Document:

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                                                                    EXHIBIT 10.2

                         INVESTMENT MANAGEMENT CONTRACT

PARTY A: THE PEOPLE'S GOVERNMENT OF WUQING DISTRICT, TIANJIN CITY

PARTY B: GUANGDONG XINXINGMEI ENVIRONMENT PROTECTION SCIENCE AND TECHNOLOGY
INVESTMENT CO., LTD

According to The Contract Law of the People's Republic of China and other
related laws and regulations, Party A and Party B promised to manage Wuqing
First Sewage Disposal Factory via the way of BOT. In order to clarify rights and
obligations of two parties, it concludes the contract for mutual observance
after negotiation of two parties.

1.    CONSTRUCTION OF PROJECT OF SEWAGE DISPOSAL FACTORY

      1.1   The name of project is Wuqing First Sewage Disposal Factory. (It is
            called the Sewage Disposal Factory).

      1.2   The construction site is located in Tinan Road in the Wuqing
            Development District

      1.3   The design capacity of disposal sewage of the project amounts to
            10,000 tons/day.

      1.4   The total sum of project pricing is assumed to RMB 8-9 million.

      1.5   According to the stipulation on article 1.3 in the contract, Party B
            is responsible for project design, investment (financing),
            construction, debug and management.

      1.6   Party B selects "MHA Sewage Disposal Techniques"(See attachment 1)
            as the applicable art for the project. In terms of project design,
            it shall take the bases of "Report of Evaluation on Environment
            Influence" and "Official Response of Evaluation on Environment
            Influence" in order to design the standard for water quality. The
            subject and index involved in "Report of Evaluation on Environment
            Influence" and "Official Response of Evaluation on Environment
            Influence" shall be taken as the design parameter.

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Chart 1.1

<TABLE>
---------------------------------------------------------------------------------------------
            Subject          Index of Water Access   Index of Water Exceeding implements the
                                                           first standard of GB8978-96
---------------------------------------------------------------------------------------------
<S>                                 <C>                                <C>
         CODcr mg/L                 =<460                              =<60
---------------------------------------------------------------------------------------------
          BOD5 mg/L                 =<180                              =<20
---------------------------------------------------------------------------------------------
           SS mg/L                  =<260                              =<20
---------------------------------------------------------------------------------------------
  Ammoniacal nitrogen mg/L           =<35                              =<15
---------------------------------------------------------------------------------------------
  Chroma diluted multiple           =<128                              =<20
---------------------------------------------------------------------------------------------
       phosphate mg/L               =<4.0                               =<1
---------------------------------------------------------------------------------------------
             PH                       6-9                               6-9
---------------------------------------------------------------------------------------------
</TABLE>

      1.7   Party B is responsible for the following duties

            1)    The primary design, the construction drawing design and the
                  construction design within the extent of the Sewage Disposal
                  Factory(pound)>>

            2)    The bidding for civil construction(pound)>>

            3)    The earthwork digging and backfilling within the bound of the
                  sewage disposal factory(pound)>>

            4)    The civil construction project (including indoor fitment, road
                  and fence in the factory), the electric power project, the
                  project of water supply and drainage, the craftwork equipment
                  and the installation project, the virescence project, the fire
                  control, the flood prevention and etc within the bound of the
                  sewage disposal factory.

            5)    The design and construction on the road, water and electricity
                  between the bound of the sewage disposal factory and the
                  construction red line.

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            6)    The debugging on all the projects within the bound of the
                  sewage disposal factory(pound)>>

            7)    The uncompleted matters that are promised by related laws,
                  regulations, policies and the contract.

      1.8   Party A is responsible for construction on architecture
            establishment out of water access and exceeding mouths of the sewage
            disposal factory, which ensures the smooth delivery of the sewage
            and the smooth discharging of the rinsing water.

      1.9   Party A assists Party B to contact a local bank and apply for loans
            on construction of the sewage disposal factory. Party B is
            responsible for negotiating with the bank for the detailed sum and
            the form of the loans.

      1.10  Party A is responsible for providing the land for the project
            covering 8 Mu for free, and meeting requirements for weight bearing
            of 9 tons per square meters on the base. The deadline of the land
            using right from Party B shall be the same with the deadline of the
            sewage disposal factory managed by Party B.

      1.11  Party B is responsible for connecting road, water and electricity to
            the red line on the land before construction, and ensuring the
            flattening of the construction field

      1.12  Party A assists Party B to transact businesses which are under the
            administration of sectors of Party A, such as project establishment,
            transferring of land using right and other related procedures on
            declaring response and establishment

      1.13  Party A delivers the design and construction invitation for Party B,
            meanwhile, Party A provides basic design parameters such as red
            construction blueprint and underground construction within the range
            of land use, elevation of pipelines of water access and exceeding of
            the sewage disposal factory, points of water use and electricity
            use. After receiving the invitation from Party A, Party B shall
            complete the primary design blueprint within 30 working days. After
            agreement from Party A within 90 days since the next day, Party B
            shall complete construction design and deliver it to be checked by
            Party A. After qualification, Party A will sign in the checking
            contract.

      1.14  When designing the project of the sewage disposal factory, Party B
            is responsible for design a calculation establishment each for both
            parties in the sewage factory for the sake of transportation
            undertaken by Party A for establishment of the sludge storage

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      1.15  After complete all declaring procedures and blueprint checking, and
            items promised on Article 1.11, Party A shall deliver the
            construction notice to Party B, and Party B shall start
            establishment within 7 days after it receives the notice. If the
            consecutive construction period for the project of the sewage
            disposal factory lasts for 300 days, the construction period shall
            be calculated right from the construction day.

      l.16  In the construction period of the project of the sewage disposal
            factory, Party A shall assist Party B to apply for related derating
            policies within the range of national policies, laws and
            regulations. And Party A shall coordinate in solving conflicts and
            problems found in local sites that influence the construction of
            Party B.

      1.17  The debugging period for Party B lasts for 90 days after the
            completion of the project. Party A shall deliver the expenditure for
            the sewage disposal to Party B according to the amount of sewage
            disposed in practice and the standard of 0.40% RMB per ton. (When
            the sewage amount provided from Party A is lower than the minimal
            sewage amount promised on Article 2.5 in the contract, Party A will
            pay the expenditure for the sewage disposal to Party B according to
            the minimal sewage amount promised on Article 2.5 and the stand of
            0.40% RMB per ton.

      1.18  After completion of the project and qualification of the debugging,
            Party B will inform Party A for acceptance of the project. After
            receiving the notice of project acceptance within 7 days, according
            to the blueprint and the signature of both Parties, Party A shall
            complete acceptance for the project within 10 working days. If Party
            A can't complete the acceptance within the time, it is considered
            for qualification.

      1.19  The acceptance and supervision unit for the water quality from the
            sewage project is Wuqing District Environment Supervision Station.
            Provided the supervision result meet the guideline listed in the
            chart of 1.1 in the contract sheet, it is considered as qualified
            acceptance. Party B can consign the national station to take the
            business of supervision if necessary, and take the supervised data
            from the national center station as the norm. The daily disposal
            scale for the acceptance of the sewage shall be based on the design
            scale. If Party A can't provide the amount of sewage for the sewage
            design, it doesn't influence the acceptance of the project.

2.    MANAGEMENT OF THE SEWAGE DISPOSAL FACTORY

      2.1   The confirmation on the period of management for Party B shall start
            from the qualification day of the project. The contract terminates
            on the same day 20 years later. Within the period, Party B shall
            manage the sewage disposal factory independently with the agreement.
            as the return for investment, Party B shall possess the profit made
            in the factory.

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      2.2   Within the management period, Party B is not allowed to transfer the
            right agreed in the contract independently. If needed, Party B shall
            consult from Party A for permission.

      2.3   Within the management period, Party A confirms the undertaking unit
            for balancing the sewage disposal expenditure. After the
            authorization from Party B, Party A can make a formal document for
            attachment of the contract, which has the same legality with the
            contract. The sewage disposal factory will direct balance with the
            undertaken unit confirmed by Party A.

      2.4   The pricing standards for the sewage disposal expenditure:
            [omitted].

      2.5   During the normal operation for the project, Party A ensures to
            provide the sewage disposal amount for 7000 tons per day in the
            first year; 8000 tons per day in the second year; 9000 tons per day
            in the third year; 1,0000 tons per day in the fourth year agreed on
            the article 1.3 in the contract. If Party A provides the sewage
            amount less than the agreement on the contract in the years above,
            it shall pay for the sewage disposal expenditure in real practice;
            If Party B provides the sewage amount more than the agreement on the
            contract in the years above, it also shall pay for the sewage
            disposal expenditure in real practice. Within 3 years on normal
            operation of the project, Party A shall pay the balance with 0.28
            RMB per ton between the real amount of sewage in disposal (It shall
            be no less than the agreed minimal sewage amount) and the amount of
            sewage on design as the compensation for investment and construction
            from Party B. During the management period of Party B, if the sewage
            amount needed for disposal exceeds the design scale of the project,
            the two parties shall negotiate for spreading the sewage disposal
            factory.

      2.6   The checking time for the sewage disposal is 4:00 pm on 28th every
            month. The balance unit of Party A and the sewage disposal factory
            will control each of the calculation meters, and check two records
            at 6:00 pm on the day before the validity of the signature. If the
            error for the recorded water amount between two meters is no more
            than 1,000 ton per month, it shall be calculated on the average
            point of data between two parties. Otherwise if the error is more
            than 1,000 ton per month, it shall check the meters of two parties.

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      2.7   It shall take the total number of the checking sheets approved by
            two parties as the payment credential for the sewage disposal
            expenditure. Party A shall deposit the expenditure for the sewage
            disposal on the agreed account. Before 5th every month, Party A
            shall transfer the balance into the account of Party B for the
            expenditure last month. (It shall postpone for 5 days at most in
            case of holidays).

      2.8   Within the management period of Party B, in the case of large rise
            and fall for comprehensive INP published by the country, two parties
            can negotiate for adjusting the standard for the balance price. The
            year for concluding the contract shall be taken as the basis.
            According to the calculation of national statistics, if the rise and
            fall of comprehensive INP is no more than 15%, it will not adjust
            the standard for price; if it exceeds over 15%, the comprehensive
            INP will make corresponding adjustment accordingly.

      2.9   After normal operation of the sewage disposal factory, Party B can
            make fixed checking for at least once every year according to the
            operation state. The checking time lasts for 30 days every time
            (including the debugging period). Party B shall inform Party A 7
            days before the check and repair. When water quality exiting from
            the sewage disposal factory during the checking and debugging period
            meets the second standard, namely, GB 8978-96, Party A shall pay
            Party B with 0.40 RMB per ton for the real amount of disposal in
            practice.

      2.10  Under the temperature of 8iae, the efficiency for the sewage
            disposal is distinctively reduced, therefore, when the sewage
            disposal factory finds the temperature of sewage is lower than 7iae,
            it shall inform Party A immediately to check the temperature of
            water. When two parties jointly confirm the water temperature access
            is lower than 7iae, and it dues to the natural reason for the
            guideline doesn't meet the agreed standard on the chart 1.1 of the
            contract. In that case, the sewage disposal factory will not take
            the responsibility, but Party A pays the expenditure for the amount
            in practice from the sewage disposal factory.

      2.11  If the term of power cut is over 2 days due to the reason beyond the
            control of the sewage disposal factory (Party A will pay nothing to
            Party B within 2 days), which causes paralysis of the sewage
            disposal system, leads to the guideline for the water exceeding from
            the sewage disposal factory that can't meet the agreed standard on
            the chart 1.1 of the contract, Party A shall pay Party B for the
            expenditure of the sewage disposal according to the water amount
            agreed on the article 2.5 and the price standard agreed on the
            article 2.4 in the power period and the debugging period after power
            is on. (The debugging period lasts for 20 days).

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      2.12  Party A is responsible for transporting out dehydrated sewage
            produced from the sewage disposal. The sewage disposal factory is
            responsible for the expenditure engaged in qualification for sewage
            and the management expenditure applied in the dehydrated course of
            mud.

3.    HANDOVER OF THE SEWAGE DISPOSAL FACTORY

      After the expiration of the management for Party B, it shall hand over the
      sewage disposal factory to Party A with establishments in good conditions,
      smooth operation without any dissension on property. 90 days before the
      formal handover, Party B shall deliver the handover notice to Party A.
      meanwhile, Party B shall provide all the craftwork and technology the
      sewage disposal to Party A, and takes responsibility for training
      technicians for Party A. After the handover, on the transferring period
      when Party A has yet to confirm other management units, Party B will keep
      management until the time when Party A confirms the management unit. (The
      time shall be no more than 60 days). If Party B tends to keep management,
      the two parties can negotiate for concluding the contract additionally.

4.    OTHER ARTICLES(POUND)(0)

      4.1   Party A shall publish the measures on imposition of the expenditure
            management on the sewage disposal.

      4.2   Party A shall negotiate the water accessing index according to the
            chart 1:1 in the contract in order to control water quality of the
            industrial liquid water which is ejected into the administrative
            sewage network. If the water quality of the water ejected exceeds
            over the guideline listed in the chart 1.1 of the contract, which
            causes that the disposed sewage can't meet the guideline. In this
            case, Party B and the sewage disposal industry will take no
            responsibility. Party A shall pay the disposal expenditure for the
            sewage disposal industry agreed in the article 2.5. Party is
            responsible for the sewage disposal expenditure beyond the
            guideline.

      4.3   During the administration of Party B. The price for the sewage
            disposal industry shall implement the municipal standard in Tianjin
            City.

      4.4   Party B shall pay the expenditure of acceptance and supervision for
            the sewage disposal factory. The unit that requires supervision will
            pay the expenditure of supervision after being checked for approval.
            Party A is responsible for organizing the acceptance meeting and
            Party B is responsible for the expenditure.

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      4.5   Notice

            In the course of implementing the contract and any notice, it shall
            take the written form vie sending or registering for post,
            teleprinting or faxing. The address is stated as followings:

            Address of Party A: No. 118, Rongyang Xi Road, Wuqing District,
            Tianjin City

            Post code: 301700

            Telephone: (022) 29341573

            Fax: (022) 29326702

            Address of Party B: The 6th Building, Guowei Mansion, No. 73,
            Xianlie Zhong Road, Guangzhou City, Guangdong Province

            Post code: 510095

            Telephone: (020) 87327278

            Fax: (020) 87326157

            Any party that changes any item in the address above shall inform
            the other party 7 days in advance. The change is valid after the
            notice is confirmed.

      4.6   If the compulsory criterions and standards for national sewage
            disposal factory changes, the new technology adopts for Party B
            shall meet the new standard regulated by the country. Two parties
            shall negotiate for compensating the investment from Party B with
            the delay of the management period.

5.    RESPONSIBILITY OF BREACHING THE CONTRACT

      5.1   Before the acceptance of the project, if Party A can't provide
            conditions agreed in the contract, which causes loss from Party B,
            hereby Party A shall be responsible for the real loss from Party B.
            After the sewage disposal factory is checked for approval and
            operated formally, if Party B stops production due to the reason
            from Party A, Party A shall pay for the sewage disposal expenditure
            during the period of stopping production according to the amount of
            sewage disposal regulated in the article 2.5 and the price regulated
            in the article 2.4.

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      5.2   If Party A doesn't pay the sewage disposal expenditure, right from
            the second day after 5 valid working days overdue, the defaulted sum
            of breaching contract shall be paid in the loan interest overdue.
            Meanwhile, Party A shall pay RMB 1,000 to Party B for the penal sum
            overdue for each day delayed.

      5.3   If Party B can't complete the project or the project completed
            doesn't meet the design criterion or the construction quality is
            unqualified, Party B shall pay RMB 1,000 to Party A for the penal
            sum for each day delayed.

      5.4   After the normal operation of the sewage disposal factory, if Party
            B breaches the following agreements due to the reason of Party B and
            the sewage disposal factory, Party B shall pay the sewage ejection
            expenditure to related sectors, additionally, it shall pay RMB 1,000
            to Party A for the penal sum for each day delayed.

            1)    When Party provides the agreed amount of sewage to meet the
                  contract, but the amount of sewage from the sewage disposal
                  factory can't meet the amount agreed in the contract.

            2)    When the index for water accession exceeds over the chart 1.1
                  in the contract, and when the water quality disposed in Party
                  B and the sewage disposal factory can't meet the index agreed
                  in the contract. (Except the case that water quality leads the
                  paralysis of the sewage disposal system).

      5.5   After the termination of debugging, if water quality from the sewage
            disposal factory still can't meet the exiting guideline agreed in
            the chart 1.1 of the contract, Party A will not pay Party B the
            expenditure for the sewage disposal. After the termination of
            debugging, if the guideline for water accession can't exceed over
            the standard agreed in the chart 1.1 of the contract in the
            consecutive four months, and the disposed water quality still can't
            meet the standard agreed in the contract, the contract will be
            relieved independently.

      5.6   Within the management period of Party B, if Party B transfers the
            right of management on the sewage disposal industry without
            permission from Party A, the contract will be suspended;
            consequently, Party B will be responsible for all the loss. If there
            are such unsolvable cases as bankruptcy close-down and etc from
            Party B, the right of management on the sewage disposal industry
            will be transferred to Party A, and Party B will be responsible for
            the original liability for the sewage disposal industry.

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6.    FORCE MAJEURE

      If the loss is caused by force majeure, neither of parties will take
      responsibility.

7.    VALIDITY OF CONTRACT

      The contract has ten copies with the same validity. Party A and B hold 5
      copies respectively. It is valid after the seal and signature of two
      parties.

8.    DISPUTE SETTLEMENT

      Provided dispute occurs in the course when Party A and Party B carry out
      the contract, two parties shall negotiate for friendly solution. If
      otherwise, it shall be solved vie lawsuit in the People's Government that
      has the right of domination.

      The items that are not regulated in the contract shall be solved vie
      negotiation of two parties. The additional complementary articles signed
      are components of the contract, which has the same legal validity.

      The contract is signed in Yongyang Hotel in Wuqing District, Tianjin City.

      The contract has ten pages in all.

PARTY A: THE PEOPLE'S GOVERNMENT OF    PARTY B: GUANGDONG XINXINGMEI ENVIRONMENT
WUQING DISTRICT, TIANJIN CITY          PROTECTION SCIENCE AND TECHNOLOGY
                                       INVESTMENT CO., LTD

LEGAL REPRESENTATIVE:                  LEGAL REPRESENTATIVE:

AUGUST 14, 2002                        AUGUST 14, 2002

                                                                              10<PAGE>

                                                                    EXHIBIT 10.3

              GUANGDONG XINSHENG ENVIRONMENTAL PROTECTION CO., LTD.

                         FILE NO.: XIN-HAN-ZI (2004) 018
--------------------------------------------------------------------------------

TO: THE PEOPLE'S GOVERNMENT OF SHUNYI DISTRICT OF BEIJING CITY

To guarantee the effective operation of Tianzhu Sewage Treatment Plant of Shunyi
District in Beijing City and ensure the continuous implementation of the "BOT
Investment Contract of Beijing Tianzhu Sewage Treatment Plant", our company has
incorporated Beijing Haotai Shiyuan Water Purification Co., Ltd. in Tianzhu town
in Shunyi District on May 26, 2004. Hereby our company authorizes Beijing Haotai
Shiyuan Water Purification Co., Ltd. to take charge of the construction and
operation of Tianzhu Sewage Treatment Plant and to fully act for us to handle
all affairs relating to Tianzhu Sewage Treatment Plant. Beijing Haotai Shiyuan
Water Purification Co., Ltd. has the right of enjoying all operational revenue
after the start of the operation and bearing all rights, obligations and
responsibilities stipulated in the "BOT Contract".

We shall appreciate your cooperation and support. Thanks!

                           GUANGDONG XINSHENG ENVIRONMENTAL PROTECTION CO., LTD.

                                                              Date: May 31, 2004

<PAGE>

                 PEOPLE'S GOVERNMENT OF SHUNYI DISTRICT, BEIJING

                    GUANGDONG XINSHENG ENVIRONMENTAL CO., LTD

                      BEIJING TIANZHU SEWAGE DISPOSAL PLANT

                             BOT INVESTMENT CONTRACT

                                   JULY, 2003

<PAGE>

                        CHAPTER I GENERAL SPECIFICATIONS

By virtue of provisions contained therein People's Republic of China, People's
Government of Shunyi District of Beijing City and Guangdong Xinsheng
Environmental Co., Ltd, on the basis of equality, mutual profit and after
friendly covenants herein contained, have agreed that Guangdong Xinsheng
Environmental Co., Ltd may construct, operate and transfer a sewage disposal
plant by BOT investment approach at Tianzhu Real Estate Development Area of
Shunyi District. The sewage disposal plant shall be constructed to have the
treatment scale of 20kilo tons per day and affiliated infrastructure facilities
shall be constructed to have the treatment scale of 40kilo tons per day.
Occupied area shall be 16 acres.

BOT investment hereinafter is referred to as the procedure that investors who
have obtained franchise rights from franchisors (the government) invest,
construct and operate a specified object. At close of the franchise term, the
whole object shall be transferred to the franchisor. During the franchise term,
the investor may recover cost and attain reasonable profit through object
operation.

                     CHAPTER II ALL PARTIES TO THE CONTRACT

1.    This chapter is made into on the 4th day of July, 2003 by all parties as
      follow:

      Party A: People's Government of Shunyi District, Beijing.

      Operator of Party A: Administration Commission of Tianzhu Real Estate
      Development Area, Beijing.

      Party B: Guangdong Xinsheng Environmental Co., Ltd.

      Operator of Party B: Corporation reserved for the object.( Name is subject
      to decide)

                CHAPTER III CONTENTS AND TERMS OF FRANCHISE RIGHT

1.    DEFINITION AND EXPLANATION

      Project: The word PROJECT is referred to as the feasibility study, design
      and service, construction, debugging, pilot running and running of the
      sewage disposal plant which has treatment capacity of 20k tons/day and
      affiliated infrastructure of which has 40k tons/day capacity. The name of
      the project is called Beijing Tianzhu Sewage Disposal Plant.

      Project cost: It is referred to as the cost contained herein Article 3 of
      this chapter.

      Period of construction: It begins 15 days later than the signing of
      contract and terminates on the date of acceptance inspection of the
      project by environmental administration after design, construction,
      equipment installation, debugging and pilot running.

                                       1
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      Term of franchise rights: It begins since date when the whole project of
      Beijing Tianzhu Sewage Disposal Plant is completed, debugging is finished
      and the project is inspected and approved by environmental administration
      and will terminate on the corresponding date 25 years later.

      Completion date: It is referred to as the date when Beijing Tianzhu Sewage
      Disposal Plant is wholly completed, equipment debugging is successful,
      project inspection is accepted and qualified by environmental
      administration and the plant may be commercially operated.

      Force majeure: It is referred to herein Chapter 11.

      Project corporation: It is referred to as the limited corporation which
      must be commenced by Party B within 2 months later than validity of the
      contract and which is liable of the construction and operation of Beijing
      Tianzhu Sewage Disposal Plant.

      Transfer Date: It is referred to as the morrow of the termination date of
      franchise rights.

      Intactness: It is referred to as the status that there is no apparent
      destroy, no crack and no seepage with respect to buildings and structures
      and sewage disposal equipments shall run continuously and steadily.

2.    PROJECT

      2.1   The project is herein named Beijing Tianzhu Sewage Disposal Plant.

      2.2   The project shall be located at Beijing Tianzhu Real Estate
            Development Area and its accurate position may be referred to as the
            layout map of Shunyi District, Beijing.

      2.3   Contents, manner and terms of project franchise rights. Party B
            shall design, construct and operate the sewage disposal plant
            exclusively in the manner of BOT and at the close of franchise term
            Party B shall transfer the sewage disposal plant to Party B freely.
            The sewage disposal plant shall be operated exclusively by Party B
            for 25 years and it shall be transferred to Party B freely and
            intactly at the close of franchise term.

      2.4   Construction period: 15 months (frozen period is excluded) which
            begins on 15 days (July 20th, 2003) later the signing of the
            contract and ends on the day (Oct 20th, 2004) of acceptance
            inspection by environmental authority (frozen period is excluded).

3.    PROJECT COST

      3.1   Gross cost: twenty million RMB yuan.

      3.2   The project must be invested totally by Party B and the project
            corporation established by Party B during franchise term. Gross cost
            includes the parts as follows.

            (1)   Cost of feasibility report, technical software, technical
                  patent, design and technical service of sewage disposal plant,
                  acceptance inspection, project supervision, project monitoring
                  and environmental estimate.

            (2)   Construction cost.

            (3)   Equipment purchase, installation and debugging.

                                       2
<PAGE>

            (4)   Miscellaneous costs.

                    CHAPTER IV LIABILITY OF PROJECT OPERATION

1.    RESPONSIBILITIES OF PARTY B

      1.1   Party B must remit total project investment RMB 20 million to local
            bank account of Party A within 15 days since the validity of the
            contract. In which 5 million Yuan shall be deposited into another
            account which is co-supervised by both parties.

      1.2   Party B shall adopt MHA-2 technique in the disposal plant
            construction and Party B shall supply Party A with six sets of
            construction blueprint after its design is completed. Technique
            design blueprint and construction design blueprint shall be audited
            by Party A and qualified organization assigned by Party A within 10
            working days. Only after acceptance signing may the project be
            started. It the period of blueprint auditing exceeds 10 days, the
            construction period shall be delayed correspondingly.

      1.3   Party B shall be liable for investment, construction, operation and
            maintenance of whole project and shall ensure the disposal capacity
            of 20,000 tons per day of Beijing Tianzhu Sewage Disposal Plant.

      1.4   Party B shall establish a project corporation within two months
            later than the validity day of contract and Party B shall ensure
            that the project corporation be compliance with the responsibilities
            of Party B herein the contract. Register capital of the project
            corporation shall be extracted from the bank account contained
            herein Article 1.1 of this chapter and remaining fund of shall be
            transferred to the account of the project corporation ever since the
            establishment of project corporation. A specified bank account of
            RMB 5 million shall be opened as co-supervised fund by both parties.
            If the construction cost of Party B reaches 5 million yuan, the RMB
            5 million account may be relieved by Party A provided the
            certificate of Party B and Supervision Corporation, which means that
            Party B may deal with the 5 million yuan freely.

      1.5   Party B shall be liable for building construction and equipment
            installation and debugging and the work shall be inspected and
            confirmed by supervision and monitoring organizations. In order to
            ensure project quality and service life, invitation to bidding and
            negotiation shall be processed by Party B on building construction
            and equipment and material purchase (patented goods is excluded).

      1.6   Party B shall be liable for purchasing and management of various
            equipments and facilities during the franchise term of Beijing
            Tianzhu Sewage Disposal Plant and Party B shall have the proprietary
            rights of the equipments and facilities of Beijing Tianzhu Sewage
            Disposal Plant. Party B shall be liable for the maintenance,
            inspection and upkeep of the equipments according to running
            conditions to guarantee the equipment discharge in compliance with
            national standard and safety.

      1.7   Party B shall make schedules for daily maintenance, medium repair
            and large repair of the equipments and facilities in every year.
            Prior to December 31st of every year, Party B must submit Party A
            with the schedules for inspection, medium repair and large repair of
            the equipments and facilities of next year which shall be executed
            under the monitoring of Party A.

      1.8   Party B shall assist Party A with completion inspection of the
            project.

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<PAGE>

      1.9   Party B shall accept the supervision on project quality from project
            inspection organizations of local government. Party B shall be
            liable for selecting eligible supervision organization and
            supervision costs.

      1.10  Within two weeks after project acceptance inspection, Party B shall
            submit Party A with technical data, completion inspection data and
            properties listing in sextuplet.

      1.11  At the expiry date of the 25 years franchise term, Party B shall
            transfer Beijing Tianzhu Sewage Disposal Plant freely and intactly
            on the transfer day to Party A and shall supply Party A with whole
            technical data on equipment operation and maintenance document
            (Party A may continue freely to utilize intellectual property rights
            which have be exerted to project construction and operation, but
            Party A shall have the liability and obligation to guarantee the
            intellectual property rights and may not extend usage without the
            consent of right owners). Party B shall be liable for technician
            training of Party A three months prior to transferring.

      1.12  When second project stage is commenced, if Party A intends to select
            a new partner, Party A shall assist willingly. Under the same
            condition, Party B shall have priority right for second stage
            construction of sewage disposal plant.

      1.13  After signing of contract herein and during the franchise term,
            Party B shall be liable for financing additional funding if project
            investment shall be supplemented by virtue of adjustment of national
            laws and Beijing's local regulations. If sewage disposal payment may
            thereby be adjusted, Party A and Party B shall negotiate and
            determine new charging standard of sewage disposal based on the
            principle of equality and reasonability.

      1.14  Party B shall guarantee the completion and usage of Beijing Tianzhu
            Sewage Disposal Plant within the time limit contained herein the
            contract.

2.    RESPONSIBILITIES OF PARTY A

      2.1   Party A shall be liable for construction submission and sanction
            application (including construction license) and the fee shall be
            assumed by Party A.

      2.2   Party A shall assist Party B with applying for preferential policy
            and reducing corresponding tax.

      2.3   Party A shall pay disposal fee in time pursuant to provisions
            contained herein contract.

      2.4   Party A shall be liable for collecting sewage and transfer it to the
            extent 1m within red lines of sewage disposal plant.

      2.5   Party A shall be liable for the withdrawal lines of Beijing Tianzhu
            Sewage Disposal Plant (the withdrawal lines are connected 1m outside
            the red lines).

                                       4
<PAGE>

      2.6   Ten days prior to project construction, Party A shall supply land
            for Beijing Tianzhu Sewage Disposal Plant which shall be used by
            Party B freely during the franchise term of Beijing Tianzhu Sewage
            Disposal Plant. During the franchise term, Party B shall not assume
            tax and fee related to land.

      2.7   Prior to project construction, Party A shall supply permanent civil
            facilities (water, 10kv double loop electricity, gas and
            communication) and shall connect life pipes to the region 1m outside
            the red lines.

                                       5
<PAGE>

           CHAPTER V SCHEDULE AND ARRANGEMENT OF PROJECT CONSTRUCTION

1.    Within 30 days after Party A offered legal license of land usage and other
      data of Beijing Tianzhu Sewage Disposal Plant, Party B must commence the
      construction of Beijing Tianzhu Sewage Disposal Plant. Party A shall
      assume liability and obligation pursuant to provisions contained herein
      the contract.

2.    If building construction is completed, Party B shall inform Party A in
      written form to apply for completion inspection on buildings and Party A
      shall attend the completion inspection within 10 days organized by Party
      B. If installation project is completed, Party B shall inform Party A in
      written form to apply for completion inspection on installation project
      and Party A shall attend the completion inspection within 10 days
      organized by Party B. If Party A does not attend completion inspection
      within 10 days, it shall be thought the quality was accepted and Party B
      may continue to work for next stage.

3.    During construction, if time delaying not caused by Party B happens
      (clause of exemption is excluded), time period may be delayed
      correspondingly. If Party B is injured, the party who cause injury shall
      pay Party B indemnities.

4.    Debugging

      4.1   Ten days prior to debugging, Party B shall supply Party A with
            debugging plan and Party A shall reply in written form within five
            work days to Party B. Only after the conferment of Party A, may
            debugging plan be commenced. Party A shall assist Party B to
            guarantee normal conduction of debugging. If Party A does not reply
            within five work days, debugging plan shall be thought to be
            accepted and Party B may start debugging.

      4.2   Party B shall be liable for whole procedure of debugging and Party A
            shall assign somebody to attend the whole procedure of debugging.

      4.3   If debugging is completed, Party B may inform Party A to apply for
            inspection. If Party A can not organize inspection within 10 days
            after application, Party A shall pay Party B sewage disposal fee
            pursuant to Article 1.4 contained herein the contract from the 11th
            day.

      4.4   The project must reach the discharge standard as provided herein the
            contract.

      4.5   If sewage inflow is insufficient, standard inspection may not be
            affected.

                    CHAPTER VI INVESTMENT RETURNS OF PROJECT

1.    Environmental administration shall monitor and inspect inflow and outflow
      of Beijing Tianzhu Sewage Disposal Plant. If the inflow and outflow
      reaches stipulated standard contained herein the contract(pound)<172>the
      project shall be thought to be qualified and begin to be commercially run.
      Party A shall pay Party B sewage disposal fee by month.

                                       6
<PAGE>

2.    Investment return

      (1)   Charging standard without tax (zero tax rate)

            If sewage inflow is less than or equal to 16 kilo tons/day, Party A
            shall pay Party B according to 16 kilo tons/day with the unit price
            of [omitted] yuan/ton. If sewage inflow is less than or equal to 20
            kilo tons/day, Party A shall pay Party B according to actual inflow
            with the unit price of [omitted] yuan/ton. If sewage inflow is
            larger than 20,000 tons/day, the exceeding part shall be paid with
            the unit price of [omitted] yuan/ton.

      (2)   Charging standard with tax (value-added tax is excluded)

            If sewage inflow is less than or equal to 16 kilo tons/day, Party A
            shall pay Party B according to 16 kilo tons/day with the unit price
            of [omitted] yuan/ton. If sewage inflow is less than or equal to 20
            kilo tons/day, Party A shall pay Party B according to actual inflow
            with the unit price of [omitted] yuan/ton. If sewage inflow is
            larger than 20,000 tons/day, the exceeding part shall be paid with
            the unit price of [omitted] yuan/ton.

3.    Meter of sewage disposal volume of every month shall be read on 1st of
      next month. Party B shall document data till that day on meter bill and
      Party A shall assign somebody to check and sign on the bill prior to
      12'clock on that day. The signed bill shall be triplet, two copies for
      Party A and Party B and one copy for bank. The bank shall transfer
      settlement payment to the account of Party B prior to 7th of that month.

4.    During the operation period, if unit price of electricity varies exceeding
      5% of unit price of electricity in April, 2003, sewage disposal fee may be
      varies correspondingly according to the same ratio.

            CHAPTER VII RIGHTS AND OBLIGATIONS FOR THE PARTIES HERETO

1.    RIGHTS AND OBLIGATIONS FOR PARTY A

      1.1   When the special permission operating right of BOT expires, Party A
            will own the managerial right, ownership and all the assets of the
            Beijing Tianzhu Sewage Disposal Plant, including equipments,
            facilities, technology, the data and the information, and other
            fixed assets.

      1.2   In the five days after signing the Contract, Party A shall make
            available to Party B, such on the Administrative plan of the Sewage
            Farm, topographic diagram, sewage pipe chart, storm sewer chart,
            boundary and topographic chart of factory district on the ratio of 1
            to 1000, data about the earthquake, meteorology, hydrology,
            topography, geology of factory district, and the caliber and the
            elevation of the main pipe in and out the farm in due course.

      1.3   Party A is responsible to provide the quota handbook about building
            and installation of local municipal administration.

      1.4   In the process, Party A has rights to supervise the quality and
            progress of the construction, and taking part in the inviting and
            discussing the sign on the purchase of materials and equipments.

                                       7
<PAGE>

      1.5   Party A has right to choose the Partyicipator of the second phase of
            the project. On the equal level, Party B owns the priority.

      1.6   The ownership of the water out from the Beijing Tianzhu Sewage
            Disposal Plant belongs to Party A.

      1.7   Party A could verify the investment of project by Party B, to manage
            and supervise the payout from the condominium account with Party B
            as set in the Section 1.4 of Chapter 4.

      1.8   Party A could supervise the whole process of the project.

      1.9   During the period of special permission operating right, Party A
            could call for the information of financial affairs about special
            permission management from Party B and the project company. No
            matter whether profitable and how much in the period of special
            permission management, Party A shall not intervene or decrease the
            charge standard and not increase the burden of Party B.

      1.10  As the Beijing Tianzhu Sewage Disposal Plant is a non-profit
            investment project of environmental protection, Party A shall reduce
            taxes and administrative charges according to the law and policy of
            state.

      1.11  Party A guarantees the special permission operating right of 25
            years according to chapters hereto.

2.    RIGHTS AND OBLIGATIONS FOR PARTY B

      2.1   When the special permission operating right of BOT expires
            (terminates), Party B and the project company shall hand over the
            whole ownership and managerial right of the Beijing Tianzhu Sewage
            Disposal Plant perfectly and freely to Party A on the day of
            handing-over (Party B will bear all the debts of it and its project
            corporations).

      2.2   Party B shall choose proper construction company and overseeing unit
            with qualification and achievement of construction to construct and
            manage.

      2.3   The main equipment and materials in project shall be purchased by
            the way of inviting and discussing the sign. The patent products
            could be chosen by Party B.

      2.4   Party B shall abide the Contract Law of People's Republic of China
            strictly and guarantees the engineering construction fund be put
            into effect. Before constructing, Party B shall put the construction
            organization plan and the engineering construction plans on records
            to Party A. After starting working, Party B shall put the project
            progress report and the fund investment plan report to Party A each
            month.

      2.5   Party B guarantees the normal operation and production of the farm
            and the quality of water to discharges the standard herein.

                                       8
<PAGE>

      2.6   Party B provides technology in need of project and introduces
            managerial experience. If any problems of technology cause losses on
            environment and other aspects, Party B shall undertakes all the
            liability and compensate the economic loss.

      2.7   Party B shall own legitimate right on the technology employed in the
            project. If any dissension about Intellectual property causes loss
            on Party A, Party B shall pay for it.

      2.8   In the process of operation and management of the project, Party B
            shall recruit local workers and localize the technical personnel in
            order to implement the development of environmental protection
            undertakings by the project.

      2.9   Party B shall abide all of the legal laws and regulations of
            People's Republic of China and carry out polices of local
            government.

      2.10  After the taking over, the operation of the farm shall be guaranteed
            by the technology, software, blueprints and equipments handed over
            to Party A by Party B.

      2.11  Party B shall consider the development of the second phase when
            designing the first phase of the Beijing Tianzhu Sewage Disposal
            Plant.

          CHAPTER VIII ARTICLES ABOUT HANDING OVER THE BEIJING TIANZHU
                              SEWAGE DISPOSAL PLANT

1.    In the period of building and special permission operating, the assets of
      the Beijing Tianzhu Sewage Disposal Plant belongs to Party B to exert.
      Party B and the project company could only impawn the special permission
      operating right and not mortgage, impawn the assets of the Beijing Tianzhu
      Sewage Disposal Plant or provide assurance in other ways, nor implement
      any lawful punishment on the assets of the Beijing Tianzhu Sewage Disposal
      Plant. On the day of handing-over, assets of the Beijing Tianzhu Sewage
      Disposal Plant shall be handed over to Party A and belongs to it. In the
      period of building and special permission operating, Party A assures that
      on whatever conditions and whencesoever, assets of the Beijing Tianzhu
      Sewage Disposal Plant and other lawful properties of Party B will not be
      expropriated, which is protected by the policy of local government.

2.    On the day of handing-over, Party B and the project company shall assure
      such the farm is working normally and all the equipments are in good
      condition as are handed over free to Party A perfectly. Party B shall not
      stay nor ask for amends.

3.    Six months before handing over, the Parties hereto shall discuss to decide
      the detailed list such as equipments, assets, creditor's rights, debt and
      documents, as well as the process and mechanism of handing over.

                                       9
<PAGE>

                      CHAPTER IX REQUIREMENT FOR TECHNOLOGY

1.    GENERAL REQUEST

      1.1   The construction time limit for the project is 15 months.

      1.2   The techniques for getting rid of phosphor and azote must be
            considered during design to adapt the new standard. At the same time
            how to treat reclaimed water shall be taken into account
            synthetically.

      1.3   The relation between the first and second phase must be considered
            roundly during the planar overall arrangement and the field to treat
            reclaimed water shall be reserved.

2.    Water quality of inputting

      In accordance with the Discharge Standard of Water Pollutants in Beijing
      (Implementation), the water quality shall not be beyond the B kind
      standard for the discharge standard of such water pollutants as discharge
      into the city sewers (the sewers managed by the municipal administration),
      namely COD under 500 milligram per liter and BOD under 500 milligram per
      liter. Other part not be marked shall be in accordance with the standard
      of the inputting water of the GaoBeiDian Sewage Farm of Beijing.

3.    WATER QUALITY OF OUTPUTTING

      3.1   THE OUTLET OF OUTPUTTING WATER: the treated sewage by the Beijing
            Tianzhu Sewage Disposal Plant is direct put into the WenYu River.

      3.2   The quality of outputting water must meet the requirements in the
            Discharge Standard of Water Pollutants in Beijing (Implementation):

      Chemical Oxygen Demand (COD) under 60 milligram per liter

      Biochemical Oxygen Demand after 5 days (BOD5) under 20 milligram per liter

      Suspension (SS) under 20 milligram per liter

      Ammonia nitrogen (NH3-N) under 8 milligram per lite

      Total Phosphorus (TP) under 1.0 milligram per liter

      Other indexes of pollutant must meet the requirements of the new second
      level of the Discharge Standard of Water Pollutants in Beijing
      (Implementation) as well as the corresponding discharge standard of the
      whole country.

4.    THE DISCHARGE STANDARD OF SLUDGES: In accordance with the control standard
      of sludges of sewage farm for Beijing and the state one for town.

                                       10
<PAGE>

5.    EMISSION STANDARD OF AIR POLLUTANTS: In accordance with the control
      standard of sludges of sewage farm for Beijing and the state one for town.

                   CHAPTER X LIABILITY FOR BREACH OF CONTRACT

1.    After 15 days exceeding the day signing this Contract, should Party B
      fails to send the investment funds namely RMB 20,000,000 into the account
      opened in the place of Party A by Party B, Party A shall have right to
      terminate the Contract.

2.    Should the water quality of inputting meets the requirement in accordance
      with the Contract and of outputting exceed standard, Party A shall have
      right of refusing to pay the cost of treating sewage and Party B shall
      undertake the responsibility.

3.    Should the water quality of inputting exceed standard and the equipment
      normally operate, Party B shall not undertake the responsibility of
      exceeding the standard of output.

4.    Whether the water quality of inputting and outputting qualify is in
      accordance with the data of the Environmental Monitoring Department.
      Should the Party herein is inconsistent, the Central Station of State
      Environmental Protection Administration shall be invited to inspect and
      the data shall be the standard.

5.    Whatever unexpected condition occurs, Party B shall notify Party A.

6.    Should Party A not provide construction or normal operation condition for
      the construction tract of the Beijing Tianzhu Sewage Disposal Plant in set
      time so as to dally over the project, the project shall postponed. Should
      Party A not provide sewage for Party B after the project has been
      finished, Party A, in accordance with Chapter 6 hereto, shall pay the cost
      of treating sewage from the day beginning to debug after complete.

7.    Should Party A fails to pay the cost of treating sewage after 1 month
      exceeding the time limit owing to Party A, Party A shall not only pay the
      cost in arrest of treating sewage but the penalty in according to 1% of
      total outstanding payment. Should Party A fails to pay the cost of
      treating sewage after 3 month exceeding the time limit, Party B shall have
      right to terminate the Contract. Should Party B terminate the Contract,
      Party A shall pay the actual penalty in accordance with the total sum of
      the cost of treating sewage in the period of the special permission
      management herein.

8.    Should the project of the Beijing Tianzhu Sewage Disposal Plant be
      postponed with no cause of funds (Party B does not invest the total
      construct funds of RMB 20,000,000 in accordance with the provisions of
      this Contract), the project shall be postponed.

9.    In the condition of normal operation, should the accumulative days
      exceeding standard exceed 31 in one year, Party A shall have right to
      deduct the cost of treating sewage during the days of exceeding standard.
      Should the accumulative days exceeding standard achieve 60 in one year,
      Party B shall increase the investment and adjust the techniques to achieve
      the standard. The additional investment shall be undertaken by Party B.

                                       11
<PAGE>

10.   After this Contract signed, should any Party terminate this Contract
      without the agreement of the other Party, it shall mean a breach and the
      Party breaching the Contract shall pay for all the economic loss on the
      other Party except for owing to the other Party.

                            CHAPTER XI FORCE MAJEURE

As the consequence of Force Majeure, such as earth quakes, typhoons, flood,
fires, wars of other natural calamities, which cannot be prevented or avoided,
and accident of sudden power cut, directly affects the execution of this
Contract, the Party that encounters the Force Majeure should notify the other
Party of the Force Majeure or the accident. Valid documents to certify the
happenings should be submitted to the other Party within fifteen days of the
accident, and should be certified by the notarization department of the region
where the accident took place. Disputes arising from cases of Force majeure
shall be resolved through negotiations between the two Parties as to whether to
terminate the Contract or partially fulfill the obligations of the Contract, or
postpone the fulfillment of the Contract according to the effect of the accident
on the fulfillment of the Contract. The legal obligation on the Party that
encounters the Force Majeure or accident should be released during the Force
Majeure or the accident of sudden power cut.

                           CHAPTER XII DISPUTE RESOLVE

Should any dispute arise from the implementation of or relating to the Contract,
both Parties shall resolve them through friendly negotiations. If the
discrepancies cannot be solved by negotiation, they should be submitted by both
Parties to the People's Court where the Contract was signed for solution.

                              CHAPTER XIII APPENDIX

1.    After this Contract signed, should any Party put forward to terminating
      this Contract, the breaching Party shall pay for all the economic loss on
      the other Party.

2.    On matter not covered by this Contract, both Parties (or both executive
      agents) shall sign another supplementary agreement to supply this
      Contract. During the fulfillment, both Parties (or both executive agents)
      shall sign another agreement or record the conference summary to amend and
      adjust this Contract.

3.    This Contract shall come into effect from the day when the Contract is
      signed and capped with official seal. The Contract is duplicated in 8
      copies, and each Party shall hold 4 copies.

                                       12
<PAGE>

4.    Done in Shunyi District, Beijing

Party A: People's Government of Shunyi     Party B: Guangdong Xinsheng
District, Beijing                          Enviromental Co..,Ltd

Representative                             Legal representative

Date: July 4, 2003                         Date: July 4, 2003

                                       13

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