Document:

Unassociated Document

    

    Exhibit
10.19

    

    HENAN
SHUNCHENG GROUP COAL COKE CO., LTD

    EPC
Contract

    of
160t/h CDQ Project

    

    CONTRACT
NO. :
SC20090628              (PARTY
A)

    CONTRACT
NO. :
WZ0904                
   (PARTY B)

    Party
A: Henan Shuncheng Group Coal Coke Co., Ltd.

    Party
B: Ji Gang Group International Engineering Company Limited

    

    Signed
in June 2009

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    CATALOGUE

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              1.

                                            	
                                              Sub-Contracts
      and Appendixes

                                            	
                                               
      3

                                            
	 	 	 
	
                                              2.

                                            	
                                              the
      Project

                                            	
                                               
      3

                                            
	 	 	 
	
                                              3.

                                            	
                                              Responsibilities
      and Project Description

                                            	
                                               
      3

                                            
	 	 	 
	
                                              4.

                                            	
                                              Scope
      of Work

                                            	
                                               
      4

                                            
	 	 	 
	
                                              5.

                                            	
                                              Scope
      of Equipment Supply

                                            	
                                               
      4

                                            
	 	 	 
	
                                              6.

                                            	
                                              Schedule
      of the Project

                                            	
                                               
      4

                                            
	 	 	 
	
                                              7.

                                            	
                                              Contract
      Price

                                            	
                                               
      4

                                            
	 	 	 
	
                                              8.

                                            	
                                              Description
      of Contract Price

                                            	
                                               
      6

                                            
	 	 	 
	
                                              9.

                                            	
                                              Responsibilities
      and Obligations

                                            	
                                               
      6

                                            
	 	 	 
	
                                              10.

                                            	
                                              Assessment
      and Test

                                            	
                                               
      7

                                            
	 	 	 
	
                                              11.

                                            	
                                              Test
      on Completion

                                            	
                                               
      7

                                            
	 	 	 
	
                                              12.

                                            	
                                              Liability
      for Breach of Contract

                                            	
                                               
      7

                                            
	 	 	 
	
                                              13.

                                            	
                                              Settlement
      of Disputes

                                            	
                                               
      7

                                            
	 	 	 
	
                                              14.

                                            	
                                              Force
      Majeure

                                            	
                                               
      8

                                            
	 	 	 
	
                                              15.

                                            	
                                              Taking
      effects and Miscellaneous

                                            	
                                               
      8

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    Party
A: Henan Shuncheng Group Coal Coke Co., Ltd.

    Party
B: Ji Gang Group International Engineering Company Limited

    

    Henan
Shuncheng Group Coal Coke Co., Ltd. (hereinafter referred to as “Party
A”) and Ji Gang
Group International Engineering Company Limited
(hereinafter referred to as “Party B”) have reached a consensus on the
the 160t/h CDQ
Project through friendly consultation to conclude the EPC contract in
accordance with relevant provisions of Contract Law of the People’s
Republic of China.

     

    Clause
1 Sub-Contracts and Appendixes

     

    
      	
              1.1

            	
              the
      EPC Contract

            

    

     

    
      	
              1.2

            	
              the
      EPC Contract consists of four Sub-Contracts,
  including:

            

    

     

    
      	
              1.2.1

            	
              Sub-Contract
      A: Project Design

            

    

    
      	
              1.2.2

            	
              Sub-Contract
      B: Equipment Supply

            

    

    
      	
              1.2.3

            	
              Sub-Contract
      C: Erection and Construction

            

    

    
      	
              1.2.4

            	
              Sub-Contract
      D: Technical Service

            

    

     

    
      	
              1.3

            	
              Technical
      Appendixes

            

    

    The
parties hereby confirm their clear and accurate understanding of the terms and
conditions of the Contract and its appendixes and will commit themselves to the
clauses as stipulated hereunder. All the documents mentioned hereinabove and the
appendixes attached hereto are hereby made an integral part of the
Contract.

     

    Clause
2 the Project

     

    2.1
Project name: 160t/h CDQ Project of Henan Shuncheng Group Coal Coke Co.,
Ltd.

     

    2.2
Project site: Tongye Town, Anyang County, Henan Province.

     

    Clause
3 Responsibilities and Project Description

     

    3.1
Equipments and Erection and Construction Work under the Contract:

    CDQ
system, initial dust separator, secondary dust separator, heat recovery boiler,
auxiliary equipments of boiler, charging facility of burning coke, recovery
equipments of coke powder, discharging facility of cooling coke, speed-governing
and control system of winding engine, electrical control system and equipments,
PLC control system (including control software), detecting instrument, dust
removal system (the dust separator and its fan and electric motor shall make use
of the exiting equipments), main control building, belt conveyor of cooling
coke, desalted water station, water circulation pump house, power station and
other equipments or construction work as specified in Technical Appendix-Iand
Technical Appendix-III.

     

    
      
         

      

      
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      3.2
Fire-fighting: On account of the specificity of the application and approval and
inspection procedure for the fire-fighting system, Party B shall be responsible
for the design, supply and construction of the fire-fighting system (involving
fire-fighting equipments, Fire Alarm System and fire telephone line), and shall
assist Party A in the application and approval procedure in local authorities.
Party A shall take charge of fire water supply and fire extinguishing
material.

       

      3.3 Party
A shall take the responsibility to obtain the license for construction planning
and the license for construction related to the Project and bear the cost
thereof.

    

     

    3.4 Party
A shall take charge of the design and construction of the road construction and
drainage system of the rain water that does not fall into the scope of the
contractor.

     

    3.5 As
the contractor for the EPC Project, Party B shall be responsible for the design,
civil construction, supply of complete sets of equipment, supply of material,
installation and debugging of the equipments, technical service, training of
operating personnel and warranty service. The technical parameter and the
details relevant to project design, design and supply of complete sets of
equipment and erection and construction could be found in the four Sub-Contracts
and technical appendixes.

     

    Clause
4 Scope of Work

     

    4.1 Scope
of Party B’ s work is specified in Technical Appendix-III of the
Contract.

     

    4.2 Scope
of Party A’ s work is specified in Technical Appendix-III of the
Contract..

     

    Clause
5

     

    Scope
of Equipment Supply is specified in Technical Appendix-IIIof the
Contract.

     

    Clause
6 Schedule of the Project

     

    6.1 The
project shall be completed and start production in 14 months after the signing
of the Contract;

     

    6.2 The
schedule can be postponed after the negotiation by the parties in case of the
following circumstances in the process of the project.

    6.2.1 Work
suspension caused by Force Majeure;

    6.2.2 Delay
of the schedule that is ascribed to Party A.

     

    Clause
7 Contract Price

     

    Party B
shall overall contract the project in the content specified and the scope
defined by the Contract. The Contract Price is RMB  156,000,000 (
ONE HUNDRED AND FIFTY SIX MILLION YUAN), inclusive of the prices of Sub-Contract
of Project Design, Sub-Contract of Equipment Supply, Sub-Contract of Erection
and Construction and Sub-Contract of Technical Service. The Contract Price
hereof is also the price for general contracting which shall be priced once for
ado, in other words, free of any fluctuation of market price or shall not be
affected by the price-adjusting documents issued by relevant
authorities.

    
      
         

      

      
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    7.1
Contract Payment and Settlement

     

    The total
price of the Contract is 156,000,000,
involving:

    The
Sub-Contract Price for Design: 8,000,000 Yuan;

    The
Sub-Contract Price for Equipment Supply: 85,000,000
Yuan;

    The
Sub-Contract Price for Erection and Construction: 57,000,000 Yuan;
and

    The
Sub-Contract Price for Technical Service: 6,000,000 Yuan.

     

    7.2
Payment Terms

     

    7.2.1 Payment
Terms

     

    7.2.1.1
Party A shall pay RMB 7,800,000 to Party B
as the advance payment accounting for 5% of the Contract Price in 10
days after the Contract taking effective;

     

    7.2.1.2
Party A shall pay RMB
15,600,000 to Party B
accounting for 10% of the Contract Price as the first progress payment in
10 days after the kick-off of the Construction;

     

    7.2.1.3
Party A shall pay RMB
31,200,000 to Party B
accounting for 20% of the Contract Price as the second progress payment in 10
days after the signing of the purchase contracts for nitrogen circulation fans,
heat recovery boilers and steam turbine generator sets;

     

    7.2.1.4
Party A shall pay RMB 15,600,000 to Party B
accounting for 10% of the Contract Price as the third progress payment in three
months after the signing of the purchase contracts for nitrogen circulation
fans, heat recovery boilers and steam turbine generator sets;

    7.2.1.5
Party A shall pay RMB 31,200,000 to Party B
accounting for 20% of the Contract Price as the fourth progress payment in 10
days after the arrival of the nitrogen circulation fans, heat recovery boilers
and steam turbine generator sets at the construction site;

     

    7.2.1.6
Party A shall pay RMB 15,600,000 to Party B
accounting for 10% of the Contract Price as the fifth progress payment in 10
days after the commissioning of the project;

     

    7.2.1.7
Party A shall pay RMB
23,400,000 to Party B
accounting for 15% of the Contract Price as the sixth progress payment in 10
days after the competition of the project and start of production;

     

    7.2.1.8
The remaining 10% of the Contract Price, viz. RMB 15,600,000, shall
be used as quality deposit which shall be paid in a lump sum in 14 days after
the one-year guarantee period (calculated from the date of completion)
expires.

     

    7.2.2 Payment:
By bank draft (including acceptance draft) or T/T. In case of bank draft, the
payment by cash order shall not lower than 50% of each Contract Payment whereas
the payment by acceptance (honored within three months to six months) shall not
exceed 50% of each Contract Payment.

    
      
         

      

      
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    Clause
8 Description of Contract Price

     

    8.1
Contract Pricing

     

    The
Contract price is worked out in accordance with the content and scope defined by
the technical appendixes agreed by the parties and the relevant laws,
regulations, rules and standards in force. The Project quality shall be in
conformity with the current national technical standards and criteria. The
Contract Price includes the cost or expenses for the plant design, equipment
supply, technical service during the erection and construction and system
programming and debugging.

     

    The
Contract Price excludes expenses for use of land, expenses for geological
exploration, afforesting fees, expenses for supply of electricity, water and
road access as well as ground leveling, expenses for the demolishment and
rebuilding of the existing pipelines and buildings, expenses for piling and
dynamic compaction if any, expenses for dewatering and supporting measures if
any, expenses for non-returnable fillings in the equipment (for example
hydraulic oil) and expenses for access to power distribution
system.

    Party A
shall provide the energy resources free of charge for the Project’s
commissioning.

     

    Clause
9 Responsibilities and Obligations

     

    
      	
              9.1

            	
              Responsibilities
      and obligations of Party B

            

    

     

    
      	
              9.1.1

            	
              Party
      B shall provide Party A with the qualification certificates that are
      necessary to the Project;

            

    

    
      	
              9.1.2

            	
              Party
      B shall ensure the Project to be completed on schedule with good
      quality;

            

    

    
      	
              9.1.3

            	
              Party
      B shall provide Party A with design technical materials and drawing as
      specified in Technical Appendix-V attached
      hereto;

            

    

    
      	
              9.1.4

            	
              Other
      responsibilities and obligations that shall be assumed by Party B
      according to the clauses of the four
  Sub-Contracts.

            

    

     

    
      	
              9.2

            	
              Responsibilities
      and Obligations of Party A

            

    

     

    
      	
              9.2.1

            	
              Party
      A shall in a timely manner provide the contractor with the materials
      necessary to the Project as specified in Technical Appendix-IV attached
      hereto;

            

    

    
      	
              9.2.2

            	
              Party
      A shall be responsible for the site preparation
  work;

            

    

    
      	
              9.2.3

            	
              Party
      A shall ensure timely and full payment of the Project funds in accordance
      with clauses hereof;

            

    

    
      	
              9.2.4

            	
              Other
      responsibilities and obligations that shall be assumed by Party A
      according to the clauses of the four
  Sub-Contracts.

            

    

    
      
         

      

      
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    Clause
10 Assessment and Test

     

    The
overall assessment criteria for the Project is Qualified and the
details of the criteria for the assessment and test of the quality of the design
and equipment and the criteria for the assessment and test of the Project
quality can be found in Technical 

     

    Appendix-VI and Technical
Appendix-VII
attached hereto.

     

    Clause
11 Test on Completion

     

    11.1
Party B shall assist Party A in Test on Completion when the Project is ready for
Test on Completion;

     

    11.2
Warranty

    More
details about quality warranty of the Project are given in the
Sub-Contracts.

     

    Clause
12 Liability for Breach of Contract

     

    12.1 The
Project shall be completed and start production on schedule with the guaranteed
performance parameters as provided in the Contract. Party B shall pay delay
damages to Party A in case of any delay attributable to Party B or the Project
fails to conform to the guaranteed performance parameters as provided in the
Technical Appendixes attached hereto. If the Party B suffers delay and/or incurs
cost as a result of delay for which Party A is responsible, Party B shall be
entitled to an extension of time for any such delay or payment of any such cost
in accordance with relevant regulations and standards. Liabilities other than
the liability hereof are specified in Sub-Contracts.

     

    12.1.1
The delay damages shall be paid with the amount of 0.1‰ of Contract
Price for every day which shall elapse between the completion date stated in the
Contract and the date when the Project actually starts production;

     

    12.1.2
Party B shall pay liquidated damages of 0.2% of the Sub-Contract Price for
Equipment Supply in case of any non-conformity of the guaranteed performance
parameter for the product and equipment, and shall be obligated to improve such
product or equipment to the guaranteed performance parameters as provided in the
Contract;

     

    12.1.3
The total amount of liquidated damages due under this Contract shall not exceed
2% of Sub-Contract Price for Equipment Supply.

     

    Clause
13 Settlement of Disputes

     

    13.1 Any
disputes arising from or in connection with this Contract shall be settled
through friendly negotiation by the parties in a timely manner;

     

    13.2 If
negotiation fails, the parties agree to summit the disputes to the court at the
Project site.

    
      
         

      

      
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    Clause
14 Force Majeure

     

    14.1 In
case either party is prevented from performing any of its obligations under the
Contract by Force Majeure, the party shall be entitled to an extension of time
for any such delay. The performance of the obligations shall be excused for so
long as such Force Majeure prevents it from performing them.
Force Majeure hereby means any objective circumstance which is
unforeseeable, unavoidable and insurmountable, such as war, fire, flood,
typhoon and earthquake.

     

    14.2 If a
party is prevented from performing any of its obligations under the Contract by
Force Majeure, then it shall give notice to the other Party of the event or
circumstances constituting the Force Majeure in writing such as facsimile, and
send by express mail or registered mail a certificate of the event or
circumstances issued by relevant authority to the other party within 14 days
after the occurrence of such event or circumstances. An agreement on further
performance of the Contract shall be reached between the parties through
friendly negotiation with a reasonable time if the works in progress is
prevented for a continuous period of more than 120 days by reason of Force
Majeure.

     

    Clause
15 Taking effects and Miscellaneous

     

    15.1 The
Contract shall be effective upon signing by the authorized representatives
designated by the parties and sealing by both parties. The Contract shall be the
guideline of the Sub-Contracts and the Technical Appendixes attached
hereto.

     

    All
appendixes stated in the Contract and the correspondences, fax, minutes of
meeting and minutes of talks signed by the authorized representatives of the
parties for the performance of the Contract shall have the same effect as the
Contract.

     

    15.2 The
Contract shall be in two originals, one for each party; in eight copies and each
party shall hold four copies.

     

    15.3 Ji
Gang Group International Engineering Company Limited is the EPC Contractor under
the Contract and shall be responsible to fulfill the Contract;

     

    15.4 All
revision, supplementary and amendment to the Contract shall be made in writing
and shall become effective upon signing and sealing by the parties as one of the
appendixes attached to the Contract;

     

    15.5 All
Sub-Contracts shall enter into force upon signing the Contract if the clauses of
the Technical Appendixes and the terms and conditions of the Sub-Contracts are
negotiated and agreed by the parties in accordance with the contract principles
mentioned hereinabove.

     

    15.6 In
case of any discrepancy between the Contract and the Sub-Contracts, the Contract
shall prevail.

     

    15.7 The
Contract is signed at Tongye Town, Anyang County,
Henan Province.

     

    <No
clause in the signature page>

    
      
         

      

      
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    PARTY
A:

     

    Henan
Shuncheng Group Coal Coke Co., Ltd.

     

    Legal
Representative: /s/ Wang Xinshun

     

    or
Authorized Representative: [illegible]

     

    Address: Tongye Town, Anyang
County, Henan Province

     

    Postal Code:
455141

     

    Tel: (+86)
0372-3206721

     

    Fax: (+86)
0372-3206721

     

    Opening
Bank:

     

    Bank
Account:

     

    PARTY
B:

     

    Ji
Gang Group International Engineering Company Limited

     

    Legal
Representative: /s/ Man Hai Long

     

    or
Authorized Representative:

     

    Address: No. 21, Gongye North
Road, Jinan City, Shandong Province

     

    Postal Code:
250101

     

    Tel: (+86)
0531-88862850

     

    Fax: (+86)
0531-88868084

     

    Opening Bank: Dongjiao
Sub-Branch, Jinan Branch, Industrial and Commercial Bank of China.

     

    Bank Account:

    
      
         

      

      
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      HENAN SHUNCHENG
GROUP

    

    
      

      160T/H CDQ Project Sub-Contract
A:Project
Design

    

    

    
      Contract Number:SC20090628               (Party
A)

    

    
      Contract Number:WZ0904                   
 (Party B)

    

    
      Party A:Henan Shuncheng Group Coal
Coke Co., Ltd.

    

    Party
B:Ji Gang
Group International Engineering Company Limited

    June, 2009

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      Party A:Henan Shuncheng Group Coal
Coke Co., Ltd.

       

    

    
      Party B:Ji Gang
Group International Engineering Company Limited

    

    
       

      WHEREAS, Party A wishes to entrust
Party B to perform design work for 160t
/ h CDQ Project
of Henan Shuncheng Group, NOW
THEREFORE,
through friendly consultation, both Parties agree to reach
this Design Sub-Contract in the form of following provisions and
Appendixes.

       

    

    
      
        Article 1   
Contract
Purpose

         

      

    

    
      1.1. Party A and Party B agree
to carry on design for this project in
accordance with the design scope, technique requirement, etc., as defined in
Article 6 of this Contract.

    

    
      1.2. The effective date of this
Design Contract shall be the date of EPC Contract.

    

    
       

      
        Article 2   
Legal
Basis

      

    

    
       

      2.1. The
Contract Law of the People’s
Republic of China; The Construction Law of the People’s
Republic of China; Regulation
on the Contract of Survey and Design of Engineering Construction, Regulations
on the Administration of the Market for Survey and Design of Engineering
Construction.

      2.2. National and local rules and
regulations concerning management of construction survey and
design.

    

    
      2.3. Construction approval
documents.

    

    
       

      
        Article 3   
Design
Basis

      

       

    

    
      3.1. Technical
Appendixes for EPC Contract of this
project.

    

    
      3.2. National technical standards and rules
for
design.

    

    
      3.3. Design materials delivered
by Party A.

    

    
       

      
        Article 4   
Documents of this Contract
and the Priority Thereof

      

    

     

    All documents of this Contract shall be deemed
as capable of cross-reference to each other. In case that there exists any
ambiguity or inconsistency among the documents of this
Contract, EPC
Contract or
general principles of applicable national laws or rules shall prevail. If, after
execution hereof by both Parties, the documents with the same name or the same
nature are signed at different times, the one signed at later time
shall have priority in implementation over one signed at the prior time. Any
change, modification or amendment document hereto during the performance hereunder
shall be, upon signature of both Parties, effective part hereto.

     

    
      
         

      

      
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        Article 5   
Responsibilities of Both
Parties

      

       

    

    
      5.1. Responsibilities of Party
A

    

     

    
      
        5.1.1. Party A shall pay fees to
Party B in accordance with EPC
Contract.

      

      
        5.1.2. Party A is entitled to know
the design process and element, examine the construction design of the project,
recommend change
and submit request.

      

      
        5.1.3. Party A is entitled to
demand information of equipment
supplier’s factories such as equipment
samples.

      

      
        5.1.4. Party A will regularly
organize project coordination meetings.

      

      
        5.1.5. Party A shall provide to
Party B all necessary data and documents
for the design within stipulated time, and shall be responsible for the
completeness, correctness and time limit thereof. In case that Party A fails to
provide above materials, Party B shall have right to postpone the
delivery of the design documents
accordingly.

      

      
        5.1.6. In case of any change of the
project, size, or conditions of the entrusted design by Party A, or any error
in, or major modification of the materials submitted thereby causing rework of
Party B, both Parties shall re-negotiate to sign a
supplementary contract and re-specify relevant terms, as well as Party A’s payment to Party B of
rework fees at the same proportion based on the workload of Party
B.

      

      
        5.1.7. Party A shall protect the copyright
of Party B’s design, and shall not, without the
consent of Party B, copy, transfer to any third party, or use in any other
project not
contemplated hereof, the design documents
delivered by Party B. Party B is entitled to claim damages against Party
A if any of the above
circumstances (except that Party A makes
any copy required for the construction) occurs.

      

    

     

    
      5.2. Responsibilities of Party
B

    

    
      
      

    

    
      5.2.1. Party B shall complete
the work
hereunder in
accordance with national rules, and the specifications and standards hereunder,
and shall be
responsible for the design work
thereof.

      
        5.2.2. Party B shall warrant that it has independent intellectual property rights
or licensed intellectual property rights to all design elements covered
hereunder.

      

      
        5.2.3. Party B shall strictly
follow the time
period hereunder to deliver design documents and drawings, responsible for the
correctness, completeness and quality of the design documents
delivered thereby.

      

      
        5.2.4. Party B shall follow the
techniques as described in the Appendixes to perform design
work for all
specialist design for process, heating power, electric, civil engineering, and
general layout,
etc.

      

      
        5.2.5. Party B shall cause the
staff thereof to be equipped with experience and capability necessary for the
design work, and shall guarantee that the same will provide
sufficient on-spot service during construction.

      

      
        5.2.6. Party B shall be responsible
for organizing the staff thereof to participate in the design liaison meetings, design examination
meetings and other relevant technical negotiation, make adjustment,
modification and supplement to the design and drawings pursuant to the examination results, and
send, in a timely manner, staff to modify and solve problems on the spot,
assuming travel and change of drawings expenses arising therefrom, if on-spot service technician
is unable to do so.

      

    

    
      

      
        
          
             

          

          
            12

            
              

            

          

          
             

          

        

      

    

    
       

      
        5.2.7.  Party B shall, in principle
of energy saving and low pollution, strictly follow national control
rules for water, oil, air and noise pollution, etc., in performing design and
arrangement of
process work.

        
          5.2.8. Party B shall provide to
Party A the design documents, materials and drawings relating to this
project.

        

        
          5.2.9. For the purpose of smooth construction of this project
and its use thereafter, Party B shall be responsible for the sufficient
explanation, and
solving of technical issues, of this Design
Contract.

        

      

      
        
           

        

      

    

    
      
        Article 6   
Design Elements and
Progress

      

       

    

    
      6.1. Design Scope of Party B:
See Technical Appendix III.

       

    

    
      6. 2. Scope of Work: See
Technical Appendix III.

    

    
      6.3. Design
Progress

      6.3.1. Party B shall complete
all shop drawing design within 6 months after the
signing of this Design Contract, if the external materials as provided by Party
A satisfy the design needs.

      
        
          6.3.2. In the event that Party A
delays the delivery of any materials, Party B shall have right to extend the corresponding design
period accordingly.

        

      

    

    
      
        
        

      

    

    
      
        Article 7   
Design Drawings and Design
Documents

      

    

    

    The
elements of design drawings and design documents delivered shall be those as
provided in the Appendixes to the EPC Contract, and the delivery procedure shall
be such that Party B delivers the design documents to Party A. Party A is
entitled to examine the design documents. See Technical Appendix V for elements
of design documents delivered by Party B.

    

    The
materials shall be in Chinese, and the drawings shall be provided in paper
version. Party B shall be responsible for the integrity and correctness of any
materials delivered thereby.

    

    The final
documents and formats: GB and ISO Standards for drawings, IMS-International
Metric System for sizes and units, GB/T14689—1993 Standard for
drawing format specification, and GB/T14690—1993 Standard for
drawing scale.

     

    
      
        Article 8   
Design
Liaison

      

    

    
      
         

        
          
            8.1. The design liaison meeting is
for the purpose of guaranteeing better design quality, and will not release
liabilities of any Party.

          

          
            8.2. After the delivery of
shop
drawings, Party
B shall conduct design clarification with Party
A.

          

        

         

      

    

    
      
        
          
             

          

          
            13

            
              

            

          

          
             

          

        

      

    

    
       

      
        Article 9   
Change of
Design

      

    

     

    
      9.1. If, during the performance hereunder, Party A requests
modification of this Contract and the design scope and elements thereof, Party B
shall satisfy such
request to the extent possible, and may, when
necessary, properly postpone the time of delivery of drawings.

      9.2. In case of any change of
the project, size, or conditions, of the entrusted design by Party A, or any
error in, or major modification of, the materials
submitted thereby, causing rework of Party B, both Parties shall re-negotiate to
sign a supplementary contract and re-specify relevant terms, as well as Party A’s payment to Party B of
rework fees at the same proportion based on the workload of Party
B.

    

    
       

    

    
      
        Article 10   
Quality Control and
Supervision

      

    

    
      
        
           

          
            
              10.1. Party B shall strictly
follow the national quality standards to perform design
work.

            

            
              10.2. Party B shall guarantee
the effectiveness and applicability of the design standards thereof. If, during
the design,
Party B considers that any original standard shall be replaced by a new one,
Party B shall promptly notify Party A concerning the corresponding
replacement.

            

          

           

        

      

    

    
      
        Article 11   
Contract Price and
Payment

         

      

    

    
      1. The price of this Design
Contract shall be in the amount of RMB 8,000,000.00 Yuan (EIGHT
MILLION
YUAN).

    

    
      2. The fees shall be paid to
Party B in accordance with EPC
Contract.

    

    
       

      
        Article 12   
Breach of
Contract

         

      

    

    
      Any default Party shall
assume liabilities as provided in EPC
Contract.

    

    
       

      
        Article 13   
Confidentiality (See
Confidentiality Agreement)

      

    

    
       

      13.1. Both Parties shall protect the
intellectual
property right
of each other, and any Party shall not, without written consent of the other
Party, modify, copy, disclose to any third
Party other than the owner, or use in any other project not contemplated hereof, the materials and documents
of the other Party. Otherwise, the disclosing Party shall assume all
responsibilities, and pay damages, for any
consequences arising therefrom.

      13.2. The confidentiality
obligations under this Article shall be effective within 10 years after the
expiration of
this Agreement.

       

      
        Article 14   
Force
Majeure

      

    

    
      

    

    If,
during the performance period hereunder, force majeure such as typhoon, flood,
earthquake or any other reason un-attributable to neither Party A or Party B,
causes inability to perform hereunder by one or both Parties, such one or both
Parties shall immediately take measures, mitigating losses arising therefrom to
the extent possible.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
       

      
        Article 15   
Governing Law, Mediation and
Arbitration

         

      

    

    The
rights and obligations of both Parties arising from this Design Contract, and
the formation, validity, interpretation and dispute settlement thereof, shall be
governed by Chinese law.

    

    Any
matters uncovered by this Design Contract shall be settled by both Parties
through friendly negotiation. Any difference during the performance hereunder
shall be settled by both Parties in the spirit of compromise and cooperation,
or, in the event of failure of negotiation, may be referred, by filing a suit,
to People’s Court where the project locates.

     

    
      
        Article 16   
Miscellaneous

      

    

    
      
        
           

          
            
              16.1. Any Appendix listed in the
Design Contract shall have equal legal effect with the
same.

            

            
              16.2. Any modification or
supplementation may be made to relevant provisions hereunder subject to consent
of both Parties, as an integral part of this Design Contract.

            

            
              16.3. This Design Contract shall
be written in two original, with each Party holding one, and in eight copies,
with each Party holding
four.

            

            
              16.4. Any matters uncovered by this
Design Contract may be supplemented by agreements of both Parties. Any
following
Appendix, any relevant agreement and any telegraph, fax and minute as approved
by both Parties, etc., shall be the integral part hereof, with the same legal
effect as this Design Contract.

            

          

           

        

      

    

    
      
        Article 17   
Appendices

      

       

    

    
      17.1. Confidentiality
Agreement

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    Confidentiality
Agreement on

     

    160t/h
CDQ Project of Henan Shuncheng Group

    

    Party A:
Henan Shuncheng Group Coal Coke Co., Ltd.

    Party B:
Ji Gang Group International Engineering Company Limited

    

    The
Confidentiality Agreement is concluded and signed on the basis of 160t/h CDQ
Project of Henan Shuncheng Group (hereinafter referred to as “the
Project”).

    

    
      	
              1.

            	
              Definitions

            

    

    In the
Agreement, “Party A’s Confidential Information” shall refer to the confidential
information disclosed directly or indirectly by Party A to Party B. It includes,
but is not limited to Party A’s business information and other intellectual
property information provided by Party A to Party B or received by Party B
resulting from signature of the Agreement, no matter in what forms or manners
the information is disclosed, and no matter whether the information is marked
confidential or not.  The copyrights of the aforesaid documents or
information are and shall remain in Party A’s sole and exclusive property all
the while.

    In the
Agreement, “Party B’s Confidential Information” shall refer to the confidential
information disclosed by Party B to Party A. It includes Party B’s business
information and the intellectual property right acquired by Party B before Party
B’s undertaking of the Project; it also includes the project drawings design
documents, purchase, technology secrets and know-how generated by Party B in the
construction of the Project, as well as other design documents required by the
Project, no matter in what forms or manners the information is disclosed, and no
matter whether the information is marked confidential or not. The copyrights of
the aforesaid documents or information are and shall remain in Party B’s sole
and exclusive property all the while.

    Disclosing
Party: the party who discloses (the confidential information) to the other
party;

    Receiving
Party: the party who receives the confidential information;

    Disclosed
Party: the party whose confidential information is disclosed.

    

    
      	
              2.

            	
              Confidential
      Obligations

            

    

    Either
party to the Confidentiality Agreement, if as the receiving party of the
confidential information, shall promise:

    
      	
              2.1

            	
              It
      agrees not to use any confidential information disclosed by the other
      party for any purpose other than the Project under the
      Agreement.

            

    

    
      	
              2.2

            	
              The
      receiving party agrees to keep strictly confidential the confidential
      information of the disclosing party and without written consent of the
      disclosing party, the receiving party may not disclose, divulge, sell,
      transact, reproduce or use the confidential information in any form, or in
      other projects (including the bidding documents) refer to the parameters
      in the documents (such as furnace profile) of the disclosing
      party.

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      	
              2.3

            	
              If
      disclosing the confidential information with written consent of the
      disclosing party, the receiving party shall adopt all the necessary
      measures to strictly control the confidential information within the
      disclosure scope as required by the
Project.

            

    

    
      	
              2.4

            	
              If
      the receiving party needs to disclose the confidential information to a
      third party for the purpose of the Project, it shall conclude and sign a
      confidentiality agreement with the third party in advance under the terms
      no less favorable than the requirements in the Agreement, and it shall
      file an application to and obtain written consent of the disclosed party
      before the disclosure of the confidential
  information.

            

    

    
      	
              2.5

            	
              The
      term of confidential obligations undertaken by the receiving party herein
      shall be ten (10) years after the termination of the Agreement, effective
      continuously from the date on which the disclosing party discloses the
      confidential information.

            

    

    
      	
              2.6

            	
              The
      receiving party agrees to return all the originals and copies of the
      confidential information to the disclosing party or to destroy the same
      immediately upon the request of the disclosing
  party.

            

    

    

    
      	
              3.

            	
              Liabilities
      for Breach of Confidential
Obligations

            

    

    If the
receiving party breaches its confidential obligation as stipulated in the
Agreement, it shall be responsible for all the consequences, compensate the
disclosing party for all its losses caused therefrom and eliminate adverse
effects caused therefrom.

    

    
      	
              4.

            	
              Miscellaneous

            

    

    
      	
              4.1

            	
              The
      Agreement shall be governed by and construed in accordance with the laws
      of the People’s Republic of China.

            

    

    
      	
              4.2

            	
              Any
      disputes arising from or in connection with the Agreement shall be settled
      by negotiation of both parties; in case no agreement can be reached, both
      parties agree to submit the disputes to the people’s court at Party A’s
      place of domicile.

            

    

    
      	
              4.3

            	
              The
      Agreement shall be implemented upon signature by the representatives of
      both parties.

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    HENAN
SHUNCHENG GROUP COAL COKE CO., LTD

    160t/h
CDQ Project

    Sub-Contract
B: Equipment Supply

    

    CONTRACT
NO. :
SC20090628              (PARTY
A)

    CONTRACT
NO. :
WZ0904                  
(PARTY B)

    Party
A: Henan Shuncheng Group Coal Coke Co., Ltd.

    Party
B: Ji Gang Group International Engineering Company Limited

    

    Signed
in June 2009

    (Signatures)

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

    Party
A: Henan Shuncheng Group Coal Coke Co., Ltd.

    Party
B: Ji Gang Group International Engineering Company Limited

     

    Article
1 General Provisions

     

    1.1 Party
B shall be responsible for the manufacture, supply and transportation of the
equipments under the Sub-Contract, and shall assume the full responsibility for
the technical performance and quality of the equipments under the
Sub-Contract.

    1.2 Party
B shall supply the equipments in accordance with the articles of the Technical
Appendixes attached to the EPC Contract and relevant technical materials
provided by Party A.

    1.3 All
expenses for Party A’s personnel at the site during the execution of the
Sub-Contract shall be borne by Party A. Party B shall provide Party A’s
personnel with necessary work convenience.

    1.4 Party
B shall be responsible for the bidding and bid negotiation of the equipment
procurement and Party A can participate in the whole process of the evaluation
for technical part of the tender and confirm the technical appendixes attached
to the EPC Contract along with Party B; The evaluation for commercial part of
the tender shall be carried out by Party B. The comprehensive evaluation
comments hereof shall be put on file after the negotiation between the
parties.

    1.5 The
special equipments and installation services hereof (such as pressure vessel,
partial pressure piping and environmental protection equipment) supplied by
Party B shall be inspected by Anyang Bureau of Quality and Technical Supervision
pursuant to relevant national industry standard at Party A’s expense. Party A
shall assume the responsibility to obtain the documents or other materials
required by the inspection mentioned hereinabove and to provide the support
personnel for assistance if required by inspection or the appliance and
instrument necessary for the inspection. Party B shall assist Party A in the
procedure or activities stated hereinabove and provide the certificates of use
or licenses for the above-mentioned equipments.

     

    Article
2 Quantity and Main Technical Parameters of the Equipments

     

    Please
refer to the Technical Appendix-IIand Technical Appendix-III of the EPC
Contract.

     

    Article
3 Sub-Contract Price

     

    3.1 The
Sub-Contract price hereof is RMB 85,000,000 (FOR EIGHTY FIVE MILLION YUAN
ONLY).

    3.2 The
Sub-Contract price is a lump sum price, inclusive of equipment costs, packing
charge, transportation expenses, VAT, etc.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    Article
4 payment Terms

     

    Please
refer to the payment terms as stated in the EPC Contract.

     

    Article
5 Delivery and Terms of Delivery

     

    5.1
Schedule of Delivery: as specified in Technical Appendix- IX attached to the EPC
Contract.

    5.2 Place
of Delivery: Project site.

    5.3 Party
B shall be responsible for transportation of the equipments from manufacturing
plant to the Project site, and all expenses incurred and the insurance expenses
hereof have been included in the Contract Price. Party B shall be liable to
charge and discharge the equipments. Party B shall fulfill the duties as
required except the responsibility for storage of the equipments which shall
fall on Party A after the arrival of the equipments at the site.

    5.4 The
attached documentation such as packing list, drawings (as specified in Technical
Appendixes attached), Manufacturer’s Certificate of Quality and Instruction Book
shall be complete and normative. Party B shall provide all the completion
materials in one month after it passed the Test on Completion.

    5.5
Conditions of Delivery: considering the transportation condition, the equipments
will be delivered in parts and Party B shall be responsible for the installation
at the site and the expenses for installation works will be borne by Party
B.

     

    Article
6 Quality Standard, Test and Trial Operation

     

    6.1 The
quality standard and test of the equipments under the Sub-Contract shall be in
conformity with relevant national standards in force and the Technical
Appendix-VI attached to the EPC Contract.

    6.2 Party
B shall give notice to Party A as of requiring Party A to send relevant
personnel for supervision in 5 days before the assembly integration of major
components in the process of equipment manufacture.

    6.3 Party
B shall give notice to Party A for Party A’s participation in inspection 5 days
before the combined trial operation of main equipments of steam turbine
generator.

     

    Article
7 Performance Test Run and Taking-Over Certificate

     

    7.1 The
performance test run shall be jointly carried out by Party A and Party B during
the installation of the equipments under the Sub-Contract.

    7.2 The
performance test run of the equipments shall conform with relevant national
standards and the guaranteed performance parameters provided by Technical
Appendix-VII of
the EPC Contract. The Taking-Over Certificate shall be issued to Party B in 7
days after the pass of the performance test run and shall be in six originals.
Each Party shall hold three originals. Thus, the contract equipments are
accepted.

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    7.3 The
quality warranty period for the equipments under the Sub-Contract shall be
twelve months from the date when the equipments start operation after taking
over.

    7.4 Party
B shall assume the responsibility as an escort of the equipment system for three
months after the system is put into production.

     

    Article
8 Liability for Breach of Contract

     

    As
specified in the EPC Contract.

     

    Article
9 Force Majeure

     

    The
relevant provisions of Contract Law of the People’s
Republic of China shall apply in case of Force Majeure during the
performance of the Sub-Contract.

     

    Article
10 Settlement of Disputes

     

    10.1 Any
disputes arising from or in connection with this Sub-Contract shall be settled
through friendly negotiation by the parties in a timely manner; if negotiation
fails, the parties agree to summit the disputes to the court at the Project
site.

    10.2
During the settlement of dispute, other Articles in the Sub-Contract that may
not be affected and shall be performed continuously.

     

    Article
11 Taking effects and Miscellaneous

     

    11.1 The
Sub-Contract shall be effective upon signing by the authorized representatives
designated by the parties and sealing by both parties.

    11.2
Other matters not contained in the Sub-Contract shall be settled friendly by
negotiation.

    11.3 The
Sub-Contract shall come into effect upon signing and sealing by the parties and
is to be terminated after both parties fulfill their responsibilities as
provided in the Sub-Contract. The Sub-Contract shall be in two originals,
respectively held by each party; in eight copies and each party shall hold four
copies.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    Henan
Shuncheng Group 160t/h CDQ Project

    

    Sub-Contract
C: Erection and Construction

    

    Contract
No. SC 20090628 (Party A)

    Contract
No. WZ0904 (Party B)

    Party A:
Henan Shuncheng Group Coal Coke Co., Ltd.

    Party B:
Ji Gang Group International
Engineering Company Limited

    

    Date:
June 2009

    

    (Signatures
by hand)

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    Part
One Agreement

    

    Party A
(Full Name): Henan Shuncheng Group Coal Coke Co., Ltd.

    

    Party B
(Full Name): Ji Gang Group
International Engineering Company Limited

    

    According
to the Contract Law of the
People’s Republic of China, the Construction Law of the People’s Republic of
China, and other relevant laws and regulations, following the principles
of equality, free will, fairness and good faith, and based on the EPC Contract
(“Primary Contract”),
the two Parties hereby reach and enter into this Contract in respect to the
installation and construction engineering of this Project herein.

    

    
      	
              1.

            	
              General Situation of the
      Project

            

    

    

    Project
Name: Henan Shuncheng Group 160t/h CDQ Project

    

    Place of
the Project: Anyang City of Henan Province

    

    Work
Content of the Project: Installation and Construction of Henan Shuncheng Group
160t/h CDQ Project

    

    
      	
              2.

            	
              Work Scope of the Installation
      and Construction Project

            

    

    

    Work Work
scope: The installation, construction and maintenance of Henan Shuncheng Group
160t/h CDQ Project, which including the construction, installation, debugging,
cooling-load commissioning, thermal-load commissioning and maintenance within
the scope of EPC project and including assisting in the trial operation and
meeting the required standard (the details of the work scope are as prescribed
in Annex- “Technical Specification” of the Primary Contract of this
Project).

    

    
      	
              3.

            	
              Construction
      Period

            

    

    

    Construction
Date: 14 months

    

    Commencement
Date: from the Engineer issues the commencement order

    

    Completion
Date: 14 months after signing this Contract

    

    
      	
              4.

            	
              Quality
      Standard

            

    

    

    Quality
Standard for the Project: Up to Required Standard

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    
      	
              5.

            	
              Contract
      Price

            

    

    

    
      	
              5.1

            	
              The
      Contract Price for this Installation and Construction Contract is 57
      million RMB (Amount in Words: Fifty Seven Million Only
    Yuan).

            

    

    

    
      	
              5.2

            	
              Party
      B’s Expenses shall be paid in accordance with the provisions of the EPC
      Contract.

            

    

    

    
      	
              6.

            	
              Integral Documents of the
      Contract

            

    

    

    The
following documents shall be the integral parts of this Contract:

    

    
      	
              6.1

            	
              The
      written agreement of this Contract

            

    

    
      	
              6.2

            	
              The
      General Terms and Conditions of this
Contract

            

    

    
      	
              6.3

            	
              The
      Special Terms and Conditions of this
Contract

            

    

    
      	
              6.4

            	
              Standard,
      Specification and Relevant Technical
  Document 

            

    

    
      	
              6.5

            	
              Drawings

            

    

    

    
      	
              7.

            	
              Relevant
      terms or terminologies in this Agreement shall have the same meanings as
      those defined in Part Two-General Terms and Conditions of this
      Contract.

            

    

    

    
      	
              8.

            	
              Party
      B covenants to Party A that the construction and completion of the works
      shall be conducted strictly according to the Provisions of this Contract
      and that Party B shall assume the quality warranty liabilities for the
      Project within the quality warranty
period.

            

    

    

    
      	
              9.

            	
              Party
      A covenants to Party B that Party A shall pay the Contract Price as well
      as other payables according to the time schedule and the method as
      prescribed in this Contract.

            

    

    

    Part
Two General Terms and Conditions

    

    Section
One Definitions and Contract Documents

    

    
      	
              1.

            	
              Definitions

            

    

    

    Unless
otherwise specifically defined in the Special Terms and Conditions, the
following terms shall have the following meanings as defined below:

    

    
      	
              1.1

            	
              General
      Terms and Conditions: shall mean the terms and conditions which shall be
      generally applied to the construction of the Project and which are
      concluded in accordance with the laws, regulations and the requirements of
      the construction of the works.

            

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    
      

      
        	
                1.2

              	
                Special
      Terms and Conditions: shall mean the terms and conditions reached and
      concluded by Party A and Party B through negotiations by taking into
      account the actual project and based on the laws and regulations, which
      are the further elaborations or supplements or modifications to the
      General Terms and Conditions.

              

      

      

      
        	
                1.3

              	
                Party
      A: shall mean the Party who has the qualification to be the employer of
      the Project and who has the capability to pay the project price and its
      legal successor who is qualified to be such Party of this
      Contract.

              

      

      

      
        	
                1.4

              	
                Party
      B: shall mean the Party who has the qualification to be the contractor of
      the construction works and who is admitted by Party A as prescribed in the
      Agreement as well as its legal successor who is qualified to be such Party
      of this Contract.

              

      

      

      
        	
                1.5

              	
                Project
      Manager: shall mean the representative designated by Party B in the
      Special Terms and Conditions to be responsible for the construction
      management and the performance of this
Contract.

              

      

      

      
        	
                1.6

              	
                Designer:
      shall mean the entity engaged by Party A to be responsible for the design
      of this Project and who has already obtained the corresponding
      engineering-design graded qualification
  certificate.

              

      

      

      
        	
                1.7

              	
                Supervisor:
      shall mean the entity engaged by Party A to be responsible for the
      supervision of this Project and who has already obtained the corresponding
      engineering-supervision rating qualification
  certificate.

              

      

      

      
        	
                1.8

              	
                Engineer:
      shall mean the chief supervision engineer appointed by the Supervisor of
      this Project or the representative designated by Party A to perform this
      Contract, whose identity and powers & duties are further elaborated
      and provided in the Special Terms and Conditions by Party A and Party
      B.

              

      

      

      
        	
                1.9

              	
                Construction-cost
      Administrative Department: shall mean relevant department of the state
      council, the construction administrative department of the people’s
      government at or above the county-level or their entrusted
      construction-cost administrative
institutes.

              

      

      

      
        	
                1.10

              	
                Project:
      shall mean the project within the Work Scope as agreed in the Agreement by
      Party A and Party B.

              

      

      

      
        	
                1.11

              	
                Contract
      Price: shall mean the price agreed by Party A and Party B in the Agreement
      as the consideration to Party B’s completion of all the works within the
      Work scope and Party B’s assumption of the quality warranty liabilities in
      accordance with the provisions of this
Contract.

              

      

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      

      
        	
                1.12

              	
                Additional
      Contract Price: shall mean the additional contract price figured out
      according to the calculation formula of the Contract Price, which is
      confirmed by Party A under the situation that requires increasing the
      contract price during the performance of the
  Contract.

              

      

      

      
        	
                1.13

              	
                Expenses:
      shall mean the expenditures which are not covered by the Contract Price
      and which shall be borne by Party A or Party
B.

              

      

      

      
        	
                1.14

              	
                Construction
      Period: shall mean the total calendar days (including the official
      holidays) of the contracting period as agreed in the Agreement by Party A
      and Party B.

              

      

      

      
        	
                1.15

              	
                Commencement
      Date: shall mean the absolute or relative date when Party B commences the
      construction, as agreed in the Agreement by Party A and Party
      B.

              

      

      

      
        	
                1.16

              	
                Completion
      Date: shall mean the absolute or relative date when Party B completes the
      works within the Work scope, as agreed in the Agreement by Party A and
      Party B.

              

      

      

      
        	
                1.17

              	
                Drawings:
      shall mean all the Drawings (including the supporting instructions and
      relevant documents) which meet Party B’s construction demand, provided by
      Party A or Party B and approved by Party
A.

              

      

      

      
        	
                1.18

              	
                Construction
      Site: shall mean the site provided by Party A for construction and any
      other sites specifically designated by Party A for construction in the
      Drawings.

              

      

      

      
        	
                1.19

              	
                Written
      Form or in Writing: shall mean the written contract, letter, data message
      (including telegram, telex, fax, electronic data interchange and e-mail)
      and other similar forms which can display its content
      tangibly.

              

      

      

      
        	
                1.20

              	
                Liability
      for Breach of Contract: shall mean the liabilities which shall be assumed
      by the Party who fails to perform its obligations under the Contract, or
      whose performance fails to satisfy the requirements of the
      Contract

              

      

      

      
        	
                1.21

              	
                Claim:
      shall mean the claim for economic compensation and/or extension of the
      Construction Period against the counter Party in respect to the actual
      losses arising from the performance of the Contract which are not caused
      by self fault but under which the counter party shall be held liable
      for.

              

      

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

      

      
        	
                1.22

              	
                Force
      Majeure: shall mean any objective circumstances which are unforeseeable,
      unavoidable and insurmountable.

              

      

      

      
        	
                1.23

              	
                Hour
      or Day: For the time calculated based on hours in this Contract, the time
      shall be calculated starting from the effective commencement of the event
      (without deducting the break time).  For the time calculated
      based on days in this Contract, the day of the commencement shall not be
      counted, the time shall be calculated starting from the next
      day.  If the last day of the time period falls into the rest
      days or other official holidays, the next day following the rest days or
      holidays shall be the last day of the time period, however except for the
      Completion Date.  The deadline of the last day shall be 24:00 of
      that day.

              

      

      

      
        	
                2.

              	
                Contract Documents of this
      Contract and the Interpretation
Order

              

      

      

      
        	
                2.1

              	
                The
      contract documents of this Contract shall be interpreted and explained
      mutually.  Unless otherwise specifically agreed in the Special
      Terms and Conditions, the integral documents of this Contract are listed
      as follows and the interpretations shall be conducted according to the
      following orders of the documents
below:

              

      

      

      
        	
                
                

              	
                (1)

              	
                The
      Agreement of this Contract;

              

      

      
        	
              	
                (2)

              	
                Notification
      of Award

              

      

      
        	
              	
                (3)

              	
                Tender
      Book and its Annexes

              

      

      
        	
              	
                (4)

              	
                The
      Special Terms and Conditions of this
Contract

              

      

      
        	
              	
                (5)

              	
                The
      General Terms and Conditions of this
Contract

              

      

      
        	
              	
                (6)

              	
                Standard,
      Specification and Relevant Technical
Documents

              

      

      
        	
              	
                (7)

              	
                Drawings

              

      

      
        	
              	
                (8)

              	
                Bill
      of Quantities  

              

      

      
        	
              	
                (9)

              	
                Quotation
      of Bill of Quantities or Budget
Document

              

      

      

      The
consultations, modifications or other written agreements or documents concluded
during the performance of the Contract by Party A and Party B in respect to the
Project shall be deemed as the integral parts of this Contract. 

        

      
        	
                2.2

              	
                If
      the meanings of the terms and conditions in the Contract Documents are
      ambiguous or inconsistent, without prejudice to the normal progress of the
      Project, Party A and Party B shall settle it through
      negotiations.  The two Parties may also require the Engineer who
      is responsible for the supervision to make relevant
      interpretations.  If the two Parties fails to settle it through
      negotiations or disagree to let the Engineer who is responsible for the
      supervision to make the interpretations, such issue shall be handled and
      settled according to Article 37 of the General Terms and
      Conditions.

              

      

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

      

      
        	
                3.

              	
                Language
      and Applicable Laws, Standard and
Specification

              

      

      

      
        	
                3.1

              	
                Language

              

      

        

      The
Contract Documents are written, interpreted and explained in
Chinese.  If two or more than two languages are required to use by the
Special Terms and Conditions, the Chinese shall prevail in respect to the
interpretation and explanation of this Contract.

      

      
        	
                3.2

              	
                Applicable
      Laws and Regulations

              

      

      

      National
laws and regulations shall be applied to the Contract
Documents.  Other laws and regulations required for explicit
indication shall be agreed by the two Parties in the Special Terms and
Conditions of this Contract.

      

      
        	
                3.3

              	
                Applicable
      Standard and Specification

              

      

      

      The two
Parties shall specify the names of the applicable national standards and
specifications in the Special Terms and Conditions; if there are no national
standards and specifications but there are industrial standards and
specifications, the names of the applicable industrial standards and
specifications shall be specified; if there are no national standards and
specifications as well as also the industrial standards and specifications, the
names of the applicable standards and specifications in the local place where
the Project is located shall be specified.  Party A shall provide the
agreed standards and specifications in duplicate to Party B according to the
time schedule as agreed in the Special Terms and Conditions
thereof.

      

      If there
are no corresponding standards and specification inside China, Party A shall
provide the construction technical requirements to Party B according to the time
schedule as agreed in the Special Terms and Conditions, and Party B shall bring
forward the construction technology according to the agreed time schedule and
requirements which can be implemented after being approved by Party
A.  If Party A requires using the overseas standards and
specifications, Party A shall be responsible to provide Chinese translation
versions.

      

      Party A
shall bear the Expenses in respect to the purchase, the translation of the
standards and specification and the formulation of the construction technology
arising from this Article.

      

      
        	
                4.

              	
                Drawings

              

      

      

      
        	
                4.1

              	
                Party
      B shall provide the Drawings to Party A according to the date and number
      of sets as agreed in the Special Terms and Conditions.  If Party
      A requires increasing the number of sets of the Drawings, Party B shall
      reproduce the Drawings for Party A and relevant copy Expenses shall be
      borne by Party A.  If Party B has any confidentiality
      requirement on the Project, Party B shall raise such confidentiality
      requirement in the Special Terms and Conditions and Party A shall perform
      the confidentiality obligations within the agreed effective term of the
      confidentiality.

              

      

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

      

      
        	
                4.2

              	
                Without
      Party B’s permission, Party A shall not transfer the Drawings of this
      Project to any third party.

              

      

      

      
        	
                4.3

              	
                Party
      B shall retain a complete set of the Drawings on the Construction Site for
      the Engineer and other relevant staff to use when conducting the project
      inspection.

              

      

      

      Section
Two General Rights and Obligations of the Two Parties

      

      
        	
                5.

              	
                Engineer

              

      

      

      
        	
                5.1

              	
                To
      carry out the supervision on the Project, Party A shall notify Party B in
      Written Form of the name of the supervisor who it engages, the supervision
      scope and supervision authority before implementing the
      supervision.

              

      

      

      
        	
                5.2

              	
                The
      chief supervision engineer appointed by the Supervisor is named as “the
      Engineer” under this Contract, whose name, duties and authorities shall be
      specified in the Special Terms and Conditions by Party A and Party
      B.  The Engineer shall exercise its authorities according to the
      provisions of the Contract, if Party A requires that the Engineer shall
      obtain Party A’s approval before it exercises certain authorities, the
      Engineer shall report to Party A for approval in such
      situations.

              

      

      

      
        	
                5.3

              	
                The
      representative dispatched by Party A to perform the Contract on the
      Construction Site is also named as “the Engineer”, whose name, duties and
      authorities shall be specified in the Special Terms and Conditions by
      Party A, however, whose authorities shall not be crossed or overlapped
      with authorities of the chief supervision engineer appointed by the
      Supervisor.  If the authorities of the Engineers from the two
      Parties overlap or ambiguous, Party A shall make clarifications on it and
      notify Party B in Written Form.

              

      

      

      
        	
                5.4

              	
                If
      there is any event which will affect the rights or obligations of Party A
      and Party B arising from the performance of the Contract, the Engineer
      responsible for the supervision shall handle it objectively and fairly
      within its authorities according to the Contract.  If any Party
      has any objection to the Engineer’s disposal, such issue shall be settled
      according to Article 37 of the General Terms and
    Conditions.

              

      

      

      
        	
                5.5

              	
                Unless
      otherwise explicitly agreed in the Contract or agreed by Party A, the
      Engineer responsible for the supervision has no right to terminate any
      rights or obligations of Party B under this
  Contract.

              

      

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

      

      
        	
                5.6

              	
                If
      not to carry out the supervision on the Project, the Engineer under this
      Contract shall refer in particular to the representative dispatched by
      Party A to perform the Contract on the Construction Site, whose specific
      authorities shall be specified in the Special Terms and Conditions by
      Party A.

              

      

      

      
        	
                6.

              	
                Engineer’s
      Appointment and Order

              

      

      

      
        	
                6.1

              	
                The
      Engineer may appoint its representative to exercise its authorities under
      the Contract on its behalf, and may dismiss its representative as it deems
      necessary.  The appointment and dismissal shall be notified to
      Party B by a 7-day prior notice in Written Form, and the Engineer
      responsible for the supervision shall also notify Party A such appointment
      and dismissal.  The appointment and dismissal notices shall be
      the annex of this Contract.

              

      

      

      The
letters issued by the representative of the Engineer to Party B in any Written
Form and within the Engineer’s authorization shall have the same legal effect
with the letters issued by the Engineer.  If Party B has any doubt on
the letters issued by the representative of the Engineer in any Written Form,
Party B may submit such letters to the Engineer for its
confirmation.  If there is any error in the orders issued by the
representative of the Engineer, the Engineer shall correct it.

      

      Except
the Engineer or the representative of the Engineer, other staff dispatched by
Party A to the Construction Site shall have no right to issue any orders to
Party B.

      

      
        	
                6.2

              	
                The
      Engineer’s orders or notices shall be delivered to the Project Manager in
      Written Form after being signed by the Engineer, and shall come into
      effect after the Project Manager signs its name and marks the time of
      receipt on the return receipt.  Party A may issue an oral order
      and make a written confirmation within 48 hours where it is necessary to
      do so, and Party B shall implement such Engineer’s order.  If
      the Engineer is unable to make a timely written confirmation, Party B
      shall ask for the written confirmation within 7 days after the Engineer
      issued the oral orders.  If the Engineer fails to give any
      response within 48 hours upon Party B’s request for written confirmation,
      such oral orders shall be deemed to be
  confirmed.

              

      

      

      If Party
B regards the Engineer’s order is unreasonable, it shall provide to the Engineer
a written report on modifying the orders within 24 hours upon receiving such
orders, the Engineer shall decides to modify the orders or to continue to
implement the original orders within 24 hours upon receiving Party B’s written
report and shall notify Party B in Written Form of its decisions.  If
the Engineer requires Party B to immediately implement the orders under certain
emergencies, or if the Engineer still decides to implement the orders
notwithstanding any doubts raised by Party B, Party B shall implement such
orders.  Party A shall bear the Additional Contract Price and any
losses incurred to Party B arising out of the incorrect orders and the delayed
Construction Period shall be extended accordingly.

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

      

      This
Article shall be also applied to the orders and notices issued by the
representative of the Engineer.

      

      
        	
                6.3

              	
                The
      Engineer shall provide Party B the required orders and approvals timely
      according to the provisions of the Contract and perform other obligations
      as agreed by the two Parties.  If the Construction Period is
      delayed caused by the Engineer’s failure to perform its obligations
      according to the Contract, Party A shall bear the Additional Contract
      Price caused by such delay, compensate for Party B’s relevant losses, and
      shall extend the delayed Construction
Period.

              

      

      

      
        	
                6.4

              	
                If
      requiring replacing the Engineer, Party A shall notify Party B in Written
      Form by a 7-day prior notice, the successor shall continue to exercise the
      authorities of the predecessor and shall continue to perform the
      obligations of the predecessor as provided in the Contract
      Documents.

              

      

      

      
        	
                7.

              	
                Project
      Manager

              

      

      

      
        	
                7.1

              	
                The
      name and positions of the Project Manager shall be specified in the
      Special Terms and Conditions.

              

      

      

      
        	
                7.2

              	
                In
      respect to the notice issued by Party B according to the Contract, it
      shall be delivered to the Engineer in Written Form after being signed by
      the Project Manager and it shall become effective after the Engineer signs
      its name and marks the time of receipt on the return receipt
      thereof.

              

      

      

      
        	
                7.3

              	
                The
      Project Manager shall organize the construction according to the
      construction management plan (construction plan) according to the
      construction recognized by Party A and the Engineer shall organize the
      construction according to the orders issued by the Engineering based on
      the Contract.  Under any emergencies under which the Engineer is
      not reachable, the Project Manager shall take the emergency measures for
      ensuring the human life and the security of the Project and the property,
      and shall deliver a report to the Engineer within 48 hours after taking
      such measures.  If Party A or any third party shall be held
      liable in such situation, Party A shall bear the Additional Contract Price
      arising therefrom and extend the Construction Period accordingly; however,
      if Party B shall be held liable, Party B shall bear relevant Expenses and
      the Construction Period can not
extended.

              

      

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

      

      
        	
                7.4

              	
                If
      Party B requires replacing the Project Manager, it shall notify Party A in
      Written Form at least by a 7-day prior notice and shall obtain Party A’s
      approval.  The successor shall continue to exercise the
      authorities of the predecessor and shall continue to perform the
      obligations of the predecessor as provided in the Contract
      Documents.

              

      

      

      
        	
                7.5

              	
                Party
      A may negotiate with Party B to suggest replacing the incompetent Project
      Manager that Party A regards.

              

      

      

      
        	
                8.

              	
                Party
      A’s Work

              

      

      

      
        	
                8.1

              	
                Party
      A shall complete the following work according to the provisions and time
      schedule as specified in the Special Terms and
  Conditions:

              

      

      

      
        	
                
                

              	
                (1)

              	
                The
      work of land expropriation, compensation for demolition, leveling the
      Construction Site, etc., to procure the Construction Site bear the
      conditions for the construction and continue to settle the left-over
      problems on the aforementioned work after the construction
      commences;

              

      

      

      
        	
              	
                (2)

              	
                connect
      the water, electricity, telecommunication line outside of the Construction
      Site to the place agreed in the Special Terms and Conditions, to meet the
      requirements during the Construction
Period;

              

      

      

      
        	
              	
                (3)

              	
                To
      open the passage connecting the Construction Site and the public urban and
      rural roads, and the main passages within the Construction Site as agreed
      in the Special Terms and Conditions, to meet the requirements of
      construction transportation and to ensure the smooth passages during the
      Construction Period.

              

      

      

      
        	
              	
                (4)

              	
                To
      provide the materials related to the underground utilities of the
      Construction Site to Party B and responsible for the authenticity and
      accuracy of such materials;

              

      

      

      
        	
              	
                (5)

              	
                To
      handle the construction permit and other certificates and approvals
      required for the construction, and handling the formalities of application
      and approval for the temporary site, water supply cut-off, power cut,
      interruption of traffic, blasting operation, etc.(excluding Party B’s
      qualification certificates);

              

      

      

      
        	
              	
                (6)

              	
                To
      determine the bench mark and the coordinate control point and submit them
      to Party B in Written Form, to conduct the on-site delivery and
      check;

              

      

      

      
        	
              	
                (7)

              	
                To
      organize Party B and the Designer to conduct a join checkup on the
      Drawings and a clarification on the
design;

              

      

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

      

      
        	
              	
                (8)

              	
                To
      coordinate to protect the underground utilities surround the Construction
      Site, as well as the adjacent buildings, structures (including the
      architectural conservation) and the ancient and famous trees, and bear
      relevant Expenses;

              

      

      

      
        	
              	
                (9)

              	
                Other
      work which Party A shall fulfill and shall be specified in the Special
      Terms and Conditions by the two
parties.

              

      

      

      
        	
                8.2

              	
                Party
      A may trust part of work listed in Article 8.1 to Party B, which shall be
      specified in the Special Terms and Conditions; and relevant Expenses shall
      be borne by Party A.

              

      

      

      
        	
                8.3

              	
                If
      Party A fails to perform any obligations under Article 8.1 which results
      in delay of the Construction Period or causes any losses incurred to Party
      B, Party A shall compensate relevant losses suffered by Party B and shall
      extend the delayed Construction
Period.

              

      

      

      
        	
                9.

              	
                Party
      B’s Work

              

      

      

      
        	
                9.1

              	
                Party
      B shall complete the following work according to the provisions and time
      schedule as specified in the Special Terms and
  Conditions:

              

      

      

      
        	
              	
                (1)

              	
                As
      entrusted by Party A, to complete the construction drawing design or
      auxiliary project design within its design qualification rating and
      business scope, to implement such designs after being confirmed by the
      Engineer, Party A shall bear relevant Expenses arising
    from;

              

      

      

      
        	
              	
                (2)

              	
                To
      provide the Engineer the annual, quarterly and monthly project schedule
      and the corresponding progress statistical
  reports;

              

      

      

      
        	
              	
                (3)

              	
                As
      required by the project, provide and maintain the non-night-construction
      illumination and fencing, and to be responsible for the security and
      safeguards;

              

      

      

      
        	
              	
                (4)

              	
                Abide
      by the administrative regulations on Construction Site traffic,
      construction noises, environmental protection and safety production issued
      by the competent authorities, to handle relevant formalities as required,
      and to inform Party A in Written Form;  Party A shall bear
      relevant Expenses arising therefrom, except the fines which Party B shall
      be liable for;

              

      

      

      
        	
              	
                (5)

              	
                Before
      the completed Project is delivered to Party A, Party B shall be
      responsible to protect the completed construction works according to the
      provisions of the Special Terms and Conditions and Party B shall repair
      and restore the impaired parts within the protection duration at its own
      cost; if Party A requires Party B to take special measures to protect part
      of the works, such requirement and the corresponding Additional Contract
      Price shall be specified in the Special Terms and Conditions by the two
      Parties;

              

      

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

      

      
        	
              	
                (6)

              	
                To
      protect underground utilities surround the Construction Site, as well as
      the adjacent buildings, structures (including the architectural
      conservation) and the ancient and famous trees according to the provisions
      of the Special Terms and
Conditions;

              

      

      

      
        	
              	
                (7)

              	
                To
      ensure the sanitation status of the Construction Site conforms to relevant
      environmental and sanitation administrative regulations, to clean the
      Construction Site to meet the requirements as specified in the Special
      Terms and Conditions before the work delivery, to bear relevant losses and
      fines caused by its violations of relevant regulations and
      rules;

              

      

      

      
        	
              	
                (8)

              	
                Other
      work which Party B shall fulfill and shall be specified in the Special
      Terms and Conditions by the two
Parties.

              

      

      

      
        	
                9.2

              	
                If
      Party B fails to perform any obligations under Article 9.1 which causes
      any losses incurred to Party A, Party B shall compensate relevant losses
      suffered by Party A.

              

      

      

      Section
Three Construction Management Plan and Construction Period

      

      
        	
                10.

              	
                Construction
      Schedule

              

      

      

      
        	
                10.1

              	
                Party
      B provide the construction management plan and the construction schedule
      to the Engineer according to the time schedule as specified in the Special
      Terms and Conditions; the Engineer shall give confirmation or raise any
      modifications according to the time schedule as specified in the Special
      Terms and Conditions, if no confirmation or written comment is provided
      within the time limit, it shall been deemed as
  “agreed”.

              

      

      

      
        	
                10.2

              	
                If
      the single project among the group projects shall be constructed by
      stages, single project construction schedule shall be formulated which
      shall be specified in the Special Terms and Conditions by the two
      Parties.

              

      

      

      
        	
                10.3

              	
                Party
      B must organize the construction according to the construction schedule
      which is confirmed by the Engineer and must accept the Engineer’s check
      and supervision on the construction progress.  If the actual
      construction progress does not comply with the confirmed construction
      schedule, Party B shall bring forward the improvement measures according
      to the Engineer’s requirement and shall implement such measures after
      being confirmed by the Engineer.  If the actual progress’s
      incompliance with the construction schedule is caused by Party B’s reason,
      Party B has no right to require Additional Contract Price in respect to
      the improvement measures.

              

      

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

      

      
        	
                11.

              	
                Construction
      Commencement and Delay of the Construction
  Commencement

              

      

      

      
        	
                11.1

              	
                Party
      B shall commence the construction on the Commence Date as agreed in the
      Agreement.  If Party B fails to commence the construction
      timely, it shall apply with the Engineer for postponing the construction
      commencement in Written Form no less than 7 days prior to the agreed
      Commencement Date as agreed in the Agreement, by providing relevant
      reasons and detailed requirements.  The Engineer shall response
      to Party B in Written Form within 48 hours after receiving such
      application for postponement.  If the Engineer fails to give any
      response within 48 hours after receiving such application for
      postponement, it shall be deemed that the Engineer consented to Party B’s
      requirement, and the Construction Period shall be extended
      accordingly.  If the Engineer dissents to the requirement for
      postponement or if Party B fails to raise its requirement on postponement
      within the scheduled time, the Construction Period shall not be
      extended.

              

      

      

      
        	
                11.2

              	
                If
      the construction can not be commenced according to the Commencement Date
      as agreed in the Agreement which is due to Party A’s reason, the Engineer
      shall notify Party B in Written Form, to delay the Commencement
      Date.  Party A shall compensate any losses incurred to Party B
      arising from the delay of construction and the Construction Period shall
      be extended accordingly.

              

      

      

      
        	
                12.

              	
                Suspension
      of the Construction

              

      

      

      If the
Engineer regards it is necessary to suspend the Construction, it shall require
Party B to suspend the construction in Written Form and it shall provide a
written approach within 48 hours after raising such
requirement.  Party B shall stop the construction as required by the
Engineer and well protect the completed works.  After Party B
implements the approaches provided by the Engineer, it may apply for resuming
the work in Written Form and the Engineer shall give a response within 48
hours.  If the Engineer fails to provide the written approach within
the scheduled time or fails to give a response within 48 hours after receiving
Party B’s application for resumption of work, Party B may resume the work at its
own discretion.  If the construction suspension is caused by Party A’s
reason, Party A shall bear the Additional Contract Price and compensate any
losses incurred to Party B arising therefrom and the delayed Construction Period
shall be extended accordingly; if the construction suspension is caused by Party
B’s reason, Party B shall bear relevant Expenses and the Construction Period
shall not be extended.

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

      

      
        	
                13.

              	
                Delay
      of Construction Period

              

      

      

      
        	
                13.1

              	
                The
      Construction Period shall be extended accordingly subject to the
      Engineer’s confirmation, provided that the Construction Period is delayed
      due to the following reasons:

              

      

       

      
        	
              	
                (1)

              	
                Party
      A fails to provide the conditions for the commencement of the construction
      according to the provisions of the Special Terms and
      Conditions;

              

      

      

      
        	
              	
                (2)

              	
                Party
      A fails to pay the prepayment and progress payment of the Project
      according to the agreed time schedule, which causes the construction can
      not be normally conducted;

              

      

      

      
        	
              	
                (3)

              	
                The
      Engineer fails to provide the required orders, approvals as agreed in the
      Contract, which causes the construction can not be normally
      conducted;

              

      

      

      
        	
              	
                (4)

              	
                The
      design changes and the quantity of works
  increases;

              

      

      

      
        	
              	
                (5)

              	
                The
      suspension of construction takes more than 8 hours accumulatively within 1
      week which is caused by the supplies cut-off of water, power and gas not
      due to Party B’s reason;

              

      

      

      
        	
              	
                (6)

              	
                Forece
      Majeure;

              

      

      

      
        	
              	
                (7)

              	
                Under
      other circumstances that the Construction Period is extended as specified
      in the Special Terms and Conditions or agreed by the
    Engineer.

              

      

      

      
        	
                13.2

              	
                Party
      B shall report to the Engineer in respect to the delayed Construction
      Period in Written Form within 14 days after the events listed in Article
      13.1 happen.  Party A shall give confirmation within 14 days
      after receiving such report, if no confirmation or modification is brought
      forward within the time limit, it shall be deemed that the Construction
      Period is agreed to be extended.

              

      

      

      
        	
                14.

              	
                Completion
      of Project

              

      

      

      
        	
                14.1

              	
                Party
      B shall complete the Project in compliance with the Completion Date as
      agreed in the Agreement or in compliance with the extended construction
      schedule agreed by the Engineer.

              

      

      

      
        	
                14.2

              	
                If
      the construction cannot be completed in compliance with the Completion
      Date as agreed in the Agreement or in compliance with the extended
      construction schedule agreed by the Engineer, which is caused by Party B’s
      reason, Party B shall be liable for breach of
  contract.

              

      

      

      
        	
                14.3

              	
                During
      the construction, if Party A requires early completing the construction,
      the two Parties shall enter into an early construction completion
      agreement after mutual consultations, which shall be an integral part of
      the Contract Documents. The early construction completion agreement shall
      specify the measures adopted by Party B to ensure the quality and safety
      of the Project, the conditions provided by Party A for the early
      completion and the Additional Contract Price required for such early
      completion, etc.

              

      

      
        
           

        

        
          36

          
            

          

        

        
           

        

      

      

      Section
Four Quality and Inspection

      

      
        	
                15.

              	
                Quality
      of the Project

              

      

      

      
        	
                15.1

              	
                The
      quality of the Project shall reach the quality standard as agreed in the
      Agreement and the evaluation of the quality standard shall be based on the
      national or industrial evaluation standard of the quality
      inspection.  If the quality of the Project can not reach the
      agreed quality standard which is caused by Party B’s reason, Party B shall
      be liable for breach of contract.

              

      

      

      
        	
                15.2

              	
                If
      the two Parties have any dispute over the quality of the Project, such
      dispute shall be identified by the engineering quality test institute
      agreed by the two Parties, and relevant Expenses and the losses incurred
      therefrom shall be borne by the responsible Party.  If two
      Parties are both liable in the said situation, the two Parties shall share
      the liabilities based on their respective
  liability

              

      

      

      
        	
                16.

              	
                Check
      and Rework

              

      

      

      
        	
                16.1

              	
                Party
      B shall conduct the construction strictly according to the requirements of
      the standard, specification and design Drawings as well as the orders
      issued by the Engineer in accordance with the Contract, shall accept the
      Engineer’s check and inspection from time to time, and shall provide
      conveniences for such check and
inspection.

              

      

      

      
        	
                16.2

              	
                If
      the quality of the Project can not reach the agreed standard, once
      discovered by the Engineer, the Engineer shall require Party B to demolish
      and reconstruct, and Party B shall conduct the demolishment and
      reconstruction according to the Engineer’s requirement until the quality
      reaches the agreed standard.  If the substandard is caused by
      Party B’s reason, Party B shall bear the Expenses of the demolishment and
      reconstruction and the Construction Period can not
    extended.

              

      

      

      
        	
                16.3

              	
                The
      Engineer’s check and inspection shall not affect the normal
      construction.  If it affects the normal construction and the
      result of the check and inspection is unqualified, the Expenses arising
      from the impact on the normal construction shall be borne by Party
      B.  Otherwise, the Additional Contract Price arising from impact
      on the normal construction shall be borne by Party A and the Construction
      Period shall be extended
accordingly.

              

      

      

      
        	
                16.4

              	
                Party
      A shall bear the Additional Contract Price arising from the incorrect
      orders issued by the Engineer or the reasons other than Party
      B’s.

              

      

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

      

      
        	
                17.

              	
                Concealed
      Work and Intermediate Acceptance

              

      

      

      
        	
                17.1

              	
                When
      the Project bear the concealed conditions or reach the stage of
      intermediate acceptance as specified in the Special Terms and Conditions,
      Party B shall conduct self-inspection and shall notify the Engineer to
      inspect and accept in Written Form 48 hours prior to the concealment or
      the intermediate acceptance.  The notification shall include the
      content, and the inspection time and place of the concealment and the
      intermediate acceptance.  Party B prepare the inspection and
      acceptance records.  If it’s accepted, the Engineer shall sign
      on the inspection and acceptance records, and then Party B may conduct the
      concealment and continue to construct.  If it’s not accepted,
      Party B shall correct it within the time period determined by the Engineer
      and then conduct the re-inspection.

              

      

      

      
        	
                17.2

              	
                If
      the Engineer fails to conduct the inspection and acceptance timely, it
      shall raise a delay requirement to Party B in Written Form 24 hours prior
      to the inspection and acceptance, and such delay shall not exceed 48
      hours.  If the Engineer fails to raise the delay requirement
      within the aforementioned time limit and fails to conduct the inspection
      and acceptance, Party B may organize its own inspection and acceptance and
      the Engineer shall recognize such inspection and acceptance
      records.

              

      

      

      
        	
                17.3

              	
                Upon
      the Engineer’s inspection, if the quality of the Project conforms to the
      requirements of the standard, specification and design Drawings, however,
      the Engineer does not sign on the inspection and acceptance records within
      24 hours after it is accepted, it shall be deemed that the Engineer has
      already recognized the inspection and acceptance records and Party B may
      conduct the concealment or continue to
  construct.

              

      

      

      
        	
                18.

              	
                Re-inspection

              

      

      

      No matter
whether the Engineer conducts the inspection and acceptance or not, when the
Engineer requires re-inspecting the concealed work, Party B shall strip or punch
holes according to the requirements, and shall recover or restore it after the
re-inspection.  If it is accepted, Party A shall bear all the
Additional Contract Price arising therefrom, compensate Party B’s losses and
extend the Construction Period accordingly.  If it is not accepted,
Party B shall bear all the Expenses arising therefrom and the Construction
Period can not be extended.

      

      
        	
                19.

              	
                Project
      Commissioning

              

      

      

      
        	
                19.1

              	
                If
      the two Parties require the commissioning, the commissioning items shall
      be consistent with Party B’s installation
scope.

              

      

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

      

      
        	
                19.2

              	
                If
      the equipment installation project bear the single-machine and no-load
      commissioning conditions, Party B shall organize the commissioning and
      shall notify the Engineer 48 hours prior to the commissioning in Written
      Form.  The notification shall include the items, time and place
      of the commissioning.  Party B shall prepare the commissioning
      records, and Party A shall provide necessary conditions for the
      commissioning according to Party B’s requirement.  If the
      commissioning is qualified, the Engineer shall sign on the commissioning
      records.

              

      

      

      
        	
                19.3

              	
                If
      the Engineer fails to take part in the commissioning, it shall raise a
      delay requirement to Party B 24 hours prior to the commissioning in
      Written Form; if the Engineer does not take part in the commissioning, it
      shall recognize the commissioning
records.

              

      

      

      
        	
                19.4

              	
                If
      the equipment installation project bear the no-load and linkage
      commissioning conditions, Party A shall organize the commissioning and
      shall notify Party B 48 hours prior to the commissioning in Written
      Form.  The notification shall include the contents, time and
      place of the commissioning as well as the requirements to Party B, and
      Party B shall be well prepared according to the
      requirements.  If the commissioning is qualified, the two
      Parties shall sign on the commissioning
records.

              

      

      

      
        	
                19.5

              	
                The
      two Parties’ Responsibilities

              

      

      

      
        	
                
                

              	
                (1)

              	
                If
      the commissioning cannot reach the acceptance requirement which is due to
      the design reason, Party A shall require the Designer to modify the
      design, and Party B shall re-install according to the modified
      design.  Party B shall bear all the Expenses arising from the
      design modification, demolishment and re-installation, and the
      Construction Period cannot be
extended.

              

      

      

      
        	
              	
                (2)

              	
                If
      the commissioning cannot reach the acceptance requirement which is due to
      the equipment manufacturing, the equipment purchaser shall be responsible
      for the re-purchase or the repair, and Party B shall be responsible for
      the demolishment and re-installation.  If such equipment is
      purchased by Party B, Party B shall bear the Expenses arising from the
      repair or re-purchase, demolishment and re-installation, and the
      Construction Period cannot be extended.  If such equipment is
      purchased by Party A, Party A shall bear the Additional Contract Price for
      the foregoing items and the Construction Period shall be extended
      accordingly.

              

      

      

      
        	
              	
                (3)

              	
                If
      the commissioning cannot reach the acceptance requirement which is due to
      the Party B’s construction, Party B shall conduction the re-installation
      and re-commissioning according to the Engineer’s requirements, shall bear
      the Expenses arising from the re-installation and re-commissioning, and
      the Construction Period cannot be
extended.

              

      

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

      

      
        	
              	
                (4)

              	
                Except
      what is already covered by the Contract Price or unless otherwise agreed
      in the Special Terms and Conditions, the commissioning Expenses shall be
      borne by Party A.

              

      

      

      
        	
              	
                (5)

              	
                If
      the Engineer fails to sign on the commissioning records after the
      commissioning is qualified and  24 hours elapse after completing
      the commissioning, it shall be deemed that the Engineer has already
      recognized the commissioning records, and Party B may continue to
      construct or handle the completion
formalities.

              

      

      

      
        	
                19.6

              	
                The
      commissioning with feeds shall be conducted by Party A after the Project
      is completed and accepted, if Party A requires to conduct it before the
      Project is completed and accepted or if Party A requires Party B’s
      assistance, it shall obtain Party B’s consent and sign a supplementary
      agreement separately.

              

      

      

      Section
Five Safety in Construction

      

      
        	
                20.

              	
                Safety
      in Construction and Check

              

      

      

      
        	
                20.1

              	
                Party
      B shall abide by relevant administrative regulations on safety in
      production of construction engineering, strictly organize the construction
      according to the safety standards, accept the law-based supervision and
      check from the industrial safety inspector, adopt necessary safety
      precaution measures and eliminate the accident threats.  Party B
      shall be liable for the accidents resulting from Party B’s inadequate
      safety precaution measures and shall bear the Expenses arising
      therefrom.

              

      

      

      
        	
                20.2

              	
                Party
      B shall conduct a safety education to its working staff on the
      Construction Site and shall be responsible for the safety of such working
      staff.  Party A shall not require Party B to conduct the
      construction against the safety management rules.  Party A shall
      be liable for the accidents caused by Party A’s reason and shall bear the
      Expenses arising therefrom.

              

      

      

      
        	
                21.

              	
                Safety
      Precaution

              

      

      

      
        	
                21.1

              	
                If
      Party B conducts the construction to the power equipment, electric
      transmission line, underground utilities, or in the air-tight and
      shock-resistance workshop, flammable and combustible place, and the place
      adjacent to the frontage vital communication line, it shall bring forward
      the safety precaution measures to the Engineer, which can be implemented
      after being recognized by the Engineer, and relevant safety precaution
      Expenses shall be borne by Party
A.

              

      

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      
        	
                21.2

              	
                When
      conducting the blasting operation, the construction in the radiant and
      poisonous environment (including storage, transportation and usage), as
      well as using the poisonous and caustic instruments to construct, Party B
      shall notify the Engineer 14 days prior to the construction in Written
      Form and put forward corresponding safety precaution measures, which can
      be implemented after being recognized by the Engineer, and relevant safety
      precaution Expenses shall be borne by Party
A.

              

      

      

      
        	
                22.

              	
                Accident
      Management

              

      

      

      
        	
                22.1

              	
                If
      serious casualties and other safety accidents happen, Party B shall
      immediately report to the competent departments according to relevant
      rules and notify the Engineer, in the mean time, Party B shall deal with
      the accident according to the requirements of the competent governmental
      authorities, and the responsible party for the accident shall bear the
      Expenses arising therefrom.

              

      

      

      
        	
                22.2

              	
                If
      Party A and Party B have any dispute over the responsibility for accident,
      it shall be dealt with according to the competent governmental
      authorities’ determination.

              

      

        

      Section
Six Contract Price and Payment

      

      
        	
                23.

              	
                Contract
      Price and Adjustment

              

      

      

      
        	
                23.1

              	
                The
      Contract Price of the bidding project shall be specified in the Agreement
      by Party A and Party B based on the tender price in the notification of
      award.  The Contract Price of the non-bidding project shall be
      specified in the Agreement by Party A and Party B based on the project
      budget statement.

              

      

      

      
        	
                23.2

              	
                After
      the Contract Price is agreed in the Agreement, any Party shall not modify
      it discretionally. The two Parties may adopt one of the following there
      methods in the Special Terms and Conditions to determine the Contract
      Price:

              

      

      

      
        	
              	
                (1)

              	
                Fixed-price
      Contract: in the Special Terms and Conditions, the two Parties shall
      specify the calculation method of the Contract Price taking into
      consideration of the risk scope and risk Expenses, and the Contract Price
      shall not be adjusted within the agreed risk scope.  The
      adjustment method of the Contract Price beyond the agreed risk scope shall
      be specified in the Special Terms and
  Conditions.

              

      

       

      
        	
              	
                (2)

              	
                Adjustable-price
      Contract: the Contract Price may be adjusted according to the two Parties’
      agreement and the two Parties shall specify the adjustment method of the
      Contract Price in the Special Terms and
  Conditions.

              

      

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      
        	
              	
                (3)

              	
                Cost-plus-
      commission Contract: The Contract Price is composed of the cost and the
      commission, and the two Parties shall specify the cost structure and the
      calculation method of commission in the Special Terms and
      Conditions.

              

      

      

      
        	
                23.3

              	
                The
      adjustment factors affecting the Contract Price under the Adjustable-price
      Contract shall include:

              

      

       

      
        	
              	
                (1)

              	
                The
      change of the laws, regulations and relevant national policies which will
      affect the Contract Price;

              

      

      

      
        	
              	
                (2)

              	
                The
      price adjustment published by the Construction-cost Administrative
      Department;

              

      

      

      
        	
              	
                (3)

              	
                The
      suspension of construction takes more than 8 hours accumulatively within 1
      week which is caused by the supplies cut-off of water, power and gas not
      due to Party B’s reason;

              

      

      

      
        	
              	
                (4)

              	
                Other
      factors agreed by the two Parties.

              

      

      

      
        	
                23.4

              	
                Party
      B shall notify the adjustment reason and amount to the Engineer in Written
      Form within 14 days after the events listed in Article 23.3 happen, and
      the adjusted amount after being confirmed by the Engineer shall be the
      Additional Contract Price after being confirmed by the Engineer which
      shall be paid together with project price.  If the Engineer
      fails to make any confirmation or provide modification comments within 14
      days after receiving Party B’s notice, it shall been deemed that such
      adjustment has been approved.

              

      

      

      
        	
                24.

              	
                Project
      Prepayment

              

      

      

      If
implement the project prepayment, the two Parties shall specify in the Special
Terms and Conditions the payment schedule and amount of the project price that
Party A shall prepay to Party B, and such prepayment shall be deducted according
to the agreed time schedule and proportion after the commencement of the
construction.  The prepayment time shall not be later than 7 days
prior to the agreed Commencement Date.  If Party A fails to prepay the
payment according to the agreement, Party B shall notify Party A to prepay 7
days after the agreed prepayment deadline; if Party A fails to prepay timely as
required after receiving the notice, Party B may suspend the construction 7 days
after issuing the notice, and Party A shall pay to Party B the loan interest on
the payables as of the due payment date and shall be liable for breach of
contract.

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      

      
        	
                25.

              	
                Confirmation
      to Quantity of Works

              

      

      

      
        	
                25.1

              	
                Party
      B shall submit a report on the completed quantities of works to the
      Engineer according to the time schedule as specified in the Special Terms
      and Conditions.  The Engineer shall verify the completed
      quantities (hereinafter referred as “Quantity Verification”)
      of works according to the design Drawings within 7 days after receiving
      such report and shall notify Party B 24 hours prior to the Quantity
      Verification, Party B shall provide conveniences for the Quantity
      Verification and dispatch staff to take part in.  If Party B
      does not take part in the Quantity Verification after receiving the
      notice, the result of the Quantity Verification shall be effective, which
      shall serve as the basis for the payment of the project
    price.

              

      

      

      
        	
                25.2

              	
                If
      the Engineer fails to conduct the Quantity Verification within 7 days
      after receiving Party B’s report, the quantity of works listed in Party
      B’s report shall be deemed as “confirmed” from the 8th
      day which serve as the basis for the payment of the project
      price.  If the Engineer fails to notify Party B according to the
      agreed time schedule which results in Party B’s failure in taking part in
      the Quantity Verification, the result of the Quantity Verification shall
      be invalid.

              

      

      

      
        	
                25.3

              	
                The
      Engineer shall not conduct the Quantity Verification on Party B’s
      quantities of rework beyond the scope of the design Drawings or due to
      Party B’s reason.

              

      

      

      
        	
                26.

              	
                Payment
      of the Project Price (Progress
Payment)

              

      

      

      
        	
                26.1

              	
                Party
      A shall pay the project price (progress payment) to Party B within 14 days
      after the result of the Quantity Verification is
  confirmed.

              

      

      

      
        	
                26.2

              	
                The
      adjusted Contract Price in Article 23, the contract price for project
      modification and adjustment in Article 31 of the General Terms and
      Conditions, as well as the Additional Contract Price in other provisions
      shall be paid together with the payment of the project price (progress
      payment).

              

      

      

      
        	
                26.3

              	
                If
      Party A fails to pay the project price (progress payment) before the
      agreed payment deadline, Party B may notify Party A to make the payment;
      if Party A still fails to make the payment as required after receiving
      Party B’s notice, it may negotiate with Party B to enter into a deferred
      payment agreement.  Upon agreed by Party B, the payment may be
      deferred.  The agreement shall specify the time schedule of the
      deferred payment and the loan interest rate accrued on the payables as of
      the 15th
      day after the result of the Quantity Verification is
      confirmed.

              

      

      

      
        	
                26.4

              	
                If
      Party A fails to pay the project price (progress payment) according to the
      Contract and the two Parties fail to reach any deferred payment agreement
      which cause the construction cannot be conducted, Party B may suspend the
      construction and Party A shall be liable for the breach of
      contract.

              

      

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

      

      Section
Seven Supply of Materials and Equipment

      

      
        	
                27.

              	
                The
      Materials and Equipment Supplied by Party
A

              

      

      

      
        	
                27.1

              	
                If
      the materials and equipment is supplied by Party A, the Parties shall
      agree on a List of Materials and Equipment Supplied by Party A (as Annex
      2) attached to this Contract.  Such List shall specify the name,
      specification, type, quantity, unit price and quality rating, as well as
      the time and place of the supply.

              

      

      

      
        	
                27.2

              	
                Party
      A shall provide the conformity certifications of the products according to
      the provisions agreed in such list and shall be responsible for the
      quality thereof.  Party A shall notify Party B 24 hours prior to
      the supply of the materials and equipment in Written Form and Party B
      shall dispatch staff to check jointly with Party
  A.

              

      

      

      
        	
                27.3

              	
                After
      Party B’s check, Party B shall well keep the materials and equipment
      supplied by Party A, and Party A shall pay relevant keeping
      Expenses.  If any loss or damage happens due to Party B’s
      reason, Party B shall be liable for such
  compensation.

              

      

      

      
        	
                27.4

              	
                If
      the actual materials and equipment supplied by Party A do not conform to
      the list, Party A shall assume relevant liabilities, which shall be
      elaborated in the Special Terms and Conditions according to the following
      situations:

              

      

      

      
        	
              	
                (1)

              	
                If
      the unit price of the materials and equipment does not conform to the
      list, Party A shall bear the price
differences;

              

      

      

      
        	
              	
                (2)

              	
                If
      the name, specification, type and quality rating do not conform to the
      list, Party B may refuse to accept and keep, and Party A shall transport
      it out of the Construction Site and
repurchase;

              

      

      

      
        	
              	
                (3)

              	
                If
      the specification and type of the materials supplied by Party A do not
      conform to the list, upon Party A’s consent, Party B may adjust and
      replace them for Party A, and Party A shall bear relevant
      Expenses;

              

      

      

      
        	
              	
                (4)

              	
                If
      the delivery place does not conform to the list, Party A shall be
      responsible for transporting the goods to the place designated in the
      list;

              

      

      

      
        	
              	
                (5)

              	
                If
      the supply quantity is less than the agreed quantity in the list, Party A
      shall make a full complement; if the supply quantity is more than the
      agreed quantity in the list, Party A shall be responsible to transport the
      excessive parts out of the Construction
Site.

              

      

      

      
        	
              	
                (6)

              	
                If
      the delivery time is earlier than the agreed time in the list, Party A
      shall bear the keeping Expenses arising therefrom; if delivery time is
      later than the agreed supply time in the list, Party A shall compensate
      the losses incurred to Party B arising therefrom, and the Construction
      Period shall be extended accordingly if it is
  delayed.

              

      

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

      

      
        	
                27.5

              	
                Before
      using the materials and equipment supplied by Party A, Party B shall be
      responsible for inspection or test, such materials and equipment cannot be
      used if they are unqualified, and relevant inspection or test Expenses
      shall be borne by Party A.

              

      

      

      
        	
                27.6

              	
                The
      settlement method for the materials and equipment supplied by Party A
      shall be specified in the Special Terms and Conditions by the two
      Parties.

              

      

      

      
        	
                28.

              	
                The
      Materials and Equipment Supplied by Party
B

              

      

      

      
        	
                28.1

              	
                If
      Party B is responsible for purchasing the materials and equipment, such
      purchase shall be conducted by Party B according to the provisions of the
      Special Terms and Conditions, the design and relevant requirements, Party
      B shall provide the conformity certification of the product and shall be
      responsible for the quality of the materials and
      equipment.  Party B shall notify the Engineer to check 24 hours
      prior to the supply of the materials and equipment in Written
      Form.

              

      

      

      
        	
                28.2

              	
                If
      the materials and equipment purchased by Party B do not conform to the
      design or the standard requirement, Party B shall transport them out of
      the Construction Site within the time limit as require by the Engineer,
      shall repurchase the products which are in compliance with requirements,
      shall bear relevant Expenses arising therefrom, and the delayed
      Construction Period cannot be
extended.

              

      

      

      
        	
                28.3

              	
                Before
      using the materials and equipment supplied by Party B, Party B shall
      conduct the inspection or test as required by the Engineer, such materials
      and equipment cannot be used if they are unqualified and relevant
      inspection or test Expenses shall be borne by Party
  B.

              

      

      

      
        	
                28.4

              	
                If
      the Engineer discovers that Party B’s purchase and usage of the materials
      and equipment do not conform to the design or the standard requirement, it
      shall require Party B to repair, demolish or repurchase, Party B shall
      bear relevant Expenses arising therefrom and the delayed Construction
      Period cannot be extended.

              

      

      

      
        	
                28.5

              	
                If
      Party B requires using the alternate materials, such materials can be used
      only subject to the Engineer’s
recognition.

              

      

      

      
        	
                28.6

              	
                For
      the materials and equipment to be purchased by Party B, Party A shall not
      designate the manufacturer or the
supplier.

              

      

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

      Section
Eight Project Modification

      

      
        	
                29.

              	
                Design
      Modification of the Project

              

      

      

      
        	
                29.1

              	
                If
      Party A requires modifying the original project design, it shall notify
      Party B in Written Form by 14-day prior notice.  If the
      modification is beyond the original design standard or the approved
      construction scale, Party A shall report the planning administrative
      department and other competent authorities for re-check and re-approval,
      and the original Designer shall provide corresponding Drawings and
      explanations in relation to the modification.  Party B shall
      conduct the following required modifications according to the modification
      notice and other relevant requirements issued by the
    Engineer:

              

      

      

      
        	
              	
                (1)

              	
                Modify
      the elevation, baseline, position and size of part of the
      Project;

              

      

      
        	
              	
                (2)

              	
                Increase
      or decrease the quantity of works agreed in the
  Contract;

              

      

      
        	
              	
                (3)

              	
                Modify
      the construction time schedule and sequence of relevant
    works;

              

      

      
        	
              	
                (4)

              	
                Other
      auxiliary work in relation to and required by the Project
      modification.

              

      

      

      Party A
shall bear the increase and decrease of the Contract Price as well as Party B’s
losses arising from the modifications, and the delayed Construction Period shall
be extended accordingly.

      

      
        	
                29.2

              	
                During
      the construction, Party B shall not conduct any modification to the
      original project design. Party B shall bear the Expenses and Party A’ s
      direct losses arising from the its unauthorized modifications to the
      design, and the delayed Construction Period cannot be
      extended.

              

      

      

      
        	
                29.3

              	
                During
      the construction, if Party B brings forward any rational suggestion which
      involves the modifications to the design Drawings or the construction
      management plan, as well as the replacement to the materials and
      equipment, it shall report to the Engineer for approval.  Party
      B shall bear relevant Expenses arising from unauthorized modifications or
      replacement, shall compensate Party A’s relevant losses and the delayed
      Construction Period cannot be
extended.

              

      

      

      If the
Engineer agrees to adopt Party B’s rational suggestion, the incurred Expenses
and the acquirable proceeds shall be shared by Party A and Party B as separately
agreed by the two Parties.

      

      
        	
                30.

              	
                Other
      Modifications

              

      

      

      During
the performance of the Contract, if Party A requires modifying the project
quality standard or raises any other material modifications, it shall be settled
by the two Parties through mutual consultations.

      
        
           

        

        
          46

          
            

          

        

        
           

        

      

      

      
        	
                31.

              	
                Price
      Adjustment

              

      

      

      
        	
                31.1

              	
                Party
      B shall provide a project price adjustment report within 14 days after the
      project modification is confirmed, and Contract Price can be adjusted only
      subject to the Engineer’s confirmation.  The Contract Price
      adjustment shall be conducted according to the following
      methods:

              

      

      

      
        	
                
                

              	
                (1)

              	
                If
      there is applicable price to the project modification under the Contract,
      the Contract Price shall adjusted based on the price already agreed in the
      Contract;

              

      

      

      
        	
                
                

              	
                (2)

              	
                If
      there is only similar price to the project modification under the
      Contract, the Contract Price may adjusted by taking reference to such
      similar price;

              

      

      

      
        	
                
                

              	
                (3)

              	
                If
      there is no applicable price or similar price to the project modification
      under the Contract, Party B shall propose a proper price adjustment which
      can be implemented after being confirmed by the
  Engineer.

              

      

      

      
        	
                31.2

              	
                If
      Party B fails to provide the project price adjustment report to the
      Engineer within 14 days after the modification is confirmed by the two
      Parties, it shall be deemed that the modification does not involve in any
      adjustment to the Contract Price.

              

      

      

      
        	
                31.3

              	
                The
      Engineer shall give its confirmation within 14 days after receiving the
      project price adjustment report, if the Engineer refuses to confirm
      without any justified reasons, it shall be deemed that the project price
      adjustment report has already been confirmed 14 days after the project
      price adjustment report is
delivered.

              

      

      

      
        	
                31.4

              	
                If
      the Engineer disagrees to the price adjustment proposed by Party B, it
      shall be settled according to Article 37 of the General Terms and
      Conditions.

              

      

      

      
        	
                31.5

              	
                The
      increased price for the project modification which is confirmed by the
      Engineer shall serve as the Additional Contract Price, which shall be paid
      together with the project price.

              

      

      

      
        	
                31.6

              	
                If
      the project modification is caused by Party B’s own reason, Party B has no
      right to require the Additional Contract
Price.

              

      

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

      

      Section
Nine Completion, Acceptance and Settlement

      

      
        	
                32.

              	
                Completion
      and Acceptance

              

      

      

      
        	
                32.1

              	
                When
      the project reach the conditions of completion and acceptance, Party B
      shall provide Party A a complete as-built documents and a completion and
      acceptance report according to relevant national construction completion
      and acceptance regulations.  If the two Parties stipulate Party
      B shall provide an as-built Drawing, the providing time and copies of such
      as-built Drawings shall be specified in the Special Terms and
      Conditions.

              

      

      

      
        	
                32.2

              	
                Party
      A shall organize relevant departments to conduct the inspection and
      acceptance within 28 days after receiving the completion and acceptance
      report, and shall give a confirmation or modification comment within 14
      days after the inspection.  Party B shall correct it as required
      and shall bear the correction Expenses caused by its own
      reasons.

              

      

      

      
        	
                32.3

              	
                If
      Party A fails to organize the inspection and acceptance within 28 days
      after receiving the completion and acceptance report submitted by Party B,
      or fails to give the modification comment within 14 days after the
      inspection, it shall be deemed that the completion and acceptance report
      has already been recognized.

              

      

      

      
        	
                32.4

              	
                If
      the Project is accepted, the date when Party B submits the completion and
      acceptance report shall be the actual Completion Date.  If the
      Project is accepted after being corrected according to Party A’s
      requirement, the date when Party B applies for Party A’s inspection after
      making the corrections shall be the actual Completion
  Date.

              

      

      

      
        	
                32.5

              	
                If
      Party A fails to organize the inspection and acceptance within 28 days
      after receiving the completion and acceptance report submitted by Party B,
      Party A shall assume the liabilities for the project keeping and all the
      accidents as of the 29th
      day.

              

      

      

      
        	
                32.6

              	
                The
      scope and completion date for the intermediate works shall be specified in
      the Special Terms and Conditions by the two Parties, and the inspection
      and acceptance procedures thereof shall be handled according to the
      provisions from Article 32.1 to 32.4 of the General Terms and Conditions
      herein.

              

      

      

      
        	
                32.7

              	
                Under
      certain special occasions, if Party A requires the Project generally
      completed while leaving certain single works or part of the Project in
      progress, the two Parties shall conclude a separate agreement to specify
      the two Parties’ responsibilities and the payment terms of the project
      price under such situation.

              

      

      

      
        	
                32.8

              	
                If
      the Project is not inspected or is not accepted, Party A shall not put the
      Project into operation.  If Party A forcibly puts the Project
      into operation, Party A shall be liable for all the quality problems and
      other problems arising
therefrom.

              

      

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

      

      
        	
                33.

              	
                Final
      Settlement

              

      

      

      
        	
                33.1

              	
                Party
      B shall deliver a final settlement report and a complete set of settlement
      documents to Party A within 28 days after Party A recognizes the final
      settlement report on the project completion and acceptance, and the two
      Parties shall make relevant adjustment according to the Contract Price
      stipulated in the Agreement and the Contract Price stipulated in the
      Special Terms and Conditions to conduct the final settlement on the
      Project.

              

      

      

      
        	
                33.2

              	
                Party
      A shall verify the documents, give a confirmation or modification comment
      within 28 days after Party A receives the final settlement report and the
      settlement documents on the project completion and acceptance submitted by
      Party B.   After confirming the final settlement report,
      Party A shall notify the administering bank to pay the settlement price
      for the project completion to Party B.  Party B shall deliver
      the completed Project to Party A within 14 days after receiving the
      settlement price for the
completion.

              

      

      

      
        	
                33.3

              	
                If
      Party A fails to pay the settlement price for the project completion
      without justified reasons within 28 days after receiving the final
      settlement report and the settlement documents on the project completion,
      Party A shall pay the interest for the overdue project price owed to Party
      B based on Party B’s loan rate of the same term toward the bank from the
      29th
      day and shall be liable for the breach of
  contract.

              

      

      

      
        	
                33.4

              	
                If
      Party A fails to pay the settlement price for the project completion
      within 28 days after receiving the final settlement report and the
      settlement documents on the project completion, Party B may demand payment
      of the settlement price from Party A.  If Party A still fails to
      pay within 56 days after receiving the settlement report and the
      settlement documents, Party B may consult with Party A to liquidate the
      project, or may also petition the People’s Court to auction the Project,
      and Party B shall be paid in priority out of the proceeds from such
      liquidation or auction of the
Project.

              

      

      

      
        	
                33.5

              	
                If
      Party B fails to deliver the final settlement report and a complete set of
      settlement documents to Party A within 28 days after the final settlement
      report being recognized by Party A, which causes the final settlement of
      the Project cannot be normally conducted or causes the settlement price
      for the project completion cannot be paid timely, Party B shall deliver
      the Project as so required by Party A. If Party A does not require the
      delivery of Project, Party B shall be liable for keeping the
      Project.

              

      

      

      
        	
                33.6

              	
                If
      Party A and Party B have any dispute over the settlement price for the
      project completion, such dispute shall be settled according to Article 37
      of the General Terms and
Conditions.

              

      

      
        
           

        

        
          49

          
            

          

        

        
           

        

      

    

    
      	
              34.

            	
              Quality
      Warranty

            

    

    

    
      	
              34.1

            	
              Party
      B shall assume the quality warranty liabilities for the Project delivered
      to Party A for use within the quality warranty period according to the
      laws, regulations or other national rules in respect to the project
      quality warranty.

            

    

    

    
      	
              34.2

            	
              Implementation
      on the Quality Warranty Work. Before the inspection and acceptance of the
      Project, Party B shall sign with Party A a quality warranty agreement
      which shall be an annex attached
hereto.

            

    

    

    
      	
              34.3

            	
              The
      quality warranty agreement shall cover the following
  items:

            

    

    
      	
               
      

            	
              (1)

            	
              The
      content, items and scope of the quality
  warranty;

            

    

    
      	
               
      

            	
              (2)

            	
              The
      quality warranty period;

            

    

    
      	
               
      

            	
              (3)

            	
              The
      quality warranty liabilities; and

            

    

    
      	
               
      

            	
              (4)

            	
              The
      payment schedule of the quality warranty
bond.

            

    

    

    Section
Ten Breach of Contract, Claims and Dispute

    

    
      	
              35.

            	
              Breach
      of Contract

            

    

    

    
      	
              35.1

            	
              The
      following events shall constitute Party A’s breach of
      contract:

            

    

    

    
      	
              (1)

            	
              Party
      A fails to pay the prepayment timely as prescribed in Article 24 of the
      General Terms and Conditions;

            

    

    

    
      	
              (2)

            	
              Party
      A fails to pay the project price according to the Contract as prescribed
      in Article 26.4 of the General Terms and Conditions, which causes the
      construction cannot be conducted;

            

    

    

    
      	
              (3)

            	
              Party
      A fails to pay the settlement price for the project completion without
      justified reasons as prescribed in Article 33.3 of the General Terms and
      Conditions; and

            

    

    
      	
              (4)

            	
              Other
      events under which Party A fails to perform the obligations under the
      Contract or its performance fails to satisfy the terms of the
      Contract.

            

    

    

    Party A
shall be liable for the breach of contract, compensate Party B’s losses incurred
therefrom, and the Construction Period shall be extended
accordingly.  The calculation method of the damages compensation borne
by Party A toward Party B or the amount or calculation method of the liquidated
damages which shall be paid by Party A, shall be specified in the Special Terms
and Conditions by the two Parties.

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    
      	
              35.2

            	
              The
      following events shall constitute Party B’s breach of
      contract:

            

    

    

    
      	
            	
              (1)

            	
              Due
      to Party B’s reason, the construction cannot be completed in compliance
      with the Completion Date as agreed in the Agreement or in compliance with
      the extended construction schedule agreed by the Engineer, as prescribed
      in Article 14.2 of the General Terms and
  Conditions;

            

    

    

    
      	
            	
              (2)

            	
              Due
      to Party B’s reason, the Project cannot reach the agreed quality standard,
      as prescribed in Article 15.1 of the General Terms and
      Conditions;

            

    

    

    
      	
            	
              (3)

            	
              Other
      events under which Party B fails to perform the obligations under the
      Contract or its performance fails to satisfy the terms of the
      Contract.

            

    

    

    Party B
shall be liable for the breach of contract, compensate Party A’s losses incurred
therefrom.  The calculation method of the damages compensation borne
by Party B toward Party A or the amount or calculation method of the liquidated
damages which shall be paid by Party B, shall be specified in the Special Terms
and Conditions by the two Parties.

    

    
      	
              35.3

            	
              Where
      one Party has any breach of contract and the counter Party require the
      breaching Party to continue performing the Contract, the breaching Party
      shall continue to perform the Contract as well after assuming the
      abovementioned liabilities for breach of
  contract.

            

    

    

    
      	
              36.

            	
              Claims

            

    

    

    
      	
              36.1

            	
              When
      one Party raises any claim against the counter party, it shall have
      justified grounds for the claim and effective evidences at time of raising
      the claim.

            

    

    

    
      	
              36.2

            	
              If
      Party A fails to perform any obligations in accordance with the Contract
      or makes any mistakes or other events happen under which Party A shall be
      liable for, which results in the delay of the Construction Period, and/or
      causes Party B cannot obtain the Contract Price timely and causes Party B
      to suffer other losses, Party B may claim against Party A in Written Form
      according to the following
procedures:

            

    

    

    
      	
            	
              (1)

            	
              It
      shall issue a notice of claim intention to the Engineer within 28 days
      after the claim event happens;

            

    

    

    
      	
            	
              (2)

            	
              It
      shall apply to extend the Construction Period with the Engineer and/or
      provide a claim report on economical compensations as well as other
      relevant materials to the Engineer within 28 days after issuing the notice
      of claim intention;

            

    

    

    
      	
            	
              (3)

            	
              The
      Engineer shall give response or require Party B to further complement the
      grounds for claim and evidences within 28 days after receiving the claim
      report and other relevant materials delivered by Party
  B;

            

    

    
      
         

      

      
        51

        
          

        

      

      
         

      

    

    
      	
            	
              (4)

            	
              If
      the Engineer fails to give any response or fails to make any further
      requirement on Party B within 28 days after receiving the claim report and
      other relevant materials delivered by Party B, such claim shall be deemed
      to have been recognized;

            

    

    

    
      	
            	
              (5)

            	
              When
      the claim event keeps going on, Party B shall provide the claim reports by
      stage, and shall deliver relevant materials of the claim and the final
      claim report to the Engineer within 28 days after the claim event
      ends.  The response procedures of the claim shall be the same
      with the procedures prescribed in with above (3) and
  (4).

            

    

    

    
      	
              36.3

            	
              If
      Party B fails to perform any obligations in accordance with the Contract
      or makes any mistakes, which causes any losses to Party A, Party A may
      claim against Party B within the time limit prescribed in Article
      36.2.

            

    

    

    
      	
              37.

            	
              Dispute

            

    

    

    
      	
              37.1

            	
              If
      any dispute arises from Party A and Party B’s performance of the Contract,
      such dispute shall be settled by mutual negotiations or the Parties may
      require the competent authority to mediate.  If the two Parties
      are not willing to seek the reconciliation and mediation, or if the
      reconciliation and mediation fail, the two Parties may choose one of the
      following methods to settle the dispute which shall be specified in the
      Special Terms and Conditions:

            

    

    

    First
Option: the two Parties reach an arbitration agreement to apply for arbitration
with the agreed arbitration committee;

    

    Second
Option: To file a law suit with the competent People’s Court.

    

    
      	
              37.2

            	
              If
      any dispute arises, the two Parties shall continue to perform the
      Contract, keep the construction and well protect the completed works,
      except under the following
situations:

            

    

    

    
      	
            	
              (1)

            	
              One
      Party’s unilateral breach of contract which lead the Contract cannot be
      performed, and the two Parties agrees to suspend the
      construction;

            

    

    

    
      	
            	
              (2)

            	
              The
      construction suspension is required by the mediation and is accepted by
      the two Parties;

            

    

    

    
      	
            	
              (3)

            	
              The
      arbitration committee requires the construction suspension;
      and

            

    

    

    
      	
            	
              (4)

            	
              The
      court requires the construction
suspension.

            

    

    
      
         

      

      
        52

        
          

        

      

      
         

      

    

    Section
Eleven Miscellaneous

    

    
      	
              38.

            	
              Subcontracting
      of the Project

            

    

    

    
      	
              38.1

            	
              Party
      B shall subcontract part of the Project according to the provisions of the
      Special Terms and Conditions and shall sign a subcontracting agreement
      with the subcontractor.

            

    

    

    
      	
              38.2

            	
              Party
      B shall not assign the whole Project to any
  others.

            

    

    

    
      	
              38.3

            	
              The
      subcontracting of the Project shall not terminate Party B’s any
      liabilities and obligations.  Party B shall dispatch relevant
      managers to the site of the subcontracting project to ensure the
      performance of this Contract.  Party B shall bear joint
      liabilities for the subcontractor’s any breach of contract or negligence
      which results in the damage to the Project or causes other losses to Party
      A.

            

    

    

    
      	
              38.4

            	
              The
      price of the subcontracting project shall be settled between Party B and
      its subcontractors.  Party A shall not pay any project price to
      the subcontractor in any form without Party B’s
  permission.

            

    

    

    
      	
              39.

            	
              Force
      Majeure

            

    

    

    
      	
              39.1

            	
              The
      events of Force Majeure shall include the war, turmoil, the fall of the
      flying object or the explosion and fire which Party A and Party B shall
      not be liable for, and the wind, rain, snow, flood, quake and other
      natural disasters as agreed in the Special Terms and
      Conditions.

            

    

    

    
      	
              39.2

            	
              After
      any event of Force Majeure occurs, Party B shall notify the Engineer at
      once and shall promptly take measures to the full extent of its capability
      to reduce the losses as much as possible, Party A shall assist Party B to
      take such measures.  If the Engineer regards the construction
      shall be suspended, Party B shall suspend the construction. Party B shall
      report the impairment and the damage, the estimated clearing and recovery
      Expenses to Engineer within 48 hours after the force majeure
      vanishes.  If the force majeure keeps going on, Party B shall
      report the impairment and the damage to the Engineer every 7 days, and
      Party B shall submit a formal report and relevant materials on the
      estimated clearing and recovery Expenses to the Engineer within 14 days
      after the force majeure vanishes.

            

    

    

    
      	
              39.3

            	
              The
      Expenses and the delayed Construction Period arising from the force
      majeure shall be assumed or handled respectively by the two Parties
      according to the following
methods:

            

    

    
      
         

      

      
        53

        
          

        

      

      
         

      

    

    

    
      	
            	
              (1)

            	
              Party
      A shall be responsible for the damage to the Project itself, the third
      party’s casualties and property losses which are caused by the damage to
      the Project, and the damage to the materials and equipment transported to
      the Construction Site for construction or
  installation;

            

    

    

    
      	
            	
              (2)

            	
              Party
      A and Party B shall be respectively responsible for their own casualties
      and respectively bear correspondingly
Expenses;

            

    

    

    
      	
            	
              (3)

            	
              Party
      B shall be responsible for the damage to its machinery and equipment, as
      well as the Expenses for suspension of
work;

            

    

    

    
      	
            	
              (4)

            	
              During
      the suspension of the Construction, Party A shall be responsible for the
      Expenses of necessary managers and security guards left by Party B to the
      Construction Site according to the Engineer’s
  requirement;

            

    

    

    
      	
            	
              (5)

            	
              Party
      A shall be responsible for the clearing and recovery Expenses required for
      the Project; and

            

    

    

    
      	
            	
              (6)

            	
              The
      delayed Construction Period shall be extended
  accordingly.

            

    

    

    
      	
              39.4

            	
              If
      an event of force majeure occurs after the Party’s delay in performance of
      the Contract, it shall not be exempted from such
  liability.

            

    

    

    
      	
              40.

            	
              Insurance

            

    

    

    
      	
              40.1

            	
              Before
      the construction commences, Party B shall be responsible for purchasing
      the insurance for the life and property of its own staff and the third
      party’s staff for the construction engineering and within the Construction
      Site, and Party B shall pay the insurance
  premium.

            

    

    

    
      	
              40.2

            	
              Party
      B shall be responsible for purchasing the insurance for the materials and
      equipment transported to the Construction Site for construction and
      installation, and Party B shall pay the insurance
  premium.

            

    

    

    
      	
              40.3

            	
              Party
      B may entrust Party A to handle relevant insurance matters, and Party B
      shall bear relevant Expenses.

            

    

    

    
      	
              40.4

            	
              Party
      B must purchase the accident insurance for the staff engaging in dangerous
      work, and purchase insurance for the life and property of its own staff on
      the Construction Site as well as for the machinery and equipment for
      construction, and Party B shall pay the insurance
  premium.

            

    

    

    
      	
              40.5

            	
              When
      an insured incident occurs, Party A and Party B shall endeavor to to take
      necessary measures to prevent or reduce the
  losses.

            

    

    
      
         

      

      
        54

        
          

        

      

      
         

      

    

    
      	
              40.6

            	
              The
      details of the insurance and relevant liabilities shall be specified in
      the Special Terms and Conditions by the two
  Parties.

            

    

    

    
      	
              41.

            	
              Security

            

    

    

    
      	
              41.1

            	
              The
      following securities shall be mutually provided by Party A and Party B to
      ensure the full performance of the
Contract:

            

    

    

    
      	
            	
              (1)

            	
              Party
      A shall provide a performance bond to Party B, to pay the project price
      according to the Contract and to perform its other obligations under the
      Contract.

            

    

    

    
      	
            	
              (2)

            	
              Party
      B shall provide a performance bond to Party A, to perform its obligations
      under the Contract.

            

    

    

    
      	
              41.2

            	
              Where
      using the patent and knowhow without any authorization which infringes
      other party’s patent right, the responsible Party shall assume the
      corresponding liabilities.

            

    

    

    
      	
              42.

            	
              (no
      wording)

            

    

    

    
      	
              43.

            	
              Cultural
      Relics and Underground Obstacle

            

    

    

    
      	
              43.1

            	
              If
      any ancient tomb, ancient architecture relics, cultural relics, fossil,
      and other articles worthy of archaeological study and geological
      study is discovered during the construction, Party B shall keep the scene
      intact at once and report to the Engineer within 4 hours in Written Form;
      the Engineer shall report to the local competent department for cultural
      relics administration within 24 hours after receiving the written notice
      and Party A and Party B shall take appropriate protection measures
      according to the requirement of the competent department for cultural
      relics administration; and Party A shall bear the Expenses arising
      therefrom and the delayed Construction Period shall be extended
      accordingly.

            

    

    

    If
concealed and unreported after the discovery which results the damage to the
cultural relics, the responsible Party shall assume corresponding liabilities
according to the law.

    

    
      	
              43.2

            	
              If
      any underground obstacle which affects the construction is discovered
      during the construction, Party B shall notify the Engineer within 8 hours
      in Written Form and shall bring forward a disposal method at the same
      time; the Engineer shall confirm or provide any modifications within 24
      hours after receiving the disposal method.  Party A shall bear
      the Expenses arising therefrom and the delayed Construction
      Period shall be extended
accordingly.

            

    

    
      
         

      

      
        55

        
          

        

      

      
         

      

    

    If the
underground obstacle discovered belongs to certain unit, Party A shall report to
relevant department for coordination and disposal.

    

    
      	
              44.

            	
              Termination
      of Contract

            

    

    

    
      	
              44.1

            	
              Party
      A and Party B may reach a consensus through consultation to terminate this
      Contract.

            

    

    

    
      	
              44.2

            	
              Under
      the event as prescribed in Article 26.4 of the General Terms and
      Conditions, Party A still fails to pay the project price (progress
      payment) when the suspension of construction exceeds 56 days, Party B is
      entitled to terminate this
Contract.

            

    

    

    
      	
              44.3

            	
              If
      the forbidden event prescribed in Article 38.2 of the General Terms and
      Conditions occurs, Party B assigns the total Project to the other party or
      Party B divides the whole Project into several parts and separately
      subcontracts each part to the other Party under the guise of
      sub-contracting, Party A is entitled to terminate this
      Contract.

            

    

    

    
      	
              44.4

            	
              Party
      A or Party B may terminate this Contract under the following
      situations;

            

    

    

    
      	
            	
              (1)

            	
              It
      is unable to perform the Contract due to the force majeure;
      and

            

    

    

    
      	
            	
              (2)

            	
              It
      is unable to perform the Contract due to one Party’s breach of contract
      (including the suspension or delay of the construction due to Party A’s
      reason).

            

    

    

    
      	
              44.5

            	
              If
      one Party requires terminating the Contract according to Article 44.2,
      44.3 and 44.4, it shall issue a termination notice to the counter Party in
      Written Form and shall inform the counter Party 7 days prior to issuing
      such notice; and the Contract shall be terminated upon the receipt of the
      notice by the counter Party.  If there is any objection to the
      termination of the Contract, it shall be settled according to Article 37
      of the General Terms and
Conditions.

            

    

    

    
      	
              44.6

            	
              After
      the Contract is terminated, Party B shall properly protect and deliver the
      completed works and the purchased materials and equipment, and shall
      remove its own machinery, machinery and staff from the Construction Site
      according to Party A’s requirement.  Party A shall provide
      necessary conditions for Party B’s withdrawal out of the project site,
      shall pay relevant Expenses arising therefrom and shall pay the price for
      the completed works according to the Contract.  For the
      materials and equipment already ordered, the ordering party shall be
      responsible for cancelling the orders or terminate the order contract,
      Party A shall bear the un-refundable payments for goods and the Expenses
      arising from the termination of the order contract, the responsible party
      shall bear the losses arising from the untimely cancellation of the
      orders.  In addition, the Party at fault shall compensate the
      losses incurred therefrom to the counter
party.

            

    

    
      
         

      

      
        56

        
          

        

      

      
         

      

    

    
      	
              44.7

            	
              After
      the Contract is terminated, the validity of provisions that related to the
      final settlement and winding-up shall not be
  affected.

            

    

    

    
      	
              45.

            	
              Effeteness
      and Termination

            

    

    

    
      	
              45.1

            	
              The
      two Parties shall stipulate the conditions to make the Contract effective
      in the Agreement.

            

    

    

    
      	
              45.2

            	
              Except
      Article 34 of the General Terms and Conditions, this Contract shall be
      terminated upon Party A and Party B fulfill all the obligations under the
      Contract, the settlement price for the completion is paid off and Party B
      delivers the completed Project to Party
A.

            

    

    

    
      	
              45.3

            	
              After
      the termination of the rights and obligations under the contract, Party A
      and Party B shall observe the principle of honesty and good faith and
      shall perform the obligations of notification, assistance and
      confidentiality, etc.

            

    

    

    
      	
              46.

            	
              Counterpart
      of the Contract

            

    

    

    
      	
              46.1

            	
              This
      Contract has two original copies which shall have the same legal effect,
      for Party A and Party B each to keep one
  original.

            

    

    

    
      	
              46.2

            	
              The
      number of duplicates of this Contract shall be specified in the Special
      Terms and Conditions by the two
Parties.

            

    

    

    
      	
              47.

            	
              Supplementary
      Provision

            

    

    

    After
mutual negotiations, the two Parties may further elaborate, supplement or modify
this General Terms and Conditions based on relevant laws and regulations and by
taking into account the actual works, which shall be specified in the Special
Terms and Conditions.

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

    Part
Three Particular Terms

     

    Section
1 Word Definitions and Contract Documents

     

    
      	
              1.

            	
              Contract
      Documents

            

    

    
      	
              1.1

            	
              Composition
      of Contract Documents

            

    

    
      	
              1.1.1

            	
              The
      Contract Agreement

            

    

    
      	
              1.1.2

            	
              The
      Special Terms and Conditions of this
Contract

            

    

    
      	
              1.1.3

            	
              The
      General Terms and Conditions of this
Contract

            

    

    
      	
              1.1.4

            	
              Standard,
      Specification and Relevant Technical
Documents

            

    

    
      	
              1.1.5

            	
              Drawings

            

    

    

    
      	
              2.

            	
              Explanation
      Order for the Contract Documents

            

    

    
      	
              (1).

            	
              EPC
      Contract

            

    

    
      	
              (2).

            	
              The
      Contract Agreement

            

    

    
      	
              (3).

            	
              Particular
      Terms of Contract

            

    

    
      	
              (4).

            	
              General
      Terms of Contract

            

    

    
      	
              (5).

            	
              Technology
      Appendixes of EPC Contract

            

    

    
      	
              (6).

            	
              Design
      Documents of the Project

            

    

    
      	
              (7).

            	
              Equipment
      Supply of the Project

            

    

    
      	
              (8).

            	
              Other
      Charges of the Project

            

    

    
      	
              (9).

            	
              Standards,
      norms and related technical
documents

            

    

    
      	
              (10).

            	
              Drawings

            

    

    
      	
              (11).

            	
              Works
      in the List

            

    

    
      	
              (12).

            	
              During
      the performance of Contract, the negotiation, modification and other
      written agreements or documents in respect of the project shall be deemed
      as part of this Contract.

            

    

    

    
      	
              3.

            	
              Language
      and the Application of Laws, Standards and
Norms

            

    

    3.1 If
any other languages used in this Contract except Chinese: NONE.

    3.2
Applicable Laws and Regulations

    Need
explicit laws, administrative regulations: NONE.

    3.3
Applicable Standards and Norms

    Name of
the applicable standards and norms: the relevant
Technical
Appendixes, the existing national standards and norms, acceptance standards, the
industry technical regulations and acceptance standards, see more details about
the other technical requirements and standards on the construction Drawings.

    Standards
and norms offered by Party A: the standards, norms and
acceptance standards in the place of Party A shall be offered free of charge.

    

    
      	
              4.

            	
              Drawings

            

    

    4.1 The
date of delivery for Drawings and the number of copies: The date of delivery for
Drawings and the number of copies are prescribed in
the Technical Appendixes of EPC Contract.

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

    Party B’s
confidential requirements for the Drawings: This project is designed by
Party A, so the Drawings shall not be transferred, copied or used in other
items.

    Requirements
for using foreign Drawings and the charges: NONE.

     

    Section
Two General Rights and Obligations of Both Parties

     

    
      	
              5.
      

            	
              Engineer

            

    

    5.1
Engineers assigned by construction supervising units

    Name:
entrusted by Party
A Position: entrusted by Party
A

    The
functions and powers entrusted by Party A: project supervision during
the construction and warranty period within the scope of construction, including
construction quality, safety, construction work period, construction investment
control, and fulfillment of Contract and construction coordination,
etc.

    The
functions and powers that shall be approved by Party A: the signature of documents
in relation with the payment of construction charges, extension of time for
completion, design alteration and increase of investment.

    5.2
Engineers assigned by Party A

    Name:
entrusted by Party
A Position: entrusted by Party
A

    The
functions and powers: exercise of power on behalf
of Party A.

    5.3
Without construction supervision, the functions and powers of engineer: NONE.

    

    
      	
              6.

            	
              Project
      manager

            

    

    Name:
appointed by Party
B Position:
appointed by Party B

    

    
      	
              7.

            	
              Work
      to be done by Party A

            

    

    7.1 Party
A shall complete the following works according to the agreed time and
requirements:

    (1) The
construction conditions that the construction site shall meet and the completion
time: The construction
site shall be connected to water and electric power supplies and roads, and that
the ground is leveled 7 days before the project is begun.

    (2) The
time, place and supply requirements for connecting the lines for supply of
water, electricity and telecommunication necessary to the construction work into
the Site: Party A
shall connect the lines for supply of water, electricity from the place near the
Site according to the construction requirements of Party B 7 days before the
project is begun.

    (3) The
time and requirements for making available the roadways from the Site to the
public roads: The
roadways shall be made available 7 days before the project is begun to ensure
the construction and traffic conditions.

    (4) The
time for providing the geologic and underground pipeline information of the
Site: Party A shall
provide such information in written form 7 days before the project is begun, and
be responsible for the truthfulness and accuracy of such
information.

    (5) Names
of the approvals and permits necessary to the construction works that should be
conducted by Party A and the completion time: Such approvals and permits
shall be conducted before the project is begun in accordance with the section
(5) of article 8.1 in the general terms of this
Contract.

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

    (6) The
requirements for the delivery and examination of the benchmark and Cartesian
point of control: Such
requirements shall be submitted in Written Form 7 days before Party B begin to
work for an on-the-spot delivery and examination.

    (7) The
time for examining the Drawings and delivering the design classification: Such examination and
delivery shall be done 7 days before the project is begun.

    (8)
Coordinate the work with respect to the protection of the underground pipelines
near the Site, the adjacent buildings and structures (including preserved
cultural relics) and ancient or precious trees: According to the real
situation on the spot, Party A may make a consultation with Party B if the
protection work shall be done, and the charges shall be borne by Party
A.

    (9) Other
works to be done by Party A agreed by both parties: Party A shall offer
temporary office to Party B without being paid.

    7.2 The
works entrusted by Party A to Party B: NONE.

    

    
      	
              8.

            	
              Work
      to be done by Party B

            

    

    8.1 Party
B shall complete the following works according to the agreed time and
requirements:

    (1) The
time for the delivery of design documents completed by Party B who has obtained
the relevant qualification certificate and the eligible business scope: In accordance with the
construction schedule, Party B shall provide the construction Drawings (see more
details in the Sub-contract of Project Design) to Party A 7 days before the
project is begun. The Drawings shall be examined and the design shall be
delivered according to section 7.1 in this Contract.

    (2) The
time for submitting the schedule and statistics and their names: It shall be implemented
according to the relevant stipulations of Supervisor. The completed progress
statistics of the current month and the progress schedule of the next month
shall be submitted to the construction supervision unit in 3 copies before the
23rd of every month, and the
fund using plan of the next month also shall be submitted before the
18th of every
month.

    (3) The
responsibilities and requirements for bearing safety guard and the lighting or
other facilities used in daytime: It shall be implemented
according to Article 9.1(3) in the General Terms of this Contract. The safety
guard and protection shall be carried out in accordance with the construction
organization design approved by Party A which is examined by general
supervisor.

    (4) The
requirements for the office and living house provided by Party A: NONE.

    (5) The
relevant formalities of transportation, noise, environmental protection and
safety of construction on the Site that shall be completed by Party B: It shall be completed after
the move-in according to the relevant specific requirements for the formalities
through both parties’ consultation.

    (6) The
special requirements for the finished parts of the completed project and its
charges: It shall be
implemented according to Article 9.1(6) in the General Terms of this Contract.
Party A shall be responsible for the protection work of the finished parts after
the delivery, if any damages occurred, it shall be repaired by Party B, however,
the charges shall be borne by Party A.

    
      
         

      

      
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    (7) The
protection requirements for the underground pipelines near the Site, the
adjacent buildings and structures (including preserved cultural relics) and
ancient or precious trees and the charges: According to the real
situation on the spot, Party B shall prepare the protection measures if the
protection work shall be done, after the approval of general supervisor, the
protection work shall be implemented by Party B and the charges shall be borne
by Party A.

     

    Section
3 Construction Organization Design and Project Period

     

    
      	
              9.

            	
              Progress
      Schedule

            

    

    9.1 The
time for Party B providing the construction organization design (Construction
Plan) and the progress schedule: 5 days before the project is
begun.

    The time
for engineer confirming: Reply within 5 days after
receiving the construction organization design and the progress schedule
submitted by Party B.

    9.2 The
requirements for the progress schedule of mass construction project: NONE.

    

    
      	
              10.

            	
              Delay
      in Project Period

            

    

    10.1
Other terms for the delay in project period agreed by both parties: NONE.

     

    Section
4 Quality and Inspection

     

    
      	
              11. 
      

            	
              Concealed
      Work and Intermediate Inspection

            

    

    
      	
              11.1

            	
              The
      point for intermediate inspection agreed by both parties: It shall be
      implemented according to Article 17 of the general terms hereof, the
      inspection point shall be determined by the
    supervisor.

            

    

    

    
      	
              12.

            	
              Trial
      Run

            

    

    12.1 The
charges for trial run: The trial run shall be
organized by Party A with the coordination of Party B. See more details in the
Technical Appendixes of EPC Contract.

     

    Section
5 Contract Price and Payment

     

    
      	
              13.

            	
              Contract
      Price and Adjustment

            

    

    13.1 The
contract price is determined in the form of a fixed
price.

    (1) The
Contract is a fixed price contract. The contract price covers the following risk
aspects: Including the
acquisition and supply of engineering materials, construction equipments,
working measures, labor services, administration, maintenance, insurance,
profits, taxes, design changes caused by Party B’s reason and the changes of
real work quantities.

    
      	
              14.
      

            	
              The
      computing method for risk charges: NONE.

            

    

    The
adjustment method for the contract price without the risk scope: No
adjustments.

    
      	
              15.
      

            	
              Payment
      of construction costs (progress
payment)

            

    

    The
payment shall be performed according to the stipulations of EPC
Contract.

    
      
         

      

      
        61

        
          

        

      

      
         

      

    

     

    Section
6 Supply of Materials and Equipments

     

    
      16.
Materials
and equipments supplied by Party A: NONE.

    

    
      17.
Settlement
method for the materials and equipments supplied by Party A: NONE.

    

    
      18.
Materials
and Equipments purchased by Party B

    

    18.1
Agreements for Party B purchasing materials and equipments: The agreements for the
supply of equipments are prescribed in Equipments Supply Contract, the relevant
instructions, technical guidance for installation and other technical documents
of the equipments purchased by Party B shall be provided, all the materials
shall be supplied by Party B, the requirements for the supply shall be
implemented according to the Article 28 of general terms.

     

    Section
7 Changes of the Project

     

    
      19.
Modification
of the Design

    

    19.1
Agreements for Party A changing the original design of the Project in the course
of construction: consultation between the two
parties.

    19.2
Agreements for Party B changing the original design of the Project in the course
of construction: consultation between the two
parties.

    

    
      20.
Confirmation
of Changes in the Contract Price

    

    20.1
Confirmation of changes in the contract price and agreements for the methods:
If the changes are
caused by Party A’s reason within the contract scope, Party B shall provide a
report on changing the Contract Price within 14 days after the changes of the
Project are decided, and after confirmation by the Engineers, adjustment shall
be made to the Contract Price.

     

    Section
8 Inspection for Completion and Settlement

     

    
      21.
Test on
Completion

    

    21.1
Agreements for Party B providing as-built Drawings: See Technical Appendixes of
EPC Contract.

    21.2 The
scope of mid-way delivered project and its completion date: NONE.

     

    Section
9 Breach and Compensation

     

    
      22.
Breach

    

    22.1 The
specific liability for Party A’s breach of contract in this Contract is as
follows:

    The
liability for breach of contract shall be borne by Party A agreed in 26.4
section of general terms in this Contract: It shall be implemented
according to 26.4 section of general terms in this Contract.

    Party A’s
other liability for breach of contract agreed by both parties: It shall be implemented
according to the EPC Contract.

    22.2 The
specific liability for Party B’s breach of contract in this Contract is as
follows:

    The
liability for breach of contract shall be borne by Party B agreed in 14.2
section of general terms in this Contract: It shall be implemented
according to EPC Contract.

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

    The
liability for breach of contract shall be borne by Party B agreed in 15.1
section of general terms in this Contract: It shall be implemented
according to the EPC Contract.

    

    
      23.
Disputes

    

    23.1 Both
parties agree as follows, when disputes arise during the performance of
Contract:

    

     ( 1
) After the
consultation between both parties, the disputes may be mediated by supervising
engineer.

    

     ( 2
) Agree to initiate a lawsuit to the People’s Court of competent jurisdiction
where the Project
hereunder is located.

     

    Section
10 Other Terms

     

    
      	
              24.

            	
              Sub-Contractor

            

    

    
      	
              24.1

            	
              Part
      of the Project that Party A approves to sub-contract: If the Project is
      really necessary to be sub-contracted, the subcontractor shall be
      determined by tender.

            

    

    

    
      	
              25.

            	
              Force
      Majeure

            

    

    
      	
              25.1

            	
              Agreements
      for force majeure: Force majeure includes
      earthquake, strong wind, heavy rain, hot weather, sub-zero weather and
      flood that cause disaster and affect construction, which are affirmed by
      the relevant department of local
  government.

            

    

    

    
      	
              26.

            	
              Insurance

            

    

    26.1 The
insurance coverage agreed by both parties is as follows:

    

     ( 1
) Insurance coverage of Party A: It is effected by Party
A.

            

            
Insurance items that Party A entrusts Party B to effect: NONE.

    

     ( 2
) Insurance coverage of Party B: It is effected by Party
B.

    

    
      	
              27.

            	
              Guarantee

            

    

    27.1 The
guarantee items agreed by both parties are as follows:

    

     ( 1
) Party A offers performance guarantee to Party B, the guarantee mode is as
follows:

     

    No Contract of
guaranty as the attachment of this Contract

    

     ( 2
) Party B offers performance guarantee to Party A, the guarantee mode is as
follows:

     

    No Contract of
guaranty as the attachment of this Contract

     

     ( 3
) Other guarantee items agreed by both parties:
NONE.

    
      
         

      

      
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              28.

            	
              Counterparts
      of this Contract

            

    

    
      	
              28.1

            	
              The
      counterparts agreed by both parties: The Contract has 2 original
      counterparts, one for each party. There are totally 8 copies, four for
      each party.

            

    

    

    
      	
              29.

            	
              Supplementary
      Provisions

            

    

    29.1
Party B shall be responsible for providing the labor and materials of this
Project, and the construction is contracted in total price including fees for
installation.

    29.2 If
any staff, equipment accident occurred in the course of construction,
distinguishing right from wrong, the responsible party shall be liable for the
damages; Party A may provide convenience in respect of medical
assistance.

    29.3
Party B shall make safety education to the move-in personals, and be responsible
for their safety.

    29.4
Other matters not covered in this Contract shall be settled through consultation
of both parties.

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

    Attachment:

    Construction
Quality Warranty Agreement

    

    Party A
(full name): Henan Shuncheng Group Coal Coke Co., Ltd

    Party B
(full name): Ji Gang Group International Engineering Company
Limited

    

    To ensure
the normal operation of 160T/H CDQ Project of Henan
Shuncheng Group (Project Name) within a reasonable period of time, both
parties hereby sign this Construction Quality Warranty Agreement through
consultation. Party B shall bear the responsibilities for construction quality
warranty within the quality warranty period in accordance with the relevant
administrative provisions and the terms and conditions agreed by both
parties.

     

    Article
1 Scope and Content of Warranty

     

    Covered
damages under warranty shall include ground base and foundation engineering,
framework, roofing waterproof work, other civil engineering works agreed by
parties, installation electrical pipe system and water pipe and drain system,
and heating and cooling system. The specific warranty scope agreed by both
parties is as follows:

    The scope and content of
warranty is in line with the scope and content of construction
contracting.

     

    Article
2 Length of Warranty

     

    The
warranty period shall commence from the date that the construction project
passes the trial run with load. In case the final acceptance of each project is
carried out individually, then accordingly, the warranty period shall be
calculated individually.

    

    Both
parties agree on the following warranty period in respect to the specific
project referring to the provisions of the relevant regulations issued by the
State.

    
      	
              1.

            	
              For
      civil engineering works, the quality warranty period shall be 2
      years,

            

    

    
      	
              2.

            	
              For
      installation of electrical pipe system, water pipe and drain system and
      equipments, the quality warranty period shall be 2
      years,

            

    

    
      	
              3.

            	
              For
      heating and cooling system, the quality warranty period shall be 2 heating
      periods and 2 air-conditioning
periods,

            

    

    
      	
              4.

            	
              For
      the outside water-wastewater system, common roads construction work and
      other municipal public projects, the quality warranty period shall be 2
      years,

            

    

    
      	
              5.

            	
              For
      the roofing waterproof works, and leak prevention of the toilets, rooms
      and outside walls that should be waterproofed, the quality warranty period
      shall be 2
      years.

            

    

    
      	
              6.

            	
              Other
      terms:

            

    

    
      
         

      

      
        65

        
          

        

      

      
         

      

    

    For framework and ground
base and foundation engineering, the quality warranty period shall be the number
of years of reasonable use of the project.

     

    Article
3 Liabilities of Quality Warranty

     

    
      	
              1.

            	
              For
      the items which belonging to warranty scope, Party A shall send
      maintenance worker to repair within 7 days after receiving such repair
      notice.

            

    

    
      	
              2.

            	
              In
      case any emergency repair happens (such as water escape of the water pipe
      system, water and gas leakage of the heating system, gas leakage of fuel
      gas system), Party B shall arrive the scene of accident within 24 hours
      after receiving notice. If the accident is not caused by Party B's
      construction quality, the repair fees shall be borne by Party
      A.

            

    

    
      	
              3.

            	
              Within
      the reasonable period of use stipulated by the state, Party B shall ensure
      the quality of ground base and foundation engineering and framework. Party
      B shall bear liabilities for compensation of personal injuries or property
      damage caused by the construction and attributed to Party B’ fault within
      the reasonable period of use.

            

    

     

    Article
4 Return of Warranty Deposit

     

    Party A
shall return the warranty deposit to Party B in a lump sum without any interests
within 14 days after the construction has been completed and put into production
for one year.

     

    Article
5 Others

     

    Other
items related with construction quality warranty: NONE.

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    160T/H
CDQ Project of Henan Shuncheng Group

    

    Sub-Contract
D: Technical Service

    

    Contract
No.:
SC20090628               (Party
A)

    Contract
No.:
WZ0904                 
    (Party B)

    Party A:
Henan Shuncheng Group Coal Coke Co., Ltd

    Party B:
Ji Gang Group International Engineering Company Limited

     

    Date:
June, 2009

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

     

    Party A:
Henan Shuncheng Group Coal Coke Co., Ltd

    Party B:
Ji Gang Group International Engineering Company Limited

    

    Party A
entrusts Party B to undertake the technical service for the 160T/H CDQ Project of Henan
Shuncheng Group and the location for the Project is in Anyang City,
Henan. After friendly consultation, the Parties hereby sign this contract as
follows.

     

    Article
1 Basis for the Conclusion of This Contract

     

    1. The
Contract Law of the People’s
Republic of China; The Construction Law of the People’s Republic of China;
Regulations on the Administration of the Market for Survey and Design of
Engineering Construction.

    2.
National and local rules and regulations on the administration of the market for
survey and design of engineering construction.

    3.
Approval documents of the engineering construction.

     

    Article
2 Priority of the Contractual Documents

     

    The
several documents forming the Contract are to be taken as mutually explanatory
of one another, but in case of ambiguities or discrepancies, the EPC Contract
and general principles of the related state laws and regulations shall prevail.
After the signature of both parties, in case any time discrepancy between this
Contract and the documents with the same name or nature, it shall be determined
by the signing time of such documents, the priority shall be given to the latest
one. During the performance of this Contract, the alteration, revision and
amendment of this Contract shall be the integral part of this Contract after its
being signed by the parties.

     

    Article
3 Name of this project and content of technical services

     

    
      	
              1.

            	
              Name:
      160T/H CDQ of Henan Shuncheng Group

            

    

    
      	
              2.

            	
              Content:
      See the Technical Appendix VIII of EPC
Contract

            

    

     

    Article
4 Contract Price and Payment

     

    
      	
              1.

            	
              The
      contract price for the services hereunder shall be RMB 6,000,000 Yuan
      (SIX
      MILLION YUAN ONLY).

            

    

    
      	
              2.

            	
              The
      charges shall be paid to Party B according to the stipulations of EPC
      Contract.

            

    

     

    Article
5 Responsibilities of the Parties

     

    
      	
              1.

            	
              Responsibilities
      of Party A

            

    

    
      	
              1.1

            	
              Party
      A shall submit the design materials stipulated herein to Party B within
      the time limit and ensure the completeness and accuracy of such
      materials.

            

    

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    

    
      	
              1.2

            	
              Party
      A shall ensure that the project funds should be put in the right place
      timely according to the requirements of EPC
  Contract.

            

    

    
      	
              1.3

            	
              Party
      A shall arrange qualified personnel to be trained in accordance with the
      requirements for trainees proposed by Party
B.

            

    

    
      	
              2.

            	
              Responsibilities
      of Party B

            

    

    
      	
              2.1

            	
              Party
      B shall offer the technical guidance and services to Party A according to
      the content prescribed in the Technical Appendix of EPC Contract and shall
      be responsible for the quality and completeness of the
      services.

            

    

    
      	
              2.2

            	
              Party
      A shall offer conveniences in aspects of working, living and traffic to
      the onsite personnel arranged by Party B. However, the charges for such
      conveniences shall be borne by Party
B.

            

    

     

    Article
6 Confidentiality

     

    Both
Parties shall protect each other’s intellectual property rights. Without prior
consent, neither party can unilaterally revise, reproduce or transfer to a third
party or use for the project other than the Project of this Contract any
materials and documents of the other party. Under such circumstances, the
disclosing party shall be responsible for all the any consequence resulting
therefrom and shall bear the relevant compensation.

     

    Article
7 Miscellaneous

     

    
      	
              1.

            	
              Service
      provided by Party A for the Project in this Contract will be concluded
      until the final acceptance after test on construction
      completion.

            

    

    
      	
              2.

            	
              Any
      other service, which Party A entrusts Party B to provide, however, out of
      the scope of the Contract, shall be paid
  correspondingly.

            

    

    
      	
              3.

            	
              During
      the quality guarantee period, Party B shall dispatch its personnel to
      handle the onsite technical failures within 48 hours upon receiving the
      request of Party A.

            

    

    
      	
              4.

            	
              For
      any failure to perform any term or condition of this Contract due to the
      force majeure, both parties shall, in good faith, attempt to settle it
      amicably and by mutual agreement.

            

    

    
      	
              5.

            	
              If
      any disputes arise during the performance of this Contract, it shall be
      settled by friendly consultation of the parties. In case the disputes can
      not be settled by consultation, both parties agree to bring the disputes
      to the people's court at the place of their
  implementation.

            

    

    
      	
              6.

            	
              As
      for matters not covered in this Contract, it shall be determined through
      consultation, and written agreement shall be concluded and shall be
      implemented as the attachment of this
Contract.

            

    

    
      	
              7.

            	
              The
      Contract is effective once after both parties stamped and signed. And the
      Contract shall be terminated after both parties have performed all the
      obligations prescribed in this Contract. The Contract is in four (4)
      originals. One for each party. There are totally 8 copies of the Contract,
      four for each party.

            

    

    
      
         

      

      
        69Unassociated Document

    
      Exhibit
10.20 

        
          

        

      

    

    

    Construction
Contract of the Construction Works

    No.
1 of No. 8 and No. 9 Ovens in 2009

    

    Project
Name: Shuncheng Coal Carbonization No.8 and No. 9 Coke Oven Systems and
Cold-blast Project

    

    Place of
the Project: Within the Plant

    

    Owner:
Henan Shuncheng Group Coal Coke Co., Ltd.

    

    Contractor:
Hebei Lin Zhang Construction Company

    

    Date:
December 16, 2009

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      

    

    Contracting
Agreement of the Construction Works

    

    Article
1

    

    Owner
(“Party A”): Shuncheng Group Coal Coke Co., Ltd.

    

    Contractor
(“Party B”): Hebei Lin Zhang Construction Company

    

    According
to the PRC Contract
Law, the PRC
Construction Law, the Administrative Rules on Construction
Engineering Quality and other relevant laws and regulations, and based on
the principles of free will, fairness and good faith, the two Parties hereby
reach this Agreement in respect to the decorations of part of the office
building herein.

    

    Article 2 General Situation of the
Project: Civil Engineering, Steel Structure Fabrication and
Installation

    

    Project
Name: Shuncheng Coal Carbonization No.8
and No. 9 Coke Ovens and Cold-blast Project

    

    Place of
the Project: Within Shuncheng Coal Carbonization Plant

    

    Structure:
Concrete Structure

    

    Article
3 Scope of the Contracting

    

    Scope of
the Contracting: All the engineering works within the drawings of the No. 8 and
No. 9 coke oven systems (please see the details in the “Table of the
Construction Works” contained in this Agreement attached herein).

    

    Contracting
Method: Party A is responsible to provide the main materials, the steel, cement,
the stone and the sand; and Party B is responsible to provide labor, the
machinery and the supplies inventory.  The site hardening and the road
hardening which emerge during the construction shall be subject to a fixed price
(including the lime-soil) formulated by the Capital Construction
Division.

    

    Article
4 Construction Period

    

    Commence
Date: December 1, 2009

    

    Completion
Date: October 1, 2010

    

    The whole
Construction Period lasts 335 calendar days.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      

    

    Note
by hand: The construction period hereof is only for No. 9 coke oven
(construction period for No.8 coke oven will be otherwise agreed)

    

    
      	
              1.

            	
              No.9
      coke oven will be ready for furnace-drying on August
  1.

            

    

    
      	
              2.

            	
              No.9
      coke oven will be ready for installation of iron part for protection of
      coke oven on July 1.

            

    

    
      	
              3.

            	
              No.9
      coke oven will be ready for construction on April
  10.

            

    

    

    Article
5 Quality Standard

    

    5.1 The
project quality standard shall conform to the existing unified inspection and
acceptance requirements on the construction works and shall conform to national
or industrial quality examination and evaluation standards; if the construction
works is not qualified and fails to reach the project quality standards, the
Contractor shall bear the liability for breach of contract.

    

    5.2 If
the two Parties have any dispute to the project quality, such issue may be
identified and evaluated by the quality inspection entity of the construction
works, the necessary fees and other losses arising therefrom shall be borne by
the responsible party.

    

    5.3 Party
B shall conduct the construction strictly and seriously according to the
standard specification and the requirements of the drawings, and shall accept
the on-site project inspection and acceptance from the technical or quality
control staffs designated by Party A as may be required from time to
time.

    

    5.4 If
the project quality of Party B fails to reach the quality standards and if there
are cut corners by Party B, once discovered by the technical or quality control
staffs, the technical or quality control staffs are entitled to order Party B to
dismantle, rework or suspend the work, until the project quality reaches the
quality standards.  Any economic losses arising therefrom shall be
borne by Party B and the Construction Period shall not be extended.

    

    5.5 For
the inspection and acceptance of each work procedure and each concealed work, it
must be on-site inspected and accepted by Party A’s technical and supervising
staffs; after the work quality is confirmed to be qualified and relevant
certificates are issued, the next work procedure and the next concealed work
shall be launched.

    

    Article
6 Party A shall be responsible for:

    

    6.1
"Three Supplies and One Leveling" (i.e. supply of water, electricity and road,
as well as the leveled ground)

    

    6.2 Party
A shall provide the construction drawings, the supporting instructions and other
relevant documents.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      

    

    6.3 For
any losses arising from the work-suspension and the slow work of the
labor    caused by 8-hour or over 8-hour power cut or water
supply cut-off and any losses arising from the force majeure (natural disaster),
Party A shall bear 70% of the losses (It shall come into effect after being
signed and confirmed by the Party A’s vice president in charge of the project;
if not being signed by the project director, the budget and settlement of the
project shall not be conducted).

    

    6.4 If
the project is delayed due to Party A’s modification or the foundation
treatment, the Construction Period shall be extended accordingly.

    

    6.5 The
inspection and check on the quality of the materials supplied by Party A and the
on-site supervision shall be strictly conducted.  If any project
quality accident arises from the unqualified materials supplied by Party A, the
on-site supervisor and the project director of the Owner shall be held liable
for the losses arising therefrom.  In terms of the materials supplied
by Party A, Party B shall conduct relevant technical tests and examinations and
the raw material re-examination reports according to the existing construction
specifications; for the unqualified materials discovered from the test and
examination, Party B shall submit relevant written documents to the responsible
supervisor and the project engineer, and such materials can be used upon the
vice president’s confirmation in writing; however, in principle, the unqualified
materials can not be used in the project.

    

    Article
7 Contract Price: The actual price shall be settled and calculated based on the
actually completed works quantities.

    

    7.1 Price
Adjustment:

    

    7.2 Basis
for Settlement: It shall be settled according to the method of contracting for
labor and materials and according to relevant applicable supporting documents at
provincial and municipal levels during the Construction Period.  The
adjusted labor price shall be RMB 43 Yuan per working day. (The cost of the
materials provided by Party A shall be deducted from the total settlement price;
if Party B exceeds the budget to use materials during the construction, the cost
of the excessive materials shall also be deducted in name of “financial
deduction”, while regarding the material cost within the fixed comprehensive
cost, such part shall be deducted in line with its proportion in the fixed
comprehensive cost, please refer details to the internal policies of the Capital
Construction Division.) The prices of other materials shall be adjusted
according to the construction cost information published by Anyang
municipality.

    

    7.3 Basis
for the Construction Cost:

    

    Civil
Engineering: the Comprehensive
Basic Price of Henan Construction and Decoration Engineering of 2002
shall be applied.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      

    

    Installation
Engineering: the Comprehensive
Basic Price of Henan Installation Unit of 2003 shall be
applied.

    

    7.4
Charge standard: Party B is only entitled to collect taxes, but not to any other
expenses.

    

    Article 8 Payment Schedule:
After the required conditions for the start-up of the construction works
are satisfied and after the Parties sign the construction works agreement, Party
B shall provide a start-up report.   Party A may prepay 5% of the
temporary contract price as the fund for the project materials preparation (due
to the budget does not take the project and the foundation treatment into
considerations, Party B may adjust the estimated cost during the Construction
Period); during the Construction Period, Party B shall report its actual
completed work quantities to the Owner on the 25th of each month (the payment
shall be settled based on the progress rate), and the Owner shall pay 70% of the
progress payment to Party B before the 5th of the next month; after the project
is completed, 95% of the project price which is recognized by Party A shall be
paid.  The remaining price shall be paid off upon the expiry of the
warranty period.  The settlement and payment shall be subject to Party
B’s provision of formal invoices.

    

    Article
9 Withholding Amounts

    

    9.1
Maintenance Bond: 5% of the total project settlement price shall be withheld as
the maintenance bond, which shall be refunded to Party B after the expiry of the
quality warranty period.

    

    9.2
Quality Warranty: The quality warranty period shall be 1 year.  Within
the warranty period, Party B shall undertake the quality warranty liabilities
for the project delivered for Party A’s usage according to the laws, regulations
and relevant national rules on the project quality warranty; and for any quality
problems of any part of the project, Party B shall conduct the on-site repair
and maintenance unconditionally within 5 days after receiving Party A’s notice,
or otherwise, Party A may appoint other construction team to repair and maintain
the quality problems and the relevant maintenance expenses shall be paid and
deducted from the Maintenance Bond.

    

    Article
10 Award and Penalty

    

    If the
construction works is early completed, for each one day in advance, the award
equal to ____% of the total project construction cost shall be granted; if the
completion of the construction works is delayed, for each one-day delay, the
penalty equal to ____% of the total project construction cost shall be
imposed.  If the extension of the Construction Period is required
under special occasions and which is approved and confirmed by Party A’s
representative (relevant certificate is required to be issued in such
situation), such delay of the completion is exempt from the
penalty.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      

    

    Article 11 Party B shall
independently responsible for any and all casualty accidents arising from the
construction.

    

    Article
12 Completion and Acceptance

    

    Where all
the conditions for the project completion and acceptance are satisfied, the
contractor, in accordance with related national laws and regulations governing
construction work inspection and acceptance procedures, shall provide Party A a
complete set of completion materials, a copy of project completion report and a
copy of as-build drawings to Party A; Party A shall organize relevant staffs to
inspect and accept the project within 10 days after receiving the documents
provided by Party B; Party A shall issue the acceptance certificate for the
qualified construction works within 10 days after such construction works passed
the inspection and acceptance; the project settlement and payment procedures can
only be launched by the acceptance certificate.

    

    Article 13 Yang Genxian
(Gensheng) is Party A’s designated representative and WEI Cheng is Party
B’s project manager and designated representative.  This Agreement is
entered into by the two Parties through mutual negotiations and the two Parties
shall strictly abide by and perform this Agreement.  This Agreement
has two original copies and each Party shall keep and hold one original
copy.

    

    Party
A: Henan Shuncheng Group Coal Coke Co., Ltd.

    Representative:
[illegible]

    

    Party
B: Hebei Lin Zhang Construction Company

    Representative:
[illegible]

    

    Execution
Date: December 16, 2009

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      

    

     

    Table of the Construction Works
Contained in this Agreement

    

    
      
        
          
            
              	
                      No

                    	 	
                      Items
      of the Construction Works

                    
	
                      1

                    	 	
                      Civil
      Engineering of No. 8 Stamp-charging Coke Oven (including the main chimney
      flue and the by-pass flue)

                    
	
                      2

                    	 	
                      Civil
      Engineering of No. 9 Stamp-charging Coke Oven (including the main chimney
      flue and the by-pass flue)

                    
	
                      3

                    	 	
                      End
      Platform of No. 8 Stamp-charging Coke Oven

                    
	
                      4

                    	 	
                      End
      Platform of No. 9 Stamp-charging Coke Oven

                    
	
                      5

                    	 	
                      Intermediate
      Platform

                    
	
                      6

                    	 	
                      Coke-pushing
      Track

                    
	
                      7

                    	 	
                      Coke-quenching
      Track

                    
	
                      8

                    	 	
                      Coke-quenching
      Tower

                    
	
                      9

                    	 	
                      Coke-quenching
      Pump House and Sedimentation Tank

                    
	
                      10

                    	 	
                      Coke
      Machine Two-side Operating Platform of No. 8 and No.9 Stamp -charging Coke
      Ovens

                    
	
                      11

                    	 	
                      Second
      Track of the Coke Guiding

                    
	
                      12

                    	 	
                      Stamp-charging
      Coal Tower

                    
	
                      13

                    	 	
                      Chimney
      (Chimney of No. 8 Coke Oven and No. 9 Coke Oven)

                    
	
                      14

                    	 	
                      Coke-cooling
      Table

                    
	
                      15

                    	 	
                      Coke
      Transport System and Transfer Station

                    
	
                      16

                    	 	
                      Coal
      Transport System and Transfer Station

                    
	
                      17

                    	 	
                      Exterior
      Pipeline Bracket

                    
	
                      18

                    	 	
                      Water
      Cooling Tower

                    
	
                      19

                    	 	
                      Primary
      Cooler

                    
	
                      20

                    	 	
                      Fan
      Room

                    
	
                      21

                    	 	
                      Electrical
      Tar Trap

                    
	
                      22

                    	 	
                      No.
      3 Switching Room

                    
	
                      23

                    	 	
                      Condensation
      Pump House

                    
	
                      24

                    	 	
                      Infrastructure
      and Equipment of the Cold-blast Sector and other Auxiliary Works of the
      Cold-blast
Sector

                    

            

          

        

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      

    

    Henan
Shuncheng Group Coal Coke Co., Ltd

    Supplemental
Agreement Regarding No.8 Coal Coke Oven

    

    
      	
              1.

            	
              Contract-issuing
      Party (Party A): Henan Shuncheng Group Coal Coke Co., Ltd Contractor
      (Party B): Hebei Lin Zhang Construction
Company

            

    

    

    2.
Description on Supplemental Agreement

    

    i. Due to
the construction site factors, No.8 coal coke oven cannot start construction
together with No. 9 coal coke oven. Therefore, Construction of No.8 coal coke
oven shall commence on 1 January 2010 and be completed before 1 October
2010.

    

    ii. The
scope of project contracting, quality standard as well as payment of contract
price, work safety and other clauses shall be in conformity with those specified
in the contract of No. 1 of
No. 8 and No. 9 Ovens in 2009.

    

    3. This
supplemental agreement shall take effective upon signing and sealing by both
parties.

    

    Contract-issuing
Party (Party A): Henan Shuncheng Group Coal Coke Co., Ltd

    /s/ LV
Zhanfeng’s     [company seal]

    

    Contractor
(Party B): Hebei Lin Zhang Construction Company

    /s/ WEI
Cheng’s     [company seal]

    

    Date:
June 22, 2010

    
      
         

      

      
        8

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