Document:

Equipments Sales Contract

  

Seller: China Great Wall Industry Co.
Ltd.

 

(中国长城工业集团有限公司)

 

Buyer: CER Energy Recovery (Shanghai)
Co. Ltd.

 

(中江能源回收(上海)有限公司)

 

Contract Number: 12GWITC-XS001

 

Signed Date: 2012-8-9

 

Signed place: Beijing

 

    	 

    	 

    

 

This contract is entered into by the below
parties on August 09, 2012.

 

Seller: China Great Wall Industry Co. Ltd.

Address: No. 88 Nancaiyuan Street Xicheng
district, Beijing

 

Buyer: CER Energy Recovery (Shanghai) Co.
Ltd.

Address: Building#26,
No. 1388 Zhangdong Road, Zhangjiang Hi-tech Park, Shanghai,China

 

Pursuant to “Contract Law of The People’s
Republic of China” and related regulations, upon fully and friendly negotiated based on equality and free will between the
two parties, both parties hereto agree as follows:

 

		1.	Definition :

“Contract” means
this HRS Equipment Purchase Contract signed between the Buyer and the Seller, including all appendices.

 

“Total
Price” means the sum price payable from the Buyer to the Seller under the Contract for the performance of its contractual
obligations as given in Article 4.

 

“Product” and “Products”
mean Seller’s proprietary HRS equipment, machinery, instruments, spare parts, tools, and other materials as described in
contract which Buyer shall purchase from Seller under the terms and conditions of this Contract.

 

“Technical Documents”
means all the technical drawings and documents issued by Seller in accordance.

 

“Effective
Date of Contract” means the signature date of the Contract as set forth hereunder.

 

		2.	Product name, quantity and specification

 

	Item	 	Product Name	 	Quantity	 	 	Unit Price	 	 	Price(RMB)	 
	1	 	HRS boiler with steam drum	 	 	2	 	 	 	3,325,366.01	 	 	 	6,650,732.02	 
	2	 	HRS boiler auxiliaries	 	 	2	 	 	 	874,054.08	 	 	 	1,748,108.16	 
	3	 	HRS mist eliminators	 	 	2	 	 	 	2,534,577.76	 	 	 	5,069,155.52	 
	4	 	HRS 1-stage distributor	 	 	2	 	 	 	2,826,438.22	 	 	 	5,652,876.44	 
	5	 	HRS heater	 	 	2	 	 	 	1,998,695.60	 	 	 	3,997,391.20	 
	6	 	HRS dilutor	 	 	2	 	 	 	2,821,650.36	 	 	 	5,643,300.72	 
	7	 	HRS process analyzers	 	 	2	 	 	 	526,665.51	 	 	 	1,053,331.02	 
	8	 	Lubrite Slide Plates	 	 	2	 	 	 	48,497.11	 	 	 	96,994.22	 
	9	 	Steam Injection Chamber	 	 	2	 	 	 	351,110.34	 	 	 	702,220.68	 
	10	 	Steam Injection Chamber	 	 	2	 	 	 	1,212,427.89	 	 	 	2,424,855.78	 

 

    	 

    	 

    
 

		3.	Contract Price

The Total
Price of the Contract shall be RMB 33,038,965.76 (SAY RMB thirty three million thirty eight thousand nine hundred and sixty five
point seven six).

The itemized
unit price of this contract shall specify in this contract.

 

		4.	Payment Terms and Payment Schedule

 

		4.1	The Buyer shall make the payment by T/T in the amount of RMB 10.18 million to the Seller before
December 25, 2012.

The Seller
shall issue the corresponding amount of invoice of value added tax to the Buyer within 25 calendar days from the signature date
of this contract.

 

		4.2	The Buyer shall make the payment by T/T in the amount of RMB 20.36 million to the Seller before
March 10, 2013.

The Seller shall issue the corresponding
amount of invoice of value added tax to the Buyer within 55 calendar days from the signature date of this contract.

 

		4.3	The Buyer shall make the inspection and acceptance during delivery. The Seller or designated personnel
shall complete the installation and test, as well as signature to confirm by both parties. The Buyer shall make the final payment
within 28 calendar days from the progress payment (RMB 20.36 million) date. The Buyer shall make the final payment in the amount
of RMB 2,498,965.76 to the Seller. And the Seller shall issue the corresponding amount of invoice of value added tax to the Buyer
simultaneously.

 

		4.4	All funds paid by Buyer to Seller shall be reached to the Seller’s bank account via bank.
Seller’s bank details are as follows:

Company name: China
Great Wall Industry Co. Ltd.

Account Bank: China’s
Bank of Communication, haidian Branch

Account Number: 110060576012013001156

 

		5.	Shipment and Delivery

 

		5.1	Deliver the equipments via land carriage under this contract.

		5.2	The Seller shall deliver the equipments to designated place within 60 calendar days from the signature
date of this contract.

		5.3	The Seller shall be responsible for the installation and test. The security management and responsibilities
of security incidents shall be assumed by the Seller during test.

 

		6.	Quality Warranty

Subject to the Limitations
of Article 9 and except as otherwise provided herein, Seller warrants title to the Products sold hereunder:

 

		(1)	In respect to the products, the Seller warrants, which are not subject to any encumbrance, and
that they shall conform to Seller's specifications there for, and do not infringe upon the third party's intellectual property.

 

    	 

    	 

    
 

		(2)	Seller further warrants that the Products will be free from defects due to materials or workmanship
until the expiration of the earlier of twelve (12) months from the date that acid is first introduced into the HRS Plant. If, within
thirty (30) days after Buyer's discovery of any such defects, and, in any event, prior to the expiration of the Warranty Period,
Buyer shall notify Seller thereof in writing, Seller shall, at its option promptly repair or replace, that portion of the Products
found by Seller to be defective.

		(3)	During the Warranty Period, the equipment and/or materials to be supplied under Seller's warranty
obligations, which is for repairing and/or replacing any defective items of the Products attributable to Seller’s faults,
the Seller shall assume the expense of providing the equipment and/or materials during the range of warranty.

 

		7.	Inspection

 

7.1 Before
delivery, the Seller shall inspect the goods, issuing the inspection report and signing on it.

7.2 When delivery,
the Buyer or Principal shall inspect the goods according to delivery list provided by the Seller.

 7.3 When
open-package inspecting, both parties shall confirm by signatures in respect to products’ quantity, model and external packing,
if any dissent, both parties shall sign to confirm on the spot.

 7.4 After
the Seller completing the installation and test in accordance with the Buyer and this contract, both parties shall sign to confirm
for the result of installation and test, if any dissent, both parties shall sign to confirm on the spot.

 

		8.	Settlement Ways of Quality Assurance

If Buyer finds
defective items as specified in article 6, the Seller shall assume the corresponding responsibility.

The Seller
has rights to address the quality assurance compensation event by the ways of following:

 

		(1)	Devalue the Products according to the degree of inferiority, extent of damage and amount of losses
suffered by the Buyer.

		(2)	Repair or replace if needed, the defective Products partly or wholly with new parts, components
or equipment which conforms to the specifications and quality as stipulated in this Contract. Buyer shall be responsible for the
removal / installation costs.

 

		9.	Default Responsibilities

 

		9.1	If fails to make the payment before the maturity date as stipulated in this contract, the Buyer
will assume the default responsibilities. In addition, the Seller still can charge an interest fee to Buyer, carrying a daily interest
rate of 0.01% from the due date to actual payment date upon unpaid amount, but shall in no event exceed 5% of unpaid amount.

 

    	 

    	 

    
 

		9.2	If fails to deliver the goods before the maturity date as stipulated in this contract, the Seller
shall assume the corresponding default responsibilities. In addition, the Buyer still can charge an interest fee to Seller, carrying
a daily interest rate of 0.01% from the stipulated delivery date to actual delivery date, but shall in no event exceed 5% of the
amount of undelivered equipment.

 

		10.	Limitation of Liabilities

Seller’s
aggregate total liability for any and all losses and damages arising out of any cause whatsoever shall in no event exceed the total
contract price as listed in article 3.

 

		11.	Warranty Liabilities

If the Buyer
cannot make the payment on time, the Buyer’s shareholder, China Energy Recovery, will assume the joint guarantee liabilities
for this contract.

 

		12.	Force Majeure

Where circumstances,
which are beyond either Party’s reasonable control, cause delay in or failure of a Party’s performance of its obligations
pursuant to this Contract, such Party shall not be considered in breach of this Contract or be liable to the other Party, and the
term of implementation of such Party’s respective obligation may be extended accordingly. The aforementioned circumstances
include, but shall not be limited to such cases which will affect the contract execution as natural disaster, war, unrest, fire,
explosion, flood, strikes, port congestion, epidemic, enactment of new laws and acts of the government. When one party fails to
perform or incompletely perform the obligations under this contract due to force majeure, shall inform the counter party of this
contract within 15 calendar days from the date of force majeure occurred, and provided the corresponding evidence within 60 days.
If one party fails to perform the obligations arising from force majeure, the involved party will be partly or fully exempted from
liabilities, except as otherwise provided by law.

 

		13.	Disputes resolution

All disputes
arising from the execution, performance or termination of or in connection with this Contract shall be settled amicably through
friendly negotiation. In case no settlement can be reached through negotiation, the case shall then be finally resolved by submitting
to China International Trading Arbitration Commission. The arbitration shall take place in Beijing and be conducted in Chinese
language according to its procedures and rules of China International Trading Arbitration Commission and the law of the arbitration
shall be the laws of China.

 

		14.	Others

The Contract
is executed with four originals, two of which is held by Buyer and Seller, respectively. This Contract is effective from the date
on which the sign and stamp.

 

    	 

    	 

    

 

( Signature page, no text )

 

Buyer : CER Energy Recovery (Shanghai) Co., Ltd  ( Stamp )

 

The legal representative (authorized representative)

  

Guarantee: China Energy Recovery, Inc.

 

The legal representative (authorized representative)

  

Seller: China Great Wall Industry Co. Ltd. ( Stamp )

 

The legal representative (authorized representative)Integration Credit
Agreement

 

Contract No 201120589

 

Bank of Shanghai

 

    	 

    	 

    

 

Integration Credit
Agreement

 

Borrower: Shanghai Hai Lu Kun Lun Hi-tech
Engineering Co., Ltd (hereafter refer to Party A)

Registered Address: No. 1111, Zhongshan
North Road, Shanghai

Zip: 200092

Business Address: Building#26, No. 1388
Zhangdong Road, Zhangjiang Hi-tech Park, Shanghai ,China

Zip: 201203

Tel: 20282382

Legal representative: Wu Qinghuan

 

Lender: Bank of Shanghai, Pudong Branch
(hereafter refer to Party B)

Address no.699, Zhangyang road, Shanghai

Zip: 200120

Tel : 68409742

Legal representative: Zhu jijin

 

Signing address: Shanghai

 

Party A and Party B enter into this contract
based on the honesty and credibility, with the principles of equality, voluntariness according to “The Law of Commercial
Banks of the People's Republic of China" and “Contract Law of the People's Republic of China”

 

Article one Amount of the loan

 

Item 1 The amount that Party A can
apply for the credit during the period of contract from Party B is RMB 21,000,000.

 

“Integration Credit amount”
under this contract means the max credit which Party B can provide Party A.

 

If the currency type under comprehensive
credit business item is different with the currency type under credit amount, for confirming the balance of credit purpose, convert
the currency to credit amount according to exchange rate of Bank of Shanghai. When exchange rate changed, Party A have right to
convert the currency according to the changed exchange rate.

 

Item 2 The amount under this contract
is used for the following single credit business: working capital loan, bank acceptance, and non-financing guarantee

 

Item 3 The max credit amount of
aforementioned single credit business and the proportion of cash deposit are as follows:

Credit amount RMB 21,000,000, among which
only RMB 15,000,000 can be drawn down for loan purpose. The terms of the loan is one year, and can be used for working capital
in circle, bank acceptance and performance security. The interest rate of the loan shall float up 20% based on the Benchmark interest
rate, and the proportion of cash deposit for bank acceptance and performance security is 30%.

 

    	 

    	 

    
 

Article 2 Terms of Credit

 

Item 4 The use period of credit
amount under item 1 of this contract is from 2012-09-11 to 2013-09-10.

 

Item 5 Party B has right to examine
and check the fulfill status of each detail business at any time, and is entitled to terminate the terms of credit as agreed in
advanced.

 

Article 3 Use of Credit Amount

 

Item 6 Under the terms and amount
of this agreement, Party A shall provide written application to Party B for using the credit. The credit kind, terms and amount
shall be listed in written application. If Party B agreed, both parties shall enter into additional specific business contract
of single credit business (hereunder refer to specific business contract)

 

Item 7 Party A apply for the credit
amount, shall satisfy the followings:

		(1)	This contract and guaranty contract are effective and continue to effective.

		(2)	Party A has submitted to Party B with credit amount application and relative materials.

		(3)	There are no significant negative changes on Party A’s operation and financing situation.

		(4)	Party A’s representation and warranty are authentic, accurate, integrated and effective.
Party A can fulfill obligations agreed by this contract practically, and there are no default cases or may occur default cases.

 

Item 8 The balance of credit amount
used by Party A (the accumulated amount which is using but not be repaid) cannot exceed the line of credit during credit terms.
During the terms of credit, Party A can apply for using the credit once again for the repaid amounts, as for credit amounts which
are not yet used will expire automatically.

 

Item 9 If this contract agreed line
of credit of single business item, Party A shall not exceed the line of credit as agreed by the single business item at any time
within contract period besides obeying item 8 of this agreement.

 

Item 10 Party A shall use
the line of credit within the terms of credit. Line of credit of single business shall obey the agreement of specific business
contract.

 

Article 4 Expenses

 

Item 11 Party B shall collect
management fee and commitment fee from Party A according to the follows:

 

Management fee account for 0 % and
Party B will charge it at maturity date.

Commitment fee account for 0%, and
Party B will charge it at maturity date.

 

Item 12 Any interest rate, exchange
rate and discounted rate which single credit contract applicable will be agreed by both parties in specific business contract.

 

    	 

    	 

    
 

Article 5 Warranty

 

Item 13 Party A shall provide the
following guaranty to Party B when this contract entered into:

Guarantee: Shanghai Chuangye Jieli financing
guaranty Co., Ltd. Contract No.:ZOB20112058901, “Maximum amount of the guaranty contract”

Guarantee: Wu Qinghuan and Wu Chuanwei.
Contract No.:ZOB20112058902, “Maximum amount of the guaranty contract”

 

Item 14 When both parties entered
into specific business contract, Party B has right to request Party A to provide another guaranty except the guaranty under item
13.

 

Article 6 Party A’s Representation
and Warranty 

 

Item 15 Party A is a company which
complies with the laws and regulations of the People's Republic of China and has the civil rights and capacity for action. And
Party A has got all the necessary ratification and authorization under this contract

 

Item 16 Party A guarantees that
Party A will use the credit according to the law and the terms of this contract

 

Item 17 Party A guarantees that
the financial statement and other information which required by Party B will send to Party B on time, and these documents, information
should be true, accuracy, complete, legal and effective

 

Article 7 Party A’s Obligations
and Commitments

 

Item 18 Party A shall use the line
of credit in accordance with this agreement, and Party B has right to check and supervise the fulfill situation of Party A.

 

Item 19 Party A shall send true
and complete financial report, bank account number and deposit balance according to Party B’s request.

 

Item 20 Without the approval of
Party B, Party A cannot provide guaranty for third party or disposal significant assets under this contract.

 

Item 21 Party A shall make sure
that its business nature and operation scope will not have material change after entered into this contract.

 

Item 22 During the effect period
of credit, if there is any material change of Party A’s operation, including but not limited to transfer shares, merger,
division, joint venture, cooperation, joint-operation etc. which may cause an adverse impact on Party B's rights and interests,
Party A should notice Party B in 30 days advance and fulfill the repay and provide the guarantee which agreed by Party B.

 

Item 23 During the effect period,
if there is any change of legal representative, project Manager, address and so on of Party A, Party A should inform Party B in
30 days in written from that day.

 

    	 

    	 

    
 

Item 24 Party A promises to repay
the principal and interest on time and the related payable due under this contract.

 

Item 25 Party A shall not reject
to pay any amounts which shall be assumed by Party A for the reason of commercial disputes.

 

Item 26 As for the payment due under
this contract or specific business contract (including all due in advance), Party B has right to collect directly from the account
opened in Bank of Shanghai or other branch by Party A without Party A’s permission in oral or written.

 

Item 27 Party A make the following
commitment:

		1.	During the terms of credit, Party A’s
settlement amount of import and export business will not less than RMB____. Among this, export business settlement will not less
than RMB____.

		2.	Other foreign currency deposit and settlement as follows:

 

 

 

 Article
8 Default and Default Relief

 

Item 28 During the contract, Party A will
be deemed as default if there is any event as following:

(1) During the period of this contract,
Party A makes clearly or its behavior show that Party A stops repaying or cannot repay the debt and interest under this contract.

(2) Party A fails to use the debt according
to this contract.

(3) Party A fails to fulfill obligations
partly or totally according to this agreement, and have an adverse impact on Party B’s interest.

(4) Party A fails to fulfill obligations
partly or totally according to loan contracts, guaranty contracts and facility contracts entered into with any other third parties.

(5) These affairs which Party B thinks
it may or has damaged Party B’s interest, such as stop operation, bankrupt, lawsuit, administrative penalty and so on

(6) If there is any material events related
to this contract which will damage Party B’s interest, and Party A fails to adopt measures to relief.

 

Item 29 If there is any default
by Party A, Party B has right to adjust or terminate the remaining credit fulfillment of this contract according to the extent
of severity, and has right to adopt the following measures:

 

		(1)	Declare that all debt under this contract and specific business contract due in advance, and request
Party A pay off immediately.

		(2)	Request Party A assume all of expenses related to this debt ( including but not limited to lawsuit
fee and legal fees)

		(3)	Request Party A add guarantee, the forms of guarantee including but not limited to guarantee, collateral
and pledge.

		(4)	Adopt other measures in accordance with laws and regulations as well as this contract.

 

    	 

    	 

    
 

Article 9 Take Effect of Contract

 

Item 30 The contract will take effect
after singing of both Parties and stamped.

 

Article 10 Dispute Resolution 

 

Item 31 If there is any dispute
raise from this contract, both parties should resolve by negotiation. If failed, both parties should resolve by lodge a complaint
to the people's court where Party B located.

 

Article 11 Other

 

Item 32 The notice documents will
be regarded as arrived once send if it through telegram and fax. If use post, then will regarded as arrived in 3 days since the
day sent.

 

Item 33 All of information related
to this contract shall be sent according to the address listed in contract in the form of written.

 

Item 34 The other matters not mentioned,
can be the attachment of both parties. Any attachment, changed or supplement will consist the indivisibility part of the whole
contract.

 

Item 35 This contract is in three
originals. Party A, Party B and guarantee holding one, respectively, and these contracts have the equal legal effect.

 

Item 36 Other items agreed by two
parties

The total open balance working capital
loan, bank acceptance and guarantee is no more than RMB 15 million at any time.

 

Item 37 The Party B has brought
the Party A's special attention to all terms in relation to the rights and obligations of each Party, asked the Party A to fully
and accurately understand all such terms, and upon the Party A’s request, made explanation on relevant terms. The Party A
has carefully read and fully understands all contractual terms hereof and has no dispute over the terms of this Contact.

 

This Contract is entered into at No. 699
Zhangyang Road on September 11, 2012.

 

Party A Shanghai Hai Lu Kun Lun Hi-tech
Engineering Co., Ltd

Legal representative Wu Qinghuan

Sign Date: 2012-9-11

 

Party B Bank of Shanghai, Pudong Branch

Legal representative:

Sign Date: 2012-9-11

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