Document:

Exhibit 10.7

Exhibit 10.7

Contract No. 040041  

Sales Contract for Coal

Purchaser:  Inner Mongolia Zhunger Heat Power Co., Ltd.

Bargainers:  Zhunger County Hadaigaole Village Hongtaizi Nuanshuigou Coalmine  

Purchaser signs the following contract with bargainers about powder coal for heat supply based on long term cooperation and mutual benefit.                     

          

1.

Type and specification of coal”   

Powder coal for heat supply, the specification is #0-40.

2.

Quantity and supplying time: 

Total amount of powder coal is 30,000 tons, the supplying time is from Oct 10, 2004 to April 30, 2005, and 200 ton coal is supplied each day.

3.

Quality standard 

The lowest heat-generating rate is over 5,300 kilocalorie, sulphur containing in dry material is lower than 0.6%, dust content is lower than 14%, and water content is lower than 9.3%.

4.

Delivery place and shipping methods:

a.

Delivery place: heat supply station in Xuejiawan town.

b.

Shipping methods: each side arrange 2 trucks and ship 50% of total amount respectively.

5.

Coal price and shipping price: coal price (containing tax) is RMB80. With the change in coal price, both sides can negotiate advance. Shipping fee (containing tax) is RMB25 per ton.

6.

Inspection methods: 

a.

Truck from purchaser: based on coalmine ponderation bill, signed by driver, can be acted as method of payment.

b.

Truck from bargainers: quantity is confirmed to be accumulated average drawn by sample ponderation (not less than three time per month). The full time staffs from purchaser are responsible of inspection, if eligible, submit receipt and act as method of payment.

7.

The time for payment and fee, paying methods: 

In general, payment is being carried out once per month, bargainers should submit receipt, ponderation bill, invoice of value added tax and shipping invoice.

Methods of payment: purchaser pay coal and fee advance, bargainers pay for truck.

8.

Other items

a.

Purchaser should pay coal value and fee advance, or bargainers can stop supplying coal.

b.

Bargainers should guarantee coal quantity and quality. If purchaser find poor quality in coal, can refuse to receive coal, meanwhile stop purchasing coal from bargainers.

c.

If contract can not be fulfilled due to force majeure, should inform the other side in time.

d.

Other thing not mentioned here, can be negotiated to solve.

9.

There is duplicate in this contract, each side holds one and obeyed by two sides.

Purchaser (stamp): Inner Mongolia Zhunger Heat Power Co., Ltd.

Artificial Person: Guo Zhiyong

Bargainers (stamp): Zhunger County Hadaigaole Village Hongtaizi Nuanshuigou Coalmine

Artificial Person: Bao Shuangfa

Date of signing: Oct 8, 2004Exhibit 10.8

Exhibit 10.8

Attachment: GF-1999-0201                           No. 040014

Building &Construction Contract

copy

Constituted by

Construction Ministry of People’s Republic of China

National Industry & Commerce Administrative Bureau (Dec. 1999)

Part 1    Agreement

Consigner: Inner Mongolia Zhunger Heat Power Co., Ltd

Contractor: No.2 Metallurgy Building & Installing Co., Ltd.  

Both sides sign this contract about this construction based on equality, free will, equity and honest, according to national contract law, national building law, and other relevant law and rules , it is as follows:

1.

general situation about construction

Name of construction:      2x12MW thermoelectric plant in Inner Mongolia Zhunger Heat Power Co.,Ltd.

Address of construction:   Xuejiawan She, Changshengdian village, Xuejiawan Town, Zhunger County.

Content of construction:  basic construction for chimney and cooling tower in thermoelectric plant

Permission number for project: 

The source of capital:       self-finance from consigner.

2.

contract range: 

basic construction for one  chimney of 100m and one cooling tower of 1000m ( not include pipeline)

3.

working period in contract

beginning date: May 18, 2004

ending date:   Nov 10, 2004

total dates in calendar: absolute dates 176 days.

4.

quality standard: fine.

5.

total value for contract:

lump work for construction and material , total value is RMB5,300,000, no change. built according to design( shower filling in cooling tower uses PVC material, water remover made of glass steel, bracket made of cast iron).

6.

document in contract

include: 

a.

this contract.

b.

bid acquired advice note.

c.

bidding note and attachment.

d.

special item in this contract.

e.

general item in this contract.

f.

standard、criterion and relevant technological document.

g.

draw.

h.

budget report.

writing paper and document about negotiation and change in contract is regarded as part of this contract.

7.

the meaning of relevant phrase in this article is the same meaning with definition in general article , part 2 of this contract.

8.

contractor take promises to construct, finish project , also bear the responsibility of maintenance with maintaining period.

9.

consigner promise to pay total value and other payable account in contract according to duration and paying methods in contract.

10.

effectiveness

date of signing :

place of signing

negotiated by two sides: this contract will be effective when signed by two sides.

Consigner :(stamp)  Inner Mongolia Zhunger Heat Power Co., Ltd

          Address: Xuejiawan Town, Zhunger County

          Artificial Person: Ding Wenxiang

          Representative:

          Tel: 0477-4223863

          Fax: 0477-4225116

          Bank applied:

          Band Account:

          Postal Code: 010300

Contractor: (stamp) No.2 Metallurgy Building & Installing Co., Ltd.

          Address: No.106, Gangtie Avenue, Baotou City, Inner Mongolia

          Artificial Person: Yan Weihua

          Representative:  Shi Zhuchun

          Tel: 0472-2187213

          Fax: 0472-2187238

          Bank applied:

          Band Account:

          Postal Code: 014010Exhibit 10.9

Exhibit 10.9

Attachment: GF-1999-0201                           No. 040015

Building &Construction Contract

copy

Constituted by

Construction Ministry of People’s Republic of China

National Industry & Commerce Administrative Bureau

Dec, 1999

Part 1    Agreement

Consigner: Inner Mongolia Zhunger Heat Power Co.,Ltd

Contractor: No.2 Metallurgy Building & Installing Co., Ltd.  

Both sides sign this contract about this construction based on equality、free will、equity and honest , according to national contract law、national building law, and other relevant law and rules , it is as follows:

1.

general situation about construction

name of construction:    2x12MW thermoelectric plant in Inner Mongolia Zhunger Heat Power Co.,Ltd.

address of construction: Xuejiawan She, Changshengdian village, Xuejiawan Town, Zhunger County.

content of construction:    basic construction 

permission number for project: 

the source of capital :      self-finance from consigner.

2.

contract range: 

basic construction for main workshop, coal shipping system, voltage increase station, air in-draught room, chemical water processing system etc.

3.

working period in contract

beginning date: May 18, 2004

ending date:   Nov 10, 2004

total dates in calendar: absolute dates 176 days.

4.

quality standard: fine.

5.

total value for contract:

about RMB13,000,000.

when pay for contract, should perform Inner Mongolia building & construction budget ration (1997), charge standard and price adjustment should perform actual charge ration and relevant article (see No.86 IBC(2002), Inner Mongolia building & installing construction charge ration (Dec 2001), general rate is 5%( 0.15% measuration charge, 3.5%  labor & protect charge and 3.35% tax are borne by consigner , not included in 5% general rate).

material difference is adjusted according to price.

6.

document in contract

include: 

a.

this contract.

b.

bid acquired advice note.

c.

bidding note and attachment.

d.

special item in this contract.

e.

general item in this contract.

f.

standard、criterion and relevant technological document.

g.

draw.

h.

budget report.

writing paper and document about negotiation and change in contract is regarded as part of this contract.

7.

the meaning of relevant phrase in this article is the same meaning with definition in general article , part 2 of this contract.

8.

contractor take promises to construct, finish project , also bear the responsibility of maintenance with maintaining period.

9.

consigner promise to pay total value and other payable account in contract according to duration and paying methods in contract.

10.

effectiveness

date of signing :

place of signing

negotiated by two sides: this contract will be effective when signed by two sides.

consigner :(stamp)  Inner Mongolia Zhunger Heat Power Co.,Ltd

          Address: Xuejiawan Town, Zhunger County

          Artificial Person: Ding Wenxiang

          Representative:

          Tel: 0477-4223863

          Fax: 0477-4225116

          Bank applied:

          Band Account:

          Postal Code: 010300

Contractor: (stamp) No.2 Metallurgy Building & Installing Co., Ltd.

          Address: No.106, Gangtie Avenue, Baotou City, Inner Mongolia

          Artificial Person: Yan Weihua

          Representative:  Wang Jianping

          Tel: 0472-2185269

          Fax: 0472-2186483

          Bank applied:

          Band Account:

          Postal Code: 014000

#Exhibit 10.10

Exhibit 10.10

No. 040043

Building &Construction Contract

Consigner: Inner Mongolia Zhunger Heat Power Co., Ltd

Contractor:(stamp) Zhunger Gongxing Construction Engineering Co., Ltd 

signing date: Sep 10, 2004

Consigner: Inner Mongolia Zhunger Heat Power Co., Ltd

Contractor: Zhunger Gongxing Construction Engineering Co., Ltd

Both sides sign this contract about this construction based on equality, free will, equity and honest, according to national contract law, national building law, and other relevant law and rules , it is as follows:

1.

general situation about construction

Name of construction:

office building in Inner Mongolia Zhunger Heat Power Co.,Ltd.

Address of construction:

Xuejiawan She, Changshengdian village, Xuejiawan Town, Zhunger County.

Content of construction:

contract to build basic construction, heating, water supply and drainage, electricity supply and illumination.

2.

Contract range: 

basic construction, heating, water supply and drainage, electricity supply and illumination. change required by consigner not included.

3.

Working period in contract

beginning date: Sep 10, 2004

ending date:   May 31, 2005

4.

Quality standard: meets the using needs.

if there occurs the following item, working period should be postponed.

a.

consigner can not supply drawing and working condition stipulated in contract.

b.

consigner can not pay for construction money stipulated in contract , leading to construction performed abnormally.

c.

change in design and increase in construction.

d.

water and electricity supply cutting off exceeds more than 8 hours.

e.

force majeure.

f.

other disturb leads to work to be stopped. 

5.

Total value for contract:

price is RMB646 per m2based on building area, building area is calculated actually.

1.

[Total land acreage used: 1744 m2, including 840 m2 for office building, 200 m2 for park, 304 m2 for car-barn and warehouse, 320 m2 for greenbelt, 80 m2 for road. The land usage charge is calculated additionally.

2.

Acreage of office building: three floors, frame structure, acreage is 2255.4 m2,constructing price is RMB664 per m2, total construction expense is RMB1,686,609.60

3.

Acreage of car-barn and warehouse: 304 m2, constructing price is RMB664 per m2, total construction charge is RMB 260,000.

4.

Subsidiary establishment and road paving expense budget is RMB 300,000.

5.

Total construction expense is RMB 2,246,609.6]

1.

Effectiveness

date of signing :Sep 10, 2004

place of signing

negotiated by two sides: this contract will be effective when signed by two sides.

2.

Responsibility in both sides

7.1 consigner’s responsibility: 

a.

 transact land requisition and land leveling off, ensure construction condition in land.

b.

water and electricity required by construction should be connected to construction field from outer, and ensure construction needs.

c.

connect path from construction field to public road, meets the needs of construction shipping.

d.

supply information of engineering geology and underground pipeline in construction field to contractor, which should be actual and accurate.

e.

construction license and other certificate.

f.

confirm level position and contro position in coordinates, hand to contractor in writing and check in construction field.

g.

organize contractor and design unit to examine drawing and to clarify design.

h.

submit 5 sets of full drawing to contactor before construction.

0.1

 contractor’s responsibility

a. supply construction schedule and relevant construction finish statement.

b. ensure construction field clear meeting relevant stipulation in environment.

c. supply illumination and fence equipment used in construction non-night, also supply safe guard.

d. obey management stipulation in traffic ,noise, environment protection and safety production regulated by relevant chief department in government. relevant document , and inform consigner in writing.

1.

construction quality and checking & accepting

contractor should construct according to national quality checking & accepting and drawing requirement, accept consigner’s checking and accepting, meet the needs of agreement by two sides. The checking and accepting by consigner should not influence on construction, if there is hidden condition or middle checking and accepting, contractor should experience self check, also inform consigner checking & accepting in writing 48 hours advance , and should prepare checking and accepting records, after checking out, consigner should sign in records, then contractor can hide and continue to construct; if consigner can not check and accept on time, contractor can perform self checking and accepting, and consigner should accept records.

2.

safety construction 

a.

contractor should obey relevant stipulation for safety production in construction, construct strictly according to safety standard, take necessary steps of safety protection, eliminate hidden trouble. if contractor takes improper steps leading to accidents, the responsibility and incurred hurt expenditure should be borne by contractor.

b.

consigner should take safety lessons to staff in construction field, also in charge of their safety. Consigner can not require contractor to construct against safety stipulation, if safety accident caused by consigner, consigner should bear relevant responsibility and incurred expense. If consigner finds contractor disobey rules, consigner has the right to stop construction.

3.

payment

a.

contractor carries out this construction at the price of RMB646 per m2(including 12% management charge). If consigner increase construction change or construction quantity, all the expense incurred should be borne by consigner. calculating method for expense: direct expense in contract plus 12% management expense.

b.

consigner must pay plan capital according to construction headway, contractor should report construction worked quantity according to construction headway, remark: consigner will not pay the first 25% of construction, after 25% is finished, 

4.

construction checking & approving and payment

a.

contractor should supply consigner full finishing information and checking & approving report according to relevant stipulation in finished construction checking and approving. consigner should proceed checking & approving within 3 days when receiving checking & approving report, if not check and approve on schedule, consigner should bear construction safekeeping and all accident responsibility.

b.

within 15 days when submitting checking & approving report, contractor should submit consigner finished construction settlement report and full settlement information, both sides perform settlement according to stipulation in contract. consigner should check information within 15 days when receiving ,within 10 days when information is checked, consigner should pay contractor the remaining capital deducting 10% of total amount as quality guarantee fund.

5.

quality guarantee and guarantee fund

a.

quality guarantee: waterproof 2 years, fitment 1 year, electric equipment water supply & drain, heat supply 2 years. the usage period for basic construction in base and main structure in construction is reasonable period stipulated in design plan, except what caused by drawing amendment by consigner.

b.

quality guarantee fund: both sides agree that quality guarantee fund covers 10% of total amount in construction. if there is quality problem or disfigurement in construction, contractor should be in charge of maintaining, after guarantee period, consigner should pay contractor guarantee fund.

6.

breaching responsibility

should be borne by breaching side.

14. there is duplicate ,each side holds one. it is effective when both sides sign.

Consigner :(stamp)  Inner Mongolia Zhunger Heat Power Co., Ltd

Representative: Wu Weidong

Contractor: (stamp) Contractor: Zhunger Gongxing Construction Engineering Co.,Ltd

Representative:  Chen Jianping

Signing date: Sep 10, 2004

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