Import T/T Financing Agreement

Contract No.:_____________

Import T/T Financing Agreement

Important Notice: This Contract is entered into by the Parties in accordance with laws based on equality and free will, and the terms and conditions of this Contract fully reflect the genuine intention of the Parties hereto. In order to protect legal rights and interests of the Borrower, the Lender hereby draws the Borrower's special attention to the terms and conditions of this Contract in relation to each Party's rights and obligations, in particular those in bold.

Party A (Accepting bank): Industrial and Commercial Bank of China Limited, Shanghai Zhangjiang Branch

Address: No. 639 Zhangjiang Road, Pudong District, Shanghai ,China

Legal representative: Qiqing Jiang

Party B (Drawer): CER Energy Recovery (Shanghai) Co., Ltd.

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

Legal representative: Qinghuan Wu

Whereas: To specify the rights and obligations and ensure the proper execution of import T/T financing transaction, Party A and Party B hereby enter into this Agreement after negotiation.

Article 1 definition: “Import T/T financing” is that under the item of Party B entrusts Party A to make payment for import purpose, due to the financing need of Party B, after providing guarantee to Party A as required to obtain financing and authorized Party A to pay this financing to overseas suppliers. Party B warrants to repaying the above mentioned principal to Party A within agreed time as well as resulting interest, overdue penalty interest, etc.

In this situation, all risk arising from the import is assumed by party B.

Article 2 Import financing amount: USD1,150,000. (SAY USD one million one hundred and fifty thousand only).

Article 3 Financing interest rate: three months libor +200bp, if suffer the adjustment of interest rate within financing period, carry out in accordance with the interest rate of the date of financing.

Article 4 Term of the loan: The term of the loan hereunder shall be 90 days commencing from June 15, 2012 to September 14, 2012.

Article 5 Financing management: Party A is entitled to check and supervises the Party B’s operating managements、financing activities and stock material as well as sales situations. Party B shall submit financial statement as well as plan and statistic statements to Party A every month, and provide the working convenience of financing management.

Article 6 Party B agrees to provide property guarantee as Party A required in order to ensure Party A return total principal and interests on time, A security contract will be entered into separately. In the situation of Party A required, Party B should deposit the sales money to designated account of Party A, account number is 　　　　　.

In case of Party B cannot repay the amount due, Party A is entitled to have the priority of obtain the amounts of disposal collaterals. The collaterals mentioned above are excluding of import goods.

Party B also can provide other guarantees with Party A accepted. If Party B cannot repay the amount due, the guarantor undertakes joint liability unconditionally.

If party B provide for the mortgage guarantee, the contract name and number is as follows: (number: )

Article 7 Repayment: Party B shall warrant repay the principal and interest within agreed time of the loan hereunder. Party B can repay the money in advance and by installments, the interest will bear according to remaining outstanding principals.

If Party B files to repay the amount on time, whatever reasons, Party A is entitled to do as follows:

Article 8 Insurance: Party B shall actively or under requirement of Party A to insure with Party A the first beneficiary to , the insurance number is . Party A is entitled to deduct the principal and interests from the compensatory amounts provided by insurance company.

Article 9 Party B representation warrants and undertaking:

6. Party B promise, the following activities will never occur in any conditions:

Article 10 Default:

(1) Representations or warrants issued by Party B are unauthentic or breach of promise under this agreement;

(2) Party B is in default or breach of any of its obligations under this agreements;

(3) In Party A’ s opinion, the Party B’s ability to operate its business, or its financial indicators such as cash flow do not comply with agreed standard or suffer deterioration, which has affected or may affect performance of its obligations hereunder;

(4) Party B is or may be under winding-up, dissolution, liquidation, suspension of business, or its business license has been or may be revoked or cancelled, or it has applied or been applied, or may apply or be applied, for bankruptcy;

(5) Party B is or may be involved in any material economic dispute, or there is any liability accident caused by Party B’s violation of applicable laws and regulations, regulatory rules or industry standard in relation to food safety, production safety or environmental protection, which has affected or may affect performance of its obligations hereunder;

(6) Party B obtains fund or credit facility from the Party A by using false contracts between the Party B and its related party or transactions that do not actually exist, or intentionally uses related transactions to evade from or invalidate the Party A’s claim;

(7) Party B fails to provide other security acceptable to Party A when the security provided hereunder suffers any change that is adverse to the claim of the Party A;

(8) Other events that may cause adverse impact on realization of the Party A’s claim hereunder.

2. If the Borrower is in default, the Lender may take any one or more of the following steps:

Article 11 If Party B files to repay the loan when it becomes due (including accelerated maturity as declared by Party A), Party A is entitled to deduct relevant amounts form all RMB and foreign exchange accounts opened by Party B in Party A or Industrial and Commercial Bank to set off such debt, until all outstanding amounts are fully settled.

If the currency of deducted amount is different from that of the loan hereunder, the amount will be converted in accordance with applicable exchange rate published by Party A on the date of such deduction. Party B shall bear all interest and other expenses incurred between the deduction date and the actual settlement date (i.e. the date when the debts hereunder are actually settled after Party A converts the deducted amount into the currency of the loan hereunder in accordance with applicable State policies on administration of foreign exchange), as well as the difference caused by fluctuation of exchange rate during such period.

Article 12 If so required by applicable laws, regulations, or other financial regulators, Party A may provide the information related to this Contract and other information related to Party B to the credit information database of the People's Bank of China or other credit database created in accordance with laws for duly qualified institutions or individuals to check or use. Party A may also enquire information related to Party B by using the credit information basic database of the People's Bank of China or other credit database created in accordance with laws for purpose of execution and performance of this Contract.

Article 13 Waiver: Failure to exercise, partial exercise or delay in exercise by Party A of any of its rights hereunder will not constitute waiver of or amendment to such right or any other right, nor will it affect Party A's further exercise of such right or any other right.

Article 14 Amendment and supplement of the agreement: Under agreement of written consent by both Parties, this agreement can be amended and supplemented. Any amendments and supplements signed by both parties constitute an integral part of the agreement, and the amended agreement will replace relevant content of the original agreement from the effective date. The supplementary agreement shall be final and binding upon both Parties from the effective date.

Article 15 Governing law and dispute resolution

This agreement is applicable for People’s Republic of China’s laws and in accordance with its explanation.

All disputes and controversies arising from or in connection with this Contract shall be solved by the Parties through consultations, failing which, be solved by the following second means agreed hereunder.

During the period of Litigation or arbitration, the terms unrelated to dispute part will be continue to perform by two parties.

Article 16 The change of the parties: If Party B shall inform Party A in advance in case of the occurrence of merger、demerger or restructuring. When Party B merger or reduction of capital, Party A is entitled to pay off debts or provide guarantee; when Party B suffer merger, all entities shall assume joint and several liabilities.

Article 17 《Import T/T financing trading application》is an integral part of this agreement hereunder, all terms listed have the equal legal force and effect.

Article 18 This Agreement is made in two copies, and each of Party A and Party B shall hold one copy, all of which shall have the same legal force and effect. This contract shall take effect as of the date hereof, and end upon the date when all of both Parties’ obligations hereunder are fully performed

Party A (seal):____________________________

Person-in-charge/authorized representative: ___________________________________

Party B (seal):____________________________

Legal representative/authorized representative: ___________________________________

Date: ______________________

Entrusted Payment Agreement

Principal (Party A): CER Energy Recovery (Shanghai) Co., Ltd.

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

Legal Representative: Qinghuan Wu

Agent (Party B): Industrial and Commercial Bank of China Limited, _______

Address: _ No. 639 Zhangjiang Road, Pudong District, Shanghai ,China

Person-in-Charge: _Jiqing Jiang__________________________________________

WHEREAS:

Upon equal negotiations and mutual agreement, Party A and Party B enter into this agreement in relation to entrusted payment arrangement related to the financing.

Article 1 Condition for Entrusted Payment

Entrusted payment agreement will be applied if the amount of a single drawdown made by Party A under the agreement is equal to or exceeds RMB 500,000 or meets the following conditions:

Article 2 Authorization and Entrustment

After a drawdown amount which meets the condition for entrusted payment as set out hereunder is remitted into the designated account of Party A, Party A shall authorize and entrust Party B to transfer such amount into an account of Party A’s payee for the purpose as agreed under financing contract, and provide relevant information including payment voucher as required by Party B.

The purpose of financing as agreed under financing contract is: payment of purchase.

Article 3 Entrusted Payment

Article 4 Freezing or Suspension of Account

If Party B is unable to complete entrusted payment in accordance with Party A's entrustment due to the reason that the account designated by Party A to receive the financing or the account of Party A's payee is frozen or suspended by competent authorities, Party B is not liable for such failure, nor will such failure affect any accrued repayment obligations of Party A under the Financing Contract.

Article 5 Supervision and Check on Direct Payment

If the proceeds of financing under the Financing Contract are to be paid directly by Party A to its payees, Party A undertakes to accept and actively cooperate with Party B's check and supervision on the use of the proceeds of the financing (including purpose of financing), including account analysis, voucher verification and on-site investigation, and to regularly summarize and report information on the use of proceeds of the financing as requested by Party B.

Article 6 Liability for Breach

Article 7 Force Majeure Event and Accident

If Party B fails to promptly advance and pay relevant amount due to any unforeseeable, unavoidable and unconquerable force majeure event, including war and natural disaster, or any accident including breakdown of Party B's system or communication, Party B is not liable for such failure, provided that Party B shall promptly notify Party A of such force majeure event or accident.

Article 8 Effectiveness and Termination

This Agreement shall take effect as of the date hereof, and end upon the date when all financings have been drawn down by Party A under the Financing Contract (including cancellation by Party B of all financings for which Party A has not made drawdown in accordance with the Financing Contract) and Party B has completed all matters in relation to the entrusted payment.

Article 9 Miscellaneous

This Agreement is an appendix to the Financing Contract, and has equal legal effect as the Financing Contract. Any issue that is not covered by this Agreement shall be governed by the Financing Contract.

Appendix: List of Payees and Accounts

Party A (seal):

Legal representative (authorized representative): ___________________________________

Party B (seal):

Person-in-charge (authorized representative): ___________________________________

Date: ______________________Appendix:

List of Payees and Accounts

Payee 1:

Account name: Haie Hi tech Engineering (Hong Kong) Company limited.

Account number: 499-507770-838

Bank: HSBC SUN HUNG KAI BRABCH

Amount to be paid: USD 1150000.00

Payee 2:

Account name: _______________________________________

Account number: _______________________________________

Bank: _______________________________________

Amount to be paid: _______________________________________

Payee 3:

Account name: _______________________________________

Account number: _______________________________________

Bank: _______________________________________

Amount to be paid: _______________________________________

Payee 4:

Account name: _______________________________________

Account number: _______________________________________

Bank: _______________________________________

Amount to be paid: _______________________________________

Borrower (seal):_____________________________