**Loan      Agreement**

**Party      A: **
**Xinyang      Hongchang Pipeline Gas Co. Ltd**

**Party      B: **
**Henan      Jinding Chemical Co., Ltd**

| 1. | Party                A agreed to lend RMB14million to Party B. The fund will be transferred                to                Party B’s bank account when this agreement has been signed and goes into                effect. |
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| 2. | The                maturity of the loan is one year. Party B will need to repay it on                August                8, 2009. During the borrowing period, if Party B could have the Project                loan which the Bank of China has made the commitment in place, Party                B                could repay the loan to Party A in advance. |
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| 3. | The                annual interest rate for this loan should be based on the current                one year                period bank loan interest rate and with 20% premium. As current one                year                period bank loan rate is 7.29% and after the 20% premium, the annual                interest rate for this loan will be 8.748%. The interest will be                counted                from the date when the fund is transferred by Party A, and the interest                settlement date will be the 15th of each                month. |
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| 4. | The                loan will be used for the construction of the 200,000 tons Methanol                project and shall not be appropriated for other purposes. Party A                should                have the right to supervise on the usage of this loan. The source                of                repayment should be the project loan borrowed or to be borrowed by                Party                B. |
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| 5. | This                agreement shall be made in two original copies, and will be effective                when                the contact has been stamped and signed by both Parties. |
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| Party                A:                     | Party                B:                       |
|---------------------------------------------|-----------------------------------------------|
|                                        |                                          |
| Representative:                Chen Siqiang | Representative:                Zhou Dianchang |

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