Purchase Agreement for Coal with Xinxing Material Sales agency of Fuxin Economic Development Zone on July 14, 2007
Exhibit 10.6
INDUSTRIAL AND MINERAL PRODUCTS PURCHASE CONTRACT
(English Translation)
Supplier : Xinxing Material Sales agency of Fuxin Economic Development Zone
Contract Number:0708012
Buyer : Fuxin Hengrui Technology Co., LTD
Signature Place: Fuxin City
Signature Date:2007/07/14
1、Product name、quantity、amount (RMB)
| Product Name | Variety | Manufacturer | Unit | Quantity | Unit Price (RMB) | Total amount (RMB) |
| Coal | Seed coal |
| Ton | 36000 | 470 | 16.92 million |
The total quantity will be delivered in 6 months with delivery of 6,000 tons each month.
2、Quality Specifications
| Specifications | Standard | Note |
| Lower level Calorific capacity | 5000 – 5500 calorie per kilogram |
|
| Size of granule | 30 – 80 mm |
|
| Descending rate | ＜5% |
|
| Low position calorific capacity | ≤1% |
|
| Amount of Moisture | ≤10 |
|
| Amount of ash | ≤5% |
|
| Amount of Volatility | ≥28 |
|
| Whole sulphur capacity | ≤0.5% |
|
| Solid carbon | ≥58% |
|
3、Calculation of quantity:
The quantity will be calculated based on the weight determined by the buyer’s inspection.
4、Place of delivery: Plant of Fuxin Hengrui Technology CO.,LTD; Consignee: Fuxin Hengrui Technology Co. Ltd.
5、Transportation and cost: by truck; The supplier shall arrange the transportation and pay the freight.
6、Quality control standards: Upon the receipt of the goods, the buyer shall perform the inspection and the quantity the buyer determines after inspection shall be the quantity of purchase. In case of any discrepancy, the supplier should submit the different quantity within 24 hours after the receipt of the buyer’s inspection report; If there is any dispute, the goods should be delivered for inspection to the qualified inspection institution in the place where the buyer domiciles. The inspection report issued by the inspection institution shall be deemed as conclusive.
7、Payment
Upon receipt of the goods by the buyer, the seller shall provide VAT invoice to the buyer for payment. The buyer should make payment by acceptance draft (6-month maturity) one month after the receipt of the goods and completion of inspection.
8、Remedies for breach of contract: If the supplier fails to act pursuant to the contract, the supplier should pay the buyer an amount equivalent to 30% of total contract amount as compensation for the loss suffered by the buyer.
9、Dispute settlement: Both parties shall make efforts to settle any dispute arising out of this agreement among themselves. In the event that the parties fail to reach any settlement, both parties agree that the dispute shall be adjudicated by the court in the jurisdiction where the buyer domiciles.
10、Other terms.
11、Confidentiality
12、Effectiveness of the contract
| Supplier(stamp): | Buyer(stamp): |
| Agent (signature): /s/ Address: Industrial Development Zone, Xishan St., Fuxin City, Liaoning Bank: Commercial Bank, Zhonghualu Branch, Account number: 81000015201090002584 Tax number: 210920728408367 Tel: 0418 ###-###-#### Fax: 0418 ###-###-#### Post Code:123000 | Agent (signature): /s/
Address:123 – Chuangye St. Fuxin City, Liaoning Bank: China Citic Bank, Shengyang Branch Account number: 7221010182600081372 Tax number: 210920740771337 Tel: 0418 ###-###-#### Fax: 0418 ###-###-#### Post Code: 123002 |
