Date (as defined below), unaudited
      consolidated and consolidating statements of income, retained earnings and
      changes in financial position of the Party B and its subsidiaries, if any,
      for
      such quarterly period and for the period from the beginning of the relevant
      fiscal year to such Quarterly Date and the related consolidated and
      consolidating balance sheets as at the end of such quarterly period, setting
      forth in each case actual versus budgeted comparisons and in comparative form
      the corresponding consolidated and consolidating figures for the corresponding
      period in the preceding fiscal year, accompanied by a certificate of the chief
      financial officer of the Party B, which certificate shall state that said
      financial statements fairly present the consolidated and consolidating financial
      condition and results of operations, as the case may be, of the Party B and
      its
      subsidiaries, if any, in accordance with PRC general accepted accounting
      principles applied on a consistent basis as at the end of, and for, such period
      (subject to normal year-end audit adjustments and the preparation of notes
      for
      the audited financial statements);

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    5.1.4
      Annual
      Audited Accounts.
      Within
      six (6) months of the end of the financial year, the annual audited accounts
      of
      Party B to which they relate (setting forth in each case in comparative form
      the
      corresponding figures for the preceding financial year), in each case prepared
      in accordance with, among others, the PRC generally accepted accounting
      principles, consistently applied;

     

    5.1.5
      Budgets.
      At
      least 90 days before the first day of each financial year of Party B, a budget
      in form satisfactory to Party A (including budgeted statements of income and
      sources and uses of cash and balance sheets) prepared by Party B for each of
      the
      four financial quarters of such financial year accompanied by the statement
      of
      the chief financial officer of Party B to the effect that, to the best of his
      knowledge, the budget is a reasonable estimate for the period covered
      thereby.

     

    5.1.6
      Notice
      of Litigation.
      Promptly, and in any event within one

     

    (1)
      business day after an officer of Party B obtains knowledge thereof, notice
      of
      (i) any litigation or governmental proceeding pending against Party B which
      could materially adversely affect the business, operations, property, assets,
      condition (financial or otherwise) or prospects of Party B and (ii) any other
      event which is likely to materially adversely affect the business, operations,
      property, assets, condition (financial or otherwise) or prospects of Party
      B.

     

    5.1.7
      Other
      Information.
      From
      time to time, such other information or documents (financial or otherwise)
      as
      Party A may reasonably request. For purposes of this Agreement, “a Quarterly
      Date” shall mean the last day of March, June, September and December in each
      year, the first of which shall be the first such day following the date of
      this
      Agreement; provided that if any such day is not a business day in the PRC,
      then
      such Quarterly Date shall be the next succeeding business day in the
      PRC.

     

    5.2
      Books,
      Records and Inspections.
      Party B
      will keep proper books of record and account in which full, true and correct
      entries in conformity with generally accepted accounting principles in the
      PRC
      and all requirements of law shall be made of all dealings and transactions
      in
      relation to its business and activities. Party B will permit officers and
      designated representatives of Party A to visit and inspect, under guidance
      of
      officers of Party B, any of the properties of Party B, and to examine the books
      of record and account of Party B and discuss the affairs, finances and accounts
      of Party B with, and be advised as to the same by, its and their officers,
      all
      at such reasonable times and intervals and to such reasonable extent as Party
      A
      may request.

     

    5.3
      Corporate
      Franchises.
      Party B
      will do or cause to be done, all things necessary to preserve and keep in full
      force and effect its existence and its material rights, franchises and
      licenses.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    5.4
      Compliance
      with Statutes, etc.
      Party B
      will comply with all applicable statutes, regulations and orders of, and all
      applicable restrictions imposed by, all governmental bodies, in respect of
      the
      conduct of its business arid the ownership of its property, including without
      limitation maintenance of valid and proper government approvals and licenses
      necessary to provide the services, except that such noncompliances could not,
      in
      the aggregate, have a material adverse effect on the business, operations,
      property, assets, condition (financial or otherwise) or prospects of Party
      B.

     

    6.
      NEGATIVE
      COVENANTS

     

    Party
      B
      covenants and agrees that, during the term of this Agreement, without the prior
      written consent of Party A.

     

    6.1
      Equity.
      Party B
      will not issue, purchase or redeem any equity or debt securities of Party
      B.

     

    6.2
      Liens.
      Party B
      will not create, incur, assume or suffer to exist any Lien upon or with respect
      to any property or assets (real or personal, tangible or intangible) of Party
      B
      whether now owned or hereafter acquired, provided that the provisions of this
      Clause 6.1 shall not prevent the creation, incurrence, assumption or existence
      of:

     

    6.2.1
      Liens for taxes not yet due, or Liens for taxes being contested in good faith
      and by appropriate proceedings for which adequate reserves have been
      established; and

     

    6.2.2
      Liens in respect of property or assets of Party B imposed by law, which were
      incurred in the ordinary course of business, and (x) which do not in the
      aggregate materially detract from the value of such property or assets or
      materially impair the use thereof in the operation of the business of Party
      B or
      (y) which are being contested in good faith by appropriate proceedings, which
      proceedings have the effect of preventing the forfeiture or sale of the property
      of assets subject to any such Lien.

     

    6.3
      Consolidation,
      Merger, Sale of Assets, etc.
      Party B
      will not wind up, liquidate or dissolve its affairs or enter into any
      transaction of merger or consolidation, or convey, sell, lease or otherwise
      dispose of (or agree to do any of the foregoing at any future time) all or
      any
      part of its property or assets, or purchase or otherwise acquire (in one or
      a
      series of related transactions) any part of the property or assets (other than
      purchases or other acquisitions of inventory, materials and equipment in the
      ordinary course of business) of any Person, except that (i) Party B may make
      sales of inventory in the ordinary course of business and (ii) Party B may,
      in
      the ordinary course of business, sell equipment which is uneconomic or
      obsolete.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    6.4
      Dividends.
      Party B
      will not declare or pay any dividends, or return any capital, to its
      shareholders or authorize or make any other distribution, payment or delivery
      of
      property or cash to its shareholders as such, or redeem, retire, purchase or
      otherwise acquire, directly or indirectly, for a consideration, any shares
      of
      any class of its capital stock now or hereafter outstanding (or any options
      or
      warrants issued by Party B with respect to its capital stock), or set aside
      any
      funds for any of the foregoing purposes.

     

    6.5
      Leases.
      Party
      B
      will not permit the aggregate payments (including, without limitation, any
      property taxes paid as additional rent or lease payments) by Party B under
      agreements to rent or lease any real or personal property to exceed [US$1
      million] in any fiscal year of Party B.

     

    6.6
      Indebtedness.
      Party B
      will not Contract, create, incur, assume or suffer to exist any indebtedness,
      except accrued expenses and current trade accounts payable incurred in the
      ordinary course of business, and obligations under trade letters of credit
      incurred by Party B in the ordinary course of business, which are to be repaid
      in full not more than one (1) year after the date on which such indebtedness
      is
      originally incurred to finance the purchase of goods by Party B.

     

    6.7
      Advances,
      Investment and Loans.
      Party B
      will not lend money or credit or make advances to any Person, or purchase or
      acquire any stock, obligations or securities of, or any other interest in,
      or
      make any capital contribution to, any other Person, except that Parry A may
      acquire and hold receivables owing to it, if created or acquired in the ordinary
      course of business and payable or dischargeable in accordance with Customary
      trade terms.

     

    6.8
      Transactions
      with Affiliates.
      Party B
      will not enter into any transaction or series of related transactions, whether
      or not in the ordinary course of business, with any Affiliate of Party B, other
      than on terns and conditions substantially as favorable to Party B as would
      be
      obtainable by Party B at the time in a comparable arm’s-length transaction with
      a Person other than an Affiliate and with the prior written consent of Party
      A.

     

    6.9
      Capital
      Expenditures.
      Party B
      will not make any expenditure for fixed or capital assets (including, without
      limitation, expenditures for maintenance and repairs which should be
“capitalized in accordance with generally accepted accounting principles in
      the
      PRC and including capitalized lease obligations) during any period set forth
      below (taken as one accounting period) which exceeds in the aggregate for Party
      B the amount of commencing in the fiscal year.

     

    6.10
      Modifications
      to Debt Arrangements, Agreements or Articles of Association.
      Party B
      will not (i) make any voluntary or optional payment or prepayment on or
      redemption or acquisition for value of (including, without limitation, by way
      of
      depositing with the trustee with respect thereto money or securities before
      due
      for the purpose of paying when due) any Existing Indebtedness or (ii) amend
      or
      modify, or permit the amendment or modification of, any provision of any
      Existing Indebtedness or of any agreement (including, without limitation, any
      purchase agreement, indenture, loan agreement or security agreement) relating
      to
      any of the foregoing or (iii) amend, modify or change its Articles of
      Association or Business License, or any agreement entered into by it, with
      respect to its capital stock, or enter into any new agreement with respect
      to
      its capital stock.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    6.11
      Line
      of Business.
      Party B
      will not engage (directly or indirectly) in any business other than those types
      of business prescribed within the business scope of Party B’s business license
      except with the prior written consent of Party A. 

     

    7.
      TERM
      AND TERMINATION

     

    7.1
      This
      Agreement shall take effect on the date of execution and shall remain in full
      force and effect unless terminated pursuant to Clause 7.2.

     

    7.2
      This
      Agreement may be terminated:

     

    7.2.1
      by
      either Party giving written notice to the other Party if the other Party has
      committed a material breach of this Agreement (including but not limited to
      the
      failure by Party B to pay the Consulting Services Fee) and such breach, if
      capable of remedy, has not been so remedied within, in the case of breach of
      a
      non-financial obligation, 14 days, following receipt of such written
      notice;

     

    7.2.2
      either Party giving written notice to the other Party if the other Party becomes
      bankruptcy or insolvent or is the subject of proceedings or arrangements for
      liquidation or dissolution or ceases to carry on business or becomes unable
      to
      pay its debts as they come due;

     

    7.2.3
      by
      either
      Party giving written notice to the other Party if, for any reason, the
      operations of Party A are terminated;

     

    7.2.4
      by
      either Party giving written notice to the other Party if the business licence
      or
      any other license or approval material for the business operations of Party
      B is
      terminated, cancelled or revoked;

     

    7.2.5
      by
      either Party giving written notice to the other Party if circumstances arise
      which materially and adversely affect the performance or the objectives of
      this
      Agreement; or

     

    7.2.6
      by
      election of Party A with or without reason.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    7.3
      Any
      Party electing properly to terminate this Agreement pursuant to Clause 7.2
      shall
      have no liability to the other Party for indemnity, compensation or damages
      arising solely from the exercise of such right. The expiration or termination
      of
      this Agreement shall not affect the continuing liability of Party B to pay
      any
      Consulting Services Fees already accrued or due and payable to Party A. Upon
      expiration or termination of this Agreement, all amounts then due and unpaid
      to
      Party A by Party B hereunder, as well as all other amounts accrued but not
      yet
      payable to Party A by Party B, shall forthwith become due and payable by Party
      B
      to Party A.

     

    8.
      PARTY
      B’S REMEDY UPON PARTY A’S BREACH

     

    In
      addition to the remedies provided elsewhere under this Agreement, Party A shall
      be entitled to remedies permitted under PRC laws, including without limitation
      compensation for any direct and indirect losses arising from the breach and
      legal fees incurred to recover losses from such breach.

     

    9.
      AGENCY

     

    The
      Parties are independent Contractors, and nothing in this Agreement shall be
      construed to constitute either Party to be the agent, Partner, legal
      representative, attorney or employee of the other for any Purpose whatsoever.
      Neither Party shall have the power or authority to bind the other except as
      specifically set out in this Agreement.

     

    10.
      GOVERNING
      LAW AND JURISDICTION

     

    10.1
      Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the PRC.

     

    10.2
      Arbitration.
      Any
      dispute arising from, out of or in connection with this Agreement shall be
      settled through friendly consultations between the Parties. Such consultations
      shall begin immediately after one Party has delivered to the other Party a
      written request for such consultation. If within ninety (90) days following
      the
      date on which such notice is given, the dispute cannot be settled through
      consultations, the dispute shall, upon the request of any Shareholder with
      notice to the other Party, be submitted to arbitration in China under the
      auspices of China International Economic and Trade Arbitration Commission (the
      “CIETAC”). The Parties shall jointly appoint a qualified interpreter for the
      arbitration proceedings and shall be responsible for sharing in equal portions
      the expenses incurred by such appointment.

     

    10.3
       Number
      and Selection of Arbitrators.
      There
      shall be three (3) arbitrators. Party B shall select one (1) arbitrator and
      Party A shall select one (1) arbitrator, and both arbitrator shall be selected
      within thirty (30) days after giving or receiving the demand for arbitration.
      Such arbitrators shall be freely selected, and the Parties shall not be limited
      in their selection to any prescribed list. The chairman of the CIETAC shall
      select the third arbitrator. If a Party does not appoint an arbitrator who
      has
      consented to participate within thirty (30) days after the selection of the
      first arbitrator, the relevant appointment shall be made by the chairman of
      the
      CIETAC.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    10.4
      Language.
      Unless
      otherwise provided by the arbitration rules of CIETAC, the arbitration
      proceeding shall be conducted in English. The arbitration tribunal shall apply
      the arbitration rules of the CIETAC in effect on the date of the signing of
      this
      Agreement. However, if such rules are in conflict with the provisions of this
      Clause, including the provisions concerning the appointment of arbitrators,
      the
      provisions of this Clause shall prevail.

     

    10.5
      Cooperation;
      Disclosure.
      Each
      Party shall cooperate with the other Party in making full disclosure of and
      providing complete access to all information and documents requested by the
      other Party in connection with such proceedings, subject only to any
      confidentiality obligations binding on such Parties.

     

    10.6
      Jurisdiction. Judgment upon the award rendered by the arbitration may be entered
      into by any court having jurisdiction, or application may be made to such court
      for a judicial recognition of the award or any order of enforcement
      thereof.

     

    10.7
      Continuing
      Obligations.
      During
      the period when a dispute is being resolved, the Parties shall in all other
      respects continue their implementation of this Agreement.

     

    11.
      ASSIGNMENT

     

    No
      part
      of this Agreement shall be assigned or transferred by either Party without
      the
      prior written consent of the other Party. Any such assignment or transfer shall
      be void. Party A, however, may assign its rights and obligations hereunder
      to an
      Affiliate.

     

    12.
      NOTICES

     

    Notices
      or other communications required to be given by any party pursuant to this
      Agreement shall be written in English and Chinese and delivered personally
      or
      sent by registered mail or postage prepaid mail or by a recognized courier
      service or by facsimile transmission to the address of relevant each party
      or
      both parties set forth below or other address of the party or of the other
      addressees specified by such party from time to time. The date when the notice
      is deemed to be duly served shall be determined as the follows: (a) a notice
      delivered personally is deemed duly served upon the delivery; (b) a notice
      sent
      by mail is deemed duly served the tenth (10th) day after the date when the
      air
      registered mail with postage prepaid has been sent out (as is shown on the
      postmark), or the fourth (4th) day after the delivery date to the
      internationally recognized courier service agency; and (c) a notice sent by
      facsimile transmission is deemed duly served upon the receipt time as is shown
      on the transmission confirmation of relevant documents. 

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

      
        	
                Party
                  A

              	
                  

              	
                Haie
                  Hi-tech Engineering (Hong Kong) Company Limited 

              
	
                 

              	
                  

              	
                Address:
                  

              
	
                 

              	
                  

              	
                Attn:

              
	
                 

              	
                  

              	
                Fax:
                  

              
	 	 	
                Tel:
                  

              
	 	 	 
	
                Party
                  B

              	
                  

              	
                Shanghai
                  Hai Lu Kun Lun Hi-tech Engineering Co., Ltd.

              
	
                 

              	
                  

              	
                Address:

              
	
                 

              	
                  

              	
                Attn:
                  

              
	 	 	
                Tel:
                  

              
	
                 

              	
                  

              	
                Fax:
                  

              

      

    

     

    13.
      GENERAL

     

    13.1
      The
      failure to exercise or de]ay in exercising a right or remedy under this
      Agreement shall not constitute a waiver of the right or remedy or waiver of
      any
      other rights or remedies and no single or partial exercise of any right or
      remedy under this Agreement shall prevent any further exercise of the right
      or
      remedy or the exercise of any other right or remedy.

     

    13.2
      Should any Clause or any part of any Clause contained in this Agreement be
      declared invalid or unenforceable for any reason Whatsoever, all other Clauses
      or parts of Clauses contained in this Agreement shall remain in full force
      and
      effect.

     

    13.3
      This
      Agreement constitutes the entire agreement between the Parties relating to
      the
      subject matter of this Agreement and supersedes all previous
      agreements.

     

    13.4
      No
      amendment or variation of this Agreement shall be valid unless it is in writing
      and signed by or on behalf of each of the Parties.

     

    13.5
      This
      Agreement shall be executed in two (2) duplicate originals in English. Each
      Party has received one (1) duplicate original, and all originals shall be
      equally valid.

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

     [Signature
      Page]

    

    IN
      WITNESS WHEREOF both parties hereto have caused this Agreement to be duly
      executed by their legal representatives and duly authorized representatives
      on
      their behalf as of the date first set forth above. 

    

      
        	
                PARTY
                  A: 

              	
                Haie
                  Hi-tech Engineering (Hong Kong) Company Limited 

              
	 	
                Legal/Authorized
                  Representative: /s/ WU
                  Qinghuan             

              
	 	
                Name:
                  WU Qinghuan

              
	 	
                Title:
                  Director

              
	 	 
	
                PARTY
                  B: 

              	
                Shanghai
                  Hai Lu Kun Lun Hi-tech Engineering Co., Ltd 

              
	 	
                Legal/Authorized
                  Representative: /s/ WU
                  Qinghuan             

              
	 	
                Name:
                  WU Qinghuan

              
	 	
                Title:
                  Executive Director

              

      

    

    

      
        
          
          

        

        
          13Unassociated Document

    OPERATING
      AGREEMENT

    

    This
      Operating Agreement (this “Agreement”)
      is
      dated December 28, 2005, and is entered into in Shanghai, China by and among
      Haie Hi-tech Engineering (Hong Kong) Company Limited, with a registered address
      at FLAT/RM B 20/F Public Bank Centre, 120 Des Voeux Road Central, HK, China
      (“Party A”), Shanghai Hai Lu Kun Lun Hi-tech Engineering Co., Ltd. with a
      registered address at No.1111, Northern Zhong Shan Er Road, Shanghai, China
      (“Party B”), and shareholders holding 100% outstanding shares of Party B (the
“Shareholders of Party B” or “Party C”). Party A and Party B, and Shareholders
      of Party B are referred to collectively in this Agreement as the “Parties.”

    

    RECITALS

    

    
      	
              1.

            	
              Party
                A, a limited company incorporated under law of Hong Kong, has the
                expertise in the business of Engineering and
                Investment;

            

    

    

    
      	
              2.

            	
              Party
                B is a limited company incorporated in China, and is engaged in FOUR
                TECHNOLOGY SERVICES’ (development, transfer, consultation and other
                services regarding technologies) in chemical engineering, energy
                saving,
                computer and other professional technical fields; development and
                sale of
                computer hardware; sale of heat recovery boiler and auxiliary equipments,
                materials and equipments of chemical engineering (hazardous materials
                exclusive) and blueprint; installation and process of chemical engineering
                device (the “Business”);

            

    

    

    
      	
              3.

            	
              The
                undersigned Shareholders of Party B collectively own over 100% of
                the
                equity interests of Party B; 

            

    

    

    
      	
              4.

            	
              Party
                A has established a business relationship with Party B by entering
                into
                the “Consulting Services Agreement” (hereinafter referred to as the
                “Services Agreement”); 

            

    

    

    
      	
              5.

            	
              Pursuant
                to the above-mentioned agreement between Party A and Party B, Party
                B
                shall pay a certain amount of money to Party A. However, the relevant
                payable account has not been paid yet and the daily operation of
                Party B
                will have a material effect on its capacity to pay such payable account
                to
                Party A; 

            

    

    

    
      	
              6.

            	
              The
                Parties are entering into this Agreement to clarify matters in connection
                with Party B’s operations. 

            

    

    

    NOW
      THEREFORE,
      all
      parties of this Agreement hereby agree as follows through mutual negotiations:
      

    

    
      	
              1.

            	
              [Party
                A agrees, subject to the satisfaction of the relevant provisions
                by Party
                B herein, as the guarantor for Party B in the contracts, agreements
                or
                transactions in connection with Party B’s operation between Party B and
                any other third party, to provide full guarantee for the performance
                of
                such contracts, agreements or transactions by Party B. Party B agrees,
                as
                the counter-guarantee, to pledge all of its assets, including accounts
                receivable, to Party A. According to the aforesaid guarantee arrangement,
                Party A wishes to enter into written guarantee contracts with Party
                B’s
                counter-parties thereof to assume the guarantee liability as the
                guarantor
                when it needs; therefore, Party B and Party C shall take all necessary
                actions (including but not limited to execute relevant documents
                and
                transact relevant registrations) to carry out the arrangement of
                counter-guarantee to Party A.]

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              2.

            	
              In
                consideration of the requirement of Article 1 herein and assuring
                the
                performance of the various operation agreements between Party A and
                Party
                B and the payment of the payables accounts by Party B to Party A,
                Party B
                together with its shareholders Party C hereby jointly agree that
                Party B
                shall not conduct any transaction which may materially affects its
                assets,
                obligations, rights or the operations of Party B (excluding the business
                contracts, agreements, sell or purchase assets during Party B’s regular
                operation and the lien obtained by relevant counter parties due to
                such
                agreements) unless the obtainment of a prior written consent from
                Party A,
                including but not limited to the following:

            

    

    

    
      	
               

            	
              2.1

            	
              To
                borrow money from any third party or assume any debt;
                

            

    

    

    
      	
               

            	
              2.2

            	
              To
                sell to or acquire from any third party any asset or right, including
                but
                not limited to any intellectual property right;

            

    

    

    
      	
               

            	
              2.3

            	
              To
                provide any guarantees to any third parties using its assets or
                intellectual property rights; 

            

    

    

    
      	
               

            	
              2.4

            	
              To
                assign to any third party its business agreements.
                

            

    

    

    
      	
              3.

            	
              In
                order to ensure the performance of the various operation agreements
                between Party A and Party B and the payment of the various payables
                by
                Party B to Party A, Party B together with its shareholders Party
                C hereby
                jointly agree to accept, from time to time, advice regarding corporate
                policy advise provided by Party A in connection with company’s daily
                operations, financial management and the employment and dismissal
                of the
                company’s employees. 

            

    

    

    
      	
              4.

            	
              Party
                B together with its shareholders Party C hereby jointly agree that
                Party C
                shall appoint the person recommended by Party A as the directors
                of Party
                B, and Party B shall appoint Party A’s senior managers as Party B’s
                General Manager, Chief Financial Officer, and other senior officers.
                If
                any of the above senior officers leaves or is dismissed by Party
                A, he or
                she will lose the qualification to take any position in Party B and
                Party
                B shall appoint other senior officers of Party A recommended by Party
                A to
                take such position. The person recommended by Party A in accordance
                with
                this Article herein should comply with the stipulation on the
                qualifications of directors, General Manager, Chief Financial Officer,
                and
                other senior officers pursuant to applicable law.
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              Party
                B together with its shareholders Party C hereby jointly agree and
                confirm
                that Party B shall seek the guarantee from Party A first if it needs
                any
                guarantee for its performance of any contract or loan of flow capital
                in
                the course of operation. In such case, Party A shall have the right
                but
                not the obligation to provide the appropriate guarantee to Party
                B on its
                own discretion. If Party A decides not to provide such guarantee,
                Party A
                shall issue a written notice to Party B immediately and Party B shall
                seek
                a guarantee from other third party.

            

    

    

    
      	
              6.

            	
              In
                the event that any of the agreements between Party A and Party B
                terminates or expires, Party A shall have the right but not the obligation
                to terminate all agreements between Party A and Party B including
                but not
                limited to the Services Agreement. 

            

    

    

    
      	
              7.

            	
              Any
                amendment and supplement of this Agreement shall be made in writing.
                The
                amendment and supplement duly executed by all parties shall be deemed
                as a
                part of this Agreement and shall have the same legal effect as this
                Agreement. 

            

    

    

    
      	
              8.

            	
              If
                any clause hereof is judged as invalid or non-enforceable according
                to
                relevant laws, such clause shall be deemed invalid only within the
                applicable area of the Laws and without affecting other clauses hereof
                in
                any way. 

            

    

    

    
      	
              9.

            	
              Party
                B shall not assign its rights and obligations under this Agreement
                to any
                third party without the prior written consent of Party A. Party B
                hereby
                agrees that Party A may assign its rights and obligations under this
                Agreement as it needs and such transfer shall only be subject to
                a written
                notice sent to Party B by Party A, and no any further consent from
                Party B
                will be required. 

            

    

    

    
      	
              10.

            	
              All
                parties acknowledge and confirm that any oral or written materials
                communicated pursuant to this Agreement are confidential documents.
                All
                parties shall keep secret of all such documents and not disclose
                any such
                documents to any third party without prior written consent from other
                parties unless under the following conditions: (a) such documents
                are
                known or shall be known by the public (excluding the receiving party
                discloses such documents to the public without authorization); (b)
                any
                documents disclosed in accordance with applicable laws or rules or
                regulations of stock exchange; (c) any documents required to be disclosed
                by any party to its legal counsel or financial consultant for the
                purpose
                of the transaction of this Agreement by any party, and such legal
                counsel
                or financial consultant shall also comply with the confidentiality
                as
                stated hereof. Any disclosure by employees or agencies employed by
                any
                party shall be deemed the disclosure of such party and such party
                shall
                assume the liabilities for its breach of contract pursuant to this
                Agreement. This Article shall survive whatever this Agreement is
                void,
                amended, cancelled, terminated or unable to perform.
                

            

    

    

    
      	
              11.

            	
              This
                Agreement shall be governed by and construed in accordance with PRC
                law.
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              12.

            	
              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, each party can submit
                such
                matter to China International Economic and Trade Arbitration Commission
                (“CIETAC”) for arbitration in accordance with its rules of CIETAC. The
                arbitration proceedings shall take place in Beijing and shall be
                conducted
                in Chinese. Any resulting arbitration award shall be final and conclusive
                and binding upon all the parties. 

            

    

    

    
      	
              13.

            	
              This
                Agreement shall be executed by a duly authorized representative of
                each
                party as of the date first written above and become effective on
                the date
                of execution. 

            

    

    

    
      	
              14.

            	
              Notwithstanding
                Article 13 hereof, the parties confirm that this Agreement shall
                constitute the entire agreement of the Parties with respect to the
                subject
                matters therein and supersedes and replaces all prior or contemporaneous
                verbal and written agreements and
                understandings.

            

    

    

    
      	
              15.

            	
              The
                term of this agreement is ten (10) years unless early termination
                occurs
                in accordance with relevant provisions herein or in any other relevant
                agreements reached by all parties. This Agreement may be extended
                only
                upon Party A’s written confirmation prior to the expiration of this
                Agreement and the extended term shall be determined by the Parties
                hereto
                through mutual consultation. During the aforesaid term, if Party
                A or
                Party B is terminated at expiration of the operation term (including
                any
                extension of such term) or by any other reason, this Agreement shall
                be
                terminated upon such termination of such party, unless such party
                has
                already assigned its rights and obligations in accordance with Article
                9
                hereof. 

            

    

    

    
      	
              16.

            	
              This
                Agreement shall be terminated on the expiration date unless it is
                renewed
                in accordance with the relevant provision herein. During the valid
                term of
                this Agreement, Party B shall not terminate this Agreement.
                Notwithstanding the above stipulation, Party A shall have the right
                to
                terminate this Agreement at any time by issuing a thirty (30) days
                prior
                written notice to Party B. 

            

    

    

    
      	
              17.

            	
              This
                Agreement has been executed in four (4) duplicate originals in English,
                each Party has received one (1) duplicate original, and all originals
                shall be equally valid. 

            

    

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     [Signature
      Page]

    

    IN
      WITNESS WHEREOF
      both
      parties hereto have caused this Agreement to be duly executed by their legal
      representatives and duly authorized representatives on their behalf as of the
      date first set forth above. 

    

    
      	
              PARTY
                A: 

            	
              Haie
                Hi-tech Engineering (Hong Kong) Company Limited 

            
	 	
              Legal/Authorized
                Representative: /s/ WU
                Qinghuan             

            
	 	
              Name:
                WU Qinghuan

            
	 	
              Title:
                Director

            
	 	 
	
              PARTY
                B: 

            	
              Shanghai
                Hai Lu Kun Lun Hi-tech Engineering Co., Ltd 

            
	 	
              Legal/Authorized
                Representative: /s/ WU
                Qinghuan             

            
	 	
              Name:
                WU Qinghuan

            
	 	
              Title:
                Executive Director

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SIGNATURE
      PAGE FOR SHAREHOLDERS OF PARTY B

    

    PARTY
      C:
      SHAREHOLDERS
      OF PARTY B:

    

    /s/
      WU
      Qinghuan             

    By:
      WU
      Qinghuan 

    PRC
      ID
      Card No.:
      320112194610111693

    Shares
      of
      Shanghai Hai Lv Kun Lu Hi-tech Engineering Co., Ltd. owned by WU Qinghuan:
      60%

    

    /s/ ZHOU
      Jialing  
             

    By:
      ZHOU
      Jialing 

    PRC
      ID
      Card No.: 320112195409111645

    Shares
      of
      Shanghai Hai Lv Kun Lu Hi-tech Engineering Co., Ltd. owned by ZHOU
      Jialing:
      40%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]