Document:

EXHIBIT 10.2

ESCROW DEPOSIT AGREEMENT

This ESCROW DEPOSIT AGREEMENT (this “Agreement”) dated as of this __ day of March, 2011, by and between Felafel Corp., a Delaware corporation (the “Company”), having an address c/o Idan Karako 27 Bet Hillel Street, Unit 18 Tel Aviv Israel 67017, and Anslow + Jaclin LLP 195 Route 9 South, Manalapan, NJ 07726 (the “Escrow Agent”).

WITNESSETH:

WHEREAS, the Company is preparing an initial public offering of its common stock to the public pursuant to a registration statement being filed on Form S-1 under the Securities Act of 1933 (the “Registration Statement”); and

WHEREAS, pursuant to the Registration Statement the Company desires to sell (the “Offering”) a minimum of $40,000 (“Minimum Amount”) and up to a maximum of $100,000 (the “Maximum Amount”) of shares of the Company’s common stock, par value $0.0001 per share (the “Shares”), at purchase price of $0.03 per share; and

WHEREAS, unless the Offering has closed within ninety (90) days of the date on which the Securities and Exchange Commission (the “Commission”) declares the Registration Statement effective (the “Termination Date”), the Offering shall terminate and all funds shall be returned to the subscribers in the Offering; and

WHEREAS, the Company desires to establish an escrow account with the Escrow Agent into which the Company shall instruct subscribers (the “Subscribers”) to deposit checks and other instruments for the payment of money made payable to the order of “Anslow + Jaclin as Escrow Agent for Felafel Corp.,” and the Escrow Agent is willing to accept said checks and other instruments for the payment of money in accordance with the terms hereinafter set forth; and

WHEREAS, the Company represents and warrants to the Escrow Agent that it has not stated to any individual or entity that the Escrow Agent’s duties will include anything other than those duties stated in this Agreement; and

WHEREAS, the Company warrants to the Escrow Agent that a copy of each document that will be delivered to Subscribers and third parties that include Escrow Agent’s name and duties, has been attached hereto as Schedule I, with the Registration Statement being subject to such changes as may be requested by the Commission.

NOW, THEREFORE, IT IS AGREED as follows:

 

  

 

  

 

1.           Delivery of Escrow Funds.

(a) The Company shall instruct Subscribers to deliver to the Escrow Agent checks made payable to the order of “Anslow + Jaclin, as Escrow Agent for Felafel Corp.,” or wire transfer in accordance with the instructions set forth on Schedule A attached hereto for credit to Anslow + Jaclin, as Escrow Agent for Felafel Corp., in each case, with the name, address and social security number or taxpayer identification number of the individual or entity making payment.  In the event any Subscriber’s address and/or social security number or taxpayer identification number are not provided to the Escrow Agent by the Subscriber, then the Company agrees to promptly provide the Escrow Agent with such information in writing.  The checks or wire transfers shall be deposited into a non interest-bearing account at Wells Fargo Bank entitled “Anslow + Jaclin, as Escrow Agent for Felafel Corp.” (the “Escrow Account”)

(b)           The collected funds deposited into the Escrow Account are referred to as the “Escrow Funds.”

(c)           The Escrow Agent shall have no duty or responsibility to enforce the collection or demand payment of any funds deposited into the Escrow Account.  If, for any reason, any check deposited into the Escrow Account shall be returned unpaid to the Escrow Agent, the sole duty of the Escrow Agent shall be to return the check to the Subscriber and advise the Company promptly thereof.

2.           Release of Escrow Funds.  The Escrow Funds shall be paid by the Escrow Agent in accordance with the following:

(a)           In the event that the Company advises the Escrow Agent in writing that the Offering has been terminated (the “Termination Notice”), the Escrow Agent shall promptly return the funds paid by each Subscriber to said Subscriber without interest or offset.

(b)           Provided that the Escrow Agent does not receive the Termination Notice in accordance with paragraph 2(a) and there is the Minimum Amount deposited into the Escrow Account on or prior the Termination Date, the Escrow Agent shall, upon receipt of written instructions, in the form of Exhibit B hereto and made a part hereof, or in a form and substance satisfactory to the Escrow Agent, received from the Company, pay the Escrow Funds in accordance with such written instructions, such payment or payments to be made by wire transfer within three (3) Business Days of receipt of such written instructions.

(c)           If by 3:00 P.M. Eastern time on the Termination Date, the Escrow Agent has not received written instructions from the Company regarding the disbursement of the Escrow Funds, or the total amount of the Escrow Funds is less than the Minimum Amount, then the Escrow Agent shall promptly return the Escrow Funds to the Subscribers without interest or offset.  The Escrow Funds returned to each Subscriber shall be free and clear of any and all claims of the Escrow Agent.

(d)           The Escrow Agent shall not be required to pay any uncollected funds or any funds that are not available for withdrawal.

(e)           If the Termination Date or any date that is a deadline under this Agreement for giving the Escrow Agent notice or instructions or for the Escrow Agent to take action is not a Business Day, then such date shall be the Business Day that immediately preceding that date. A Business Day is any day other than a Saturday, Sunday or a Bank holiday.

 

  

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(f)           Provided that the Escrow Agent has not received the Termination Notice in accordance with paragraph 2(a) and the Minimum Amount has not been deposited into the Escrow Account, then on or prior the Termination Date, the Escrow Agent, upon receipt of written instructions from a Subscriber in a form and substance satisfactory to the Escrow Agent, shall return to such Subscriber such portion of the Escrow Funds as were paid in by such Subscriber in accordance with such written instructions, such payment or payments to be made by wire transfer within three (3) Business Days of receipt of such written instructions.

3.           Acceptance by Escrow Agent.  The Escrow Agent hereby accepts and agrees to perform its obligations hereunder, provided that:

(a)           The Escrow Agent may act in reliance upon any signature believed by it to be genuine, and may assume that any person who has been designated by the Company to give any written instructions, notice or receipt, or make any statements in connection with the provisions hereof has been duly authorized to do so.  The Escrow Agent shall have no duty to make inquiry as to the genuineness, accuracy or validity of any statements or instructions or any signatures on statements or instructions.  The names and true signatures of each individual authorized to act singly on behalf of the Company are stated in Schedule II, which is attached hereto and made a part hereof. The Company may remove or add one or more of its authorized signers stated on Schedule II by notifying the Escrow Agent of such change in accordance with this Agreement, which notice shall include the true signature for any new authorized signatories.

(b)           The Escrow Agent may act relative hereto in reliance upon advice of counsel in reference to any matter connected herewith.  The Escrow Agent shall not be liable for any mistake of fact or error of judgment or law, or for any acts or omissions of any kind, unless caused by its willful misconduct or gross negligence.

(c)           The Company agrees to indemnify and hold the Escrow Agent harmless from and against any and all claims, losses, costs, liabilities, damages, suits, demands, judgments or expenses (including but not limited to reasonable attorney’s fees) claimed against or incurred by the Escrow Agent arising out of or related, directly or indirectly, to this Escrow Agreement unless caused by the Escrow Agent’s gross negligence or willful misconduct.

(d)           In the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder, the Escrow Agent shall be entitled to (i) refrain from taking any action other than to keep safely the Escrow Funds until it shall be directed otherwise by a court of competent jurisdiction, or (ii) deliver the Escrow Funds to a court of competent jurisdiction.

(e)           The Escrow Agent shall have no duty, responsibility or obligation to interpret or enforce the terms of any agreement other than the Escrow Agent’s obligations hereunder, and the Escrow Agent shall not be required to make a request that any monies be delivered to the Escrow Account, it being agreed that the sole duties and responsibilities of the Escrow Agent shall be, to the extent not prohibited by applicable law, (i) to accept checks or other instruments for the payment of money and wire transfers delivered to the Escrow Agent for the Escrow Account and deposit said checks and wire transfers into the non-interest bearing Escrow Account, and (ii) to disburse or refrain from disbursing the Escrow Funds as stated above, provided that the checks received by the Escrow Agent have been collected and are available for withdrawal.

 

  

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4.           Escrow Account Statements and Information. The Escrow Agent agrees to send to the Company a copy of the Escrow Account periodic statement, upon request in accordance with the Escrow Agent’s regular practices for providing account statements to its non-escrow clients and to also provide the Company or its designee, upon request other deposit account information, including Account balances, by telephone or by computer communication, to the extent practicable. The Company agrees to complete and sign all forms or agreements required by the Escrow Agent for that purpose.  The Company consents to the Escrow Agent’s release of such Account information to any of the individuals designated by the Company, which designation has been signed in accordance with paragraph 3(a) by any of the persons in Schedule II.  Further, the Company has an option to receive e-mail notification of incoming and outgoing wire transfers.  If this e-mail notification service is requested and subsequently approved by the Escrow Agent, the Company agrees to provide a valid e-mail address and other information necessary to set-up this service and sign all forms and agreements required for such service.  The Company consents to the Escrow Agent’s release of wire transfer information to the designated e-mail address(es).  The Escrow Agent’s liability for failure to comply with this section shall not exceed the cost of providing such information.

5.           Resignation and Termination of the Escrow Agent.  The Escrow Agent may resign at any time by giving 30 days’ prior written notice of such resignation to the Company.  Upon providing such notice, the Escrow Agent shall have no further obligation hereunder except to hold as depositary the Escrow Funds that it receives until the end of such 30-day period.  In such event, the Escrow Agent shall not take any action, other than receiving and depositing Subscribers’ checks and wire transfers in accordance with this Agreement, until the Company has designated a banking corporation, trust company, attorney or other person as successor.  Upon receipt of such written designation signed by the Company, the Escrow Agent shall promptly deliver the Escrow Funds to such successor and shall thereafter have no further obligations hereunder.  If such instructions are not received within 30 days following the effective date of such resignation, then the Escrow Agent may deposit the Escrow Funds held by it pursuant to this Agreement with a clerk of a court of competent jurisdiction pending the appointment of a successor.  In either case provided for in this paragraph, the Escrow Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Escrow Funds.

6.           Termination.  The Company may terminate the appointment of the Escrow Agent hereunder upon written notice specifying the date upon which such termination shall take effect, which date shall be at least 30 days from the date of such notice.  In the event of such termination, the Company shall, within 30 days of such notice, appoint a successor escrow agent and the Escrow Agent shall, upon receipt of written instructions signed by the Company, turn over to such successor escrow agent all of the Escrow Funds; provided, however, that if the Company fails to appoint a successor escrow agent within such 30-day period, such termination notice shall be null and void and the Escrow Agent shall continue to be bound by all of the provisions hereof.  Upon receipt of the Escrow Funds, the successor escrow agent shall become the escrow agent hereunder and shall be bound by all of the provisions hereof and Anslow + Jaclin shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Escrow Funds and under this Agreement.

7.           Investment.  All funds received by the Escrow Agent shall be invested only in non-interest bearing bank accounts at Wells Fargo Bank.

 

  

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8.           Compensation.  The Escrow Agent shall be entitled, for the duties to be performed by it hereunder, to a fee of $1,000, which fee shall be paid by the Company upon the signing of this Agreement. In addition, the Company shall be obligated to reimburse Escrow Agent for all fees, costs and expenses incurred or that become due in connection with this Agreement or the Escrow Account, including reasonable attorney’s fees.  Neither the modification, cancellation, termination or rescission of this Agreement nor the resignation or termination of the Escrow Agent shall affect the right of Escrow Agent to retain the amount of any fee which has been paid, or to be reimbursed or paid any amount which has been incurred or becomes due, prior to the effective date of any such modification, cancellation, termination, resignation or rescission.  To the extent the Escrow Agent has incurred any such expenses, or any such fee becomes due, prior to any closing, the Escrow Agent shall advise the Company and the Company shall direct all such amounts to be paid directly at any such closing.

9.           Notices.  All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if sent by hand-delivery, by facsimile (followed by first-class mail), by nationally recognized overnight courier service or by prepaid registered or certified mail, return receipt requested, to the addresses set forth below:

	 	
If to the Company: 

	
Felafel Corp

c/o Idan Karako

27 Bet Hillel Street, Unit 18

Tel Aviv Israel 67017

	 	
If to Escrow Agent: 

	
Anslow + Jaclin LLP

195 Route 9 South, Suite 204

Manalapan, NJ 07726

Attention: Gregg Jaclin, Esq.

Fax:  732-577-1188

10.           General.

(a)This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New Jersey applicable to agreements made and to be entirely performed within such State, without regard to choice of law principles and any action brought hereunder shall be brought in the courts of the State of New Jersey, located in the County of Monmouth.  Each party hereto irrevocably waives any objection on the grounds of venue, forum nonconveniens or any similar grounds and irrevocably consents to service of process by mail or in any manner permitted by applicable law and consents to the jurisdiction of said courts.  Each of the parties hereto hereby waives all right to trial by jury in any action, proceeding or counterclaim arising out of the transactions contemplated by this Agreement.

(b)           This Agreement sets forth the entire agreement and understanding of the parties with respect to the matters contained herein and supersedes all prior agreements, arrangements and understandings relating thereto.

 

  

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(c)           All of the terms and conditions of this Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the parties hereto, as well as their respective successors and assigns.

(d)           This Agreement may be amended, modified, superseded or canceled, and any of the terms or conditions hereof may be waived, only by a written instrument executed by each party hereto or, in the case of a waiver, by the party waiving compliance.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same.  No waiver of any party of any condition, or of the breach of any term contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other condition or of the breach of any other term of this Agreement.  No party may assign any rights, duties or obligations hereunder unless all other parties have given their prior written consent.

(e)           If any provision included in this Agreement proves to be invalid or unenforceable, it shall not affect the validity of the remaining provisions.

(f)           This Agreement and any modification or amendment of this Agreement may be executed in several counterparts or by separate instruments and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

11.          Form of Signature. The parties hereto agree to accept a facsimile transmission copy of their respective actual signatures as evidence of their actual signatures to this Agreement and any modification or amendment of this Agreement; provided, however, that each party who produces a facsimile signature agrees, by the express terms hereof, to place, promptly after transmission of his or her signature by fax, a true and correct original copy of his or her signature in overnight mail to the address of the other party.

  

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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first set forth above.

	
FELAFEL CORP.

	  	
ANSLOW + JACLIN LLP

	  	  	  
	
By:

	
   

	  	
By:

	
   

	  	
Name:

	  	  	
Name:

	  	
Title:

	  	  	
Title:

  

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Schedule I

OFFERING DOCUMENTS

  

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Schedule II

The Escrow Agent is authorized to accept instructions signed or believed by the Escrow Agent to be signed by any one of the following on behalf of the Company and Placement Agent.

	
Felafel Corp.

	  	  
	  	  	  
	
Name

	  	
True Signature

	  	  	  
	  	  	  
	  	  	  
	
Anslow + Jaclin LLP

	  	  
	  	  	  
	
Name

	  	
True Signature

	  	  	  
	  	  	  

  

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EXHIBIT A

WIRE INSTRUCTIONS

	
ACCOUNT NAME:

	  	
ANSLOW & JACLIN, LLP - ATTORNEY TRUST ACCOUNT

	  	  	
195 ROUTE 9 SOUTH, SUITE 204

	  	  	
MANALAPAN, NEW JERSEY 07726

	  	  	  
	
ACCOUNT NO.:

	  	
2000059333551

	  	  	  
	
ABA ROUTING NO.:

	  	
121000248

	  	  	  
	
SWIFT CODE:

	  	
WFBIUS6S

	  	  	  
	
BANK:

	  	
Wells Fargo

	  	  	
800 WEST MAIN STREET

	  	
  

	
FREEHOLD, NEW JERSEY 07728

PLEASE WIRE IN U.S. DOLLARS

 

	
If there are any questions, please contact:

	  	
Anslow & Jaclin, LLP

	  	  	
Manalapan Corporate Plaza

	  	  	
195 Route 9 South, Suite 204

	  	  	
Manalapan, New Jersey 07726

	  	  	
Tel: (732) 409-1212

	  	
  

	
Fax: (732) 577-1188

  

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EXHIBIT B

FORM OF ESCROW RELEASE NOTICE

Date:

Anslow + Jaclin LLP

195 Route 9 South,

Manalapan, NJ 07726

Attention: Greg Jaclin, Esq.

Fax:  732-577-1188

Dear _________:

In accordance with the terms of paragraph 2(b) of an Escrow Deposit Agreement dated as of March __, 2011 (the “Escrow Agreement”), by and between Felafel Corp. (the “Company”), and Anslow + Jaclin (the “Escrow Agent”), the Company hereby notifies the Escrow Agent that the ________ closing will be held on ___________ for gross proceeds of $_________.

PLEASE DISTRIBUTE FUNDS BY WIRE TRANSFER AS FOLLOWS (wire instructions attached):

	
________________________:

	 	
$

	  	 	  
	
________________________:

	 	
$

	  	 	  
	
________________________:

	 	
$

	
Very truly yours,

	  
	  	  
	
Felafel Corp.

	  
	  	  
	
By:

	
  

	  
	
Name: 

	
  

	  
	
Title:

	
  

	  

  

11This document has been translated for information purposes only; the Chinese text is the only valid document.

 

 

Exhibit 10.8

 

Fujian WangGang Dredging Construction Co., Ltd.

 

Wonder Dredging Engineering LLC.

 

Fujian Xing Gang Port Service Limited

 

   

 CONTRACTED MANAGEMENT AGREEMENT

  

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

 

   

This Contracted Management Agreement (the “Agreement”) is entered into among the following parties in Fuzhou City, Fujian Province as of July 5, 2010:

Fujian WangGang Dredging Construction Co., Ltd. (“the “WOFE”)

 

Address: 16/F Zhongshan Building, 154 Hudong Road, Fuzhou City, Fujian Province, China

 

Legal representative: Qing Lin,

 

Wonder Dredging Engineering LLC. (the “Wonder Dredging”)

 

Address: Room 1705, 17/F A part of Zhongshan Building, 154 Hudong Road, Fuzhou City, Fujian Province, China

 

Legal representative: Qing Lin,

 

Fujian Xing Gang Port Service Limited (the “Fujian Xing Gang”)

 

Address: 17/F Zhongshan Building, 154 Hudong Road, Fuzhou City, Fujian Province, China

 

Legal representative: Qing Lin

 

As used in this Agreement, The WOFE, Wonder Dredging and Fujian Xing Gang is respectively referred to herein as the “Party” and collectively referred to herein as the “Parties to the Agreement”..

 

Whereas

A. The WOFE is a foreign-invested limited liability company duly incorporated and existing under the laws of the People’s Republic of China (the “PRC”), with expertise in the management of operating companies;

B. Wonder Dredging is a limited liability company duly incorporated and existing under the laws of the PRC,

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

 

   

C. Fujian Xing Gang is a limited liability company duly incorporated and existing under the laws of the PRC, specializing in dredging port and waterways.

D. Each of  WOFE and Wonder Dredging holds a fifty percent (50%) equity interest in Fujian Xing Gang

 

NOW THEREFORE the Parties agree as follows:

 

	
1.

	
Contracted Management; Effective Date

 

	
  

	
1.1

	
Pursuant to the terms and conditions of the Agreement, the Parties agree to engage the WOFE to manage the operations of Fujian Xing Gang. During the term of contracted management, the WOFE and/or the senior officers employed by the WOFE (the “Officers”) shall take full charge of the business operations of Fujian Xing Gang.

	
  

	
1.2

	
The Parties agree and confirm that from the date of this Agreement set forth in the first paragraph of this Agreement (“Effective Date”), the WOFE and/or the Officers shall take full charge of the business operation of Fujian Xing Gang, running and managing the business of Fujian Xing Gang in accordance with the laws, administrative rules and regulations and the covenants applicable to this Agreement.

	
  

	
1.3

	
This Agreement is an exclusive contracted management agreement. During the period from Effective Date to the date that this Agreement is terminated, Fujian Xing Gang agree  not to contract its business to any other party for management, and each of Wonder Dredging and  Fujian Xing Gang hereby agree not to interfere with the business operations conducted by the WOFE.

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

 

   

	
2.

	
Term of the Contracted Management (the “Term”)

  

	
  

	
2.1

	
This Agreement shall be terminate upon the earlier of:

(1) such time that the WOFE or another person designated by the WOFE (the “Designated Person” ) exercises the exclusive right to purchase the equity interest in Fujian Xing Gang in accordance with the terms of the Exclusive Purchase Right of the Equity Interest Agreement (the “Purchase Agreement”) signed by the Parties dated as of July 5, 2010, and

(2) The WOFE and/or the Designated Person individually/jointly own all of the equity interests in Fujian Xing Gang; or

(3)20 years from the Effective Date, subject to the right of the WOFE, at its sole option,  to renew the term of this Agreement for successive 20 year periods prior to the expiration of each 20 year period upon prior written notice to Wonder Dredging and Fujian Xing Gang.

	
3.

	
Calculation and Payment of the Fees for the Contracted Management (the “Fees”);

 

	
  

	
3.1

	
The parties agree that the WOFE shall, in consideration of the exclusive right to manage the business operations of Fujian Xing Gang, pay an annual fee of RMB1,000,000 (the “Annual Fee” ) to Fujian Xing Gang. Such payment shall be made within the first month of every contracted management year. The WOFE may disburse such payment from the account of Fujian Xing Gang. Fujian Xing Gang shall adopt a resolution by the Executive Director or the Board of Directors within the first month of every contracted management year to resolve the plan for Annual Fee disbursal of that year.

 

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

  

   

	
  

	
3.2

	
During the term of contracted management, WOFE is entitled to 100% of the net profits of Fujian Xing Gang. The net profits means the gross profits of Fujian Xing Gang minus its costs and expenses including the payable tax .

	
  

	
3.3

	
The Parties to this Agreement shall pay all their tax liabilities pursuant to all the existing and effective taxation laws and administrative rules and regulations in PRC.

	
4.

	
Delivery

 

	 	
4.1

	
Within 5 working days from the Effective Date, Wonder Dredging and Fujian Xing Gang shall deliver the documents set forth in 4.2 to the WOFE in order that the WOFE can perform the   contracted management services to Fujian Xing Gang pursuant to the terms of this Agreement.

	 	
4.2

	
At the request of the WOFE, Wonder Dredging and Fujian Xing Gang shall deliver copies of the following documents to the WOFE:

 

	 	
(1)

	
all the ownership certificates in the name of Fujian Xing Gang or in the name of the lessors from whom Fujian Xing Gang leases the assets for the business operations, including but not limited to the Ownership Registry Certificates of the ships and Certificates of Nationality of the ships, and

 

	 	
(2)

	
all the business permits and licenses and other related documents held by Fujian Xing Gang, and

  

  

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This document has been translated for information purposes only; the Chinese text is the only valid document.

  

    

	
  

	
(3)

	
all the financial seals and accounting books and records of Fujian Xing Gang, and

	
  

	
(4)

	
the technical data related to the business operations of Fujian Xing Gang, and

	
  

	
(5)

	
the management data related to the business operations of Fujian Xing Gang, and

	
  

	
(6)

	
All the related documents which are necessary in order for the WOFE to effectively manage the business of Fujian Xing Gang commencing on the Effective Date.

	
5.

	
The WOFE’s Rights and Obligations

 

	 	
5.1

	
The WOFE’s rights. During the Term of this Agreement the WOFE shall have the right to:

 

	 	
5.1(1) 

	
manage and control the business and assets of Fujian Xing Gang in its sole discretion. The right of management includes, but not limited to, the rights of (1) establishing and implementing the policies and guidelines of the management, and (2) using all of the assets of Fujian Xing Gang, including but not limited to, the real property, intangible property and working capital.

	 	
5.1(2)

	
designate the directors to Fujian Xing Gang and replace the directors of Fujian Xing Gang and all its affiliates at any time in its sole discretion.

	 	
5.1(3)

	
appoint the managing officers to Fujian Xing Gang, including the general manager, deputy general manager and or other senior officers and the financial controller.

 

  

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Thisdocument has been translated for information purposes only; the Chinese text is the only valid document.

   

  

	 	
5.1(4)

	
to delineate the organizational structure of the Fujian Xing Gang and employ any technical personnel required for the business of Fujian Xing Gang.

	 	
5.1(5)

	
establish Fujian Xing Gang’s employer-employee arrangements including but not limited to, rewards and punishment, dismissal, wages, all in accordance with the relevant laws and administrative rules and regulations, with approval by the board of directors of Fujian Xing Gang and all its subsidiaries.

	 	
5.1(6)

	
take a loan from the banking institutions directly or cause Fujian Xing Gang or its subsidiaries to borrow funds from the banking institutions, with prior notice to Wonder Dredging, provided that the loan shall be used for the operation and management of Fujian Xing Gang.

	 	
5.1(7)

	
receive 100% of the net profits of Fujian Xing Gang.

	 	
5.1(8)

	
exercise all other customary powers and duties associated with the management authority and responsibilities contemplated hereby.

	 	
5.2

	
The WOFE’s Obligations

 

	 	
5.2(1)

	
The WOFE shall operate the business of Fujian Xing Gang as contractor according to this Agreement.

	 	
5.2(2)

	
The WOFE will operate and manage the business and assets of Fujian Xing Gang in accordance and compliance with applicable laws and regulations.

 

  

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Thisdocument has been translated for information purposes only; the Chinese text is the only valid document.

   

    

	 	
5.2(3)

	
The WOFE shall repair, maintain, renovate and purchase new assets to ensure that Fujian Xing Gang’s business is operated and managed in good status. The cost for such repair, maintenance, renovation and purchase will be borne by Fujian Xing Gang.

 

	
.6.

	
Wonder Dredging and Fujian Xing Gang’s Obligations

 

	 	
6.1(1)

	
Wonder Dredging and Fujian Xing Gang shall assist the WOFE in carrying out the contracted management in accordance with the terms of this Agreement.  Wonder Dredging agrees to execute a Power of Attorney granting the WOFE certain rights, including full voting power over its equity interest in Fujian Xing Gang.

	 	
6.1.(2)

	
Without the WOFE’s written consent, Wonder Dredging and Fujian Xing Gang shall  not directly or indirectly dispose of the assets of Fujian Xing Gang by mortgage, pledge, assignment or any other methods.

	 	
6.1(3)

	
Wonder Dredging and Fujian Xing Gang shall not interfere with the WOFE’s control and management of the operations of Fujian Xing Gang..

	 	
6.2(4)

	
Each of Wonder Dredging and Fujian Xing Gang agrees that Wonder Dredging will continue to maintain the legal ownership of the equity interest in Fujian Xing Gang until such equity interest has been purchased by the WOFE or the Designated Person in accordance with the terms of the Purchase Agreement.

   

  

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Thisdocument has been translated for information purposes only; the Chinese text is the only valid document.

 

  

	
7.

	
Representation, Warranties and Promises

 

	 	
7.1

	
The WOFE hereby represents and warrants that

 

	 	
7.1(1)

	
It has the right and ability to sign and perform this Agreement. The Agreement is binding on the WOFE in accordance with its terms.

	 	
7.1(2)

	
It has taken such appropriate and necessary action to authorize the appropriate persons to sign and execute and perform the obligations under this Agreement and obtained any necessary approvals and authorizations.

	 	
7.1(3)

	
Its execution and performance of this Agreement does not violate any applicable PRC laws or administrative rules and regulations, or any agreements or any covenants with a third party.

	 	
7.1(4)

	
All the materials provided by it and its legal representatives and all other authorized persons are authentic and accurate.

	 	
7.2 

	
Each of Wonder Dredging and Fujian Xing Gang represents and warrants that

 

	 	
7.2(1)

	
They are limited liability companies duly incorporated and validly existing under the laws of PRC. They have the rights and abilities to sign and execute and perform this Agreement. This Agreement is binding on them in accordance with its terms.

	 	
7.2(2)

	
They have authorized the appropriate persons to sign and execute and perform the obligations under this Agreement and obtained any necessary approvals and authorizations.

 

  

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Thisdocument has been translated for information purposes only; the Chinese text is the only valid document.

 

  

	 	
7.2(3)

	
Their execution and performance of this Agreement does not violate any laws or administrative rules and regulations, which is binding upon it, nor does such execution and performance violate any agreement to which it is a party, or any covenant with any third party.

	 	
7.2(4)

	
All the materials provided by them and their legal representatives and all other authorized persons are authentic and accurate.

	 	
7.2(5)

	
Wonder Dredging has full authority to enter into this Agreement to engage the services of the WOFE for .the management of the business operations of Fujian Xing Gang.

 

	 	
7.2(6)

	
Prior to (including) the Effective Date, the assets of Fujian Xing Gang are in good working condition.

 

	
8.

	
Modification and Assignment

 

	 	
8.1

	
Any modifications to this Agreement must be in writing signed by the Parties after negotiation.

	 	
8.2

	
Wonder Dredging and Fujian Xing Gang irrevocably agree and promise that the WOFE is entitled, in its sole discretion, to assign or partly assign all the rights and obligations under this Agreement to any other party designated by the WOFE, without the consent, of any other Party and agrees to notify the other Parties of such assignment, .

 

  

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8.3

	
Each of Wonder Dredging and Fujian Xing Gang  irrevocably agrees and promises that the WOFE is entitled to, in its sole discretion, dissolve this Agreement by notifying them without their consent.

 

	
9.

	
Liabilities for Breach of the Agreement and the Termination of the Agreement

 

	 	
9.1

	
Unless otherwise stipulated under this Agreement, in case of any loss sustained by one Party hereto due to any breach of this Agreement by the other Party(s), the breaching Party shall bear legal liabilities according to the law and be liable for all losses sustained by the non-defaulting party(s) due to such breach.

	 	
9.2

	
The Parties agree that the liabilities for breach of the Agreement are compensatory and shall not exceed the losses sustained by the non-defaulting party(s)

	 	
9.3

	
This Agreement may be terminated in the occurrence of any of the following events:

 

	 	
(1)

	
this Agreement is terminated in accordance with its terms; or

 

	 	
(2)

	
pursuant to Section 8.3 hereof.

	 	
9.4

	
According to Section 8.3, the WOFE has the right to terminate this Agreement by delivering written notice to Wonder Dredging and Fujian Xing Gang. In such event, this Agreement will terminate without penalty upon the delivery of the written notice to Wonder Dredging and Fujian Xing Gang.

	 	
9.5

	
Excepted as set forth in Section 8.3 in this Agreement, no Party shall dissolve this Agreement in its sole discretion, nor shall any party interfere with the normal execution and performance of this Agreement by the other party(s).

 

  

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10.

	
Force Majeure

 

	 	
10.1 

	
No party shall be liable if it is delayed or prevented from performing its obligations under this Agreement by Force Majeure. Force Majeure means acts of nature, fire, earthquake, war and political turmoil, and any other event that is beyond the party’s reasonable control and cannot be prevented with reasonable care.

	 	
10.2 

	
When the event of Force Majeure arises, the affected party shall inform the other Parties within 15 business days. The affected party which does not perform the obligations under this Agreement shall be responsible for any damage caused by failure of informing other parties. After the event of Force Majeure is removed, the affected party shall resume performance of this Agreement with its best efforts.

	
11.

	
Governing Laws and Settlement of the Disputes

 

	 	
11.1 

	
The execution, validity, performance, interpretation and settlement of disputes shall be governed by PRC laws.

	 	
11.2 

	
If any disputes arise out of performance of this Agreement, the Parties shall first settle such disputes through friendly negotiations. Should such disputes fail to be settled through negotiation within 20 days after the disputes arises, each Party may submit such disputes to the court with jurisdiction.

 

  

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Thisdocument has been translated for information purposes only; the Chinese text is the only valid document.

 

   

	
12.

	
Miscellaneous

 

	 	
12.1 

	
The parties to the Agreement agree that all the business materials relating to the performance of the Agreement are confidential and shall not be disclosed to a third party unless the disclosure of materials is required by the laws or administration rules and regulations of PRC or by supervising authority.  Notwithstanding the foregoing, the Parties acknowledge that this Agreement can be filed with the Securities and Exchange Commission in the United States.

	 	
12.2 

	
Notices or other communications required to be given by any party pursuant to this Agreement shall be written. Any party should inform the other parties if his address, contact number or fax number have been changed. If a Party fails to inform the other Parties of its contact information, the notice will deemed to be duly served when it is delivered to the prior address or fax number known by other Parties.

 

	 	
12.3 

	
Should all or any part of any provision hereof be held void by the court with jurisdiction or the relevant authority, then such part of the provision shall be deemed to have been deleted; provided that, such deletion shall in no way affect the legal force of any other part of the provisions or any other provision hereof.

	 	
12.4 

	
The amendments (if any) duly executed by the Parties shall be part of this Agreement and shall have the same legal effect as this Agreement.

	 	
12.5 

	
This Agreement is made in six (6) originals in Chinese, of which each Party shall hold two. Each original has the same validity.

 

[Blank below]

 

  

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[Page for signatures]

	
Fujian WangGang Dredging Construction Co.,Ltd.

	  
	  	  	  
	
By

	  	  
	
Name:

	  	  
	
Title:

	  	  
	  	  	  
	
Wonder Dredging Engineering LLC.

	  
	  	  	  
	
By

	  	  
	
Name:

	  	  
	
Tltle:

	  	  
	  	  	  
	
Fujian Xing Gang Port Service Limited

	  
	  	  	  
	
By

	  	  
	
Name:

	  	  
	
Title:

	  	  

  

  

14

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