CONTRACT NO YCH-04/888

Moscow                                                      26th  of  July  2004

<<COPTENT  TRADING  LTD>> , hereinafter referred to as "Sellers", represented by
the  Director,  Dolmatov  V.V., acting on the grounds of the Charter, on the one
part,

and  ERLYAN  TRADE  COMPANY  "YUN  CHOU",  hereinafter  referred to as "Buyers",
represented  by the Deputy  Director General Dzhan Len Bo, acting on the grounds
of  the  Charter,  on  the  other part, have made the present Contract about the
following:


                           1. SUBJECT OF THE CONTRACT

     1.1.  The  Sellers  have  sold and the Buyers have bought on the conditions

DAF  Russia  -  Mongolia  in  Naushki  -  Sukhe-Bator,  Kyakhta  -  Sukhe-Bator,

DAF  Mongolia  -  China  in  Dzamin-Uud-Erlyan,

DAF  Russia  -  China  in  Zabaykalsk-Manzhouli

(DAF  in  accordance  with  Incoterms  2000),  in  quantity  -100 000 cub. m the
following goods - softwood saw logs GOST 22298-76, GOST 9463-88 and hardwood saw
logs  GOST  22299-76

     1.2. The Goods, determined by p. 1.1 of the present Contract, to be shipped
in  lots  till  01.08.2005.

     1.3.  The  quantity  of  the  Goods  specified by Point 1.1. of the present
Contract  and  the  terms  of  delivery  specified  by Point 1.2. of the present
Contract  may  be  altered  at  the  consent  of  the  both  Parties.

     1.4.  All  payments under the present Contract to be effected in US dollar.

                        2. PRICE AND QUALITY OF THE GOODS

     2.1. The price of the Goods specified by point 1.1. of the present Contract
is  determined  on  the conditions DAF Naushki, DAF Kyakhta, DAF Dzamin-Uud, DAF
Zabaykalsk.

     2.2.  The  total value of the Goods sold under the present Contract - 6 800
000  (six  million  eight  hundred  thousand)  US  dollar.

     2.3.  The  Goods  price  includes  marking  and  loading  expenses.


BUYERS:
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     2.4.  The  Goods  price,  specified  by Annexes to the present Contract, is
fixed  and may be altered only at the consent of the both Parties and determined
in  additional  agreements  being  an  integral  of  the  present  Contract.

                           3. MEASUREMENT AND MARKING

     3.1. Measurement and marking of the Goods to be effected in accordance with
GOST  2292-88.

Each  log must possess a 5-10 cm allowance, not considered during cubic capacity
calculation.

The  logs  diameter is measured at the top end of a log without bark by means of
measurement  of the longest and shortest perpendicular diameters, added together
and  divided  by  two.

Diameter  is measured in cm as a straight line length, going through geometrical
center  of  the  log  perpendicular  to  the  long  axis  of  the  wood product.

The  log diameter to be stated in the Specification in even cm. Less then one cm
segment is not counted. Diameters equal to one odd cm and more to be rounded off
to  the  closest  even  number.

     3.2.  Registration  volume  is  counted  in  accordance  with GOST 2708-75.

                                   4. PAYMENT

     4.1. Payment to be effected in terms of actual grades and shipped quantity.
Payments  for  the Goods under the present Contract to be effected in US dollar.

     4.2.  Payments  under  the  Contract  to be effected to Coptent Trading LTD
currency  account  in  parts  not less then 25 000 (twenty five thousand) dollar
each.  The sum of the partial payment may be less, than specified by the present
point  at the both Parties written consent. The payment to be effected within 30
(thirty)  banking days upon the fulfillment of two conditions: Goods sale to the
Final  Buyers  and  accumulation  of  the sum equal to 25 000 US $ to the Buyers
account.


BUYERS:
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                              5. TERMS OF SHIPMENT

     5.1. The Goods to be shipped in lots. The lot volume and the shipment terms
to  be  determined  at  the  both  parties  consent.

     5.2.  Logs  of  the  same  length  and  specie  to  be loaded in one wagon.

Consignee:  ERLYAN  TRADE  COMPANY  "YUN  CHOU",  ERLYAN-KHOTO,  CHINA

                            6. RIGHTS AND LIABILITIES

     6.1.  The  Sellers'  liabilities:

     6.1.1. to provide the Buyers with the Goods within a period specified by p.
1.2.  of  the  present  Contract;

     6.2.  The  Buyers'  liabilities:

     6.2.1.  to  accept  each  lot  of  Goods and send the acceptance Act to the
Sellers  by  fax  within  3  (three)  calendar  days;

     6.2.2.  to  pay  for  the  Goods  on the conditions provided by the present
Contract;  to  bear  all expenses and risks concerning the Goods from the moment
the  Goods  shipped  to  Stations  Naushki,  Kyakhta,  Dzamin-Uud,  Zabaykalsk.

                7. GOODS ACCEPTANCE AS FOR QUALITY AND QUANTITY

     7.1.  The  goods  acceptance  as  for  the  quality  and  quantity  to  be
accomplished  by  the  Buyers  representative  at  the  Goods arrival place. The
delivery-acceptance  Act  is  to  be  signed.

     7.2.  In case the Buyers representative is absent during the Goods loading,
the  Buyers  reserve  the  right  to  make a claim as for the Goods quantity and
quality,  specified  by  the  present  Contract.

                                8. TRANSPORTATION

     8.1. The Goods to be shipped by direct international railway and motor way:
the  Russian  Federation  -  People's  Republic  of  China.

DESTINATION  STATION:  ERLYAN,  CHINA.
MANZHOULI,  CHINA

     8.2.  Railway  Bill,  CMR  to  be  accompanied  with:


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1)   Shipping  specification;
2)   Transportation  documents;
3)   Phytosanitary  certificate;
4)   Invoice;

     8.3.  Each  wagon, vehicle Specification for logs shall contain the specie,
diameter,  length,  the  number  of  logs  and  cubic  meters  of  sawlog.

     8.4.  The  third  party,  acting  on  the  ground of agreement with Coptent
Trading  LTD,  may  act  as  the  Consignor,  authorized by Coptent Trading LTD.

                                  9. PENALTIES

     9.1.  In  case  there  is an exceeding of terms for delivery, determined by
point  1.2.  of  the  present  Contract, through the Sellers' fault, the Sellers
shall  pay  the  Buyers  a  penalty.

     9.2.  In  case  payment delay exceeds the terms determined by point 4.2. of
the  present  Contract,  the  Buyers  shall  pay  the  Sellers  a  penalty.

     9.3.  The  penalty is charged beginning with next day after the expiry date
determined  by  points  1.2.,  4.2.  of the present Contract at the rate of 0,1%
Goods  value per each day in arrears and be paid immediately upon the request of
the  dissatisfied  Party.

     9.4.  In  case  the  shipment delay exceeds 2 (two) months, Buyers have the
right  to  repudiate  the  Contract  or  a  part  of  it.

     9.5. In case the Buyers reject to accept the Goods specified by the present
Contract, the Buyers shall compensate all the preparatory expenses and 20% Goods
total  value  penalty  in  favor  of  the  Sellers.

                            10. LIABILITY EXEMPTION

     10.1.  The  Sellers and the Buyers are released from the responsibility for
partial or complete nonfulfillment of the obligations under the present contract
if  it  was  caused  by  force  majeure.

     10.2.  Under  force  majeure  we  mean  external  cases of emergencies, not
existing  during  the  Contract  subscription,  appearing  beyond  the


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will  of  the  Sellers  or  the  Buyers being unable to prevent them by means of
proper  measures.

     10.3.  Force  majeure  to  be  determined  as follows: earthquakes, floods,
fires, epidemics, transport accidents, military operations of any character. The
laws  enacted in the Russian Federation and People's Republic of China after the
Contract  subscription  to  be considered force majeure in case they prevent the
Parties  of  fulfilling  the  obligations  under  the  present  Contract.

     10.4.  The  Parties  may be released from the responsibility for partial or
complete  nonfulfillment  of  the obligations under the present Contract if they
prove  it  was  caused  by  obstacles  beyond  their  control after the Contract
subscription.

     10.5.  The party for which it has become impossible to meet its obligations
under the present Contract because of force majeure shall immediately inform the
other  party  in  regard  to  the  beginning,  kind  and  possible  duration  of
circumstances  preventing  the  fulfillment  of  its  obligations.

     10.6. In case the party does not inform the other Party about force majeure
as  soon  as possible, it has no right to mention it as a reason preventing them
from  the fulfillment of obligations, excluding circumstances when force majeure
prevented  the  Party  from  sending  the  message.

     10.7.  The time stipulated for the fulfillment of the obligations under the
present  Contract  shall  be extended for a period equal to the duration of such
circumstances  determined  in  points  10.1  -  10.4.  and reasonable period for
elimination of consequences in case the requirements provided by point 10.5. are
satisfied.

     10.8.  In  case  the force majeure circumstances will continue more then 12
months,  the  Parties  shall  discuss  future  actions.  In  case  the


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Parties  do  not  reach  the  consent,  the  Party  not  affected  by  mentioned
circumstances  has a right to dissolve the present Contract without appealing to
arbitration.

                                11. ARBITRATION

     11.1.  All  disputes  which can arise out or in connection with the present
Contract  shall  be  solved  by  means  of  negotiations.

     11.2. In case a mutually acceptable decision cannot be reached, the Parties
have  the  right  to  apply to the Chamber of Commerce in Arbitrary Court of the
defendant  country.

     11.3.  The  parties  shall  enforce  the  court  decision within the period
determined  by  this  decision.

                    12. CONTRACT AND CORRESPONDENCE LANGUAGE

     12.1.  The  present  Contract  is  made  up  in  Russian  and  in  English.

     12.2.  All the correspondence in connection with the present Contract to be
maintained  in  Russian.

                              13. ENTRY INTO FORCE

     13.1.  This Contract shall be deemed to come into force on the subscription
of  authorized  parties.

     13.2.  The  effective  date  to be considered the date, stated on the first
page  of  the  Contract  in  the  right  upper  corner.

     13.3.  Upon  the  entry  of  the  present  Contract  into  force  all other
preliminary  documents  and  correspondence  connected  with  the Contract to be
considered  invalid.

                          14. AMENDMENTS AND ADDITIONS

     14.1.  Any changes and alternations or amendments, hereof shall be valid if
they  are  made  in  writing.

     14.2.  Any  changes  or additions considered to be valid and obligatory for
the  Parties  if  they  are  made  at  the  mutual  consent.

     14.3.  Under  the  written  agreement  is  meant an agreement formed as the
protocol  of  negotiations


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and  attached  to  the  Contract.

The  present  Contract  is  drawn  out in duplicate valid equally in Russian and
English,  a  copy  for  either  of  the parties  and signed by the both Parties.

                          15. ADDRESSES OF THE PARTIES

SELLERS:

<<COPTENT TRADING LTD>>
551 5th Ave Suite 601 New York NY 10017 USA

Beneficiary's bank:
------------------
MULTIBANKA, VECPILSETA BRANCH, RIGA, LATVIA SWIFT: MULT LV 2X

Beneficiary account: IBAN
-------------------
LV81 MULT 1310178880010

Receiver's Correspondent:
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CREDIT LYONNAIS NEW YORK BRANCH, NEW YORK, USA SWIFT: CRLY US 33

Correspondent account: 0138715000100
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BUYERS:
ERLYAN TRADE COMPANY "YUN CHOU", ERLYAN-KHOTO, APBM, CHINA, 011100 YUILU STR.,2

INTERMEDIAL BANK:
BANK OF CHINA NEW YORK, NY SWIFT CODE: BKCHUS33

ADVING BANK:
BANK OF CHINA INNER MONGOLIA BR. SWIFT CODE: BKCHCNBJ880

BENEFICIARYS BANK:
BANK OF CHINA INNER MONGOLIA BRANCH, ERLIANHOT SUB-BRANCH

BENEFICIARYS NAME:
ERLIAN YUN TSZU CO., LTD

BENEFICIARYS ACCOUNT
No.: 158900757508091001

                                 16. SIGNATURES

BUYERS:

Deputy Director General

/S/ Dzhan Len Bo


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