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| Term 1  Definition and      interpretation           | 3      |
|----------------------------------------------------------------|--------|
|                                                           |   |
| Term 2  Loan                                         | 7      |
|                                                           |   |
| Term 3  Basic Interest of      Loan                  | 12     |
|                                                           |   |
| Term 4  Floating interest of      loan               | 13     |
|                                                           |   |
| Term 5  Repayment of loan principal                  | 15     |
|                                                           |   |
| Term 6  Taxes                                        | 15     |
|                                                           |   |
| Term 7  Payment                                      | 16     |
|                                                           |   |
| Term 8  Representations and warranties               | 16     |
|                                                           |   |
| Term 9  Commitment and other engagement      items   | 18     |
|                                                           |   |
| Term 10  Event      of default                            | 21     |
|                                                           |   |
| Term 11  Treatment of      default                   | 22     |
|                                                           |   |
| Term 12  Safeguard measures of    repayment          | 23     |
|                                                           |   |
| Term 13 Supplement, change and assignment of the      Contract | 24     |
|                                                           |   |
| Term 14  Notification                                | 25     |
|                                                           |   |
| Term 15  Other items                                 | 25     |

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| 1. | The      Lender is a legally existing trust company approved by –China Banking      Regulatory Commission, and the Borrower is a legally existing business      entity established in pursuant with the laws of the  P.R.C. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The      Borrower applied to the Lender for trust loan made in RMB (defined in term      1.1) to meet the capital requirements of the construction and operation of      II and III stage project of power generating by waste heat (defined in the      term 1.1). The Lender agreed to provide the Borrower with the trust loan      in pursuant with the provisionshereunder. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | When      signing this Contract, the Borrower has understood and confirmed that the      loan capital hereunder comes from the trust capital of low-carbon      wealth·No.1 renewable energy collective fund trust plan managed by the      Lender. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Through      friendly negotiation, based on the principle of equality, the parties      concluded an agreement on the relevant matters of trust loan for the      construction and operation of II and III stage project of power generating      by waste heat. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.1  | Definition |
|-----------|------------|

| The Lender:  | Beijing      International Trust Co.,Ltd. and its legal  successors. |
|------------------------|----------------------------------------------------------------------|

| This      contract: | it      refers to the Capital Trust Loan Contract executed by and between Beijing      International Trust Co., Ltd acting as the Lender and Inner Mongolia Erdos      TCH Energy Conservation Development Co., Ltd acting as the      Borrower. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| RMB(¥): | The      legal currency in China, its arithmetical unit is  Yuan. |
|----------------|-------------------------------------------------------------------|

| Capital      trust: | It      refers to the legally established trust in which the trustor, in complete      trust of Beijing International Trust Co., Ltd, entrusts its legal capital      under its full powers of free disposal to Beijing International Trust Co.,      Ltd, who will in its own name take management, application and disposal of      the capital in pursuant with the trustor’swill. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Trust      plan : | it      refers to the low-carbon wealth·No.1      renewable energy collective fund trust plan, the capital collected from      this trust plan shall be all used to provide the Borrower with the loan      hereunder. Unless otherwise specified, or the      “turst plan” and the capital trust plan shall have the same      meaning. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Trust      loan: | it      refers to the loan provided from the trust capital by Beijing      International Trust Co., Ltd as the trustee in pursuant with the trust      provisions under the Low-carbon Wealth·No.1      Renewable Energy Collective Fund Trust Contract (referred to as “Trust      Contract”) and the agreements hereunder, unless      otherwise indicated, the “loan” under this contract and the trust loan      shall have the same meaning. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Loan      term: | It      means the term of the trust loan specified by the parties under this      contract |
|-----------------|--------------------------------------------------------------------------------------------|

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| Raising      period:  | it      refers to a six-months period from the date of establishment of the trust      plan. |
|----------------------------|----------------------------------------------------------------------------------------------|

| Subscription period:  | it      refers to the period when trust institutions are opened for being      subscribed by investors during the raising  period. |
|---------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

| CDM project:  | CDM      refers to Clean Development Mechanism, which was established by the Kyoto      protocol and is used to solve problems of climate change by market      approach. The CDM project stated herein is developed from the project of      generating power by waste heat of Inner Mongolia Tiankehua Energy      Conservation Development Co., Ltd in pursuant with the CDM and used for      verifying the profitability of Carbon Emission Reduction or Voluntary      Emission Reduction (CER/VER). |
|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Advanced repayment: | It      refers to that the Borrower voluntarily makes a repayment of part or full      of the loan principal in advance of the repayment  date. |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| Loan note: | It      refers to the loan borrowing voucher filled by the Borrower to be commonly      used in pursuant with the regulations by the Lender in RMB loan      services. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Interest      penalty: | It      refers to the interest penalty, published by People’s Bank of China, which      is applicable for the penalty interest rate of the loans of the financial      institutions. |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Business      day: | It      refers to the normal business day of the Lender except for the legal      festivals and holidays. |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| Financing documents: | it      refers to the legal documents in connection with the loan matters      hereunder, such documents include but not limited to this Contract,      Equipment Mortgage Contract, Receivable Pledge Contract, Account Custody      Contract and Contract of Guaranty,etc. |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Corporate      surety: | it      refers to one of the Borrower’s shareholders, e.g. Xi’an TCH Energy      Science&Technology Co., Ltd. |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------|

| Force      majeure:  | It      refers to all events that occur after the date of execution of this      Contract      and can not be foreseen in the said date, of which the occurrence and      consequence cannot be avoided or conquered, and which will prevent any of      the parties from all or part of act or omission, such events include but      not limited to, fire, flood , earthquakes, typhoons, tsunamis, wars,      terrorist acts or other acts of violence, strikes, pestilence and      quarantine restrictions. |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2  | Interpretation |
|-----------|----------------|

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| 2.1 | Loan      amount |
|-----|------------------|

| 2.2 | Loan      application |
|-----|-----------------------|

|  | 2.2.1 | The      trust loan hereunder shall uniquely used by the Borrower for its      development, construction and operation of II and III stage project of      power generating by waste heat. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.2.2 | The      specific application of each loan capital shall be handled in pursuant      with the Detailed Application List of Trust Loan Capital(see appendix 3      hereto) confirmed by the Borrower affixing its seal on  it. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | Unless      the Lender has been satisfied by all of the documents listed in this      clause in the respect of form and content, or the preconditions in this      clause have been completely met, or the Lender gives a written approval of      postponement or waiver of such preconditions that have not been met, the      Lender shall have no obligations to provide the Borrower with any loan      hereunder: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3.1 | The      copies of the following documents affixing the Borrower’s corporate stamp      to affirm the authenticity, integrality, validity and freshness of such      documents: |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (1) | The      Borrower’s Business License for Enterprise Legal Person, issued by the      industrial and commercial administrative department, which shall have      passed the latest annualcheck; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2)  | The      Borrower’s Organizaiton CodeCertificate |
|--|-----------|--------------------------------------------------------|

|  | (3) | The      Borrower’s Tax Registration Certificate (including National Tax      Registration Certificate and Local Tax Registration      Certificate) |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 2.3.2 | The      original copies of resolution of board of shareholders and resolution of      board of directors given by the Borrower in pursuant with the articles of      incorporation, the content of such resolutions shall    include: |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | The      agreement that the Borrower apply to the Lender for the loan      hereunder; |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (2) | The      agreement that in pursuant with the requirements of the Lender the      correlative equipments and assets of the Borrower shall be pledged to the      Lender as the security for the Borrower’s repayment      of its debts. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The      agreement that all of the receivables of I, II and III stage project of      power generating by waste heat(the rights, interest and recourse related      to the receivable included) shall be pledged to the Lender as the security      for the Borrower’s repayment      of its debts; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The      agreement that all of the income of I, II and III stage project of power      generating by waste heat shall be remitted into the custody account      established by the Borrower in the bank designated by the Lender, and the      said income shall be controlled, managed and used in pursuant with the      agreement in the Account Custody Contract and the Lender’s      requirements; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The      agreement that the Borrower shall sign and implement the financing      documents. |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (6) | The      appointment of certain person to act as the duly authorized proxy of the      Borrower and sign the financing documents, and sign and issue and receive      any notifications or documents in connection with this      Contract; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | The      specimen signature of the duly authorized proxy shall have become the      appendix to the resolution of the board of  directors. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 2.3.3 | The      copies of the capital verification report about the Borrower’s full      subscription of registered capital issued by the Chinese Certified Public      Accountant who has been proved to begenuine. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3.4 | The      copy of the Corporate Surety’s Business License affixing its corporate      stamp for proving the authenticity, integrality and freshness of the      license. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3.5 | The      original copy of the resolution of the shareholders/the resolution of the      board of directors about the agreement that the Corporate Surety shall      provide unconditional and irrevocable joint liability guarantee for the      Borrower’s full repayment of its debts to the  Lender; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3.6 | The      original copies of the name lists of shareholders and board members of the      Corporate Surety affixing its corporate stamp, the copies of the ID      card/passport of all shareholders/board members of the Corporate Surety      affixing its corporate stamp, and the specimen signature of all      shareholders/board members of the Corporate Surety as  well; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3.7 | The      copy of the ID card of the surety Mr. Ku Guohua, and the ID card shall be      proved to be genuine; |
|--------|-------|---------------------------------------------------------------------------------------------------------------|

|   | 2.3.8 | All      of the financing documents and the guarantee documents in connection with      the loan hereunder (including but not limited to Equipment Mortgage      Contract, Contract of Guaranty, Receivable Pledge Contract, Account      Custody Contract and etc.) legally and effectively signed by the clients      of the parties; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3.9 | All      of the legal and valid approval, registration, record and authorization in      connection with the loan hereunder (the approval from the government      departments and the approval from the Borrower’s company both      included); |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2.3.10 | Valid      credit card and its password offered by the People’s Bank of China for the      Borrower;Valid credit card and its password offered by the People’s Bank      of China for the Borrower; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2.3.11 | The      Commitment Letter issued by Inner Mongolia Erdos Metallurgy Co., Ltd on      the lowest amount of power purchase; Inner Mongolia Erdos Metallurgy Co.,      Ltd Large-scale Cluster Electric Stove Low-temperature Flue Gas Waste Heat      Comprehensive Utilization Project (energy efficiency EPP project)      Cooperation Contract signed by and between Inner Mongolia Erdos Metallurgy      Co., Ltd and the Corporate Surety, which shall be issued by Inner Mongolia      Erdos Cashmere Product Co., Ltd, and the Letter of Guarantee under the      aforementioned Commitment Letter on the lowest amount of power purchase,      which can voluntarily provide joint responsibility to guarantee, shall be      issued by Inner Mongolia Erdos Cashmere Product Co., Ltd and have been      disclosed; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 2.3.12 | Upon      the completion of all mortgage registration formalities for the mortgage      under the Equipment Mortgage Contract in the administrative department,      the certificate of other rights shall be held and managed by the Lender,      and the Lender shall legally enjoy No.1 right to mortgage on the      mortgages, and the relevant rights and  interests. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2.3.13 | The      formalities of receivable pledge registration under the Receivable Pledge      Contract shall have been finished in the Credit Information Center of the      People’s Bank of China, the Lender shall enjoy No.1 right to pledge on the      pledge object, and the relevant rights or  interests. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2.3.14 | The      Borrower shall have established the custody account for loan offering in      the bank designated by the Lender. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------|

|  | 2.3.15 | Loan      Application (see appendix 1 hereto) legally filled and signed, and the      Lender given Repayment Plan, signed and issued by the Borrower in pursuant      with the form and content in the appendix 2 hereto, which shall be on the      Borrower’s plan of repayment of the loan principal and its interest      hereunder to the Lender. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2.3.16 | The      Borrower shall, on the date of loan offering, provide the Lender with such      documents legally filled and signed by the Borrower listed as following:      Detailed Application List of Trust Loan Capital (see appendix 3 hereto),      Irrevocable Drawing Notice (see appendix 4 hereto), Loan Offering      Confirmation (see appendix 5 hereto), and the Loan Note (see appendix 6      hereto). |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2.3.17 | Capital      Verification Report for proving the full payment of the project      capital. |
|--|--------|--------------------------------------------------------------------------------------------|

|  | 2.3.18 | Other      documents, suggestions and guarantee required by the  Lender |
|--|--------|-------------------------------------------------------------------------|

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| 2.4 | Loan      offering |
|-----|--------------------|

| 2.5 | Loan      application |
|-----|-----------------------|

| 2.6 | The      Borrower shall submit the Repayment Application to the Lender prior to any      of its application of the capital in the custody account, however, the      following conditions shall be metfirstly: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.5.1 | The      said application shall be in pursuant with the provisions of the Detailed      Application List of Trust Loan Capital (see the appendix 3 hereto)      affirmed by the Borrower affixing its corporate stamp on    it. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.5.2 | The      Repayment Application, appropriately filled and signed by the duly      authorized proxy of the Borrower, shall be delivered to the Lender in      advance of the repayment by at least three (3) business days, such      application shall specify the amount to be used, purpose, date and other      relevant matters; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.5.3 | The      certification documents such as the related contracts and agreements on      the Borrower’s application of loan capital shall be provided, and such      documents shall be in integrality, authenticity and    validity; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.5.4 | The      certification documents such as the related contracts and agreements on      the Borrower’s application of loan capital shall be provided, and such      documents shall be in integrality, authenticity and    validity; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.5.5 | Prior      to the proposed payment, no event of default (cross default included) or      potential event of default shall occur, nor shall occur such circumstance      in which the application of the loan capital will incur any event of      default, meanwhile,  the representations and warranties made by      the Borrower shall be in authenticity, accuracy and integrality, and shall      not mislead anything. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.5.6 | From      the Lender’s point of view, any event that will have material adverse      impact on the Borrower’s ability to implement the obligations hereunder      and in other financing documents shall not occur, nor shall occur the      Force Majeure that will have overall effect on the Borrower;      and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2.5.7 | Any      adverse change in the applicable laws for this Contract that will make the      loan hereunder illegal shall notoccur. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------|

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| 2.6 | Loan      term |
|-----|----------------|

|   | The      loan term hereunder shall be four (4) years, from the date of __ (month)      __ (day), 2009, when the first loan interest is calculated, to the      expiration date of __ (month) __ (day),2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1 | The      corresponding loan interest rate for the basic interest of the loan      hereunder shall be the annual interest rate, the interest rate of the      basic interest of the loan, in accordance with the corresponding trust      capital’s trust institutions, shall be divided  into: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1.1 | The      annual loan interest rate corresponding to the trust capital corresponding      to trust institutions of category B under the trust plan shall be 8.35      percent; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1.2 | The      annual loan interest rate corresponding to the trust capital corresponding      to the trust institutions of category A1 under the trust plan shall be      9.94 percent; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1.3 | The      annual loan interest rate corresponding to the trust capital corresponding      to the trust institutions of category A2 under the trust plan shall be 11      percent; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1.4 | The      annual loan interest rate corresponding to the trust capital corresponding      to the trust institutions of category A3 under the trust plan shall be      12.05 percent. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | The      loan interest rate corresponding to the basic interest of loan hereunder      shall be the fixed interest rate, the rate shall not be adjusted during      the term of this Contract. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Initial      day of calculation of the basicinterest |
|-----|------------------------------------------------------|

|   | 3.3.1 | The      initial day of calculation of the loan interest shall be the day of      establishment of the trust plan, e.g. [ ] (month) [ ] (day), 2009, the      relevant matters of the first loan such as its actual amount shall be      confirmed in pursuant with the Loan Offering Amount Confirmation (see      appendix 5 hereto for its form) submitted by the Borrower in the light of      the requirements of the Lender; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 3.3.2 | The      initial day of calculation of the other loan interest shall be the next      working day from the date of the expiration of each subscription within      the raising period, e.g. the interest of such loan shall be calculated      from the next working day from the date of expiration of corresponding      subscription period, the relevant matters of such loan as the date of the      initial day of calculation of the interest or the actual amount shall be      confirmed in pursuant with the Loan Offering Amount Confirmation (see      appendix 5 hereto for its form) submitted by the Borrower in the light of      the requirements of the Lender. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | The      basic interest of loan hereunder, based on 360 days as a year, shall be      calculated according to the loan balance, number of occupied days and the      loan interest rate in pursuant with the provisions in sub-clause 3.1      hereunder from the initial day of calculation of the interest in pursuant      with the provisions in the sub-clause 3.3  hereunder. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | The      basic interest of loan hereunder shall be pre-paid by ¥ _____ yuan      (Say:______ CNY) within 10 working days from the date of the loan      offering, the rest of the interest shall be paid in pursuant with the      interest payment date stated as below: the payment shall be made on the      day of one, two, three and four year(s) from the initial date of      calculation of the first loan interest, e.g., the interest payment day      shall be the day of one, two, three and four year(s) from the initial date      of calculation of the first loaninterest. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Within      the loan term specified herein, if the Borrower obtains profit sharing      from the CDM project, the Borrower shall pay the Lender 50 percent of the      profit sharing from the CDM project, and the payment shall be made within      five (5) working days from the date of the Borrower’s obtainment of each      profit sharing from the CDMproject. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 4.2 | If      the financial index reflected on the Borrower’s audited financial reports      for the the fiscal year prior to the expiration of the loan term meets      P×Y> 1.06, the      Borrower shall pay the Lender a sum of management stimulation profit,      which is the profit = (P×Y-1.06) × class sub-B      trust institution share × RMB 1.00      yuan, in which:a) |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b)  | Y      refers to the “multiple”: |
|--|----------|----------------------------------------------|

|   | i) | When      the Borrower’s average amount of registered capital in the aforementioned      fiscal year is no more than RMB150,000,000.00, Y shall be    “5”; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii) | When      the Borrower’s average amount of registered capital in the aforementioned      fiscal year is more than RMB150,000,000.00, but less than      RMB200,000,000.00, Y shall be “6”; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii) | When      the Borrower’s average amount of registered capital in the aforementioned      fiscal year is no less than RMB200,000,000.00, Y shall be    “8”; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | The      payment of the management stimulation profit shall be made on the day of      the Borrower’s full repayment of all loan principal to the Lender/the      expiration of the loan term (the one which come earlier shall be      adopted). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 5.1 | The      Borrower shall make the repayment of the loan principal to the Lender in      pursuant with the following requirements of time and    amount: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.1.1 | The      Borrower shall make the repayment of the loan principal corresponding to      the trust capital amount corresponding to the trust institutions of      category A1 under the trust on the day of the next year from the date of      the initial calculation of the first loan  interest; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.1.2 | The      Borrower shall make the repayment of the loan principal corresponding to      the trust capital amount corresponding to the trust institutions of      category A2 under the trust on the day of the third year from the date of      the initial calculation of the first loan  interest; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.1.3 | The      full repayment of the rest of the loan principal shall be made by the      Borrower to the Lender on the day of the fourth year from the date of the      initial calculation of the first loaninterest. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | The      loan term hereunder shall not beextended. |
|-----|----------------------------------------------------|

| 5.3 | Without      the Lender’s prior written approval, the Borrower shall not make the      repayment ahead of schedule; if the Lender agrees the Borrower’s repayment      in advance, the following conditions about the Borrower shall be      met: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1 | The      trust plan shall have been existing for 2 years from the date of the      establishment of the plan; |
|--------|-------|---------------------------------------------------------------------------------------------------------------|

|   | 5.3.2 | The      advanced repayment shall be put forward in written form, the amount and      detailed date of the repayment shall be  illustrated; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.3 | For      any of the advanced repayment, except for the repayment of the loan      principal, the repayment of all of the loan interest on the engaged      repayment date shall have to be made by the Borrower in pursuant with the      sub-clause 5.1 herein. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1 | The      Lender and the Borrower shall respectively pay its taxes and other      relevant charges in pursuant with the laws of the  P.R.C. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | The      relevant charges arising from the negotiation, draft, subscription of this      Contract, including but not limited to assessment fee, audit charges,      attorney fee, registration fee, communication expenses and travel      expenses, shall be assumed by theBorrower. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7.1 | All      of the Borrower’s payment hereunder shall have to be made in due time and      in full, any neutralization, claim or restraints shall not be affixed to      the said payment, nor the deduction or withholding of the taxes in any      nature. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | The      Borrower shall preserve the repayment reserve in pursuant with the      Repayment Plan issued by the Borrower to the Lender.  The      Borrower’s reasonable requirements of adjustment to the Repayment Plan      shall be met upon the obtainment of the Lender’s approval, or the Lender      may have the rights to investigate for the Borrower’s responsibility of      breach of this Contract, and may require the surety to assume the joint      liability to guarantee and/or exercise the right to mortgage and      pledge. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | When      the Borrower makes a certain payment (including but not limited to the      charges, damages, interest penalty, basic and floating interest, principal      and advanced repayment) due to the Lender in pursuant with the provisions      hereunder, if the date of such payment is just the Lender’s non-business      day, the postponement to the nearest next business day of the Lender shall      be made on the abovementioned date, and the interest rate shall be      calculated for the days ofpostponement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | The      Borrower hereby makes the commitment that, if the amount of the loan      principal and/or basic interest given to the Lender from the Borrower is      less than the amount due to the Lender in such date of the said      principal/interest repayment, the Lender shall have the right to      appropriate the said repayment from the custody account in the order      stated as below: accrue fees, damages, penalty interest, basic interest      and principal. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1 | The      Borrower makes the following representations and warranties to the Lender      on the day of execution of thisContract: |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.1 | The      Borrower shall be a limited company, established in pursuant with the laws      of the P.R.C, legally existing in legal entity status, which has right to      enter into this Contract; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.2 | The      Borrower makes the warranty that the loan shall be applied in pursuant      with the provisions hereunder, and not applied for other purposes not      specified herein, and not applied to take any illegal activities or other      activities forbidden by policies, laws and  regulations. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 8.1.3 | The      Borrower shall not be involved in any liquidation, dissolution, merger,      separation or other similar legal procedures, and any other events or      circumstances from which such involvement in the said legal procedures may      arise shall not occur; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.4 | The      Borrower shall not be involved in any civil, criminal or administrative      litigation or arbitration procedure that will have adverse impact on the      Borrower’s ability to implement this Contract, and the event or      circumstance from which such  involvement in the said litigation      and arbitration procedure may arise shall not  occur. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.5 | Any      important asset of the Borrower shall not be involved in any measures of      compulsory execution, property preservation, distrainment, detention,      retention or supervision, and any events or circumstances from which the      said involvement in such measures may arise shall not    occur. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.6 | Any      event of default in the Borrower party shall not occur, nor the      circumstance in which such event maylast; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.7 | The      Borrower shall sign this Contract and exercise and implement the      obligations and rights hereunder, and shall not violate any documents of      agreement, mortgage, pledge, bond or other documents signed by the      Borrower or binding on the Borrower and its asset, and shall not violate      the approved documents and internal rules and regulations established by      the Borrower or laws, governmental orders and judicial      decisions. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.8 | The      Borrower makes the warranty that the loan project and matters shall comply      with laws and regulations, and the provisions and requirements of the      national policies on land, property, environmental protection and      investment, and have already been approved or  recorded. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | The      Borrower confirms that the aforementioned representations and warranties      shall keep consistently valid prior to the Borrower’s full payment of its      dues hereunder to the Lender, and the Borrower understands exactly the      aforementioned representations and warranties shall act as the basis for      the Lender’s approval of its loan request and subscription of this      Contract. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 9.1 | The      Borrower shall purchase property insurance for I, II and III stage project      of power generating by waste heat in pursuant with the requirements of the      Lender; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | The      Borrower shall legally run its business, comply with the national laws and      regulations, and apply the loan in pursuant with the applications      specified herein. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | The      Lender shall have the right to, at any time, in the reasonable manner the      Lender believes it to be, examine and supervise the application of the      loan, and try to know the plan execution, operation management, financial      activities, inventory materials and significant business contract of the      Borrower. The Borrower must cooperate actively with the Lender on the      Lender’s supervision on its application of the loan and its business      situation, and provide relevant material in pursuant with the requirements      of the Lender. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.4 | The      Borrower shall provide the documents about the construction and operation      of the project of power generating by waste heat in pursuant with the      requirements of the Lender, such documents shall include but not limited      to: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.4.1 | Overall      planning progress report of the construction of the project of power      generating by waste heat; |
|--------|-------|------------------------------------------------------------------------------------------------------------------|

|   | 9.4.2 | Archival      records of public bidding of the project of power generating by waste      heat; |
|--------|-------|------------------------------------------------------------------------------------------------|

|   | 9.4.3 | Monthly      image progress examined by the management company of the project of power      generating by waste heat; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------|

|   | 9.4.4 | Monthly      report on the construction of the project of power generating by waste      heat; |
|--------|-------|------------------------------------------------------------------------------------------------|

|   | 9.4.5 | Summary      report on the monthly operation of the waste heat power      station; |
|--------|-------|------------------------------------------------------------------------------------|

|   | 9.4.6 | Monthly      brief report on work of the waste heat power  station; |
|--------|-------|---------------------------------------------------------------------|

|   | 9.4.7 | Report      on the monthly generated power amount of the waste heat power station and      the payment condition of Inner Mongolia Ordos Metallurgy Co.,      Ltd; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.4.8 | Documents      on the funds available and construction progress of the follow-up project      of power generating by waste heat. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------|

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| 9.5    | The      Borrower, in pursuant with the requirements of the Lender, shall provide      the related financial and accounting information and the documents about      the business condition of the company prior to the 5th day of each      calendar month, such information and documents include but not limited to      the balance sheet, income statement, cash flow statement, loan capital      payment chart and other notes to statements (including but not limited to      the note on account receivable, other account receivable, stock, fixed      assets, short and long term loan,  accounts payable, etc.)of the      company in the previous month. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

| 9.6    | The      Borrower, in pursuant with the requirements of the Lender, shall mortgage      the its equipments of the construction of I, II and III stage project of      power generating by waste heat to the Lender, and register the said      mortgage within three working days from the date of the Lender’s      acquisition of ownership of the said equipment. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                       |

| 9.7    | The      Borrower shall have the obligations to promptly inform the Lender the      changes that will or may happen on the project, business, properties and      scope. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                     |

| 9.8    | The      Borrower makes the warranty that, prior to taking loan credit preservation      measures approved by the Lender in written form, it shall not take the      following actions as dissolution, liquidation, substantial increase of      financing debt and establishment of subsidiary company as well as any      other actions that will have adverse impact on the rights and interests of      the creditor. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                      |

| 9.9    | The      Borrower makes the warranty that it shall not make the full repayment of      the other loan in priority by not violating the normal repayment order,      and not sign any contract, agreement or other legal documents at present      or in the future that will make the loan hereunder be in the secondary      status. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                  |

| 9.10   | The      Borrower makes the warranty that, without the written approval from the      Lender, it shall not provide the third party with the security that will      be enough to have adverse impact on its financial situation and its      ability to implement its obligations hereunder. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                         |

| 9.11   | The      Borrower makes the warranty that, once the occurrence or potential      occurrence of the event that will have adverse impact on      the  repayment safeguard measures specified in the term 12      hereof, it shall promptly provide the alternative security approved by the      Lender. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                             |

| 9.12 | The      Borrower makes the warranty that, once the occurrence of the following      situation, it shall inform the Lender the situation within seven days and      implement the full repayment and security of the debts hereunder in      pursuant with the requirements of theLender: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 9.12.1 | All      litigation, arbitration and administrative disposal that will have adverse      impact on the interests of theBorrower; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------|

|  | 9.12.2 | Any      event of default or potential event of default, furthermore, once the      occurrence of the event of default, the Borrower shall show the properties      and duration of the said event, as well as the action or measures that the      Borrower has taken or will take; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.12.3 | The      Borrower, once its acquaintance of the involvement of it or its important      asset in any litigation procedure, arbitration procedure, compulsory      execution, distrainment, detention or similar measures, or the event or      circumstance from which the said involvement may arise, shall inform the      Lender in pursuant with the provisions in present clause, and make      detailed list of the impacts that have been on it or will be potentially      on it, as well as the remedies which it has taken or it plans to      take; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.12.4 | The      Borrower’s economic disputes with the third party incurred by the economic      activities, or the events that will have adverse impact on the normal      operational activities of theBorrower; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.12.5 | Failure      on the part of the Borrower to confirm the capital shortage incurred by      project overruns or other reasons; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

|  | 9.12.6 | Any      severe event that will be probable to seriously affect the business,      capital and property status of theBorrower; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------|

|  | 9.12.7 | Any      event, having adverse impact on the normal repayment of the Borrower,      which will potentially happen or havehappened; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.12.8 | The      requirements of the Borrower to change legal representative, duly      authorized proxy, postal address or institution name, or to amend its      charter or Legal Person Public Institution Certificate for meeting the      significant changes in the respect of finance and  staffing. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.1   | Any      of the following events shall constitute the Borrower’s breach of this      Contract: |
|--------|------------------------------------------------------------------------------------------------------|
|   |                                                                                                 |

|        | 10.1.1 | The      Borrower fails to make the payment due and payable stipulated herein on      the maturity date in pursuant with the currency and method      hereunder; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                             |

|        | 10.1.2 | Any      of the representations and warranties hereunder made by the Borrower is      incorrect, untrue, misleading, disobeyed, or the representations and      warranties are proved to be incorrect, untrue, misleading, disobeyed when      they are being made or considered to be made, or the representations and      warranties have become incorrect and misleading  currently; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |

|        | 10.1.3 | The      repayment of the Borrower’s debts under any other financing agreement has      not been made on the maturity date, or such debts is declared as being      acceleration of maturity prior to its fixed maturity; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                            |

|        | 10.1.4 | The      Borrower is involved in any liquidation, bankrupt, dissolution, shutout or      the similar legal procedures; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                   |

|        | 10.1.5 | Any      of the Borrower’s important asset is involved in any compulsory execution,      distrainment, detention, property preservation, supervision measures or      similar measures; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                          |

|        | 10.1.6 | The      Borrower fails to substantially comply with or implement any of its      commitments hereunder; |
|--------|--------|----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                     |

|        | 10.1.7 | The      significant changes,  incurred by the changes of the laws or any      of the administrative orders from the governmental departments, occurs in      the business condition or important assets of the Borrower, or the events      or circumstance from which the said significant changes may arise also      occurs, the said changes, events or circumstance have been reasonably      considered by the Lender as having had or probably having material adverse      impact on the Borrower’s ability in repaymenthereunder; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

|        | 10.1.8 | The      Borrower fails to preserve the repayment reserve in pursuant with the      Repayment Plan given to the Lender, or the said repayment reserve is      adjusted without the Lender’s approval; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                        |

|  | 10.1.9 | The      Borrower violates the term 8 as “Representations and warranties” or the      term 9 as “Commitment and other engagement  items”. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.2 | The      failure of the Lender to provide the Borrower with the loan in pursuant      with this Contract shall constitute a breach of this Contract, except for      the Borrower’s breachabovementioned. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.1 | Upon      the occurrence of one or some of the default listed in the sub-clause 10.1      herein, the Lender may unilaterally and unconditionally adopt one or some      of the measures listed below to handle the said default, under this      condition, the Borrower shall agree to unconditionally cancel the right to      defense, and compensate for the Lender’s all losses incurred by its      default: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.1.1 | The      Lender shall stop providing undrawn loan, declare the loan principal      hereunder be on maturity immediately, recover all or part of the provided      loan ahead of the schedule, ask the Borrower’s full payment of the owed      interest and the dues, and make the immediate recourse to the Borrower in      various ways; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.1.2 | Within      the Contract term, if the Borrower’s unauthorized diversion of any of the      loan hereunder without the written approval from the Lender occurs, the      interest penalty, according to the diversion amount, number of days of      actual diversion and the penalty interest rate of 0.05 percent per day,      shall be calculated from the day of unauthorized diversion till the full      repayment of the principal and interest. The Lender’s charge of the      penalty interest shall not affect its other rights    hereunder; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.1.3 | Within      the loan term herein, if the Borrower fails to make the payment of the      basic and floating interest in pursuant with payment term herein, the said      interest shall be charged with the penalty interest, the penalty interest      shall be calculated from the date of the day overdue by the penalty      interest rate of 0.05 percent perday; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.1.4 | For      the overdue loan or the loan the Lender declares to be on maturity      immediately, the penalty interest, according to the penalty interest rate      of 0.05 percent per day, shall be calculated from the date of the day      overdue or the day declared to be on maturity till the full repayment of      the principal and interest; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.1.5 | The      Lender shall cancel the Borrower’s undrawnloan; |
|--|--------|----------------------------------------------------------------|

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|  | 11.1.6 | The      Lender shall require the Borrower to provide the alternative security with      the written approval from theLender; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------|

|  | 11.1.7 | Other      necessary measures stipulated by thelaws. |
|--|--------|------------------------------------------------------|

| 11.2  | If      the Borrower’s application of all or part of the loan is not made, the      payment of the interest shall still be made in full by the Borrower in      pursuant with the provisionsherein. |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1 | For      the loan principal, basic interest, floating interest and other payment      dues, the Borrower provides the Lender with the following payment      safeguard measures: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.1 | The      Borrower, in pursuant with the requirements of the Lender, shall mortgage      its possessing relevant assets of the construction of I, II and III stage      project of power generating by waste heat to the  Lender; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.2 | Xi’an      Tiankehua Energy Science&Technology Co., Ltd shall provide the Lender      with the unconditional and irrevocable joint liability guarantee on all of      the Borrower’s obligationshereunder; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.3 | Mr.      Ku Guohua shall provide the Lender with the unconditional and irrevocable      joint liability guarantee on all of the Borrower’s obligations      hereunder; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.4 | The      Borrower shall pledge all of the receivables of I, II and III stage      project of power generating by waste heat (the relevant rights, interests      or right of recourse of the receivables included) to the Lender, the said      receivables shall act as the security for the Borrower’s implementation of      all of its obligations hereunder; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.5 | The      Borrower shall remit all of its income from the project of power      generating by waste heat into the repayment reserve account, and preserve      the repayment reserve in time and in full in pursuant with the engagement      in the Repayment Plan; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.6 | The      Borrower shall arrange Inner Mongolia Erdos Metallurgy Co., Ltd to provide      the Borrower with the commitment on the lowest amount of power      purchase; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|        | 12.1.7 | The      Borrower shall arrange Inner Mongolia Erdos Cashmere Product Co., Ltd to      provide the joint liability guarantee for Inner Mongolia Ordos Metallurgy      Co., Ltd to implement the Inner Mongolia Erdos Metallurgy Co., Ltd      Large-scale Cluster Electric Stove Low-temperature Flue Gas Waste Heat      Comprehensive Utilization Project (energy efficiency EPP project)      Cooperation Contract and the obligations in the commitment on the lowest      amount of power purchase; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

| 12.2   | The      Borrower agrees that it shall from time to time provide other safeguard      measures satisfying the Lender in pursuant with the requirements of the      Lender. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                       |

|   |                                                                                                                                                                                                                                                                                                  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.1   | For      the outstanding issues of this Contract, the parties may conclude      supplemental agreement through negotiation. The supplemental agreement,      acting as the appendix to this Contract, shall constitute a part of this      Contract and have the same legal effect as this  Contract. |
|   |                                                                                                                                                                                                                                                                                                  |

| 13.2  | If      this Contract violates the national laws and regulations, in the premise      that the safety and efficiency of the loan from the Lender can be      guaranteed, the parties shall promptly conclude supplemental agreement to      improve this Contract. However, whether the supplemental agreement is      signed or not, the Lender shall reserve the right to accelerate the      maturity of the loan and make recourse to the Borrower      immediately; |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

| 13.3   | Upon      the execution of this Contract, the change of the terms of this Contract      shall have to be made on the basis of negotiated consensus among the      parties hereof and the related third party, and the formalities of      approval, registration and record of this Contract and its relevant      documents shall be handled in pursuant with the provisions in the      laws; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                            |

| 13.4   | The      Borrower shall not assign any of its rights or obligations      hereunder; |
|--------|-------------------------------------------------------------------------------------|
|   |                                                                                |

| 13.5   | Within      the Contract term, the Lender, informing the Borrower in written form      ahead of the assignment stated below by ten business days, may make the      assignment of the Lender’s rights and obligations hereunder to the other      party, the Borrower’s prior approval for the assignment is not      required; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                        |

| 13.6 | For      carrying out the aforementioned assignment, the Assignor and the Assignee      shall separately sign the written assignment document, the Assignee and      the Borrower shall separately sign the Loan Contract and all other      relevant documents required by the repayment safeguard measures, and      handle the formalities of approval, registration and record required by      the Loan Contract and other documents. The Borrower shall have the      obligations to unconditionaly cooperate with the Assignor and the Assignee      and complete all of the relevantformalities. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |                                                                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.1   | The      addresses of the parties hereof are at the top of this Contract. If the      address of any party changes, the party shall inform the other party in      written form ahead of the said change by fifteen days. |
|   |                                                                                                                                                                                                                      |

| 14.2 | The      notices of the parties hereof shall be sent by registered letter, fax or      EMS. The notices shall be deemed as being delivered on the following      date: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.2.1 | When      sent by the registered letter, the date shown on the return receipt of the      registered letter; |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | 14.2.2 | When      sent by fax, the first working day from the date of receiving the reply      code or successfully sending the confirmation  slip; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.2.3 | When      sent by EMS, the same day as the notified party signs after      receiving. |
|--|--------|---------------------------------------------------------------------------------------|

| 15.1   | This      Contract shall take effect upon affixing their seals by the parties hereof      and the subscription of the legal representatives or duly authorized proxy      of the parties hereof, the loan principal, basic interest, floating      interest, interest penalty and other payment dues shall automatically      terminate upon the full repayment of them; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                     |

| 15.2   | The      establishment, effectiveness, implementation, amendment and termination of      this Contract shall be governed by the current effective laws,      administrative laws and regulations, judicial interpretation and relevant      regulations of the P.R.C. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                  |

| 15.3   | The      disputes arising from the implementation of this Contract shall be settled      through negotiation between the parties. If the negotiation fails, any      party shall have the right to bring the dispute to the competent people’s      court in the Lender’s location. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                            |

| 15.4 | The      documents on repayment safeguard measures, loan application and      irrevocable loan application notice required or stipulated by this      Contract, and other relevant documents and information provided by the      Lender and the Borrower, shall be the integral part of this      Contract. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 15.5   | The      original copy of this Contract shall be in sextuplicate, each party shall      hold two copies, the rest shall be used for handling relevant      formalities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                    |

| 15.6 | This      Contract is executed in Chaoyang District, Beijing City on [ ](month) [      ](day), 2009. |
|------|------------------------------------------------------------------------------------------------------|

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| Source of the trustloan                                |   | Capital size/loanamount (10 thousand CNY) |   | Loaninterest  rate |   | Repayment date               |
|-----------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|-------------------------|--------|-----------------------------------|
| Trust      capital corresponding to trust institutions of Category A1 |   | [        ]            |   | 10.05%                  |   | December      [  ],2011 |
| Trust      capital corresponding to trust institutions of Category A2 |   | [        ]            |   | 11.11%                  |   | December      [  ],2012 |
| Trust      capital corresponding to trust institutions of Category A3 |   | [        ]            |   | 12.17%                  |   | December[  ],2013       |
| Trust      capital corresponding to trust institutions of Category B  |   | [        ]            |   | 8.47%                   |   | December[  ],2013       |

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|    | 3 .  | Not      a single breach specified in the Loan Contract has occurred or is      currently ongoing, neither the capital withdrawal will incur any of such      breaches. |
|--------------|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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