RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2013

9. RELATED PARTY TRANSACTIONS

As of September 30, 2013, payments due to related parties totaled $4,084,277, including a $4,043,591 advance from the Company’s CEO which was repaid, in full, in October 2013; and $40,686 in advances from the Company’s management, which bore no interest, and are payable on demand.

As of December 31, 2012, advances to related parties totaled $440,987, including $481,863 to Erdos Metallurgy (the minority shareholder of Erdos TCH), as a receivable for maintenance fee and tax expense, net of a $40,876 in advances from the Company’s management, which bore no interest, and were payable on demand.

Erdos TCH sold all power generation stations through sales type leases to Erdos Metallurgy Co., Ltd., the non-controlling interest holder (Erdos Metallurgy sold all its ownership shares in Erdos TCH to Xi’an TCH on June 15, 2013). In June 2013, Xi'an TCH purchased Erdos Metallurgy’s minority interest in Erdos TCH; as a result, Erdos Metallurgy is no longer a related party (See note 1).

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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