EX-10.1 2 crec8kex101062107.txt Exhibit 10.1 SHARE EXCHANGE AGREEMENT This SHARE EXCHANGE AGREEMENT (this "Agreement") is made and entered into this 22nd day of February, 2007, by and among, those individual purchasers set forth on Schedule A (together, the "Purchasers") and the Sellers listed on Schedule A (the "Sellers"). RECITALS: WHEREAS, the Sellers are the owners of 2,695,792 shares (the "CREG Shares") of ownership interest of China Recycling Energy Corporation, a Nevada Corporation (the "CREG"), listed on Schedule A, and WHEREAS, the Purchasers are, collectively, the owners of 8,087,376 shares (the "Yingfeng Shares") of ownership interest of Xi'an Yingfeng Science and Technology Co, Ltd., a Chinese Corporation (the "Yingfeng"), listed adjacent to each of the Purchasers' names on Schedule A; and WHEREAS, the Sellers have determined that it is in their best interest to exchange, subject to the terms and conditions set forth herein, 2,695,792 shares of their CREG Shares with the Purchasers for 8,087,376 Yingfeng Shares owned by Purchasers; and WHEREAS, the Purchasers have determined that it is in their best interests that they exchange, subject to the terms and conditions set forth herein, all the Yingfeng Shares owned by them with the Sellers for 2,695,792 CREG shares owned by the Sellers, in the respective amounts set forth on Schedule A; and AGREEMENT: NOW, THEREFORE, in consideration of the premises and the agreements set forth herein, the Sellerss and the Purchasers agree as follows: ARTICLE I SHARE EXCHANGE Section 1.01. The Share Excahange. Subject to the terms and conditions of this Agreement, the Sellers agree to assign, transfer and deliver to the Purchasers, at the Closing, 2,695,792 CREG shares owned by him. As exchange, Purchasers agree to assign, transfer and deliver to the Sellers, at the Closing, 8,087,376 Yingfeng shares owned by them. Under the terms of this Agreement, each individual Purchaser receives ONE CREG Share owned by the Sellers for THREE Yingfeng Shares owned by Purchasers prior to the transaction, at the Closing, with the restriction that all Purchasers shall not trade or resell the CREG shares they acquired within a period of one year following the closing date of this transaction, complying with the restrictions on re-sale of the securities of Rules 903 (a) and (b)(3) of Regulation S. Section 1.02. Execution and Closing. The Share Exchange shall take place at such other time and place as the Sellers and the Purchasers mutually agree upon, orally or in writing (which time and place is designated as the "Closing"). The Sellers shall deliver to the Purchasers either (i) a certificate or certificates representing the CREG Shares or (ii) instruments of assignment or transfer that shall, in the reasonable opinion of the Purchasers be necessary to transfer the CREG Shares to each of the Purchasers. The Purchasers shall also deliver to the Sellers either (i) a certificate or certificates representing the Yingfeng Shares or (ii) instruments of assignment or transfer that shall, in the reasonable opinion of the Sellers be necessary to transfer the Yingfeng Shares to the Sellers. The Agreement is not deemed executed and the Share Exchange is not deemed consummated until the Sellers receive the physical certificates representing the Yingfeng Shares delivered by the Purchasers and the Purchasers receive the physical certificates representing the CREG shares delivered by the Sellers. ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.01. Representations and Warranties of the Purchasers. Each of the Purchasers, on a joint and several basis, represents and warrants to the Sellers as follows: (a) The Purchasers have all power and authority to execute, deliver and perform this Agreement. (b) This Agreement is the valid and binding obligation of each of the Purchasers, enforceable against each of the Purchasers in accordance with its terms. (c) The CREG Shares will be acquired for investment for the account of each of the Purchasers, and not as a nominee or agent, and not with a view to the distribution or public offering thereof. In connection therewith, each of the Purchasers confirms that he or she is neither a U.S Person, as such term is defined in Rule 902(k) of Regulation S, nor located within the United States, and that the transaction will be between non-U.S. Persons, and take place outside of the United States. (d) None of the Purchasers have been contacted concerning the acquired CREG Shares or the matters set forth in this Agreement by means of any advertisement or other general solicitation. (e) Each of the Purchasers understands that (i) the acquired CREG Shares have not been registered under either the Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state by reason of specific exemptions therefrom and that such securities may be resold in the United States without registration under the Securities Act only in certain limited circumstances. (f) The Purchasers have access to information relating to the CREG as the Purchasers deem necessary to make an informed investment decision in connection with the acquired CHDW Shares, and except as provided in Section 2.02 below, the Sellers is making no representations and warranties concerning the acquired CREG Shares or the business of the CREG. (g) Each of the Purchasers understands that Regulation S promulgated under the Securities Act, is available only for offers and sales of securities outside the United States, and will comply with Regulation S, attached hereto as Exhibit A, specifically complying with the restrictions on re-sale of the securities of Rules 903 (a) and (b)(3) of Regulation S. (h) Legends. The Purchasers acknowledge that the CREG Shares they acquired will bear the following restrictive legend: THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING THE SECURITIES, ACKNOWLEDGES THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY: (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL OR STATE LAWS AND REGULATIONS, (C) INSIDE THE UNITED STATES PURSUANT TO (I) RULE 144A UNDER THE SECURITIES ACT TO A PERSON WHO THE SELLERS REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ONE OR MORE QUALIFIED INSTITUTIONAL BUYERS TO WHOM WRITTEN NOTICE IS GIVEN THAT THE OFFER, SALE OR TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (II) THE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND ANY APPLICABLE STATE SECURITIES LAWS OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE UNITED STATES FEDERAL OR STATE SECURITIES LAWS, AFTER PROVIDING AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE COMPANY TO THAT EFFECT. (i) Each of the Purchasers acknowledge that it is aware of its respective obligations under the Securities Exchange Act of 1934 (the "1934 Act"), including, but not limited to those filing obligations that are triggered as a result of the consummation of the sale of the Sale Shares pursuant to Sections 13 and 16 of the 1934 Act, together with filings required to be made by the Company, under the control of the Purchasers, after the consummation of the sale of the Sale Shares. Section 2.02. Representations and Warranties of the Sellers. The Sellers represent and warrant to the Purchasers as follows: (a) The Sellers have all power and authority to execute, deliver and perform this Agreement. (b) This Agreement is the valid and binding obligation of the Sellers, enforceable against the Sellerss in accordance with its terms. (c) The Sellers are the record and beneficial owners of the CREG Shares acquired by Purchasers and the CREG Shares exchanged pursuant to this agreement have not been assigned, pledged, sold, transferred or otherwise conveyed. ARTICLE III MISCELLANEOUS Section 3.01. Governing Law; Successors and Assigns. This Agreement shall be governed and construed in accordance with the law of the State of Nevada and applicable federal law and shall be binding upon the heirs, personal representatives, executors, administrators, successors and assigns of the parties Section 3.02. Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes and replaces any prior agreement or understanding between the Purchasers and the Sellers with respect to the transfer of the Sale Shares between the Sellers and the Purchasers. Section 3.03. Headings. The headings of the Sections of this Agreement are for convenience and shall not by themselves determine the interpretation of this Agreement. Section 3.04. Counterparts. This Agreement may be executed in any number of counterpart copies, all of which copies shall constitute one and the same instrument. Section 3.05. Independent Counsel. The Purchasers and the Sellers each acknowledge that this Agreement has been prepared on behalf of the Sellers by Bernard & Yam, LLP, counsel to the Sellers and that Bernard & Yam, LLP is not representing, and is not acting on behalf of, the Purchasers in connection with this Agreement. The Purchasers have been provided with an opportunity to consult with their own counsel and their own business, securities and tax advisors with respect to this Agreement. Section 3.06. Purchaser Representative. The Purchasers appoints Mr. Jihua Wang as their Representative to sign and execute this Share Exchange Agreement and each Purchaser understands and acknowledges that this appointed Purchaser Representative (1) Is not an affiliate, director, officer or other employee of the issuer, or beneficial owner of 10 percent or more of any class of the equity securities or 10 percent or more of the equity interest in the issuer; and (2) Has such knowledge and experience in financial and business matters that he is capable of evaluating, alone, or together with other purchaser representatives of the purchaser, or together with the purchaser, the merits and risks of the prospective investment; (3) Is acknowledged by the purchaser in writing, during the course of the transaction, to be their purchaser representative in connection with evaluating the merits and risks of the prospective investment; and (4) Discloses to the purchaser in writing a reasonable time prior to the sale of securities to that purchaser any material relationship between himself or their affiliates and the issuer or its affiliates that then exists, that is mutually understood to be contemplated, or that has existed at any time during the previous two years, and any compensation received or to be received as a result of such relationship. THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE FOLLOWS IN WITNESS WHEREOF, the parties hereto have signed this Share Exchange Agreement as of the date first above written. ------------------------------------------------------------------------ Signature Page for Sellers SELLERS By /s/Hanqiao Zheng ----------------- Hanqiao Zheng /s/Guohua Ku ----------------- Guohua Ku ----------------------------------------------------------------------- Signature Page for Purchaser Representative PURCHASER REPRESENTATIVE By /s/Jihua Wang --------------- Jihua Wang ------------------------------------------------------------------------ Signature Page for Purchasers PURCHASERS By X ___________________________
SCHEDULE A Sellers Amount of CREG Shares Sold Hanqiao Zheng 2,406,365 Guohua Ku 289,427 Amount of Amount of Amount of CREG Shares CREG Shares CREG Shares Purchasers Acquired Purchasers Acquired Purchasers Acquired ---------- -------- ---------- -------- ---------- -------- Hongjun Wang 4667 Youqiong Huang 500 Zhichun Zhang 15000 Youxin Fang 8000 Qian Nie 1667 Cuiping Yang 1500 Aizhen Li 1667 Xianqin Zhu 3334 Biyun Pan 1667 Yongzhong Su 1500 Jian Meng 11667 Xiuwen Wang 6667 Jingfang Xu 5000 Weizhi Yao 6667 Yaomin Fang 10000 Baozhen Lin 3334 Yunzhen Chen 5000 Lingling Wu 1667 Xingfa Yu 5000 Jingchang Li 5000 Shuwei Zhang 5000 Yuqin Xu 3334 Dingchan Wu 3334 Lili Lu 6667 Jingwen Wu 10000 Huinian Li 3334 Shihui Zhou 3334 Yaozong Hang 10000 Zhiwei Wang 8000 Yinghao Shi 7500 Genlin Wu 1667 Lanying Cai 3334 Xiaolin Hu 2500 Zhenyu Shen 5000 Wenwu Yan 10000 Fengying Zhao 1700 Mengyuan Zhang 6667 Suping Zhang 6667 Lanfang Wang 6667 Qifang Zhang 3334 Baiquan Tian 5000 Xinhua Ma 6667 Ping Zhu 60000 Naili Du 10000 Gang Chen 3334 Weiqun Zhao 3334 Zhenyu Wang 16667 Yinglan Li 10000 Jianzhong Hu 15000 Deming Tang 3334 Xiaoyu Lei 3334 Guanghua Li 1500 Guanggui Zhang 16667 Caimei Liu 3000 Beidi Ye 7500 Kefeng Hao 1250 Guiyu Xie 1667 Suwen Lin 3334 Baohua Chen 1250 Jianmei Zhang 5000 Hong Li 5000 Zhenhua Tang 10000 Juhong Shao 3334 Tianzuo Ding 1667 Yuezhen Qin 1667 Xiaoyi Wang 3334 Wenhua Wang 1667 Bangxing Xu 10667 Fujin Xie 1667 Wansheng Pan 10000 Jun Hu 10000 Wenfang Xi 6667 Yicheng Huang 6667 Zhiquan Shao 667 Delin Li 5000 Huiqing Zhang 1667 Youguo Zhu 6667 Yufang Yu 3334 Zhuoqun Wang 10000 Jian Chen 1500 Henian Zhang 16667 Lanfang Shen 10000 Minggen Lu 7500 Juanfen Lu 1667 Liang Qian 7667 Yiyuan Cao 6667 Shunquan Zhang 8000 Peilan Dai 6667 Huizhi Xin 3334 Erming Shen 10000 Lingjuan Wei 3334 Guofang Zhuang 6667 Yiren Gu 3334 Lingkai Xu 8334 Wenhua Wang 5000 Jingzhen Xu 7500 Liming Shen 6667 Xiuxian Yu 3334 Yanqin Yang 1000 Yaxiu Chen 3334 Peiying Ji 5000 Kefei Jiang 2834 Hongwen Zhang 5000 Hongchang Li 2500 Youmei Yang 1667 Rui Yu 10000 Zonggen Guo 1667 Chunling Wang 1667 Yu Xia 3334 Shuhe Zhu 3334 Fengqin Liu 4000 Jianfeng Huang 1667 Cuiying Shang 1334 Huiqin Qian 6667 Linzhen Min 1667 Jun Guo 4000 Yueqing gan 5000 Xingzhu Cao 6667 Xiaowei Shen 15000 Huaqin Zhou 15000 Liming Zhao 5000 Yan Yan 6667 Minghua Wu 2334 Jing Zhang 4000 Qiaoying Cao 9700 Ruiqing Ge 5000 Yufang Chen 10000 Hankang Zhou 2334 Hengkan Mao 20000 Changying Song 3334 Hong Xie 15000 Maohua Shen 3500 Guihua Shen 10000 Shouyi Xu 10000 Rongwei Xu 10334 Song xue 5000 Wenyan Jin 1667 Shanwu Zhu 7500 Luyi Qi 5000 Chunmei Chen 15000 Lijuan Zhou 5000 Shuqin Hu 13334 Baofeng Yuan 10000 Yu Zhao 3334 Guangtai Shao 13334 Xiangjiang fang 3334 Yuanfang Chen 2500 Yongfa Ren 10000 Dinghai Bao 4500 Zhongjuan Lu 13334 Junfa Xie 3334 Zubin Huang 3334 Jiaxiu Zhang 1667 Shuangming Chen 5000 Qianhui Yang 3334 Shouri Piao 13334 Wangdong Liu 3334 Yimin Zhou 5000 Chundi Wang 3334 Chunjie Wang 1000 Qiru Zhu 10000 Chunjiang Leng 20000 Qijuan Chen 1667 Chongman Wang 5000 Wenlong Zhou 5000 Jianping Shan 2000 Jinrong Zhu 5000 Jufa Wu 8334 Yanqing Sun 5000 Biyu Wu 12906 Meiying Xue 10000 Dianpin Sun 5000 Dan shi 15000 Jinde Gu 1667 Jiaping Lu 3334 Genfu Chen 6667 Shenzhen Zheng 12000 Xiadi Wang 12500 Lihua Zhang 2334 Hongying Zhong 1667 Xihua Zhu 2500 Minhua Jin 1667 Guangming Liu 5000 Hengyuan Lu 3334 Guorong Yan 3334 Sixiang Zhang 1667 Xiecheng Zhuang 2667 Hao Wang 1667 Shenxin Zhang 3334 Hongmei XU 1667 Aili Shi 7000 Liangfang Zhou 3334 Jie Cheng 1000 Kaiping Yu 2500 Hong Yu 3334 Dazhen Yu 1500 Ping Luo 3334 Zhenghua Zhao 3334 Donglin Zhao 2000 Peizhen Shen 1334 Weiju Sun 3000 Jie Sun 3334 Caiping Gong 7500 Yongsheng Yuan 18334 Rongkang Shi 11667 Defang Wu 6667 Ying Gong 10000 Yuezhen Lu 1667 Jie Zhang 10000 lihua liu 1667 Zuozhi Yang 6667 Huijun Chen 3334 Yan Li 8500 Tanglin Wu 1667 Honghui Ma 3334 Baohui He 2500 Ronghua Fu 3334 Dongxiang Sun 3334 Yuzhen Fu 2334 Juanjuan Jiang 5000 Jinnu Tian 2500 Chengjiu Hu 1767 Huiqiang Mei 667 Yan Sun 3334 Rongchun Wang 1667 Xiuding Jiang 2500 Hongxie Chen 20000 Ning Yang 2334 Yajun Xie 5000 Lihua Zhao 13334 Lihua Zhou 3734 Jianzhong Shen 1334 Yonghan Li 1667 Guifen Geng 16667 Xiaolian He 1667 Xiuqin Xu 13334 Wenming Jiang 1667 Jianqiu Zhou 3334 Yongqiang Lu 4000 Qian Liu 3334 Chen Jiang 3334 Meiying Zhu 3334 Ming Tan 1667 Zhenkang Yang 1334 Lesun Hua 5500 Xiaoli Zhang 4834 Kangming Zhang 3334 Deyun Shen 10000 Fuchun Song 7000 Yuqin You 1667 Jinhai Song 6667 Shixi Wang 5000 Shuyang Huang 3334 Yunsheng Wang 1667 Sujie Jiang 6667 Yulan Jin 2000 Xiaofang Qian 2334 Rongzhen Wang 1667 Qi Wu 3334 Ximin Ni 3334 Mingxing Zhang 1234 Xiao Chen 15000 Yiping Lin 5000 Lieyu Zhang 5000 Nianfeng Yang 3334 Xianglin Shao 4000 Hongyu Zhang 3334 Cunfu Wu 1667 Quanzhen Jiang 13334 Mao'an Bai 2000 Fangchu Qiu 5000 Yongzhen Su 10000 Yuxia Meng 3334 Yongshu Ding 1667 Heyan Wang 1667 Shuying Zhou 1667 Lingxiu Yan 3000 Weili Cheng 2500 Jing Che 5000 Huijuan Zhou 10000 Yujun Hu 20000 Wei Chen 8334 Jing,an Zhou 2500 Lizhu Qiu 2500 Yafan Wang 3334 Guocheng Zhang 3334 Huizhen Bian 667 Yujie Wei 6667 Lei Jin 2500 Zengliang Yang 5000 Xiuqin Luo 3334 Cuige Bao 3334 Feiwen Lin 2000 Yan Li 26667 Ruixiang Yang 5000 Xiaqun Gan 6667 Ci Zhao 1667 Lanfang Wu 22500 Wenyong Lu 1667 Bangji Zou 3334 Gang Wu 4000 Ziguo Qian 2500 Bo Yu 10000 Hong Huang 1667 Xiaochuan Li 3334 Jinrong Hui 3334 Weimin Tang 5000 Ying Sheng 2334 Zhigang Zeng 5000 Hong Ju 3334 Feng Xu 5000 Xixian Yang 20000 Bin Wang 5000 Desheng Liu 1667 Xin Song 3334 Fugen Zhang 1667 Qiongfeng Xu 3334 Liying Shi 1667 Yongning Yu 5000 Huiyun Yang 6667 Pingya Ji 16667 Caifeng Zheng 5000 Min Shen 5000 Junjie Li 10000 Xiangru Tu 10000 Qinhua Zheng 2500 Jieying Zhang 5000 Zuping Zhu 1667 Wenlian Huang 2500 Shihui Yang 6667 Larong Qian 1667 Jianmin Xu 6667 Shuning Wang 3334 Zhan Wu 3334 Yazhen Zhang 2500 Guirong Wang 6667 ningqing Zeng 3334 Yongsheng Zhu 11000 Yongjie Wang 2000 Longzhen Zhang 334 Yingzhen Lang 6667 Lixin Long 5000 Yuhuan Dong 3334 Xingfu Hu 2667 Enzhi Yang 3334 Bingkui Shi 1667 Qiuzhen Lu 20000 Zhenrong Cao 6667 Suqin Wang 6667 Guojiang Li 5000 Qingqing Li 1667 Jingzhi Wang 3334 Jinhai Gu 22500 Xiuge Wu 6667 Jialiang Wan 3334 Zhenchang Fei 6667 Hongwei Zhang 3334 Xiaoqiang Li 1000 Xi Chen 667 Wenxiu Wang 10000 Wei Wang 15000 Guozhu Wang 6667 Xuefang Liu 13334 Yufang Jiang 5000 Jianyun Wang 3334 Zhaoling Meng 20000 Shilin Qiu 5000 Guojun Chen 5000 Lianhui Sun 3334 Chunxiang Gu 10000 Miaoyu Chen 10000 Shumei Chen 1667 Genlan Zhu 3334 Hongzhi Zhou 10000 Qi Zhang 5000 Shuiyun Chen 1667 Shengnian Li 7500 Zhongli Pan 1667 Tingxiang Yan 3334 Peijun Gong 1667 Dongguang Zou 3334 Xueming Jin 2500 Liuyong Zhao 6667 Fushan Liu 21000 Shihui Li 13334 Zhiying Guo 3334 Huiru Zhu 3334 Shuqin Yu 10000 Huaikou Chen 10000 Guoliang Ning 5000 Jinda Ye 6667 Meiguan Cao 3334 Jinxiang Li 5334 Li Li 10000 Jifa Yang 15000 Guoxiang Liu 3334 Zhihong Guo 10000 Guoquan Qiao 1667 Aiqun Hou 3334 Bi Ren 10000 Yafen Dong 12667 Xiufen Chen 8000 Zhengcai Cao 1000 Guoliang Zhang 10000 Baokui Ni 3334 Shengfang Wang 16667 Chenfei Bao 7500 Hong Zhou 3334 Yuzhen Bai 13334 Yungen Xue 2000 Guiqin Ma 3334 LingLing Ma 3334 Baodi Ding 3334 Jun Zhang 3334 Dan Li 8334 Putao Yang 3334 Jianying Dai 3334 Naiping Song 5000 Jinkang Bao 6667 Jing Hua 6667 Zhenzhuang Yang 3334 Youmei Zheng 1667 Xinmin Bai 3334 Mingjie Cao 3334 Lihong Guo 3334 Zhen Miao 2500 Yulong Shen 18334 Chunhe Liu 3334 Li Li 1000 Yizhen Wang 5000 Weishan Gong 6667 Yanling Xin 3334 Yuqing Kong 6667 Hongyu Fan 3500 Yousheng Shen 1667 Hongqi Ye 1667 Shidi Feng 2000 Heng Xu 3334 Jingchun Wang 9000 Jufang Li 3334 Huaqian Chen 1667 Peiqing Gao 6667 Guifang Li 3334 Jinmei Chen 1667 Zhong Huang 667 Yuzhen Yang 10000 Guidi Wang 6667 Huaming Gu 1667 Jiaming Gong 3334 Jiang Chen 5000 Jun Hu 3334 Lianfu Huang 10000 Tingxin Gao 1667 Jing Hua 6667 Zongjuan Jiang 15000 Rongsheng Fang 2667 Jinping Zhang 20000 Miaofu Zhao 2500 Guiying Tang 3334 Fumao Hu 7667 Yifen Zhang 5000 Yunxin Chi 2513 Jindi Zhou 3334 Xiaoqing Zhu 10000 Fuxing Xi 2334 Daoan Xie 6667 Boxun Wang 10000 Suhua Wei 3334 Hongxiang Liu 9434 Qinxiang Qian 3334 Zhaojun Ding 3667 Hongfa Qian 3334