Document:

DECLARATION OF TRUST

THIS DECLARATION OF TRUST is made on the  16th of September 2006   by   Expert Master Holdings Limited of the offices of Offshore Incorporations Limited, P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands (hereinafter called the “Trustee”) in favour of UMW China Ventures Ltd of  Brumby House, Jalan Bahesa, P.O. Box 80148, 87011 Labuan F.T. Malaysia (hereinafter called the “Beneficiary”).

WHEREAS

A.  UMW Ace (L) Limited (“UMW Ace”), an associate of the Beneficiary, has sold its 51% equity interests in Wuxi Seamless Oil Pipe Co. Ltd. a company incorporated in the People’s Republic of China, to First Space Holdings Limited (the “Company”) pursuant to a share transfer agreement dated 18 August 2006 entered into between the Company and UMW Ace (the “Agreement”). The transfer is effective from 4 September 2006, and according to the term of the Agreement, the consideration for the transfer (“Share Sale Consideration”) is payable by the Company to UMW Ace within 3 months after the effective date.

B.  The Company is legally owned as to 69.4% by the Trustee and as to 30.6% by the Beneficiary.

C.  Pending payment of the Share Sale Consideration by the Company to UMW Ace, the Trustee has agreed to hold 10200 shares (“Trust Shares”) in the Company amounting to 20.4% of the issued share capital of the Company, on trust for the Beneficiary and it was agreed that the Trustee should execute such declaration of trust as is hereinafter contained.

NOW THIS DEED WITNESSTH as follows:-

	
                        (1)
 	
                        The Trustee hereby declares that it holds the Trust Shares upon trust for the Beneficiary pending payment of the Share Sale Consideration by the Company to UMW Ace.
 

	
                        (2)
 	
                        The Trustee will at the request of the Beneficiary attend all meetings of shareholders or otherwise which it shall be entitled to attend by virtue of being the registered proprietor of the said Trust Shares or any of them and will make such proposals, raise such queries and vote at every such meeting in such manner as the Beneficiary shall have directed in writing and in default of such direction at the discretion of the Trustee and further will if so required by the Beneficiary execute all proxies or other documents which shall be necessary or proper to enable the Beneficiary, its assigns or its or their nominees to vote at any such meeting in the place of the Trustee.
 

	
                        (3)
 	
                        The Trustee shall upon reasonable request by the Beneficiary provide it with such information as may be available to the Trustee as a registered shareholder with regard to the operation of the Company.
 

	
                        (4)
 	
                        This Declaration of Trust shall take retrospective effect from the date of incorporation of the Company and shall terminate and cease to have any effect immediately upon payment of the Share Sale Consideration by the Company to UMW Ace. After termination of this Declaration of Trust, the Trustee and the Beneficiary will legally and beneficially hold 69.4% and 30.6% of the issued share capital of the Company respectively.
 

 

 

IN WITNESS WHEREOF the parties hereto have now set their seals on the day and in the year beforementioned.

[SEAL]

 

	
      THE COMMON SEAL of
 	
                        )
 	
          /s/
	 
	
                        EXPERT MASTER HOLDINGS LIMITED
 	
                        )
 
	
                        was hereunto affixed in the presence of:- 
 	
                        )
 

 

 

	
      THE COMMON SEAL of
 	
                        )
 	

          /s/
	 
	
                        UMW CHINA VENTURES LTD.
 	
                        )
 	 
	
                        was hereunto affixed in the presence of:- 
 	
                        )DEED OF TERMINATION 

THIS DEED OF TERMINATION is made on the 1st of December 2006 by and between: 

(1) Expert Master Holdings Limited of the offices of Offshore Incorporations Limited, P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands (hereinafter called the “Trustee”); and 

(2) UMW China Ventures (L) Ltd of Brumby House, Jalan Bahasa, P.O. Box 80148, 87011 Labuan F.T. Malaysia (hereinafter called the “Beneficiary”). 

WHEREAS 

A. Pursuant to the declaration of trust dated 16 September 2006 and executed by the Trustee and the Beneficiary (the “Declaration of Trust”), pending payment of the Share Sale Consideration by the Company to UMW Ace under the Agreement, the Trustee agreed to hold the Trust Shares (amounting to 20.4% of the issued share capital of the Company) on trust for the Beneficiary (the “Trust”). 

B. On 1 December 2006, the Company paid, and UMW Ace received, the Share Sale Consideration pursuant to the Agreement. 

C. The Trustee and the Beneficiary have agreed to execute this Deed of Termination in order to terminate the Declaration of Trust and all rights and obligations arising thereunder and to release the Trust Shares from the Trust. 

D. Capitalised terms used in this Deed of Termination shall bear the meanings ascribed to them in the Declaration of Trust. 

NOW THIS DEED WITNESSES AND IT IS HEREBY DECLARED as follows:- 

	
                        (1)
 	
                        The Declaration of Trust shall forthwith be terminated and the Trustee shall no longer hold the Trust Shares on trust for the Beneficiary and shall be released from all other obligations and duties under the Declaration of Trust. 
 

	
                        (2)
 	
                        The Beneficiary acknowledges and declares that the Trustee is the absolute legal and beneficial owner of the Trust Shares, and that the Beneficiary no longer has any legal, equitable or beneficial right or interest whatsoever in respect of the Trust Shares. 
 

	
                        (3)
 	
                        Each party to this Deed shall pay its own costs and disbursements of and incidental to the preparation of this Deed. 
 

	
                        (4)
 	
                        This Deed shall be governed by and construed in accordance with Hong Kong law. The parties agree that the courts of Hong Kong shall have jurisdiction to settle any disputes which may arise out of or in connection with this Deed and that any suit, action or proceedings arising out of or in connection with this Deed may be brought in such courts. 
 

Furthermore, the parties agree that, in the absence of any express choice of governing law or jurisdiction therein, the provisions of this Clause 4 shall apply to the Declaration of Trust mutatis mutandis. 

	
                        (5)
 	
                        This Deed may be executed in any number of counterparts. All counterparts, taken together, constitute one instrument. A party may execute this Deed by signing any counterpart. 
 

 

IN WITNESS WHEREOF the parties hereto have now set their seals on the day and in the year beforementioned.

 

	
      THE COMMON SEAL of 
 	
                        )
 	
                         
 
	
      EXPERT MASTER HOLDINGS LIMITED.
 	
                        )
 	
                         
 
	
                        was hereunto affixed in the presence of:-
 	
                        )
 	/s/                                 [SEAL]

	
                        /s/
 	
                         
 	
   
 

 

	
      THE COMMON SEAL of 
 	
                        )
 	
                         
 
	
      UMW CHINA VENTURES(L) LTD.
 	
                        )
 	
                         
 
	
                        was hereunto affixed in the presence of:-
 	
                        )
 	/s/                                 [SEAL]

	
                        /s/Exhibit 10.9

                       Dated this 1st day of December 2006
--------------------------------------------------------------------------------

                  THE PERSONS NAMED IN COLUMN 1 OF SCHEDULE 1

                                       AND

                          EASTAR GROUP HOLDINGS LIMITED

                      ------------------------------------

                       SHARE SWAP AGREEMENT IN RELATION TO
                          FIRST SPACE HOLDINGS LIMITED

                      ------------------------------------

                                DIBB LUPTON ALSOP
                            41/F Bank of China Tower
                                  1 Garden Road
                                    Hong Kong

                              Tel: (852) 2103 0808
                              Fax: (852) 2810 1345

                              Ref: MML.EC.2682.001

                                    CONTENTS

                                                                            Page
                                                                            ----
1.    INTERPRETATION .........................................................1
2.    AGREEMENT TO SELL AND PURCHASE .........................................4
3.    CONSIDERATION ..........................................................4
4.    COMPLETION .............................................................5
5.    WARRANTIES .............................................................6
6.    FURTHER ASSURANCE AND UNDERTAKING ......................................8
7.    PURCHASER'S WARRANTIES .................................................8
8.    SURVIVAL OF AGREEMENT ..................................................8
9.    COSTS ..................................................................8
10.   SUCCESSORS AND ASSIGNS .................................................9
11.   GENERAL ................................................................9
12.   NOTICES ................................................................9
13.   COUNTERPARTS ..........................................................10
14.   GOVERNING LAW AND JURISDICTION ........................................10
SCHEDULE 1 ..................................................................12
SCHEDULE 2 ..................................................................13
SCHEDULE 3 ..................................................................14
SCHEDULE 4 ..................................................................27
SCHEDULE 5 ..................................................................29
SCHEDULE 6 ..................................................................31
SCHEDULE 7 ..................................................................33

THIS AGREEMENT is made on the 1st day of December 2006.

BETWEEN:

(1)   THE PARTIES, whose names and addresses are set out in Column (1) of
      Schedule 1 (collectively the "VENDORS" and each a "VENDOR");

(2)   EASTAR GROUP HOLDINGS LIMITED, an exempted company incorporated under the
      laws of the Cayman Islands with its registered office situate at the
      offices of Codan Trust Company (Cayman) Limited, Cricket Square, Hutchins
      Drive, P 0 Box 2681, Grand Cayman, KY1-111, Cayman Islands (the
      "PURCHASER").

RECITALS

(A)   First Space Holdings Limited (the "COMPANY") is a private company
      incorporated under the laws of the British Virgin Islands, with its
      registered office at P.O. Box 3321, Drake Chambers, Road Town, Tortola,
      British Virgin Islands with an authorized share capital of US$50,000.00
      divided into 50,000 ordinary shares of US$1.00 each, 50,000 ordinary
      shares of which have been issued and are fully paid and are registered in
      the name of and beneficially owned by the Vendors-, whose short
      particulars are set out in Schedule 1.

(B)   The Purchaser intends to obtain a listing of its Shares in issue and to be
      issued on the Main Board of the Stock Exchange pursuant to the issue of
      the Prospectus.

(C)   Preparatory to the listing of the Shares as aforesaid, the group of
      companies comprising the Company and its Subsidiaries (as hereafter
      defined) will undergo a reorganisation whereby the Company and its
      Subsidiaries will become wholly-owned subsidiaries of the Purchaser (the
      "REORGANISATION").

(D)   Pursuant to the Reorganisation, the Vendors will sell to the Purchaser and
      the Purchaser will purchase from the Vendors the entire issued share
      capital of the Company subject to and upon the terms and conditions of
      this Agreement.

OPERATIVE PROVISIONS

1.    INTERPRETATION

1.1   In this. Agreement and the Schedules hereto the following words and
      expressions shall where the context so admits bear the following
      meanings:-

      "ACCOUNTING DATE"       30 September 2006;

      "ACCOUNTS"              the audited consolidated balance sheets of the
                              Wuxi Seamless Oil Pipe Co., Ltd., as at the
                              Accounting Date and as at 31 December 2003, 2004
                              and 2005 and the audited consolidated profit and
                              loss account of the Company for the three years
                              ended 31 December 2005 and the nine months ended
                              30 September 2006 each being prepared by Deloitte
                              Touche Tohmatsu CPA Limited in accordance with
                              international financial reporting standards;

--------------------------------------------------------------------------------
                                                                          Page 1

"AGREEMENT"                   this Agreement;

"BOARD RESOLUTIONS"           resolutions of the board of directors of the
                              Purchaser in the form set out in Schedule 5 or in
                              such other form as the parties hereto may agree;

"BUSINESS DAY"                a day (not being a Saturday) on which banks
                              generally are open for business in Hong Kong;

"COMPANIES ORDINANCE"         the Companies Ordinance (Chapter 32 of the laws of
                              Hong Kong);

"COMPANY'S SOLICITORS"        Messrs Dibb Lupton Alsop of 41/F, Bank of China
                              Tower, 1 Garden Road, Central, Hong Kong;

"COMPLETION"                  Completion of the sale and purchase of the Sale
                              Shares pursuant to the terms of this Agreement as
                              provided in Clause 4;

"COMPLETION DATE"             the date of this Agreement or such later date as
                              shall be agreed between the parties for
                              Completion;

"CONSIDERATION"               the consideration payable for the Sale Shares
                              pursuant to the terms of this Agreement;

"EVENT"                       any act, omission, transaction or circumstance
                              occurring or subsisting at the relevant time;

"GROUP"                       the Company and its Subsidiaries and (where the
                              context so permits) each of them and "Group
                              Company" and "member of the Group" shall be
                              construed accordingly;

"HK$" OR "$"                  Hong Kong dollars, the lawful currency of Hong
                              Kong;

"HONG KONG"                   the Hong Kong Special Administrative Region of the
                              Peoples' Republic of China;

"INCORPORATION SHARES"        the 1,000 nil paid Shares registered in the name
                              of the Vendors;

"INDEMNITY"                   a deed of indemnify in the agreed form to be given
                              by the Warrantors on a several basis proportionate
                              to their respective shareholdings in the Company,
                              to the Purchaser, the Company and the Subsidiaries
                              in respect of certain liabilities of tie Group;

"PRC"                         the People's Republic of China (other than Hong
                              Kong);

"PROPERTIES"                  the properties leased to or licensed to, and
                              occupied by, the Group as referred to in Appendix
                              IV to the

--------------------------------------------------------------------------------
                                                                          Page 2

                              Prospectus;

"PROSPECTUS"                  the 1st proof prospectus to be issued by the
                              Purchaser in relation to its proposed listing on
                              the Stock Exchange and such amendments as the
                              parties may reasonably agree from time to time,
                              the relevant extract of which is attached as
                              Schedule 7 of this Agreement;

"SALE SHARES"                 in aggregate 50,000 shares of US$1.00 each in the
                              capital of the Company constituting the entire
                              issued share capital of the Company;

"SHARES"                      ordinary shares of HK$0.01 each in the capital of
                              the Purchaser in issue from time to time;

"STOCK EXCHANGE"              The Stock Exchange of Hong Kong Limited;

"SUBSIDIARIES"                the companies the brief particulars of which are
                              set out in Schedule 6 and references to the
                              Subsidiaries shall be construed accordingly;

"TAXATION"                    shall have the meaning ascribed thereto in the
                              Indemnity;

"TRADE MARKS"                 the trade marks referred to in the paragraph
                              headed "Intellectual Property" of Appendix VII to
                              the Prospectus;

"WARRANTIES"                  the warranties representations and undertakings
                              set out or incorporated by reference in Clause 5
                              and Schedule 3;

"WARRANTORS"                  Expert Master Holdings Limited and UMW China
                              Ventures (L) Limited; and

"WARRANTY CLAIM"              any claim for breach of any of the Warranties.

1.2   In this Agreement, the expression "indebtedness" shall mean any obligation
      for the payment or repayment of money, whether as principal or as surety
      and whether present or future, actual or contingent, incurred in respect
      of (a) money borrowed or raised, (b) any bond, note, loan stock, debenture
      or similar instrument, (c) acceptance or documentary credit facilities,
      (d) foreign exchange options, (e) rental payments under leases and hire
      purchase agreements and instalments under conditional sale agreements (in
      all cases whether in respect of land, machinery, equipment or otherwise)
      entered into primarily as a method of raising finance or of financing the
      acquisition or use of the asset concerned and (f) guarantees, indemnities,
      bonds, standby letters of credit or other instruments issued in connection
      with the performance of contracts and or in respect of the indebtedness of
      any other person.

1.3   Words and expressions defined in the Companies Ordinance shall (unless the
      context clearly does not so permit) bear the same meanings where used in
      this Agreement.

--------------------------------------------------------------------------------
                                                                          Page 3

1.4   The ejusdem generis rule of construction shall not apply to this Agreement
      and accordingly general words shall not be given a restrictive meaning by
      reason of their being preceded or followed by words indicating a
      particular class or examples of acts matters or things.

1.5   Words importing the singular shall include the plural and vice versa and
      words importing any gender shall include all other genders and references
      to persons shall include corporations and unincorporated associations.

1.6   References in this Agreement to any agreed draft document or any document
      in agreed form are references to the document described in the form of the
      draft agreed between the parties and initialled by them or by the
      Company's Solicitors for identification purposes.

1.7   References in this Agreement to statutory provisions shall be construed as
      references to those provisions as respectively amended consolidated
      extended or re-enacted from time to time and shall include the
      corresponding provisions of any earlier legislation (whether repealed or
      not) and any orders regulations instruments or other subordinate
      legislation made from time to time under the statute concerned.

1.8   References in this Agreement to Clause(s) and the Schedule(s) are to the
      clause(s) of, and the schedule(s) to, this Agreement.

1.9.  References to this Agreement shall include the Schedules hereto which
      shall form part hereof and shall have the same force and effect as if
      expressly set out in the body of this Agreement.

1.10  The Clause headings in this Agreement are for convenience only and shall
      not affect the interpretation hereof.

1.11  The obligations of the Vendors hereunder shall, save where the context
      expressly requires to the contrary, be on a several basis proportionate to
      their respective shareholdings in the Company.

2.    AGREEMENT TO SELL AND PURCHASE

2.1   On and subject to the terms and conditions of this Agreement, each of the
      Vendors shall as beneficial owners sell the relevant number of the Sale
      Shares to the Purchaser and the Purchaser shall purchase the same from the
      Vendors set out in Column (2) of Schedule 1 free from all liens charges
      encumbrances and other equities of any description and together with the
      benefit of all rights and profits attaching thereto including all rights
      to dividends and other distributions declared made or payable thereon.

2.2   The Vendors hereby waive all pre-emption and similar rights over the Sale
      Shares to which they or any other person may be entitled under the
      Articles of Association of the Company or otherwise in relation to the
      sale and purchase of the Sale Shares hereunder.

3.    CONSIDERATION

3.1   In consideration of the Vendors agreeing to sell the Sale Shares to the
      Purchaser, the Purchaser shall: credit as fully paid all the Incorporation
      Shares, details of which are set out in column (3) of Schedule 1, upon
      which 1,000 Shares will be credited as fully paid at par and the sum

--------------------------------------------------------------------------------
                                                                          Page 4

      equivalent to the aggregate amount of the premium on the Incorporation
      Shares will be transferred to the share premium account of the Purchaser;

3.2   procure the passing of the Board Resolutions.

4.    COMPLETION

4.1   Unless otherwise agreed, Completion shall take place at the offices of
      Company's Solicitors (or such other places as the parties may agree)
      immediately after the signing of this Agreement.

4.2   On Completion:-

      4.2.1  the Vendors shall procure that a meeting of the board of directors
             of the Company shall be held at which:-

             (a)   the transfer of the Sale Shares to, and the registration as
                   the holder of the Sale Shares in the name of the Purchaser
                   shall be approved; and

             (b)   such other business shall be attended to as the Purchaser
                   shall reasonably require.

      4.2.2  the Vendors shall deliver to the Purchaser:-

             (a)   duly executed instruments of transfer in respect of all the
                   Sale Shares in favour of the Purchaser together with the
                   share certificates therefor;

             (b)   the respective Certificates of Incorporation, Certificates of
                   Incorporation on Change of Name (if any), Memorandum and
                   Articles of Association, the Common Seals, Minute Books,
                   Registers of Members (duly written up to date), Share
                   Certificate books and all other statutory records of each
                   member of the Group, including all rubber stamps, cheque
                   books, cheque stubs and bank statements, receipt books, all
                   current insurance policies and title deeds and evidence of
                   ownership to all assets and all current contracts;

             (c)   such waivers, consents or other documents as the Purchaser
                   may reasonably require to enable the Purchaser to be
                   registered as holder(s) of the Sale Shares.

      4.2.3  Against compliance with the provisions of Clause 4.2.1 and Clause
             4.2.2, the Purchaser shall have procured the passing of the Board
             Resolutions and credited as fully paid at par the Incorporation
             Shares held by the Vendors.

4.3   Without prejudice to any other remedies available to the Purchaser, if any
      of the provisions of Clause 4.2.1 and Clause 4.2.2 is not fully complied
      with, the Purchaser shall be entitled (in addition to and without
      prejudice to all other rights or remedies available to it, including
      specific performance) to elect to effect Completion so far as practicable
      having regard to the defaults which have occurred and treat this Agreement
      as completed subject to satisfaction of a condition subsequent that the
      defaults be remedied within such time as it may specify or to rescind this
      Agreement.

--------------------------------------------------------------------------------
                                                                          Page 5

4.4   If the provisions of Clause 4.2.3 are not fully complied with, the Vendors
      shall be entitled (in addition to and without prejudice to all other
      rights or remedies available to them) to elect to rescind this Agreement
      or to effect Completion so far as practicable having regard to the
      defaults which have occurred and treat this Agreement as completed subject
      to satisfaction of a condition subsequent that the defaults be remedied
      within such time as it may specify.

5.    WARRANTIES

5.1   Subject to the provisions of Schedule 4, which shall apply to all claims
      for breaches of any of the Warranties, the Warrantors hereby represent and
      warrant and undertake to the Purchaser (for the benefit of the Purchaser
      and its successors and permitted assigns) in terms of the Warranties set
      out below and those set out in Schedule 3 are true and accurate in all
      material respects and not misleading in any way as at the date of this
      Agreement and will continue to be so up to the time of Completion (if it
      takes place after the date of this Agreement). The Warrantors acknowledge
      that the Purchaser is entering into this Agreement in reliance on the
      Warranties and may treat them as conditions of this Agreement. For these
      purposes, the Warranties given by the Warrantors (each in respect of
      itself) are:-

      5.1.1  that they have full power and authority and have obtained all
             necessary consents, authorization, waivers and licences to enter
             into and perform the obligations to be performed by them under or
             pursuant to this Agreement and any agreement to be entered into by
             them as herein mentioned; and

      5.1.2  that the Vendors are the absolute legal and beneficial owners of
             the number of shares in the capital of the Company set out against
             their respective names in Column (2) of Schedule 1 and have full
             power to sell and transfer to the Purchaser full legal and
             beneficial title to and in the Sale Shares and that the Sale Shares
             represent the entire issued share capital of the Company, and are
             and will at Completion be free from all charges, liens,
             encumbrances and equities whatsoever;

      and references elsewhere in this Agreement to the Warranties shall, as
      regards the Warrantors, be construed accordingly.

5.2   The Warranties are given on the basis that information of which the
      Purchaser or any of its officers or employees or advisers has actual or
      constructive knowledge shall preclude any claim under the Warranties or
      operate to reduce any amount recoverable thereunder and it shall be a
      defence to any claim against the Warrantors that the Purchaser or any of
      its officers or employees or advisers knew or ought to have known or had
      constructive knowledge of any information relating to the circumstances
      giving rise to the claims.

5.3   The Warranties shall be deemed repeated immediately before Completion with
      reference to the then existing facts and circumstances.

5.4   Each of the Warranties is given separately and independently from and
      (save as provided in Clause 5.2) shall not be limited by reference to any
      other paragraph or anything in this Agreement (including the Schedules).

5.5   Save as necessary to give effect to the express terms of this Agreement,
      the Warrantors shall not and shall procure that the Group shall not do,
      deliberately and intentionally allow or procure before Completion anything
      which is or might cause or constitute or result in a breach of any of the
      Warranties as given on exchange hereof and/or immediately prior to
      Completion.

--------------------------------------------------------------------------------
                                                                          Page 6

5.6   The Warrantors shall forthwith disclose to the Purchaser in writing any
      matter or thing which may arise or become known to them after the date
      hereof (whether or not prior to Completion) which is or could be a breach
      of or inconsistent with or may render inaccurate or misleading any of the
      Warranties as given on exchange hereof and/or immediately prior to
      Completion.

5.7   In the event of any breach of the Warranties (and without restricting the
      rights or ability of the Purchaser to claim damages on any bases available
      to it in respect of such breach), the Warrantors shall on a several basis
      proportionate to their respective shareholdings in the Company, on demand
      pay to the Purchaser (or such other person at the request of the
      Purchaser) a sum equal to the greater of :-

      5.7.1  the amount by which the value of any asset or assets of any of the
             members of the Group is or are less than or (as the case may be)
             the amount by which any loss and/or liability or liabilities of (he
             relevant members of the Group is or are greater than would have
             been the case if there had been no breach of the Warranties; and

      5.7.2  the amount by which the value of the Sale Shares is less than would
             have been the case if there had been no breach of the Warranties
             together with an amount equal to any expenses losses or liabilities
             of the Purchaser and/or any member of the Group which it would not
             have incurred or which would not have existed if there had been no
             such breach.

5.8   The Purchaser may take action for any breach or non-fulfilment of the
      Warranties before or after Completion save for such breach or
      non-fulfilment was known to or discoverable by the Purchaser before
      Completion and notwithstanding that the Purchaser shall delay or otherwise
      fail to exercise its rights hereunder or generally in such regard.

5.9   The Warrantors hereby irrevocably waive any right or claim which they may
      have against any member of the Group in respect of any misrepresentation
      inaccuracy or omission in or from any information or advice given by any
      member of the Group or any of their officers or employees to the
      Warrantors to enable them to give any of the Warranties, or to assume any
      of the obligations assumed or to be assumed by them under or pursuant to
      this Agreement

5.10  Each of the Warrantors undertakes in relation to the Warranties that he
      has made full enquiry and there is no other information of which he is
      aware, the omission of which would render any of the Warranties
      inaccurate, incomplete or misleading. Each of the Warrantors undertakes to
      notify the Purchaser in writing of any matter or thing of which the
      Warrantors becomes aware of and which is or may be a material breach of or
      materially inconsistent with any of the Warranties.

5.11  Each of the Warrantors agrees and acknowledges that the Purchaser is
      entering into this Agreement in reliance on the Warranties and the
      accuracy of the matters disclosed herein save for any information which is
      within the Purchaser's knowledge or which may otherwise come into the
      possession of the Purchaser or which the Purchaser ought to have known or
      had constructive knowledge on, including knowledge of the Purchaser's
      representatives and advisers.

5.12  Each of the Warrantors represents and warrants to the Purchaser that all
      information relating to the Group or their respective assets or affairs
      which would be material to a purchaser for a value of the shares,
      undertaking or assets of the Group is contained in this Agreement and the
      Accounts, and will be contained in the Prospectus when it is issued in due
      course.

--------------------------------------------------------------------------------
                                                                          Page 7

6.    FURTHER ASSURANCE AND UNDERTAKING

6.1   The Vendors hereby agree to do or to procure the doing of any such further
      acts documents and things as the Purchaser may reasonably require to vest
      in the Purchaser (or as it shall direct) the legal and beneficial
      ownership of the Sale Shares free from all charges, liens, encumbrances
      and other adverse interests and to vest the benefit of (this Agreement in
      the Purchaser.

6.2   Each of the Vendors hereby irrevocably and unconditionally appoints the
      Purchaser with effect on and from Completion as its attorney with full
      powers of substitutions in its name and for it and on its behalf (and to
      the complete exclusion of any rights it may have in such regard) lawfully
      to exercise all voting and other rights and receive all the benefits and
      entitlements which may now or at any time hereafter attach to its Sale
      Shares or any of the Sale Shares registered in its name (whether alone or
      jointly with any other person) and to transfer and deal with such shares,
      rights, benefits and entitlements and execute such documents under hand or
      as a deed and do such acts and things in connection with the foregoing
      (including without limitation the passing of any resolutions required to
      facilitate Completion) as the Purchaser shall from time to time think fit
      in all respects as if the Purchaser were the absolute legal and beneficial
      owner thereof.

6.3   The power of attorney granted in this Clause is given by way of security
      for the due performance by the Vendors of their obligations thereby
      contemplated.

6.4   Each of the Vendors hereby undertakes to the Purchaser that it will until
      the listing of the Purchaser's shares on the Stock Exchange and for a
      period of 6 months after the listing or such other period as required by
      the Stock Exchange, dispose of, encumber or otherwise deal with its shares
      in the Purchaser in any manner such that its beneficial interest therein
      would be jeopardized. For the avoidance of doubt, the undertaking given by
      Expert Master Holdings Limited under this clause 6.4 shall not include
      shares that are to be issued pursuant to the exchangeable notes to be
      issued to the relevant investors to the subscription agreement dated 1
      December 2006.

7.    PURCHASER'S WARRANTIES

      The Purchaser warrants to and in favour of the Vendors that it will
      exercise all reasonable endeavours to procure a listing on the Stock
      Exchange of the Incorporation Shares (in their fully paid form) and the
      Shares to be issued by the Purchaser pursuant to the proposed listing.

8.    SURVIVAL OF AGREEMENT

      This Agreement (and in particular the warranties representations covenants
      agreements and undertakings of the Warrantors and the Vendors hereunder)
      shall, insofar as the terms thereof remain to be performed or are capable
      of subsisting, remain in full force and effect after and notwithstanding
      Completion.

9.    COSTS

      Save as expressly otherwise provided herein, each party shall pay its own
      costs and expenses in connection with the preparation and carrying into
      effect of this Agreement. All stamp duty (if any) payable in respect of
      the transactions contemplated herein shall be equally borne by (i) the
      Purchaser and (ii) the Vendors.

--------------------------------------------------------------------------------
                                                                          Page 8

10.   SUCCESSORS AND ASSIGNS

      This Agreement shall not be assignable by the parties hereof (save as
      expressly permitted herein) but shall be binding upon and enure for the
      benefit of each party's successors in title.

11.   GENERAL

11.1  This Agreement supersedes all previous agreements between the parties or
      any of them in relation to the sale and purchase of the Sale Shares and
      the other matters referred to in this Agreement and the parties
      acknowledge that no claim shall arise in respect of any agreement so
      superseded.

11.2  This Agreement contains the entire agreement between the parties relating
      to the sale and purchase of the Sale Shares and there are no other
      representations, warranties, conditions or terms whatsoever applicable
      thereto whether express or implied. In particular each of the parties
      confirms that it has not been induced to enter into this agreement by any
      statement or statements of fact or opinion other than such (if any) as are
      contained herein.

11.3  Any variation to this Agreement shall be binding only if recorded in a
      document signed by the parties.

11.4  Time shall be of the essence of this Agreement but no failure by any party
      to exercise, and no delay on its part in exercising any right hereunder
      will operate as a waiver thereof, nor shall any single or partial exercise
      of any right under this Agreement (including a settlement with any of the
      Vendors) preclude any other or further exercise of it or the exercise of
      any right or prejudice or affect any right against any person under the
      same liability. The right and remedies provided in this Agreement are
      cumulative and not exclusive of any rights or remedies provided by law.

11.5  Save in respect of matters required to be disclosed by law or other
      governmental or regulatory authorities or in connection with the proposed
      listing of the share capital of the Purchaser on the Stock Exchange, none
      of the parties hereto shall make any press statement or public
      announcement or otherwise in connection with this Agreement without first
      having received the prior written approval of the Purchaser.

12.   NOTICES

12.1  Any notice claim, demand, court process, document or other communication
      to be given under this Agreement (collectively "communication" in this
      Clause 12) shall be in writing in the English language and may be served
      or given personally or sent to the address or facsimile number (if any)
      stated after the relevant party's name at the beginning of this Agreement,
      or to such other address as may have been last notified in writing by such
      party to the party serving the communication specifically referring to
      this Agreement. All communications shall be served by the following means
      and the addressee of a communication shall be deemed to have received the
      same within the time stated adjacent to the relevant means of despatch:

             Means of despatch                        Time of deemed receipt
             -----------------                        ----------------------

             Local mail or courier                    24 hours

             Facsimile                                on despatch

--------------------------------------------------------------------------------
                                                                          Page 9

             Air courier/Speedpost                    3 days

             Airmail                                  5 days

12.2  A communication served in accordance with Clause 12.1 shall be deemed
      sufficiently served and in proving service and/or receipt of a
      communication it shall be sufficient to prove that such communication was
      left at the addressee's address or that the envelope containing such
      communication was properly addressed and posted or despatched to the
      addressee's address or that the communication was properly transmitted by
      facsimile to the addressee. In the case of facsimile transmission, such
      transmission shall be deemed properly transmitted on receipt of a
      satisfactory report of transmission printed out by the sending machine.

12.3  Nothing in this Clause 12 shall preclude the service of communication or
      the proof of such service by any mode permitted by law.

12.4  The Purchaser hereby irrevocably appoint Messrs Dibb Lupton Alsop of 41/F,
      Bank of China Tower, 1 Garden Road, Central, Hong Kong as its agent to
      receive and acknowledge on its behalf service of any writ, summons, order,
      judgment or other notice of legal process in Hong Kong. If for any reason
      the agent named above (or its successor) no longer serves as agent of the
      Purchaser for this purpose, the Purchaser shall promptly appoint a
      successor agent and notify all the other parties to this Agreement. The
      Purchaser agrees that any such legal process shall be sufficiently served
      on it if delivered to such agent for service at its address for the time
      being in Hong Kong whether or not such agent gives notice thereof to the
      Purchaser.

12.5  Each of the Vendors hereby irrevocably appoints Messrs Dibb Lupton Alsop
      of 41/F, Bank of China Tower, 1 Garden Road, Central, Hong Kong as its
      agent to receive and acknowledge on its behalf service of any writ,
      summons, order, judgment or other notice of legal process in Hong Kong. If
      for any reason the agent named above (or its successor) no longer serves
      as agent of each of the Vendors for this purpose, each of the Vendors
      shall promptly appoint a successor agent and notify all the other parties
      to this Agreement. Each of the Vendors agrees that any such legal process
      shall be sufficiently served on it if delivered to such agent for service
      at its address for the time being in Hong Kong whether or not such agent
      gives notice thereof to each of the Vendors.

13.   COUNTERPARTS

      This Agreement may be executed in any number of counterparts by the
      parties hereto on separate counterparts each of which when executed shall
      be binding on the party who has executed it and all of which when taken
      together shall constitute one and the same document.

14.   GOVERNING LAW AND JURISDICTION

      This Agreement shall be governed by and construed in accordance with the
      laws of Hong Kong and the parties hereby irrevocably undertake to submit
      themselves to the non-exclusive jurisdiction of the courts of Hong Kong.

--------------------------------------------------------------------------------
                                                                         Page 10

IN WITNESS whereof this Agreement has been duty executed by each of the parties
as of the day and year first before written.

SIGNED by PIAO LONG HGA             )        /s/
a duty authorized representative    )
EXPERT MASTER HOLDING LIMITED       )

SIGNED by Abdul Halim Bin Harun     )       /s/
a duty authorized representative    )
for and on behalf of                )
UMW CHINA VENTURES (L) LIMITED      )

SIGNED by Piao Longhua              )      /s/
a duty authorized representative    )
for and on behalf of                )
EASTAR GROUP HOLDING LIMITED        )

--------------------------------------------------------------------------------
                                                                         Page 11

                                   SCHEDULE 1

                                     VENDORS

      (1)                                (2)                              (3)
                                         Number of Sale Shares            Number of Incorporation
      Name and Address of                beneficially owned by the        Shares in the Purchaser
      the Vendors                        Vendors                          held by the Vendors
      --------------------               --------------------------       ------------------------

1.    Expert Master Holdings Limited                34,700                          694
      PO Box 957,
      Offshore Incorporation Centre,
      Road Town, Tortola,
      British Virgin Islands

2.    UMW China Ventures (L) Limited                15,300                          306
      Brumby House, Jalan Bahasa,
      PO Box 80148,
      97011 Labuan F.T.,
      Malaysia

--------------------------------------------------------------------------------
                                                                         Page 12

                                   SECHEDULE 2

                           FIRST SPACE HOLDING LIMITED

Incorporation date         :   12 June 2006

Place of Incorporation     :   British Virgin Islands

Authorised share capital   :   US$50,000 divided into 50,000 ordinary shares of
                               US$1.00 each

Issued share capital       :   US$50,000 divided into 50,000 ordinary shares of
                               US$1.00 each

Shareholders               :

                                                                                Approximate
                                                              No. of shares    percentage of
                               Name                           held             shareholding
                               -----                          -------------    -------------

                               1.   Expert Master Holdings    34,700               69.4%
                                    Limited

                               2.   UMW China Ventures (L)    15,300               30.6%
                                    Limited

Directors                  :   Piao Longhua;

                               Xu Xizhong;

                               Abdul Halim Bin Harun

--------------------------------------------------------------------------------
                                                                         Page 13

                                   WARRANTIES

                                 INTERPRETATION

(1)   Where any of the following paragraphs of this Schedule is qualified by the
      expression "to the best of the knowledge, information and belief of the
      Warrantors" or "so far as the Warrantors are aware" or any similar
      expression, then (unless clearly not admitted by the context) that
      paragraph shall be deemed to include an additional warranty to the effect
      that the statement has been made after due and careful enquiry, including
      without limitation, of the relevant professional advisers of the
      Subsidiaries.

(2)   Unless the context requires otherwise, the representations, warranties and
      undertakings contained in this Schedule in relation to the Company shall
      be deemed to be repeated mutatis mutandis in relation to each member of
      the Group.

                                    ACCOUNTS

(3)   The Accounts have been prepared and audited on a proper and consistent
      basis in accordance with the requirements of all relevant statutes and
      with good and generally accepted accountancy principles and practice
      consistently applied and are accurate in all respects and show a true and
      fair view of the state of affairs of the Company and of its results and
      profits for the financial period ending on the Accounting Date and :-

      (A)   depreciation and amortisation of the fixed assets of the Group have
            been made at a rate sufficient to write down the value of such
            assets to nil not later than the end of their useful working lives;

      (B)   slow moving stock has been written down appropriately and
            unrecoverable work in progress and redundant and obsolete stock has
            been wholly written off and the value attributed to the remaining
            stock did not exceed the lower of cost or net realizable value at
            the Accounting Date on a going concern basis;

      (C)   the Group's stock in trade and work in progress has been valued on a
            basis in all material respects consistent with that adopted for the
            purpose of the Company's audited accounts in respect of the
            beginning and end of each of the three preceding accounting periods
            and the nine-month period ending on the Accounting Date;

      (D)   the Accounts disclose and make full provision or reserve for all bad
            and doubtful debts and all actual liabilities;

      (E)   the Accounts disclose and make proper provision or reserve for or
            note all contingent liabilities, capital or burdensome commitments
            and deferred taxation; and

      (F)   the profits and losses of the Company shown by the Accounts and for
            the three (3) preceding accounting periods and the nine-month period
            ending on the Accounting Date have not in any material respect been
            affected by any unusual or exceptional item or by any other matter
            which has rendered such profits or losses unusually high or low.

--------------------------------------------------------------------------------
                                                                         Page 14

      (G)   No change in accounting policies has been made in preparing the
            Accounts.

                       COMPLIANCE WITH LEGAL REQUIREMENTS

(4)   (A)   Each member of the Group has duly incorporated and is validly
            existing under the laws of its jurisdiction of incorporation and has
            full power, authority and legal right to own its assets and carry on
            its business.

      (A)   Each member of the Group has the right, power and authority to
            execute, deliver and exercise its rights and perform its obligation
            under this Agreement

      (B)   Each member of the Group has duly and properly complied in all
            respects with any filing and registration requirements in respect of
            corporate or other documents and licences imposed under all relevant
            laws.

      (C)   The statutory books and minute books of each member of the Group has
            been properly written up and each member of the Group has not
            received any application or request for rectification of its
            register and compliance has been made in all material respects with
            all other legal requirements concerning any member of the Group and
            all issues of shares, debentures or other securities thereof.

      (D)   A copy of the memorandum and articles of association or analogous
            constitutive documents of each member of the Group, which has been
            produced to the Purchaser, is accurate and complete in all respects
            as at the date of this Agreement, has attached to it copies of all
            resolutions and other documents required by law to be so attached,
            and fully sets out all rights and restrictions attaching to each
            class of the share capital of each member of the Group and the
            register of members and other statutory books of each member of the
            Group has been properly kept and contain a true, accurate and
            complete record of the matters which should be dealt with therein
            and no notice or allegation that any of the same is incorrect or
            should be rectified has been received. Each member of the Group is
            operating and has always operated its business in all respects in
            accordance with its memorandum and articles of association at the
            relevant time.

      (E)   Each member of the Group and the directors of the respective members
            of the Group (in their capacity as such) have complied with all
            relevant legislation and obtained all necessary licences and
            consents to carry on business whether in the country, territory or
            state in which it is incorporated or elsewhere and will at
            Completion have complied with all legal requirements in relation to
            any transactions to which each member of the Group has been a party
            prior to Completion.

                             REGULATORY REQUIREMENTS

(5)   (A)   Each member of the Group has obtained all licences, permissions,
            authorisations, consents and exceptions required for the carrying on
            of its business and such licences, permissions, authorisations,
            consents and exceptions are in full force and effect; and, to the
            best knowledge of the Warrantors there are no circumstances which
            indicate that any of such licences, permissions, authorisations,
            consents or exceptions may be revoked or not renewed, in whole or in
            part.

--------------------------------------------------------------------------------
                                                                         Page 15

      (B)   Each member of the Group has conducted its business or corporate
            affairs in all material respects in accordance with their respective
            memorandum and articles of association (or equivalent constitutive
            documents) from time to time in force, with all applicable laws and
            regulations of Hong Kong and the PRC, or the place of incorporation
            of such member of the Group and there is no violation of, or dealt
            with respect to, any ordinance, statute, regulation, order decree or
            judgment of a court or any governmental agency of Hong Kong, the PRC
            or any other jurisdiction in which any member of the Group is
            established or conducts business which could reasonably have a
            material adverse effect upon the assets or business of any member of
            the Group.

      (C)   All change in shareholding in each member of the Group since their
            respective incorporation has been effected in accordance with their
            memorandum and articles of association (or equivalent constitutive
            documents) from time to time in force and with all applicable laws
            and regulations and such change has obtained all necessary consents
            from third party and/or approval from all applicable authorities of
            Hong Kong and the PRC or the place of incorporation of such member
            of the Group.

                    SUPERVISORY AND REGISTRATION REQUIREMENTS

(6)   Each member of the Group's books and records have been brought up-to-date
      in compliance with all the requirements of all appropriate and applicable
      law or statutes and in accordance with any powers or directions issued
      thereunder by the relevant authorities, and all accounts, returns,
      particulars, resolutions and other documents required to be delivered by
      each member of the Group to the registrar of companies or any other
      relevant authority have been duly delivered, filed or registered in proper
      form and on due dates.

                                   LITIGATION

(7)   (A)   To the best knowledge of the Warrantors, no member of the Group
            is engaged in (nor is any director in relation to the affairs of any
            member of the Group engaged in) any legal proceedings (including
            litigation, arbitration and prosecution) and no such proceedings are
            pending or threatened, nor are there any facts likely to give rise
            to such proceedings known or which would on reasonable enquiry be
            known to any member of the Group or their respective directors.

      (B)   To the best knowledge of the Warrantors, no member of the Group is
            the subject of any investigation, inquiry or enforcement proceedings
            or process by any governmental, administrative or regulatory body
            nor are the Warrantors aware of anything which is likely to give
            rise to any such investigation, inquiry, proceedings or process.

      (C)   No member of the Group is insolvent and no order has been made or
            resolution passed for the winding up of any member of the Group and
            there is no outstanding any petition for the winding up of any
            member of the Group or any receivership of the whole or any part of
            the undertaking and assets of any member of the Group and there are
            no circumstances which would entitled any person to present such a
            petition or to appoint such receiver.

--------------------------------------------------------------------------------
                                                                         Page 16

      (D)   No unsatisfied judgement, order or award is outstanding against any
            member of the Group and no distress or execution has been levied on,
            or other process commenced against, any asset of any member of the
            Group.

      (E)   There is no dispute with any revenue or official department in Hong
            Kong, the PRC, the British Virgin Islands or any other part of the
            world in relation to the affairs of any member of the Group.

      (F)   To the best knowledge of the Warrantors, no member of the Group or
            any of its employees in the course of their employment has committed
            any criminal act or material breach of contract or statutory duty or
            any tortious or other unlawful act which may affect the Group or its
            business.

                                    EMPLOYEES

(8)   (A)   To the best knowledge of the Warrantors, no former director,
            officer, employee or agent of any member of the Group has any claim
            against any member of the Group for compensation for loss of office
            or arising out of the termination of his office or employment.

      (B)   None of any member of the Group is a party to any profit sharing
            scheme, share option scheme, share incentive scheme or any other
            scheme under which any director, officer, employee or agent of any
            members of the Group is entitled to participate in the profits of
            the members of the Group or has any rights in respect of any shares
            or stock of any members of the Group.

      (C)   So far as the Warrantors are aware, no member of the Group, nor any
            of its officers, agents or employees (during the course of their
            duties in relation to such member of the Group) have committed, or
            omitted to do, any act or thing the commission or omission of which
            is, or could be, in contravention of any material laws of Hong Kong,
            the PRC, its jurisdiction of incorporation or any other jurisdiction
            in which such member of the Group carries on business or has a
            presence which is punishable by fine or other penalty and no notice
            or communication has been received with respect to any alleged,
            actual or potential violation of or failure to comply with, any of
            the same.

      (D)   To the knowledge of the Warrantors, each member of the Group has in
            relation to each of its employees and to each of its former
            employees:

            (i)   complied with its obligations under all employment laws of
                  Hong Kong, the PRC and such other jurisdictions in which such
                  member of the Group is incorporated and has complied with all
                  health and safety at work and has maintained adequate and
                  suitable records regarding the service of the employee;

            (ii)  discharged fully its obligations to pay all salaries, wages,
                  commissions, bonuses, overtime pay, holiday pay, sick pay
                  accrued entitlement under incentive schemes tax and other
                  benefits of or connected with employment up to the date of
                  this Agreement;

--------------------------------------------------------------------------------
                                                                         Page 17

            (iii) no dispute has arisen within the last three years which has
                  remained outstanding or otherwise unresolved between any
                  member of the Group and a material number or category of its
                  employees or former employees and there are no present
                  circumstances which are likely to give rise to any such
                  dispute; and

            (iv)  there are no material complaints pending or threatened against
                  any member of the Group of whatsoever nature in relation to
                  any of its employees or former employees and there is no
                  material industrial action or dispute threatened or existing
                  or anticipated in respect of or concerning any employees or
                  former employees of any member of the Group.

(9)   Each Group Company has no agreement or arrangement (binding or otherwise)
      with any trade union or other organisation representing its employees.

(10)  Bach Group Company is not involved in any industrial or trade disputes or
      any dispute or negotiation regarding a claim of material importance with
      any trade union or organisation representing the employees or a group of
      employees and there are no circumstances likely to give rise to any such
      dispute.

                            SINCE THE ACCOUNTING DATE

(11)  Since the Accounting Date :-

      (A)   the business of each member of the Group has been carried on in the
            ordinary course and so as to maintain it as a going concern and
            there has been no material adverse change in the financial position
            or trading prospects of any member of the Group;

      (B)   there has been no material reduction in the aggregate value of the
            net assets of any member of the Group;

      (C)   no member of the Group has made or agreed to make any payment or
            entered into any transaction or has assumed obligation or expenses
            or incurred any liability except in the ordinary course of then
            trading and for full value;

      (D)   none of the members of the Group has acquired or disposed of or
            agreed to acquire or dispose of any business or any material asset
            other than trading stock in the ordinary course of business;

      (E)   no distribution of capital or income has been declared made or paid
            by or in respect of any share capital or assets of any member of the
            Group; and

      (F)   no member of the Group has changed its accounting reference period.

(12)  Since the Accounting Date, the respective business of each member of the
      Group has not been materially and adversely affected by any event or
      circumstances including without limitation, the loss of any important
      customers) or source(s) of supply or any abnormal factor(s) not affecting
      similar businesses to a similar extent, and the Warrantors are not aware
      of any facts likely to give rise to any such effect whether before or
      after Completion.

                                    TAXATION

--------------------------------------------------------------------------------
                                                                         Page 18

(13)  To the best knowledge and belief of the Warrantors, each member of the
      Group has within the requisite time limits duly made all returns, given
      all notices, and supplied all other information required to be supplied to
      any competent relevant fiscal authority in any part of the world and all
      such information returns and notices were when given or supplied and are
      now accurate in all material respects and made on a proper basis and are
      not, so far as the Warrantors are aware, likely to be the subject of any
      dispute with any of the relevant authorities concerned.

(14)  The provisions or reserves for Taxation appearing in the Accounts are
      sufficient (on the basis of the rates of Taxation current at the date
      hereof) to cover all Taxation for which any member of the Group was at the
      Accounting Date or may after that date become or have become liable on or
      in respect of or by reference to any profits gains or income (whether
      deemed or actual) for any period ended on or before the Accounting Date or
      in respect of any distribution or transaction made or entered into or
      deemed made or entered into on or before the Accounting Date.

(15)  Each member of the Group has duly deducted withheld paid and accounted for
      all tax due to have been deducted withheld paid or accounted for by it
      before the date of this Agreement and is not and has not at any time since
      the Accounting Date been liable to pay interest on any unpaid taxation.

(16)  Bach member of the Group has taken all necessary steps to obtain any
      repayment of or relief from Taxation available to it.

(17)  Each member of the Group made no borrowings in a foreign currency such
      that on repayment a charge to tax might arise on any profit or gain
      accruing in relation or by reference to any such repayment

(18)  To the best knowledge and belief of the Warrantors, each member of the
      Group is not under any liability to pay stamp duty and/or stamp duty
      reserve tax and any documents to which any member of the Group is party
      and/or which relates to or are necessary to prove the title of any member
      of the Group is to their respective assets (including (without limitation)
      the Properties) and/or contain material rights on the part of the members
      of the Group have been properly stamped and no such documents which are
      outside Hong Kong and the PRC would attract stamp duty if they were
      brought into Hong Kong and the PRC.

(19)  Each member of the Group has paid all tax which it has become liable to
      pay and is not, and has not in the last six years ending on the date of
      this Agreement been liable to pay a penalty, surcharge, fine or interest
      in connection with Taxation.

                                   INSOLVENCY

(20)  (A)   No receiver has been appointed of the whole or any part of the
            assets or undertaking of any member of the Group.

      (B)   No petition has been presented, no order has been made and no
            resolution has been passed for the winding-up or dissolution of any
            member of the Group.

      (C)   None of the members of the Group has stopped payment nor is
            insolvent or unable to pay its debts within the meaning of the
            Companies Ordinance or similar laws and regulations in the PRC.

      (D)   No unsatisfied judgment is outstanding against any member of the
            Group.

--------------------------------------------------------------------------------
                                                                         Page 19

                               POWERS OF ATTORNEY

(21)  No member of the Group has given any powers of attorney or any other
      authority (express, implied or ostensible) which is still outstanding or
      effective to any person to enter into any contract or commitment or do
      anything on its behalf (other than any authority of directors or employees
      to enter into banking and/or trading contracts and/or security documents
      in the normal course of their duties).

                            OTHER MATERIAL CONTRACTS

(22)  None of the members of the Group is a party to and has any liability
      (present or future) under any long-term, unusual, non-routine, onerous or
      material contract or commitment involving obligations or expenditure of an
      unusual or exceptional nature or magnitude or any contract which cannot
      readily be fulfilled or performed by it on time and without undue or
      unusual expenditure of money or effort.

(23)  Neither the Warrantors nor any member of the Group has any knowledge of
      any invalidity or grounds for rescission, avoidance or repudiation of any
      agreement of material importance to which any member of the Group is a
      party and no member of the Group has received notice of any intention to
      terminate any such agreement

(24)  None of the members of the Group has outstanding any other material
      indebtedness.

(25)  Each member of the Group has not received any notice to repay under any
      agreement relating to indebtedness which is repayable on demand; and there
      has not occurred any event of default under any agreement relating to any
      indebtedness (or any event which with the giving of notice and/or the
      lapse of time and/or a relevant determination would constitute such an
      event of default).

(26)  Each member of the Group is not in default in any material respect under
      any material agreement to which it is a party or by which it is bound. So
      far as the Warrantors are aware (i) no party with whom any member of the
      Group has entered into any material agreement or arrangement is in default
      in any material respect thereunder, and (ii) there are no circumstances
      likely to give rise to such a default

(27)  Each member of the Group is not under any obligation, or is a party to any
      contract, which cannot readily be fulfilled or performed by it on time and
      without undue or unusual expenditure of money or effort.

(28)  Each member of the Group is not a party to nor does it have any liability
      (present or future) under any loan agreement, debenture, guarantee,
      indemnity or letter of credit or leasing, hiring, hire purchase, credit
      sale or conditional sale agreement nor has it entered into any contract or
      commitment involving, or likely to involve, obligations or expenditure of
      an unusual or exceptional nature or magnitude.

                                 THE PROPERTIES

(29)  Short particulars of the Properties are correctly set out on the valuation
      certificate in Appendix IV to the Prospectus and the Properties comprise
      all the land, building and premises owned,

--------------------------------------------------------------------------------
                                                                         Page 20

      leased or occupied or used by the Group at the date hereof. The tenure and
      particulars of the Properties therein mentioned are complete, true and
      accurate in all respects.

(30)  True and complete copies of the tenancies ("Tenancies") and title
      documents and other instruments, documents and agreement in respect of the
      Properties required for inspection by the valuer named in Appendix IV to
      the Prospectus have been supplied to them, and these agreements,
      instruments and documents constitute the entire documents in respect of
      the lease of the Properties.

(31)  All covenants, stipulations, obligations, conditions, restrictions or
      other terms imposed upon the relevant members of the Group under the
      Tenancies or otherwise affecting the Properties have been duly and
      promptly observed and performed and complied with and there has been no
      breach by the Group's landlords of such covenants, obligations, conditions
      or restrictions or other obligations to which any such landlords are bound
      and there are no circumstances which would entitle or require any person
      to restrict or terminate the continued possession or occupation of any of
      the Properties.

(32)  All rentals and other charges payable under the Tenancies have been
      promptly paid as and when due and no rental has been paid in advance of
      the due date for payment and any consents required for the grant of the
      Tenancies have been obtained from any relevant third parties (if any).

(33)  The parties to the Tenancies have observed and performed all the terms and
      conditions therein and so far as the Warrantors, after making all
      reasonable enquiries, there are no disputes or outstanding or expected
      claims in these agreements and there are no circumstances giving rise to
      such disputes or claims.

(34)  No member of the Group has entered into any assignments of rental or other
      monies payable under any licences, leases or tenancies in respect of the
      Properties.

(35)  There is no outstanding and unobserved and unperformed obligation
      necessary to comply with by the Group under the Tenancies or any notice or
      other requirement given by the licensors under Tenancies or by any
      competent authority exercising statutory or delegated powers.

(36)  There is no resolution, plan or proposal for compulsory acquisition or
      expropriation of the Properties or any part thereof by government
      authority, and none is pending.

(37)  There is no dispute with any governmental or local authority or with the
      owner or occupier of any adjoining or neighbouring property to the
      Properties or howsoever otherwise.

(38)  There is no person in possession or occupation of, or who has or claims a
      right or interest of any kind in, the Properties adversely to any Group
      Company's interest and there is attached to the Properties all rights of
      way necessary for the use and enjoyment of the Properties by the relevant
      Group Company.

(39)  There is no material defect of any kind affecting the Properties.

(40)  In relation to the Properties owned by the Group:-

      (A)   the relevant Group Company has valid and legal land use rights and
            building ownership rights in relation to relevant Property;

      (B)   the land use rights to the relevant Properties are granted land use
            rights;

--------------------------------------------------------------------------------
                                                                         Page 21

      (C)   save as disclosed in the Accounts the relevant Property is not
            subject to any encumbrance;

      (D)   the requisition of land, the conversion of any land from allocated
            to grant land use rights, and the granting of land use rights in
            respect of the relevant Properties have been duly effected in
            compliance with applicable laws and regulations;

      (E)   where applicable, the land grant premium, the relocation fee,
            resettlement fee, demolition fee, expropriation fee, and any other
            applicable land use fees and construction fees with respect to the
            relevant Properties have been paid in full; and

      (F)   the relevant Group Company has obtained all necessary permits for
            the construction of buildings on the relevant Properties.

(41)  In relation to each Tenancy:-

      (A)   there are so far as the Company is aware:

            (i)   no disputes or outstanding or expected notices given by a
                  landlord affecting the Properly;

            (ii)  no right for a landlord or licensor to terminate the Tenancy;

            (iii) no circumstances which would entitle a landlord or licensor to
                  exercise any power of entry upon or to take possession of the
                  Property or which would otherwise restrict or terminate the
                  continued possession or occupation thereof; and

      (B)   there is nothing outstanding which would enable any person or entity
            to exercise any right of re-entry or take possession of the Property
            or any part thereof.

                              INTELLECTUAL PROPERTY

(42)  All intellectual property rights currently being used by or in the
      business of any member of the Group:

      (A)   are owned by the Company or the members of the Group as the sole
            legal and beneficial owner, free of any licence or encumbrance in
            favour of a third party ("Company IP"); or

      (B)   are used by the Company or the members of the Group in accordance
            with the terms of a current licence in writing from the owner of
            that intellectual property rights, copies of which have been
            provided to the Purchaser ("Licensed IP").

(43)  All intellectual property rights currently being used by or in the
      business of any member of the Group are valid and enforceable and nothing
      has been done or omitted to be done by which it may cease to be valid and
      enforceable.

(44)  No members of the Group need to use nor has any of the members of the
      Group used any intellectual property right in a manner that infringes the
      intellectual property rights of any third party.

--------------------------------------------------------------------------------
                                                                         Page 22

(45)  No members of the Group has granted or is under an obligation to grant a
      licence, assignment, consent, undertaking, security interest or other
      right in respect of any of the Company IP and Licensed IP.

(46)  All renewal and maintenance fees and taxes due and in respect of each of
      the pending and registered intellectual property rights currently being
      used by or in the business of any member of the Group have been paid in
      full.

(47)  All pending applications for the registration of the Trade Marts will be
      completed without undue delay and will not involve unusual expenditure or
      effect on the part of the Group.

(48)  Since the incorporation of the Company and any member of the Group, no
      third party has:

      (A)   infringed or misused any Company IP, or threatened to do so; or

      (B)   made, threatened or bought any notice, challenge, demand, claim or
            proceedings in relation to the Company IP or the Company's use of
            the Licensed IP and there are no facts or matters which might give
            rise to any such challenge, claim or proceedings.

(49)  No members of the Group carry on business under any name other than its
      own.

(50)  No members of the Group have any of its records, systems, controls, data
      or information recorded, stored, maintained, operated or otherwise wholly
      or partly dependent on or held by any means (including any electronic,
      mechanical or photographic process whether computerised or not) which
      (including all means of access thereto and therefrom) are not under the
      exclusive ownership and direct control of the Company.

(51)  Each member of the Group has security procedures in place to prevent
      unauthorised access, amendment or damage to the data of the relevant
      member of the Group or the data of third parties held, recorded, stored,
      maintained or operated by the Company or on behalf of the Company by any
      third party, and no unauthorised access, amendment or damage to such data
      has taken place since the incorporation of each member of the Group.

(52)  So far as the Warrantors are aware after making all due and careful
      investigation, searches and enquiries, none of the Trademark is being
      used, claimed or opposed by any other person.

(53)  So far as the Warrantors are aware after making all due and careful
      investigation, searches and enquires, the business of each Group Company
      as now carried on by any member of the Group does not, and is not likely
      to, infringe any intellectual or industrial property right of any other
      person (or would not do so if the same were valid) and no claims have been
      made and no applications are pending of which the Warrantors are aware
      which if pursued or granted may materially and adversely affect the
      Company or its business.

(54)  No Group Company has (otherwise than in the ordinary and normal course of
      business) disclosed, or permitted to be disclosed, or undertaken or
      arranged to disclose, to any person other than the Purchaser any of its
      know-how, trade secrets, confidential information, price lists or lists of
      customers.

(55)  The intellectual property rights currently being used by or in the
      business of any member of the Group are valid and enforceable will not be
      adversely affected by the transactions contemplated by this Agreement.

--------------------------------------------------------------------------------
                                                                         Page 23

                                     ASSETS

(56)  Each asset included in the Accounts or acquired by any Group Company since
      tie Accounting Date (other than stock disposed of in the ordinary course
      of business) and each asset used by any Group Company or which is in the
      reputed ownership of any Group Company is:

      (A)   legally and beneficially owned solely by the relevant Group Company
            free from any encumbrances security, charge, pledge, lien, any third
            party claims or any third party rights of whatever nature;

      (B)   not subject to any finance lease or hire purchase agreement or sale
            on deferred, credit or conditional terms; and

      (C)   where capable of possession, in the possession or under the control
            of the relevant Group Company.

(57)  Each Group Company owns or has the right to use each asset necessary for
      the effective operation of its business.

(58)  All plant, machinery, vehicles and equipment owned, possessed or used by
      each Group Company are in good condition and working order and have been
      regularly and properly maintained. None is dangerous or unsuitable for use
      in the business of each Group Company or is in need of renewal or
      replacement.

(59)  All assets have been regularly maintained to a good technical standard and
      are in compliance with all relevant applicable safety regulations required
      to be observed in relation to them.

(60)  Each Group Company is not a party to any finance lease, hire purchase
      agreement or credit sale agreement for the purchase of assets, goods or
      land.

                              ENVIRONMENTAL MATTERS

(61)  No use, release or discharge of a hazardous substance in the operation of
      any member of the Group has exceeded an allowed quota or limit prescribed
      or specified under any PRC laws and regulations, any applicable permits,
      or any environmental impact appraisal reports or similar documents
      relating to environmental matters.

(62)  No hazardous substances have been or are disposed of, stored, kept or
      present on, in or under any of the Properties, nor in water or the ground
      or groundwater on or under any of the Properties.

(63)  There is not and has not been any investigation, enquiry or inspection
      relating to the environment or environmental matters concerning any of the
      member of the Group and none is pending or threatened.

(64)  Each member of the Group has conducted its business and dealt with its
      assets and properties in compliance with the conditions and standards set
      out in all applicable environmental impact appraisal reports or similar
      assessments, studies or tests and associated documentation and
      correspondence.

--------------------------------------------------------------------------------
                                                                         Page 24

                                    INSURANCE

(65)  Each insurable asset of each member of the Group has at all material times
      been and is at the date of this Agreement insured to its full replacement
      value against each risk normally insured against by a person operating the
      types of business operated by each member of the Group.

(66)  Each Group Company has at all material times been and is at the date of
      this Agreement adequately insured against accident, damage, injury, third
      party loss, credit risk, loss of profits and all other risks to which a
      person operating the types of business operated by each member of the
      Group is exposed.

(67)  Each current insurance and indemnity policy in respect of which the
      Company or any other Group Company has an interest is valid and
      enforceable and will not be invalidated by the transaction contemplated
      under this Agreement

                                  MISCELLANEOUS

(68)  All representations and warranties contained in this Schedule shall be
      deemed to be repeated immediately before Completion and to relate to the
      facts then existing.

(69)  The Sale Shares constitute the entire issued share capital of the Company
      and are in issue fully paid.

(70)  The acquisition of the Sale Shares by the Purchaser and compliance with
      the terms of this Agreement will not:

      (A)   result in any present or future indebtedness of any member of the
            Group becoming due or capable of being declared due and payable
            prior to its stated maturity;

      (B)   result in a breach of, or constitute a default under any order,
            judgement or decree of any court or government agency by which any
            member of the Group is bound or subject; and

      (C)   result in a breach of, or constitute a default under the terms,
            conditions or provisions of any agreement, understanding,
            arrangement or instrument (including, but not limited to, any member
            of the Group's contracts).

(71)  So far as the Warrantors are aware:

      (A)   the acquisition of the Sale Shares and compliance with the terms of
            this Agreement will not cause any member of the Group to lose the
            benefit of any licence, consent, permit, approval or authorisation
            (public or private) or any right or privilege it presently enjoys or
            relieve any person of any obligation to any member of the Group
            (whether contractual or otherwise) or enable any person to determine
            any such obligation or any contractual right or benefit now enjoyed
            by any member of the Group or to exercise any right whether under an
            agreement with any member of the Group or otherwise; and

      (B)   the acquisition of the Sale Shares and compliance with the terms of
            this Agreement will not adversely affect the Group's relationships
            with its clients, customers, suppliers and employees and the
            Warrantors are not aware of any circumstances indicating that,

--------------------------------------------------------------------------------
                                                                         Page 25

            nor have they been informed or are otherwise aware that, any person
            who now has business dealings with any member of the Group would or
            might cease to do so from and after Completion.

--------------------------------------------------------------------------------
                                                                         Page 26

                                   SCHEDULE 4

                   LIMITATION OF LIABILITY OF THE WARRANTORS

(1)   Liabilities of Warrantors

      The liabilities of the Warrantors to the Purchaser under this Agreement
      shall be on a several basis only.

(2)   Combined Effects Limitation

      None of the Warrantors shall be liable for any Warranty Claim which would
      not have arisen but for an Event occurring after Completion.

(3)   Provisions in Accounts

3.1   The amount of any Warranty Claim shall be reduced by the amount (if any)
      by which:

      (A)   any liability of the Group included in the Accounts has been
            discharged or satisfied at below the amount attributed thereto or
            included in respect thereof in the Accounts; and/or

      (B)   any contingency or other matter provided against in the Accounts had
            in the event been over-provided for.

3.2   No Warranty Claim shall be brought in respect of any breach or alleged
      breach of any Warranty if and to the extent that provision is made for the
      circumstances giving rise thereto in the Accounts.

(4)   Duty to notify the Warrantors of potential claims

      The Purchaser shall and shall procure that the Company shall as soon as is
      practicable inform each of the Warrantors in writing of any Event which
      comes to its notice or to the notice of the Company whereby it appears
      that any of the Warrantors is or may become liable to make any payment
      under any Warranty and shall not settle or compromise any such claim
      without the prior written consent of all Covenantors, such consent not to
      be unreasonably withheld or delayed.

(5)   Warranty only actionable by the Purchaser

      The Warranties shall be actionable only by the Purchaser, its assigns or
      successor in title and no other person shall be entitled to make any
      direct claim or take any direct action whatsoever against any of the
      Warrantors under, arising out of, or in connection with any of the
      Warranties.

(6)   Warrantors not to be liable in certain circumstances

      None of the Warrantors shall be liable under the Warranties to the extent
      that any depletion, diminution or reduction in the value or amount of any
      of the assets of the Group occurs as a result of or is otherwise
      attributable to any legislation not in force at the date of this Agreement
      or any change of law or administrative practice which takes effect
      retroactively or

--------------------------------------------------------------------------------
                                                                         Page 27

      occurs as a result of any increase in the rates of Taxation in force at
      the date of this Agreement

(7)   Right to repayment of amount recovered

      The Purchaser shall reimburse to each of the Warrantors an amount equal to
      any sum paid by it under any of the Warranties which is subsequently
      recovered by or paid to the Purchaser or a member of the Group by any
      third party.

(8)   No double claims under Warranties and Indemnity

      No liability shall attach to any of the Warrantors by reason of a breach
      of any of the Warranties to the extent that the loss occasioned to the
      Purchaser also gives rise to an equivalent claim under the Indemnity and
      file Warrantors have settled such equivalent claim and no liability shall
      attach to any of them by reason of a claim under the Indemnity to the
      extent that an equivalent claim has been made under the Warranties and the
      Warrantors have settled such equivalent claim.

--------------------------------------------------------------------------------
                                                                         Page 28

                                   SCHEDULE 5

                     FORM OF BOARD MINUTES OF THE PURCHASER

                          EASTAR GROUP HOLDINGS LIMITED
           (incorporated in the Cayman Islands with limited liability)

RESOLUTIONS IN WRITING SIGNED BY ALL THE DIRECTORS (THE "DIRECTORS") OF EASTAR
GROUP HOLDINGS LIMITED (THE "COMPANY") PURSUANT TO ARTICLE 60 OF THE ARTICLES OF
ASSOCIATION OF THE COMPANY

1.    The following documents were produced for consideration by the Directors:-

      (a)   a share sale and purchase agreement ("Share Sale and Purchase
            Agreement") to be entered into between (1) Expert Master Holdings
            Limited and UMW China Ventures (L) Limited as vendors (collectively
            "the Vendors"); and (2) the Company as purchaser, pursuant to which
            the Vendors have agreed to transfer all their shares ("Sale Shares")
            in First Space Holdings Limited to the Company, in consideration of
            the Company credited as fully paid the 1,000 nil paid shares of
            HK$0.01 each in the issued share capital of the Company issued nil
            paid on 16 November 2006 to the relevant Vendors in the proportion
            set opposite to their respect names in the third column of Schedule
            1 of the Share Purchase Agreement; and

      (b)   instruments of transfer for the sale and purchase of the Sale Shares
            to be signed by Vendors as transferors and the Company as
            transferee.

2.    IT WAS NOTED THAT:

      (a)   all the Directors had fully disclosed their interests, whether
            directly or indirectly, in connection with the transaction(s) under
            consideration in accordance with the articles of association of the
            Company and laws applicable to the Company; and

      (b)   all the Directors also declared that the Share Sale and Purchase
            Agreement was part of an exercise being undertaken in preparation of
            the listing of the Company's shares on the main board of The Stock
            Exchange of Hong Kong Limited.

3.    After due and careful consideration, IT WAS RESOLVED:-

      (a)   THAT, the form and substance of the Share Sale and Purchase
            Agreement be and the same is hereby unconditionally approved;

      (b)   THAT, any one Director be and is hereby authorised to sign for and
            on behalf of the Company the Share Sale and Purchase Agreement and
            the instruments of transfer referred to in paragraph 1 (b) above;

      (c)   THAT, any one Director be and is hereby authorised to sign any
            further documents incidental or ancillary to or in connection with
            each of the documents referred to in paragraph 1 above, and any one
            Directors be and is hereby authorised to affix the common seal of
            the Company in accordance with its articles of association to such
            documents as they consider necessary, desirable or incidental to
            transactions contemplated by the Share Sale and Purchase Agreement;

--------------------------------------------------------------------------------
                                                                         Page 29

      (d)   THAT, any one Director be and is hereby authorised to approve any
            amendments to each of the documents referred to in this paragraph 3,
            such approval being conclusively evidenced by his/her signature on
            the relevant documents; and

      (e)   THAT, signed copies of each of the documents referred to in this
            paragraph 3 be delivered to the relevant parties.

Dated the [o] day of [o] 2006.

_______________________________              ___________________________________
Piao Longhua                                 Xu Xizhong
Director                                     Director

_______________________________
Adul Halim bin Harun
Director

--------------------------------------------------------------------------------
                                                                         Page 30

                                   SCHEDULE 6

                            DETAILS OF SUBSIDIARIES

1.    WUXI SEAMLESS OIL PIPES COMPANY LIMITED

      Date of Incorporation     :  17 November 1999

      Place of Incorporation    :  PRC

      Total Investment          :  US$88,300,000

      Term                      :  20 years

      Registered Share Capital  :  US$35,000,000

      Shareholder               :  First Space Holdings Limited

      Directors                 :  1.  Piao Longhua;
                                   2.  Xu Xizhong;
                                   3.  Abdul Halim Bin Harun

2.    JIANGSU FANLI PIPE CO LTD

      Date of Incorporation     :  16 April 2004

      Place of Incorporation    :  PRC

      Registered Share Capital  :  US$50,000,000.00

      Shareholders              :  Wuxi Seamless Oil Pipes Company Limited   70%

                                   Huang Cheng                               24%

                                   Huang Xiang                                4%

                                   Gu Jianming                                2%

      Directors                 :  1.  Piao Longhua;
                                   2.  Encik Zulkifly bin Zakaria;
                                   3.  Huang Cheng

3.    WSP DRILL PIPE CO LTD

      Date of Incorporation     :  30 August 2005

      Place of Incorporation    :  PRC

--------------------------------------------------------------------------------
                                                                         Page 31

      Registered Share Capital  :  US$3,600,000.00

      Shareholder               :  Wuxi Seamless Oil Pipes Company Limited   51%

                                   Hailong International (L) Ltd.            40%

                                   Wuxi Weld Technology Co., Ltd.             9%

      Directors                 :  1.  Cao Hong Bo;
                                   2.  Zhao Ren Cun;
                                   3.  Zhang Jun

4.    WUXI SEAMLESS OIL EXTRACTION EQUIPMENT CO, LTD.

      Date of Incorporation     :  10 November 2004

      Place of Incorporation    :  PRC

      Registered Share Capital  :  US$10,000,000.00

      Shareholder               :  Wuxi Seamless Oil Pipes Company Limited   51%

                                   Panjin Weihua High & New Technology       49%
                                   Energy-Saving Equipment Co., Ltd.

      Directors                 :  1.  Piao Longhua
                                   2.  Encik Zulkifly bin Zakaria;
                                   3.  Zhu Chang Lin;
                                   4.  Liu Lan Lan

--------------------------------------------------------------------------------
                                                                         Page 32

                                   SCHEDULE 7

                          1st proof of the Prospectus

--------------------------------------------------------------------------------
                                                                         Page 33

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]