Exhibit 10.2(b)The information that is marked [REDACTED] herein has been omitted pursuant to a request for confidential treatment and the redacted information has been filed with the SEC separately LOAN AGREEMENT

Dalian Xinding New Material Technology Consultancy Inc., with the registered address of Rm# 2122, Unit one, No. 112 Youhao Road, Zhongshan District, Dalian; and the legal representative is Liang Hai-yan; and

1.

Party A, a wholly foreign-owned enterprise duly incorporated and validly existing under the PRC laws;

2.

3.

 

1.1

 

1.2

Party B agrees that after it receives the payment of loan, it will use all of the loan for clearing the debt occurred for establishing Domestic Company.

2.1.

The term of such loan starts from the date when Party B receives the first payment of loan from Party A, until ten (10) years after signing this Agreement and could be extended upon the written confirmation by Party A and the extended period shall be determined by Party A.

2.2.

During the term or extended term of such a loan, Party A may accelerate the loan repayment in written notice, if any of the following events occurs:

 

(3)

Any other third party claims more than RMB100,000 against Party B;

 

(4)

Any statement or warranties made by Party B under this Agreement is untrue or in accurate in any material aspects; or Party B breaches the obligations under this Agreement; or

 

(5)

Party A has a written notice to Domestic Company and exercised its right of purchase in accordance with the terms of Equity Interest Purchase Agreement (“Purchase Agreement”).

3.1.

The Parties herein agree and confirm that Party B or their successors or assignees have to repay the loan only by the following methods: transfer all equity interest in Domestic Company to Party A in compliance with PRC laws and use the proceeds to repay the loan when the loan is due and Party A gives a written notice.

3.2.

Without the written consent made by Party A, Party B shall not repay such loan partially or in full.

3.3.

Based on the Clause 3.1, all parties herein agree and confirm that, according to the PRC laws, Party A or its designated person (including natural person, legal entity or any other entity) has the right, but not the obligation, to purchase all or part of the equity interest held by Party B in Domestic Company (the “Option”) at anytime, however, Party A shall notify Party B of such purchase of equity interests with a written notice. Once the written notice for exercising the Option is issued by Party A, Party B shall sell his all or part of equity interests of Domestic Company upon Party A’s request and instructions (including the equity interest obtained by any methods after such notice date) with the original invest price (the “Original Investment Price”, means RMB 150,000 for each 1% of equity interests) or price otherwise stipulated by laws according to the consent of Party A to Party A or its designated person. All parties agree and confirm that when Party A exercises the Option, the price that allowed by the applicable law at the time is higher than the Original Investment Price, Party A shall purchase the equity interests at the lowest price in accordance with the applicable law; if the lowest price is higher than the Original Investment Price, Party B shall reimburse the exceeding amount to Party A pursuant to Article 4 of this Agreement. All parties agree to execute the Purchase Agreement in connection with above matters.

 

5.2

As the guarantee of the loan, Party B agrees to pledge all equity interests held in Domestic Company to Party A and grant Party A an option right to purchase such equity interests; and Party B agrees to execute the Equity Pledge Agreement and Purchase Agreement upon the request of Party A.

 

5.3

Without prior written consent by Party A, not, upon the execution of this Agreement, to sale, transfer, mortgage or dispose, in any other form, any equity interests or any other rights, or to approve any other security interest set on it except the set is for the Party A’s benefit.

 

5.4

Without the prior written consent by Party A, not to decide or support or execute any shareholders resolution on Domestic Company’s shareholders’ meeting that approves any sale, transfer, mortgage or dispose of any legitimate or beneficial interest of equity interest, or allows any other security interest set on it, other than made to Party A or its designated persons.

 

5.5

Without prior written notice by Party A, they shall not agree or support or execute any shareholders resolution on the Domestic Company’s shareholders’ meeting that approves Domestic Company to merger or associate with any person (under this Agreement, the “person” means individual, company, partnership or other entities), acquire any person or invest in any person.

 

5.6

Without prior written consent by Party A, not to take any action or any nonfeasance that may affect materially Domestic Company’s assets, business and liabilities; Without prior written consent by Party A, not, upon the execution of this Agreement, to sale, transfer, mortgage or dispose, in any other form, any asset, legitimate or beneficial interest of business or income of Domestic Company, or to approve any other security interest set on it.

 

5.9

Not to request Domestic Company to distribute the dividend; and not to approve any shareholders’ resolution which may cause Domestic Company to distribute dividend to its shareholders.

5.10

Without prior written consent by Party A, not, in any form, to supplement, change or modify the Articles of Association of Domestic Company, to increase or decrease registered capital of the corporation, or to change the structure of the registered capital in any other forms.

5.11

According to fair finance and business standard and tradition, to maintain the existence of the corporation, prudently and effectively operate business and deal with works; to provide materials relating to Domestic Company’s operation and financial conditions upon Party A’s request; and to normally operate all business to maintain the asset value of Domestic Company.

5.12

Without prior written notice by Party A, not cause, inherit, guarantee or allow the existence of any debt, other than (i) the debt arising from normal or daily business but not from borrowing; and (ii)the debt disclosed to Party A and obtained the written consent from Party A.

5.13

Without prior written consent by Party A, not to enter into any material agreement, other than the agreement in the process of normal business (as in this paragraph, the amount in the agreement that exceeds a hundred thousand Yuan (RMB 100,000) shall be deemed as a material agreement).

5.14

In order to keep its ownership of the equity interest, to execute all requisite or appropriate documents, conduct all requisite or appropriate actions, and make all requisite or appropriate claims, or make requisite or appropriate defend against fall claims of compensation; to notify Party A the occurrence or the potential occurrence of any litigation, arbitration or administrative procedure related to Domestic Company.

5.15

To exercise the rights as Domestic Company’s shareholder upon the request by Party A and only upon Party A’s written authorization.

5.16

To prudently comply with the provisions of this Agreement and perform all obligations under this Agreements, without taking any action or any nonfeasance that sufficiently affects the validity and enforceability of this Agreement.

 

7.1

This Agreement is concluded upon its execution and takes effect on the date hereof.

 

7.2

The Parties agree and confirm that this Agreement shall be terminated when the Parties has completed to perform their obligation under this Agreement; the Parties further agree and confirm that Party B shall be deemed the completion of performing their obligations under this agreement only if the following requirements are met:

 

(1)

Party B has transferred all equity interests of Domestic Company to Party A and/or its designated person; and,

 

(2)

Party B has repaid the total amount caused from the equity interest transferring according to this Agreement or the proceeds stipulated by Purchase Agreement to Party A.

 

7.3

Party B cannot terminate or revoke unilaterally this Agreement unless (1) Party A commits the gross negligence, fraud or other material illegal action; or (2) Party A terminates as a result of bankruptcy, dissolution, or being ordered to be closed down according to laws.

 

8.1

If any party (“Defaulting Party”) breaches any provision of this Agreement, which may cause the damages of the other party (“Non-defaulting Party”), the Non-defaulting Party could notify the Defaulting Party in written and request it to rectify and correct such breach of contract; if the Defaulting Party cannot take any action satisfied by Non-defaulting Party and rectify and correct such breach within fifteen (15) days upon the issuance of the written notice, the Non-defaulting Party could take the actions pursuant to this Agreement or other measures in accordance with laws.

 

8.2

If Party B can not repay the loan pursuant to this Agreement, Party B shall pay the penalty at a rate of 0.2‰ per day for any outstanding loan to Party A (from the request date for repayment by Party A), and shall also indemnify Party A on a full indemnity basis against all direct economic damages due to breach of contract by Party A (including but not limited to market value of pending equity interests held by Party B or outstanding loan, which is the higher).

 

(a)

The materials that is known or may be known by the Public (but not include the materials disclosed by each party receiving the materials );

 

(b)

The materials required to be disclosed subject to the applicable laws or the rules or provisions of stock exchange; or

 

(c)

if any documents required to be disclosed by any party to its legal counsel or financial consultant for the purpose of the transaction of this Agreement by any party, such legal counsel or financial consultant shall also comply with the confidentiality as stated hereof. Any disclosure by employees or agencies employed by any party shall be deemed the disclosure of such party and such party shall assume the liabilities for its breach of contract pursuant to this Agreement. This Article shall survive whatever this Agreement is void, amended, cancelled, terminated or unable to perform.

11.1

The execution, validity, performance and interpretation of this Agreement and the disputes resolution under this Agreement shall be governed by PRC laws.

11.2

The parties shall strive to settle any dispute arising from this Agreement through friendly consultation.

11.3

In case no settlement can be reached through consultation within thirty (30) days after such dispute is raised, each party can submit such matter to Dalian Arbitration Commission in accordance with its then effective rules. The arbitration shall take place in Dalian. The arbitration award shall be final conclusive and binding upon both parties. If there is any dispute is in process of arbitration, other then the matters in dispute, the Parties shall perform the other rights and obligation pursuant to this Agreement.

12.1

The headings contained in this Agreement are for the convenience of reference only and shall not affect the interpretation, explanation or in any other way the meaning of the provisions of this Agreement.

12.2

The Parties confirm that this Agreement shall constitute the entire agreement of the Parties upon its effectiveness with respect to the subject matters therein and supersedes and replaces all prior or contemporaneous verbal or/and written agreements and understandings.

12.3

This Agreement shall be binding and benefit the successor of each Party and the transferee allowed by each Party. Without the prior written notice by Party A, Party B shall not transfer, pledge or dispose in other manners its rights, interest and obligation pursuant to this Agreement.

12.4

Party B hereby agrees that, (i) if Party B dies, Party B agree to transfer the rights and obligation pursuant to this Agreement to the person designated by Party A; (ii) Party A could transfer its rights and obligation pursuant to this Agreement to other third parties. Party A only needs to issue a written notice to Party B for such transfer and no need to obtain the consent by Party B.

12.5

Any delay of performing the rights under the Agreement by either Party shall not be deemed the waiver of such rights and would not affect the future performance of such rights.

12.7

Any matters excluded in this Agreement shall be negotiated by the Parties. Any amendment and supplement of this Agreement shall be made by the Parties in writing. The amendment and supplement duly executed by each Party shall be deemed as a part of this Agreement and shall have the same legal effect as this Agreement.

12.8

This Agreement is executed with four (4) original copies; each Party holds two (2) original copies and each original copy has the same legal effect.