Document:

Unassociated Document

    Exhibit
10.33

    

    Contract
No. YHZL (09) 02ZL024

     

      
        

      

    

     

    Financing
Leasing Contract

              

    Of

            

    2
× 14M M Gas
Turbine Generator Set and Auxiliary

         

    Equipment

     

      
        

      

    

     

    Between

    

    HENAN SHUNCHENG GROUP COAL COKE CO.,
LTD.

         

    (“Lessee”)

    

    And

    

    AVIC
I INTERNATIONAL LEASING CO., LTD. (“Lessor”)

    

    Date:
November 3, 2009

             

    Place:
Shanghai, China

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    This
Financing Leasing Contract is entered into on November 3, 2009 in Shanghai by
and between the following two parties:

     

    HENAN
SHUNCHENG GROUP COAL COKE CO., LTD. (“Lessee”)

     

    Registered
Address: North of Tongye Town, Anyang County, Henan Province, China

     

    Domicile:
North of Tongye Town, Anyang County, Henan Province, China

     

    Legal
Representative: Xinshun Wang (王新顺)

     

    Tel and
Fax: 0372-3206736

     

                         0372-3206721

     

    And

     

    AVIC I
INTERNATIONAL LEASING CO., LTD. (“Lessor”)

     

    Registered
Address: 23/F, C Tower, No.212 Jiang Ning Road, Jing An District,
Shanghai

     

    Legal
Representative: Yu An Zhang (张予安)

     

    Tel and
Fax: 021-52895388

     

                         021-52895389

     

    (The
Lessor and Lessee shall be individually referred to as a “Party” and collectively as
“Parties”)

     

    Whereas:

     

    
      	
              (1)

            	
              Based
      on the Lessee’s selection of the Supplier and the Lease Item, the Lessor
      agrees to purchase the Lease Item and lease it to the Lessee for its use.
      And

            

    

     

    
      	
              (2)

            	
              The
      Lessor agrees to provide the Lessee the Lease Item by leasing and the
      Lessee agrees to lease the Lease Item under the terms and conditions of
      this Contract.

            

    

     

    Now therefore, through
friendly negotiations, the two Parties agree as follows:

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
              1.

            	
              Definition and
      Interpretation

            

    

    

    
      	
            	
              1.1

            	
              Unless
      otherwise specifically prescribed in this Contract or otherwise separately
      agreed by the Parties in writing, the terminologies used in this Contract
      shall be defined and interpreted as below.  Any terminology from
      this Contract shall be interpreted according to this
    Article.

            

    

     

    
      
        
          
            	
                    Terminology

                  	 	
                    Definition

                  
	
                    Contract/this
      Contract

                  	 	
                    Shall
      refer to this Financing Leasing Contract and all the Annexes thereof, as
      well as any supplementary agreements and amendments in writing thereto
      entered into by the Parties from time to time.

                  
	
                    Schedule

                  	 	
                    Shall
      refer to the Schedule of Leasing signed by the Lessor and Lessee in the
      format of Annex 1 of this Contract from time to time.

                  
	
                    Lease
      Item

                  	 	
                    Shall
      refer to the equipment, spare parts, accessories, auxiliary software, and
      service described in the Schedule of this Contract, as well as any
      substitute, update and replacement to the said
  equipment.

                  
	
                    Leasing
      Transaction

                  	 	
                    Shall
      have the meaning as defined in Article 3 herein.

                  
	
                    Acceptance
      Certificate

                  	 	
                    Shall
      refer to the acceptance certificate signed by the Lessee in the format of
      Annex 2 of this Contract.

                  
	
                    Business
      Day

                  	 	
                    Shall
      refer to a day, on which the bank inside China is open for general
      business (other than the legal rest days and legal public
      holidays).

                  
	
                    Acceptance
      Date

                  	 	
                    Shall
      refer to the date indicated in the Acceptance
  Certificate.

                  
	
                    Delivery
      Place

                  	 	
                    Shall
      refer to the place for delivery as provided in the
    Schedule.

                  
	
                    Supplier

                  	 	
                    Shall
      refer to the equipment suppliers as listed in the
  Schedule.

                  
	
                    Purchase
      Contract

                  	 	
                    Shall
      refer to the orders, the sales contract or other purchase documents signed
      by and between the Lessee and the Supplier in relation to the product
      purchase based on the Entrust Purchase Contract

                  
	
                    Entrust
      Purchase Contract

                  	 	
                    Shall
      refer to the Entrust Purchase Contract (No. YHZL(09) 02ZL024-WM001) signed
      by and between the Lessor (Principal) and the Lessee
      (Consignee).

                  
	
                    RMB

                  	 	
                    Shall
      refer to Chinese legal currency.

                  
	
                    Leasing
      Term

                  	 	
                    Shall
      have the meaning as defined in Article 8.1 herein.

                  
	
                    Rental

                  	 	
                    Shall
      refer to the amount as provided in the column of “Rental” in the Schedule
      herein.

                  
	
                    Rate
      for Late Payment

                  	 	
                    Shall
      refer to the rate when calculating the surcharge for delay of performance,
      which is, 0.1% per day.

                  
	
                    Rental
      Adjustment Notice

                  	 	
                    Shall
      refer to the notice of rental adjustment in the format of Annex 3 signed
      and issued by the
Lessor.

                  

          

        

      

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      
        	
                Rental
      Payment Date

              	 	
                Shall
      refer to the date as provided in the column of “Rental Payment Date” in
      the Schedule herein.

              
	
                China
      or PRC

              	 	
                Shall
      refer to the People’s Republic of China (excluding Hong Kong, Macao and
      Taiwan).

              
	
                Security
      Interest

              	 	
                Shall
      refer to any mortgage, pledge, lien, or other security interests set up or
      arises by whatever means.

              
	
                Breach
      of Contract

              	 	
                Shall
      refer to any breach of contract of the Lessee as provided in Article 25
      herein.

              
	
                Authorization

              	 	
                Shall
      include any and all approvals, consents, licenses, admission, concession,
      permissions, registration, announcement, reduction or
      exemption.

              
	
                Month/Year

              	 	
                Shall
      refer to the calendar month/year.

              
	
                Tax

              	 	
                Shall
      include the applicable taxes of any nature, or the taxes of any nature
      which will be applied, imposed, collected and withheld after this Contract
      comes into effect, including but not limited to income tax, business tax,
      duty, deductions or withholding tax, etc.

              
	
                Institute

              	 	
                Shall
      include any department, institute, council, bureau, committee, authority,
      or other enforcement
departments.

              

      

    

     

    
      	
            	
              1.2

            	
              Any
      Article or Annex mentioned in this Contract shall refer to the Article or
      Annex of this Contract; “This Contract” or any other document mentioned in
      this Contract shall be interpreted to include its revised or supplemented
      or updated versions. The headings of the Articles in this Contract are
      only for the purpose of convenience and shall not affect the
      interpretation of such Article.  “Including” mentioned in this
      Contract shall be interpreted as “including but not limited
      to”.

            

    

     

    
      	
              2.

            	
              Main
      Contract

            

    

     

    This
Contract shall be the main contract between the Lessor and Lessee in regard to
the leasing matters.  This Contract stipulates the general terms and
conditions which are applicable to all the Leasing Transactions under this
Contract.

     

    
      	
              3.

            	
              Schedule and Leasing
      Transactions

            

    

     

    The
Schedule stipulates the Lease Item breakdown, Rent, Rental Payment Date and
other special terms and conditions applicable to the Leasing Transactions of the
Lease Item listed in the Schedule.

     

    Each
Schedule constitutes one Leasing Transaction in regard to the Lease Item listed
in the Schedule between the Parties upon being signed and agreed by the
Parties.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
              4.

            	
              Independent Leasing
      Contract

            

    

     

    The
Lessor and Lessee hereby agree that the Schedule signed by the Parties shall
become part of terms and conditions of this Contract by mentioning “this
Contract”.

     

    
      	
              5.

            	
              Discretional Selection and
      Purchase

            

    

     

    
      	
            	
              5.1

            	
              The
      Lessee has the right, at its full discretion, to select the name, type,
      specification, quality, maintenance, price, delivery, inspection and
      acceptance and other purchase issues of the Lease Item, as well as the
      Supplier of the Lease Item.

            

    

     

    
      	
            	
              5.2

            	
              The
      Lessor shall sign a Entrust Purchase Agreement with the Lessee, according
      to which, the Lessee shall itself directly negotiates and concludes the
      Purchase Contract (or other contracts with the name nature, such as sales
      and purchase contract, project turnkey contract, etc., hereinafter as
      “Purchase
      Contract”) with the Suppler in regard to the purchase of the Lease
      Item.

            

    

     

    The
Lessor is only obliged to pay the purchase price of the Lease Item under the
Purchase Contract.  Other obligations, liabilities and risks shall all
be borne by the Lessee, like the Lessee is the purchaser of the Lease
Item.

     

    
      	
            	
              5.3

            	
              The
      abovementioned Lessee’s selection and decision does not rely on the
      Lessor’s skills or are not affected by the Lessor at
  all.

            

    

     

    
      	
              6.

            	
              Delivery and Inspection and
      Acceptance

            

    

     

    
      	
            	
              6.1

            	
              The
      Lessee shall reach an agreement with the Supplier that the Supplier shall
      be responsible for directly delivering the Lease Item to the Delivery
      Place according to the Purchase Contract.  Unless otherwise
      specifically agreed herein, to the Lessor, the Lessee shall bear any risks
      and expenses arising out from the delivery of the Lease Item to the
      Delivery Place.  The delivery date shall be the date as agreed
      in the Purchase Contract.

            

    

     

    
      	
            	
              6.2

            	
              The
      Lessee shall transfer an original copy of the Acceptance Certificate to
      the Lessor within 10 working days after the delivery date.  The
      Acceptance Certificate signed and issued by the Lessee constitutes a solid
      evidence certifying that:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Lessee has already inspected and accepted the Lease
  Item;

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      Lease Item fully satisfies the Lessee’s requirements and the requirements
      of the Purchase Contract;

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      Lease Item and relevant documents thereof are intact and being in good
      working conditions; and

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (4)

            	
              The
      Lessee is willing to pay the Rental and other payables under the leasing
      contract.

            

    

     

    
      	
              7.

            	
              Supplier’s Breach of
      Contract

            

    

     

    
      	  	
              7.1

            	
              If
      the Supplier has any default in the Purchase Contract, including but not
      limited to:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Supplier delays or fails to deliver all or part of the Lease
      Item;

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      Lease Item does not conform to the stipulations of the Purchase
      Contract;

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      Lease Item has any quality defect;

            

    

     

    
      	
               
      

            	
              (4)

            	
              The
      Lease Item has any title of defect (such as infringing third party’s IP
      rights);

            

    

     

    
      	
               
      

            	
              (5)

            	
              The
      Supplier fails to perform its repair or maintenance obligations for the
      Lease Item; and

            

    

     

    
      	
               
      

            	
              (6)

            	
              The
      Supplier breaches any, express or implied, representations or warranties
      it shall follows.

            

    

     

    
      	  	
              7.2

            	
              The
      Lessor shall not be liable for any damages of the Lessee caused by the
      said breaches of the Supplier.

            

    

     

    
      	
            	
              7.3

            	
              The
      Lessee agrees that where it suffers any losses due to the aforesaid
      reasons, it shall directly claim against the Supplier.  The
      Lessor’s obligation to provide assistances to the lessee is only limited
      to provide any and all necessary certifications.  Where the
      Lessee enters into any indemnity agreement with the Supplier, the Lessor
      shall be notified; where such agreement relates to the return,
      replacement, price increase/deduction of the Lease Item and other issues
      which will affect the Lessor’s rights under this Contract, a prior written
      consent from the Lessor shall be
obtained.

            

    

     

    
      	
            	
              7.4

            	
              The
      Lessee further agrees that, no matter whether the Lessee’s claim against
      the Supplier due to the aforesaid reasons is realized or not, or whether
      such claim is still in process or not, the validities of relevant leasing
      contract and this Contract as well as the Lessor’s right to collect the
      Rental and other payables from the Lessee under this Contract shall not be
      affected.  Under the said situation, the Lessee shall pay the
      Rental and other payables to the Lessor pursuant to this
      Contract.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              8.

            	
              Leasing Term and Lease
      Commencement Date

            

    

     

    
      	
            	
              8.1

            	
              Unless
      otherwise specifically agreed in this Contract, the Leasing Term of the
      Leasing Item rent out by the Lessor and leased by the Lessee shall be 5
      years (60 months).

            

    

     

    
      	
            	
              8.2

            	
              The
      Lease Commencement Date herein shall be the date when the Lessor makes the
      first installment payment according to the Entrust Purchase
      Contract.

            

    

     

    
      	
            	
              8.3

            	
              The
      Leasing Term herein shall commence from the Lease Commencement Date and
      expire on one day before the corresponding date in the 5th
      year to the Lease Commencement Date.  If there is no
      corresponding date of expiry month to the Lease Commencement Date, the
      Leasing Term shall be expired on the last day of that
      month.  Except agreed by the Lessor in writing, the Leasing Term
      shall not be canceled or early
terminated.

            

    

     

    
      	
              9.

            	
              Rental and
      Payment

            

    

     

    
      	
            	
              9.1

            	
              Upon
      the Parties’ confirmation, the Lessor shall provide the financing to the
      Lessee in respect to the leasing services for the Lease Item under this
      Contract; as a principal under the Entrust Purchase Contract (the Lessor
      under this Contract), the Lessor shall pay the sum of the product price
      minus the Rental for 0 Period, which is approximately RMB
      49,883,000.

            

    

     

    
      	
            	
              9.2

            	
              The
      Lessor and Lessee agree and confirm that: the Rental shall be determined
      according to the Lease Rate which is equal to the bank’s RMB benchmark
      loan rate of 3 to 5-year term published and implemented by the People’s
      Bank of China plus 1.5%  as lease rate (i.e. Lease Rate =
      Applicable loan rate + 1.5%); the Lessee agrees and confirms that if the
      People’s Bank of China adjusts the RMB benchmark loan rate of 3 to 5-year
      term, the Lessor has the right to adjust the annual Lease Rate at the same
      time; on the first Rental Payment Day following the adjustment date of the
      interest rate, the Rental and other payables shall remain unchanged,
      while, the Rental and other payables after the said Rental Payment Date
      shall be recalculated according to the adjusted interest rate (i.e. the
      adjusted interest rate is the new RMB benchmark loan rate of the same term
      published and implemented by the People’s Bank of China plus
      1.5%).

            

    

     

    
      	
            	
              9.3

            	
              During
      the Leasing Term, the Lessee shall pay 60 installments of the Rental which
      are calculated based on the equal annual payment method.  During
      the Leasing Term, the Rental shall be paid monthly at the end of each
      period, among which, the first 3 months are grace period during which the
      Lessee shall pay interest to the Lessor monthly at the end of each
      period.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    The
formula for calculating the Rental for the first 3 months (grace period)during
the Leasing Term is as follows:

     

    The
Rental for each Period = A × I

     

    A = RMB
49,883,000; I = Lease Rate/12 × 365/360

     

    
      	  	
              9.4

            	
              The
      formula for calculating the Rental for the remaining 57 months is as
      follows:

            

    

     

    The
Rental for each Period = A × {(1+I) n× I} /
{(1+I)n
-1}

     

    A = RMB
49,883,000; n=57; I = Lease Rate/12 × 365/360

     

    
      	
            	
              9.5

            	
              The
      Lessee shall fully pay the Rental and other payables on time according to
      the Schedule. The aforesaid payment shall not be deducted and shall be
      paid unconditionally.

            

    

     

    
      	
            	
              9.6

            	
              The
      due date of rental amount etc. in the Schedule means the crediting date of
      the amount of payment, which also means the lessor can receive the amount
      in its account in that date for the latest. If the payment date is the
      public holiday of the country, that date will automatically shift to one
      working day earlier.

            

    

     

    
      	
            	
              9.7

            	
              If
      the payment received by the Lessor is not adequate to cover all the due
      and payable payments payable by the Lessee under this Contract, the Lessor
      may use such payment to pay off the payment obligations of the Lessee
      under this Contract according to a proper repayment order decided by the
      Lessor, the said usage decided by the Lessor is prior to any usage method
      raised by the Lessee.

            

    

     

    
      	
            	
              9.8

            	
              The
      Lessee shall fully pay all the payables under this Contract to the Lessor
      and shall not make any deduction or withholding to the aforesaid payables
      by excuse of tax or any other reasons.  If any deduction or
      withholding of the aforesaid payables is required according to any
      applicable PRC laws or regulations, the Lessee shall correspondingly
      compensate the Lessor the aforesaid amount deducted or withheld from the
      aforesaid payables, to ensure that the amount received actually by the
      Lessor is equal to the amount of all the payables under this
      Contract.

            

    

     

    
      	
              10.

            	
              Rental
      for 0 Period, Guarantee Amount and Rental Management
      Fee

            

    

     

    
      	  	
              10.1

            	
              The
      Lessee shall pay the Rental for 0 Period and cash deposit to the Lessor
      according to the following methods:

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (1)

            	
              Rental
      for 0 Period: The Lessee shall pay it to the Lessor within 1 working day
      after the Lessor makes the first installment payment according to the
      Entrust Purchase Contract (Contract No. YHZL (09) 02ZL024-WM001), which is
      equal to RMB
      10,221,430.22;

            

    

    
      	
               
      

            	
              (2)

            	
              Cash
      Deposit: The Lessee shall pay it to the Lessor within 1 working day after
      the Lessor makes the first installment payment according to the Entrust
      Purchase Contract (Contract No. YHZL (09) 02ZL024-WM001), which is equal
      to RMB
      7,813,000; during the Leasing Term, the Lessor will not pay
      interest for Lessee’s cash deposit, however, the cash deposit shall be the
      calculating base for the Rental, and the cash deposit can be used to
      offset the Rental for the last several
periods.

            

    

    
      
        	  	  
      	  
      
	
              	
                10.2

              	
                The
      Lessee agrees to pay the leasing Management Fee to the Lessor for the
      financial leasing services provided by the Lessor under this
      Contract.  The Lessor and the Lessee agree and confirm that, the
      Lessee shall pay the Management Fee to the Lessor according to the
      following methods:

              

      

    

     

    
      	
               
      

            	
              (1)

            	
              The
      first installment of the Management Fee: shall be paid by the Lessee to
      the Lessor within 5 working days after this Contract comes into effect and
      shall be equal to 1.5% of the financing amount;
  and

            

    

    
      	
               
      

            	
              (2)

            	
              The
      second to fifth installment of the Management Fee: shall be paid by the
      Lessee to the Lessor on the respective date corresponding to the Lease
      Commencement Date of each year after the Lease Term commences and shall be
      equal to 1.5% of the outstanding principal on the date corresponding to
      the Lease Commencement Date of each
year.

            

    

    
      
        	  
    	  
      	  
      
	
              	
                10.3

              	
                The Management Fee shall not be
      returned to the Lessee under any
  circumstances.

              

      

    

     

    
      	
              11.

            	
              Adjustment
      of Rental

            

    

     

    
      	
            	
              11.1

            	
              The
      Lessee agrees and confirms that, if the People’s Bank of China adjusts the
      RMB benchmark loan rate of 3 to 5-year term, the Lessor is entitled to
      adjust the annual Lease Rate synchronously and to re-calculate the Rental
      and other payables accordingly.

            

    

    
      	
            	
              11.2

            	
              Where
      the RMB benchmark loan rate of 3 to 5-year term published and implemented
      by the People’s Bank of China is adjusted, on the first Rental Payment Day
      following the adjustment date of the loan rate, the Rental and other
      payables shall remain unchanged, while, the Rental and other payables
      after the said Rental Payment Date shall be recalculated according to the
      newly adjusted loan rate.

            

    

    
      	
            	
              11.3

            	
              The
      Lessor is entitled to adjust the Rental and other payables by way of
      issuing the Lessee a Rental Adjustment Notice, the Lessee shall sign on
      such Rental Adjustment Notice to confirm the adjustment, and the Lessee’s
      failure to sign shall not affect the Lessor’s adjustment to the Rental and
      other payables.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	
              12.

            	
              Surcharge
      for Delay of Performance

            

    

     

    The
Lessee shall pay to the Lessor a surcharge for delay of performance for its
failure to pay the due Rental or other payables as agreed in this Contract to
the Lessor on time.  The surcharge for delay of performance shall be
calculated based on the amount in arrears and the Rate for Late Payment (0.1%
per day) for the period from the due date to the actually payment
date.  After the Lessee paid the surcharge for delay of performance,
the Lessee is still obliged to pay the delayed payment to the
Lessor.  If the Lessee fails to pay the surcharge for delay of
performance on time or in full, such payable surcharge shall be firstly deducted
from the Rental or other payables paid by the Lessee, until it is fully paid
off.

     

    
      	
              13.

            	
              Ownership

            

    

     

    
      	
            	
              13.1

            	
              The
      Lessee confirms that the Lessor shall be the sole owner of the Lease Item,
      who has the sole ownership to the Lease Item.  Unless the Lessee
      exercises its purchase right upon the expiration of the Lease Term
      initially empowered by this Contract, the Lessee shall not have the
      ownership to the Lease Item.  The Lessee hereby expressly waives
      its any potential claims against the ownership to Lease
      Item.  The Lessee shall not allege it is the owner of the Lease
      Item or permit the occurrence of any other incidents that will make a
      third party reasonable believes that the Lessee is the owner of the Lease
      Item.

            

    

     

    
      	  	
              13.2

            	
              Without
      the prior consent from the Lessor in writing, the Lessee shall not take up
      the following activities:

            

    

     

    
      	  	
              (1)

            	
              Sell,
      assign or dispose the Lease Item by other
means;

            

    

     

    
      	  	
              (2)

            	
              Re-lease
      the Lease Item or permit any one other than the Lessee to use the Lease
      Item;

            

    

     

    
      	  	
              (3)

            	
              Establish
      any Security Interest on the Lease
Item;

            

    

     

    
      	  	
              (4)

            	
              Waive
      the Lease Item;

            

    

     

    
      	  	
              (5)

            	
              Accrete
      the Lease Item to any land, building or house which may cause the Lease
      Item be regarded as part of the land, building or
  house;

            

    

     

    
      	  	
              (6)

            	
              Make
      any modification to the Lease Item;
and

            

    

     

    
      	  	
              (7)

            	
              Other
      activities which may impair the Lessor’s ownership to the Lease
      Item.

            

    

     

    In terms
of (5) aforementioned, if the Lessee provides a confirmation letter issued by
the owner of the land, building or house to the Lessor, in which the owner
waives its possible rights to the Lease Item and empowers the Lessor to conduct
any inspection or removal of the Lease Item during the Leasing Term, the Lessee
shall not refuse such requirement of the Lessor without any reasonable
reasons.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	
            	
              13.3

            	
              The
      Lessor has the right to require the Lessee to fix the ownership mark on
      the Lease Item.  Such ownership mark shall: (1) indicate the
      Lessor is the owner of Lease Item; (2) be fixed in a remarkable position
      on the Lease Item; and (2) not be removed or concealed during the Leasing
      Term.

            

    

     

    
      	
            	
              13.4

            	
              The
      Lessor has the right to inspect the Lease Item.  The Lessee
      confirms it will provide necessary assistances, including but not limited
      to: (1) provide or make the Lessor an access to the site where the Lease
      Item is located; (2) provide the maintenance records of the Lease Item;
      and (3) allow the Lessor to check whether the Lessee conforms to any
      provisions under this Contract it shall observe.  Any time
      required for the inspection, check or maintenance shall constitute part of
      the Leasing Term.

            

    

     

    
      	
              14.

            	
              Right to
    Use

            

    

     

    Subject
to the Lessee’s compliance with this Contract, the Lessor shall ensure that the
Lessee can possess and use the Lease Item without the Lessor’s interruption
during the Leasing Term.

     

    
      	
              15.

            	
              Representations and
      Warranties

            

    

     

    
      	  	
              15.1

            	
              The
      Lessee hereby represents and warrants to the Lessor as
      follows:

            

    

     

    
      	  	
              (1)

            	
              The
      Lessee is a legal entity duly formed and validly existing under the PRC
      laws;

            

    

     

    
      	  	
              (2)

            	
              The
      conclusion and performance of this Contract and the Leasing Transaction
      thereunder do not violate this Contract, any applicable laws, or the
      Lessee’s articles of association, or any other documents binding on the
      Lessee or its assets;

            

    

     

    
      	  	
              (3)

            	
              This
      Contract constitutes the legally effective and binding obligations of the
      Lessee and is enforceable against the Lessee in accordance with its
      respective provisions;

            

    

     

    
      	  	
              (4)

            	
              The
      Lessee has power and authority to enter into and perform this Contract and
      any Leasing Transaction thereunder.  The Lessee has obtained all
      the authorizations from any governmental institute or other institutes in
      regard to the conclusion and performance of this Contract and any Leasing
      Transaction thereunder.

            

    

     

    
      	  	
              (5)

            	
              There
      hasn’t been any litigation, arbitration or ongoing or suspending
      administrative proceeding held by any court, arbitration tribunal or
      administrative department against the Lessee or its any asset, or its
      revenue which may have severely and materially adverse impact on the
      Lessee’s business, asset or financial status; nor is there any major
      litigation, arbitration or administrative proceeding which will have
      potential threat on the Lessee or its any asset, or its revenue according
      to the knowledge of the Lessee’s senior
  management;

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	  	
              (6)

            	
              Currently,
      the Lessee legally possesses all its assets and takes up its
      operations

            

    

     

    
      	  	
              (7)

            	
              The
      Lessee does not have any breach of contract, nor its any potential breach
      of contract occurs and exists.

            

    

     

    
      	  	
              15.2

            	
              The
      Lessee further represents, warrants and covenants to the Lessor that, the
      abovementioned representations and warranties are true and accurate on
      each = Acceptance Date and Rental Payment Date in terms of the existing
      facts and situations whereupon.

            

    

     

    
      	  	
              15.3

            	
              The
      Lessee confirms that:

            

    

     

    
      	  	
              (1)

            	
              The
      Lessor is not the manufacturer or Supplier or their agents of the Lease
      Item, and the Lessor shall not be held liable for any representation or
      warranty made by them to every aspect of the Lease
  Item.

            

    

     

    
      	  	
              (2)

            	
              Unless
      otherwise specifically agreed herein, the Lessor does not make or provide
      any condition, warranty or representation in regard to the conditions,
      design, marketability or applicability, or the operation of the Lease
      Item.  Any condition, warranty or representation in relation to
      the aforesaid matters (obligation or liabilities arising from the contract
      or the infringment), express or implied, legal or in any other forms, is
      expressly eliminated herein.

            

    

     

    
      	
              16.

            	
              General
      Covenants

            

    

     

    
      	  	
              16.1

            	
              The
      Lessee covenants to the Lessor that, commencing from the signing date of
      this Contract until any and all liabilities of the Lessee under this
      Contract are completely terminated:

            

    

     

    
      	
            	
              (1)

            	
              The
      Lessee shall obtain all required registrations and authorizations to
      possess and use the Lease Item at its own cost, which shall conform to all
      applicable laws, regulations, rules or policies in relation to the
      possession, usage, keeping and maintenance of the Lease
    Item;

            

    

     

    
      	
            	
              (2)

            	
              Upon
      the reasonable requirements of the Lessor from time to time, the Lessee
      shall provide the Lessor its financial status, business and operational
      financial statements, financial reports and other materials which the
      Lessee can provide to the financial institute, administration for industry
      and commerce, administration for tax, industry regulatory department,
      etc.

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
            	
              (3)

            	
              The
      Lessee shall keep all the authorizations (governmental or other
      authorizations ) in full effect, and will promptly obtain any other
      possible authorizations which enable the Lessee to perform any
      transactions under this Contract;

            

    

     

    
      	
            	
              (4)

            	
              If
      any breach of contract or any incident which may result in the breach of
      contract occurs, the Lessee shall immediately notify the Lessor after it
      is aware of such breaches or incident, and the Lessee shall take remedial
      measures to reduce the impact on this Contract and the Leasing Transaction
      thereunder brought forward by such breach of contract or
      incident.  The Lessee shall notify the Lessor in writing of the
      remedial measures it adopted.

            

    

     

    
      	
            	
              16.2

            	
              Any
      loss, theft or damage of the Lease Item or part thereof, or other
      incidents of any other nature, the legal change or environmental change
      shall not impair the Lessee’s any obligations under this Contract, so that
      all the said obligations (including but not limited to paying the Rental
      or other payables) shall remain fully
effective.

            

    

     

    
      	
              17.

            	
              Operation and Usage of the
      Lease Item

            

    

     

    
      	
            	
              17.1

            	
              The
      Lessee covenants to the Lessor that, commencing from the delivery date
      until any and all liabilities of the Lessee under this Contract are
      completely terminated, the Lessee shall manipulate or use the Lease Item
      exactly according to the following
methods:

            

    

     

    
      	
               
      

            	
              (1)

            	
              By
      the way pursuant to any applicable laws, regulations and safety guidelines
      of the Supplier which are applicable to the Lease
  Item;

            

    

     

    
      	
               
      

            	
              (2)

            	
              It
      shall have professionals with special skills to manipulate or use it
      carefully, safely and properly;

            

    

     

    
      	
               
      

            	
              (3)

            	
              It
      shall be manipulated or used in a way conforming to the design purpose of
      the Lease Item and for the lawful
purpose;

            

    

     

    
      	
               
      

            	
              (4)

            	
              By
      means which will not impair the Supplier’s warranty or the insurance on
      the Lease Item; and

            

    

     

    
      	
               
      

            	
              (5)

            	
              By
      means which will not endanger any one’s
health.

            

    

     

    
      	  	
              17.2

            	
              The
      Lease Item shall be manipulated or used in the Delivery Place, if the
      Lease Item is movable, the Lessee can only manipulate or use the Lease
      Item within the area or scope agreed by the Lessor in
    writing.

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	  	
              17.3

            	
              The
      Lessee is obliged to provide the conditions of the Lease Item, usage
      purpose, place and status, upon the request of the Lessor from time to
      time.

            

    

     

    
      	
            	
              17.4

            	
              The
      Lessee shall prepare and ensure to prepare accurate, complete and timely
      records on its any and all manipulation on the Lease Item; the said
      records shall be owned by the owner of the Lease Item, whose ownership
      will be transferred free of charge along with ownership transfer of the
      Lease Item.  The said records shall be possessed and used by the
      Lessee.  Without any consent from the Lessor, the Lessee shall
      not allow any third party to possess and control such
    records.

            

    

     

    
      	
            	
              17.5

            	
              All
      the records prepared by the Lessee for the Lease Item shall be in
      compliance with the rules enacted by the governmental institute from time
      to time, and the Lessee shall disclose to the Lessor the details and
      locations of any other spare parts purchased by the Lessor but not
      installed on the Lease Item according to the actual
      situations.

            

    

     

    
      	
            	
              17.6

            	
              The
      Lessee will obtain or maintain any necessary certificate, license, permit,
      or approval for using or manipulating the Lease Item as required by the
      applicable laws or regulations and shall procure the Lease Item conforming
      to any and all orders or requirements of the governmental institute which
      are applicable to the Lease Item.  Relevant fees shall be borne
      by the Lessee.

            

    

     

    
      	
            	
              17.7

            	
              During
      the period when the Lessee possesses and uses the Lease Item, the Lessee
      shall promptly pay or procure others to pay any and all the rent,
      expenses, license taxes, registration fees, taxes and other expenditure in
      relation to any place or site which accommodates the Lease Item or part
      thereof, or shall make sure the Lease Item will not be withheld or sealed
      up by any means due to the rent and other taxes and
  fees.

            

    

     

    
      	
              18.

            	
              Maintenance and
      Repair

            

    

     

    
      	
            	
              18.1

            	
              Commencing
      from the delivery date until any and all liabilities of the Lessee under
      this Contract are completely terminated, the Lessee shall maintain, repair
      and examine the Lease Item at its own cost and shall make the Lease Item
      in good working and maintenance conditions as it being
      delivered.

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      	
            	
              18.2

            	
              At
      the delivery, if any accessories or spare parts fixed on or incorporated
      in the Lease Item or any replacement parts thereof are lost or destroyed
      to the extent that they can not be repaired or not suitable to use any
      more, the Lessee shall ensure to promptly replace such parts and procure
      the Lease Item maintain in the good working and maintenance
      conditions.  The time required for the maintenance, repair and
      examination shall be part of the Leasing Term.  The Lessee shall
      have the obligations to pay the Rental and other payables under this
      Contract as well in the said situation, and shall not refuse to pay by the
      excuse that the Lease Item is being in a maintenance, repair or
      examination status.

            

    

     

    
      	
            	
              18.3

            	
              The
      Lessee agrees and covenants that, the Lease Item shall be maintained and
      repaired by a qualified person conforming to the Supplier’s
      requirement.  For the maintenance and repair purpose, any
      components to supersede, replace or renew any accessories, spare parts,
      components of the Lease Item shall be the properties of the Lessor, which
      do not bear any Security Interest.  Any accessories or spare
      parts removed from the Lease Item shall be the properties of the Lessor,
      which shall be well kept and maintained by the
  Lessee.

            

    

     

    
      	
            	
              18.4

            	
              Upon
      the request of the Lessor at any time, the Lessee shall provide evidences
      (including providing the Lessor one or more legal opinions) to the
      Lessor’s satisfaction, to prove that any replacement part of the Lease
      Item shall belong to the Lessor which do not bear any Security
      Interest.

            

    

     

    
      	
            	
              18.5

            	
              The
      Lessor need not to pay any expenses for maintaining and repairing any part
      of the Lease Item, and need not to provide any or part of the equipment to
      replace the Lease Item or part thereof in the situation that the Lease
      Item or part thereof is lost, forfeited, destroyed or unsuitable to use
      any more due to other reasons.  In the aforesaid situations, the
      Lessee shall have the obligations to pay the Rental and other payables
      under this Contract as well, and shall not refuse to pay by the excuse
      that the Lease Item can not be used
anymore.

            

    

     

    
      	  	
              18.6

            	
              The
      Lessee shall not use the Lessor’s credit as a guarantee to secure any
      maintenance, examination, replacement, repair or change of the Lease
      Item.

            

    

     

    
      	
              19.

            	
              Registration

            

    

     

    For any
required equipment registration or alteration registration with the governmental
institute in relation to the execution or performance of this Contract and any
transactions thereunder (including but not limited to ownership of the Lease
Item, right of possession or other rights), the Lessee shall be responsible for
relevant expenses and for all adverse consequences resulted from the failure to
perform the said registration or alteration registration.  If the
Lessor requires, the Lessee shall provide the copy of the registration
certificate; and the Lessor shall keep the original registration certificate if
it does not affect the Lessee’s usage of the Lease Item.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      	
              20.

            	
              Insurance

            

    

     

    
      	
            	
              20.1

            	
              From
      the delivery date until any and all the liability under this Contract is
      terminated, the Lessor shall buy property all risks insurance with the
      Lessor be the insured, and the insurance premium shall be borne by the
      Lessee.  The insurance premium for each leasing year shall be
      0.1% of the outstanding payable leasing payments of the Lease Item at the
      beginning of the year.  The Lessee shall pay the insurance
      premium of the Lease Item of the year in full to the Lessor at the
      beginning of each leasing year; after receiving the premium, the Lessor
      shall buy the insurance based on the insured amount which is equal to the
      outstanding principal of the Lease Item at the beginning of the
      year.

            

    

     

    The
property insurance of the Lease Item shall cover all the risks of the Lease
Item, the insured amount shall not be lower than the outstanding receivable
leasing payments by then; and the first beneficiary (or the insured) shall be
the Lessor.

     

    
      	  	
              20.2

            	
              The
      insurance policy of the said insurance
shall:

            

    

     

    
      	  	
              (1) 

            	
              indicate
      the Lessor shall be the owner of the Lease
Item;

            

    

     

    
      	  	
              (2) 

            	
              indicate
      the Lessor shall be the co-insured and the insurance
      beneficiary;

            

    

     

    
      	
               
      

            	
              (3)

            	
              indicate
      it shall not canceled or terminated by the Lessee, unless the Lessor
      approves it in writing; and

            

    

     

    
      	
               
      

            	
              (4)

            	
              indicate
      the policy shall not be amended, unless the Lessor approves it in
      writing.

            

    

     

    
      	  	
              20.3

            	
              The
      Lessee confirms it will not buy any other insurance if the claims of such
      insurance may impair or has other adverse impact on the claims under the
      abovementioned insurance policy.

            

    

     

    
      	
            	
              20.4

            	
              If
      the Lessee fails to pay the insurance premium to the Lessor on time
      according to the foregoing provisions, the Lessor has the right to (but
      not obliged to) buy insurance for the Lease Item or any abovementioned
      other risks, provided without prejudice to its rights arising from any of
      aforementioned breach of contract, and such insurance purchase shall be
      maitained during the period provided in this Article.  Upon
      request, the Lessee shall immediately pay to the Lessor all the
      expenditures spent for the above purposes and the interests thereof
      calculated based on the Rate for Late Payment commencing from the due date
      until the actual payment date.

            

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      	
            	
              20.5

            	
              Without
      derogating any other provisions of this Contract, the Lessee agrees, it
      shall indemnify the Lessor for any loss, liabilities taking, damages,
      claims, request, or expenditures suffered by or incurred to the Lessor due
      to or in relation to the Lessee’s failure to perform its obligations under
      Article 20.

            

    

     

    
      	
              21.

            	
              Loss and
      Damage

            

    

     

    
      	
            	
              21.1

            	
              From
      the delivery date until any and all the obligations of the Lessee under
      this Contract are fulfilled, any risk of damage and loss of the Lease Item
      shall be borne by the Lessee, no matter whether such risk is covered or
      not by the insurance under this
Contract.

            

    

     

    
      	
            	
              21.2

            	
              During
      the Leasing Term, if any loss, destroy or irreparable damage or forfeit or
      confiscation occurs due to any reasons (“Total Loss”), the Lessee shall
      immediately notify the Lessor and pay to the Lessor on the next Rental
      Payment Date: (1) all the due and payable Rental and other payables on the
      said date; and (2) the predetermined damages corresponding to the said
      Rental Payment Date, and the predetermined damages is equal to the total
      amount of all the outstanding Rental and other payables.  The
      leasing contract shall be terminated after the Lessor received all the
      aforesaid payments and the Lessee need not continue to pay any Rental
      under this Contract any more.

            

    

     

    
      	
            	
              21.3

            	
              The
      Lessor and the Lessee shall endeavor to fully cooperate with each other to
      pursue any and all insurance proceeds or other
      compensations.  Any and all proceeds from the insurance or other
      methods (“Proceeds for the Total Loss”) shall be fully paid to the
      Lessor.  If the Lessee receives any Proceeds for the Total Loss,
      it shall be deemed that the Lessee holds such payments on behalf of the
      Lessor, and the Lessee shall transfer such payments to the Lessor in
      reasonably shortest time.  After the Lessor received all the
      payments provided in Article 21.2 from the Lessee, Proceeds for the Total
      Loss will be transferred to the Lessee up to the amount of the said
      payment.

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
            	
              21.4

            	
              If
      any repairable damage or detriment occurs to the Lease Item, the Lessee
      shall immediately repair it.  If the Lessor receives any
      insurance proceeds for the said damage or detriment, such insurance
      proceeds shall be used to pay the Lessee’s expenses for repairing the said
      damage or detriment, however, any delinquent amount owed by the Lessee to
      the Lessor shall be deducted from the said
  payment.

            

    

     

    
      	
              22.

            	
              Indemnification

            

    

     

    
      	  	
              22.1

            	
              If
      the Lessor suffers any loss due to the following
  issues:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Lessee has any breach of contract under this
  Contract;

            

    

     

    
      	
               
      

            	
              (2)

            	
              During
      the period when the Lessee possesses and uses the Lease Item, the Lease
      Item causes personal injury or property damage to a third
      party;

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      manufacture, selection, delivery, possession, debugging, installation,
      usage, manipulation, maintenance, return, site, registration or other
      issues related to the Lease Item;

            

    

     

    
      	
               
      

            	
              (4)

            	
              The
      Lessee’s possession and usage of the Lease Item which cause the Lessor is
      claimed against by a third party;

            

    

     

    The
Lessee shall fully indemnify the Lessor for all the said losses suffered by
Lessor.

     

    
      	
            	
              22.2

            	
              The
      Lessee shall adopt any necessary and active measures to protect the Lessor
      from any enforcement by any third party on the Lease Item which is in the
      Lessee’s possession while owned by the Lessor or from any actual activity
      infringing the Lessor’s ownership to the Lease Item.  In the
      said infringement on the Lessor’s ownership, the Lessee shall immediately
      notify the Lessor and shall be responsible to eliminate such infringement
      at its own cost.  If the Lessor adopts measures on such
      infringement by itself, the Lessee shall pay all the reasonable expenses
      arising therefrom according to the requirement of the
    Lessor.

            

    

     

    
      	
              23.

            	
              Security

            

    

     

    
      	
            	
              23.1

            	
              Upon
      the Lessor’s request, the Lessee shall provide reasonable securities with
      joint and several liabilities and / or other securities to the
      satisfaction of the Lessor for the its payment obligations of the Rental
      and other payables as well as other obligations under this Contract,
      according to the document format provided by the Lessor.  The
      said security contracts shall be signed on the same signing date of this
      Contract.

            

    

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    
      	
            	
              23.2

            	
              If
      the credit of the Lessee or the guarantor goes down, or the value of the
      collateral is reduced, or there is any incident occurs which result in the
      Lessor’s need to reasonably protect its rights, the Lessor may require the
      Lessee to provide other security to supplement or replace the aforesaid
      guarantee and the Lessee shall meet the said requirements to the greatest
      extent.

            

    

     

    
      	
              24.

            	
              Taxes and
      Expenses

            

    

     

    
      	
            	
              24.1

            	
              The
      Lessor and Lessee agree to separately pay and assume the taxes it shall be
      subject to according to the PRC laws and
  regulations.

            

    

     

    
      	
            	
              24.2

            	
              Unless
      otherwise specifically agreed herein, in terms of any and all expenses
      arising from the negotiation, preparation or completion of this Contract
      and other documents or contracts related to this Contract, and any and all
      expenses arising from the amendment, consent, or approval of this Contract
      or any other aforesaid documents or the said expenses in relation to this
      Contract, the Lessee and the Lessor shall separately bear their own
      expenses.

            

    

     

    
      	
              25.

            	
              Breach of
      Contract

            

    

     

    The
following situations shall be deemed as the Lessee’s breach of
contract:

     

    
      	
            	
              (1)

            	
              The
      Lessee refuses or delays to receive the Lease
  Item;

            

    

     

    
      	
            	
              (2)

            	
              The
      Lessee fails to pay or delays any due Rental or other
      payables;

            

    

     

    
      	
            	
              (3)

            	
              The
      Lessee refuses or delays to issue the Acceptance
    certificate;

            

    

     

    
      	
            	
              (4)

            	
              The
      Lessee fails to buy or renew or maintain any type of insurance according
      to this Contract, or the insurance company abolishes the insurance policy
      or releases or discharges any and all liabilities under such insurance
      policy by whatever means due to the Lessee’s action or
      omission;

            

    

     

    
      	
            	
              (5)

            	
              The
      Lessee fails to perform the registration formalities of the Lease Item
      according to this Contract;

            

    

     

    
      	
            	
              (6)

            	
              Any
      representation, warranty or covenant made by the Lessee under this
      Contract or any representation, warranty or covenant made by the guarantor
      is inaccurate in its any material aspects, and such default has not been
      cured within 7 days after receiving the Lessor’s notice to cure such
      default;

            

    

     

    
      	
            	
              (7)

            	
              The
      Lessee fails to provide its financial statements or other financial
      documents or reports, as well as other documents in relation to the Lease
      Item or the financial status of the Lessee on time upon receiving the
      request from the Lessor;

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (8)

            	
              The
      Lessee fails to use, manipulate and maintain the Lease Item according to
      this Contract and fails to make any correction within 7 days after
      receiving the Lessor’s written
notice;

            

    

     

    
      	
            	
              (9)

            	
              The
      Lessee or the guarantors shuts down, suspends its business, suspends its
      production, goes into reorganization or transfers its all or material
      assets;

            

    

     

    
      	
            	
              (10)

            	
              After
      receiving the reasonable notice from the Lessor, without any reasonable
      excuses, the Lessee disallows the Lessor to inspect the Lease Item
      according to this Contract;

            

    

     

    
      	
            	
              (11)

            	
              The
      Lessee admits its insolvency, or is deemed it fails to pay according to
      any laws or the Lessee fails to pay any due and payable amount over RMB
      600,000 owed to any one;

            

    

     

    
      	
            	
              (12)

            	
              Any
      petition in bankruptcy by or against the Lessee is filed or a
      administrative receiver or liquidator or trustee is appointed to the
      Lessee, or the Lessee goes into the procedures of liquidation,
      conciliation, reorganization or other similar
  proceeding;

            

    

     

    
      	
            	
              (13)

            	
              The
      major assets of the Lessee or the guarantor are preserved by the court, or
      implemented or other enforceable measures are taken to such major assets,
      and which are not released within 15
days;

            

    

     

    
      	
            	
              (14)

            	
              The
      Lessee waives the Lease Item;

            

    

     

    
      	
            	
              (15)

            	
              Any
      litigation, arbitration or administrative proceeding is filed against the
      Lessee, and if the judgment/award may cause significantly adverse impact
      on the Lessee’s financial status;

            

    

     

    
      	
            	
              (16)

            	
              The
      equity interest or business of the Lessee has any material
      change;

            

    

     

    
      	
            	
              (17)

            	
              The
      Lessee has any breach of contract under the agreement signed with the
      Lessor and the Lessor’s affiliates;
and

            

    

     

    
      	
            	
              (18)

            	
              The
      Lessee fails to observe other obligations under this
    Contract.

            

    

     

    
      	
              26.

            	
              Remedies

            

    

     

    
      	
            	
              26.1

            	
              Any
      of the Lessee’s breach of contract under any leasing contract of this
      Contract shall be deemed as a breach of contract under any other leasing
      contract, therefore, if any situation provided in Article 25 occurs, in
      terms of any leasing contract under this Contract, the Lessor has its own
      discretion to implement the remedies prescribed in this
      Article.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              26.2

            	
              If
      any Lessee’s breach of contract occurs, in terms of the leasing contract
      whose Leasing Term commenced, the Lessor has the right to choose to
      :

            

    

     

    
      	
               
      

            	
              (1)

            	
              Claim
      against the Lessee for: (a) all due and unpaid Rental, all undue Rental,
      the purchase price at the expiration, and other payables under the leasing
      contract; (b) the surcharge for delay of performance;
  or

            

    

     

    
      	
               
      

            	
              (2)

            	
              Claim
      against the Lessee for all the due and unpaid Rental and immediately draw
      back or dispose the Lease Item by any other
  means;

            

    

     

    In
addition to the forgoing stipulations, the Lessor still has the right to
continue take any following remedies:

     

    
      	
               
      

            	
              (3)

            	
              Claim
      against the Lessee for any reasonable expenses arising from the Lessor’s
      exercise or protection of the Lessor’s rights under this Contract or under
      relevant leasing contract (including but not limited to the lawyer’s fee,
      appraisal fee, auction fee, etc.);

            

    

     

    
      	
               
      

            	
              (4)

            	
              Claim
      against the Lessee for 10% of the Lessor’s receivable Rental under this
      Contract as a compensation;

            

    

     

    
      	
               
      

            	
              (5)

            	
              Make
      the Lease item out of run without the judgment or notice;
    and

            

    

     

    
      	
               
      

            	
              (6)

            	
              Other
      remedies permitted by this Contract and
law.

            

    

     

    
      	
            	
              26.3

            	
              If
      any Lessee’s breach of contract occurs, in terms of the leasing contract
      whose Leasing Term doe not commence yet, the Lessor has the right to
      terminate the leasing contract.  In the said situation, the
      Lessor is not obliged to purchase the Lease Item for the Lessee, and has
      the right to claim for any compensations for all the losses arising
      therefrom against the Lessee, including but not limited
  to:

            

    

     

    
      	
               
      

            	
              (1)

            	
              All
      the paid prices and other fees (if any) by the Lessor for purchasing the
      Lease Item, as well as the interests thereof calculated based on the Rate
      for Late Payment commencing from the payment date until the date when the
      Lessee paid off the said payment;

            

    

     

    
      	
               
      

            	
              (2)

            	
              All
      costs and expenses paid by the Lessor for signing and performing the
      leasing contract; and

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (3)

            	
              The
      compensation claim made by the Supplier to the Lessor. In case and after
      the Lessor terminates the leasing contract, the Lessee itself shall be
      responsible to settle the issues related to purchase of the Lease Item
      (including but not limited to any dues arising from the purchase process)
      in order to hold the Lessor harmless from the claim made by the
      Supplier.

            

    

     

    After the
Lessor terminates the leasing contract, the Lessee shall negotiate with the
Supplier on its own account to settle all the maters (including but not limited
to the payment obligations of the unsettled payment during the purchase course
of the Lease Item) related to the purchase of the Lease Item, to protect the
Lessor from being claimed against by the Supplier.

     

    
      	
            	
              26.4

            	
              If
      the Lessor draws back the Lease Item according to this Article, all the
      expenses arising from the removal, transportation, preservation,
      restitution of original state, and disposal of the Lease Item shall be
      borne by the Lessee.  The Lessor has the discretion to sell or
      lease the Lease Item.  If the Lessor chooses not to dispose the
      Lease Item, the Lessee agrees that the auction price of the Lease Item
      decided by the auction institute designated by the Lessor shall be the
      market price of the Lease Item, the market price minus the forgoing
      expenses shall be used to compensate all the Lessor’s losses, if
      inadequate, the Lessor has the right to requires the Lessee to make up for
      the shortfall; if the Lessor chooses to dispose the Lease Item, then the
      proceeds from the disposal minus the forgoing expenses shall be used to
      compensate all the Lessor’s losses, if inadequate, the Lessor has the
      right to requires the Lessee to make up for the
  shortfall.

            

    

     

    
      	
              27.

            	
              Purchase after the
      Expiration

            

    

     

    After the
Leasing Term expires, if the Lessee does not have any breach of contract and has
paid off all the payables, the Lessee can purchase the Lease Item at the price
of RMB 60,100.00 at the expiration.  After the Lessee paid the
purchase price at the expiration of  the purchase term, the Lessor
shall transfer the ownership of the Lease Item to the Lessee.  The
Lessor commits to sign and deliver the ownership transfer documents as required
by the Lessee timely.  The Lessee shall be responsible for handling
the ownership transfer formalities of the Lease Item as required by the laws and
regulations and bear relevant expenses.  The Lease Item shall be
transferred “as it will be” by then without attaching any guarantee provided by
the Lessor.  After the ownership of the Lease Item is transferred, if
the Lease Item or its usage causes any personal injury or property damage to the
Lessee or its designated third party or any others, the Lessor shall not be held
for any liability, and the Lessee shall make relevant indemnifications and
protect the Lessor from being claimed against by the designated third party of
the Lessee or any others.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	
              28.

            	
              Indirect
      Loss

            

    

     

    Under any
circumstances, the Lessor shall not be liable for any maintenance, suspension of
the usage, or losses, or business suspension, or profit loss, or data loss, and
any other indirect losses of the Lease Item, no matter whether such losses
arising from the contract or infringement or strict liability, or no matter
whether such losses are special, sudden, or may result in consequential losses
or damages, even if the Lessor is informed of the occurrence of such
losses.

     

    
      	
              29.

            	
              Importance of
      Time

            

    

     

    In terms
of any Leasing Transaction of or under this Contract, the time and strict
performance on time are of vital importance to the Parties.

     

    
      	
              30.

            	
              Irrevocable

            

    

     

    The lease
of all the Leasing Transactions under this Contract is
irrevocable.  The Lessee agrees to pay all due Rental and other
payables unconditionally.  Under no circumstance, shall the payables
borne by the Lessee under this Contract be deducted or offset, especially under
the circumstance that the Lease Item has any defect in its
performance.

     

    
      	
              31.

            	
              Financial
      Information

            

    

     

    
      	
            	
              31.1

            	
              During
      the Leasing Term, if the Lessor requires, the Lessee agrees to provide its
      financial information to the Lessor by the following
    methods:

            

    

     

    
      	
               
      

            	
              (1)

            	
              Within
      30 days after each quarter ends, the Lessee shall provide the financial
      report of such quarter to the
Lessor;

            

    

     

    
      	
               
      

            	
              (2)

            	
              Within
      90 days after each year ends, the Lessee shall provide the audited annual
      financial report to the Lessor.

            

    

     

    The said
financial reports shall include balance sheet, the income statement and shall
include a confirmation letter that the Lessee confirms the Lessee has no breach
of contract until the issuance date of the said financial
reports.  All the aforesaid documents shall bear the Lessee’s company
stamp.

     

    
      	
            	
              31.2

            	
              The
      Lessee shall immediately notice the Lessor: (1) any material adverse
      impact on to its operation or financial status; (2) any incident which may
      bring material adverse impact on its operation or financial
      status.

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	
              32.

            	
              Re-export

            

    

     

    Where the
Lessor draws back the Lease Item according to this Contract, the Lease Item may
be exported abroad from China by the Lessor.  The Lessee agrees to
provide necessary assistances as reasonably required by the Lessor, including
but not limited to preparing the certification and documents required for the
export and submitting relevant documents to the competent department for
recording (if required).

     

    
      	
              33.

            	
              Applicable Law and
      Jurisdiction

            

    

     

    
      	
            	
              33.1

            	
              This
      Contract and the rights and obligations of the Parties under this Contract
      shall be exclusively governed and interpreted by laws of People’s Republic
      of China.

            

    

     

    
      	
            	
              33.2

            	
              In
      terms of any dispute, disagreement or controversy arising out from this
      Contract or in relation to this Contract (including the execution,
      effectiveness, or performance of this Contract), if the Parties fail to
      settle it by friendly negotiations, either Party has the right to file a
      lawsuit to the competent court where the Lessor is located, to solve
      it.

            

    

     

    
      	
              34.

            	
              Assignment

            

    

     

    
      	
            	
              34.1

            	
              Unless
      otherwise explicitly agreed herein, or the Lessee obtains the Lessor’s
      prior written consent, the Lessee shall not assign to a third party any
      right and obligation of any Leasing Transaction under this Contract or
      under the Leasing Transaction.

            

    

     

    
      	
            	
              34.2

            	
              Provided
      without any prejudice to the obtainable rights and interests of the Lessee
      under this Contract, the Lessor may assign any of its rights of any
      Leasing Transaction under this Contract or under the Leasing Transaction
      or of the Leasing Item to a third party at any time without any consent
      from the Lessee made by then, however, the Lessor shall provide relevant
      assignment notice to the Lessee.

            

    

     

    
      	
            	
              34.3

            	
              This
      Contract shall be binding on the Lessee, the Lessor and the successors and
      assignees thereof.

            

    

     

    
      	
              35.

            	
              Further
      Guarantee

            

    

     

    In order
to complete any Leasing Transaction under this Contract and enhance the
interests of the Lessor (including its assignee) under any Leasing Transaction,
the Lessee agrees to take corresponding activities and/or provide relevant
confirmation, certification or other documents as reasonably required by the
Lessor.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
              36.

            	
              Accumulative Rights and
      Waiver

            

    

     

    
      	
            	
              36.1

            	
              The
      Lessor has its full discretion to exercise any of its rights under this
      Contract.  Any right or remedy of the Lessor under this Contract
      shall be accumulative and shall not rule out any right or remedy under the
      applicable laws.

            

    

     

    
      	
            	
              36.2

            	
              The
      Lessor’s failure to exercise or delay in exercising any right or
      remedy  under this Contract shall not be regarded as a waiver of
      such right or remedy; nor shall any defective or single exercise of any
      right or remedy preclude any further or future exercise thereof by the
      Lessor.  Any waiver made by the Lessor shall be in
      writing.  The Lessor’s waiver to a specific breach of contract
      shall not constitute the Lessor’s waiver to any other breach of contract,
      including the breach of any other provisions or the re-breach of the same
      provision.

            

    

     

    
      	
              37.

            	
              Notice

            

    

     

    
      	
            	
              37.1

            	
              Unless
      otherwise specifically agreed herein, any notice, requirement or
      communication under this Contract shall be in Chinese and in written form,
      which shall be delivered to the Parties to the following addresses (or
      other addresses notified by the Party to the counterparty upon a prior
      written notice):

            

    

     

    To the
Lessor: AVIC I INTERNATIONAL LEASING CO., LTD.

     

    Address:
23/F, C Tower, Catic Mansion, No.212 Jiang Ning Road, Shanghai

     

    Zip code:
200041

     

    Contact
Person: Zhongwei Chen (陈中玮)

     

    Tel:
13564227728

     

    Fax:
021-52895389

     

    To the
Lessee: HENAN SHUNCHENG GROUP COAL COKE CO., LTD.

     

    Address:
Industrial Road, South of Tongye Town, Anyang County, Henan
Province

     

    Zip code:
455000

     

    Contact
Person: Feng Wang (王峰)

     

    Tel:
13937226262

     

    
      Fax:
0372-3206721

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              37.2

            	
              Any
      notice, requirement or communication under this Contract shall be deemed
      as having been actually received by the counter party in the following
      situations:

            

    

     

    
      	
               
      

            	
              (1)

            	
              If
      by mail, two days after the letter (with correct delivery address) is
      mailed by prepaid postage; and

            

    

     

    
      	
               
      

            	
              (2)

            	
              If
      by fax, upon the counter party’s confirmation that it received the
      identifiable document;

            

    

     

    
      	
               
      

            	
              (3)

            	
              If
      by courier, upon the actual
delivery.

            

    

     

    If the
above correspondence is received on non Business Day, then it shall be deemed
being received on the next Business Day.

     

    
      	
              38.

            	
              Invalidity and
      Severability

            

    

     

    If any
provision of any Leasing Transaction under this Contract or any right or remedy
or benefit obtained by the Lessor under any Leasing Transaction, becomes invalid
or unenforceable according to the applicable laws of a specific jurisdiction,
then, the legality and validity of such provision in other jurisdictions shall
not be affected and impaired, and the validity, legality and enforceability of
other remaining provisions shall not be affected or impaired in any
situations.  In terms of such invalid or unenforceable provision, the
Parties shall make a valid and enforceable provision mostly close to such
provision instead to the greatest extent.

     

    
      	
              39.

            	
              Entire
      Agreement

            

    

     

    The
Annexes of this Contract shall constitute an integral part of this Contract
bearing the same legal effect with this Contract.  This Contract
constitutes an entire agreement of the matters stated herein between the
Parties, which shall supersede any and all previous, oral or written,
agreements, contracts, MOU and communications in relation to the matters stated
herein reached by the Parties.

     

    
      	
              40.

            	
              Amendment

            

    

     

    Unless
otherwise specifically agreed herein, this Contract shall not be revised,
amended or terminated except by a written agreement signed by the duly
authorized representatives of the Parties.  The amendment of this
Contract shall be applied only to the leasing contract concluded by the Parties
after such amendment, which shall not affect the leasing contract concluded by
the Parties before such amendment.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
              41.

            	
              Information
      Provision

            

    

     

    
      	
            	
              41.1

            	
              The
      Lessee irrevocably agrees that the Lessor may collect, save and use
      any  information related to the Lessee or the Leasing
      Transactions under this Contract, authorizes the Lessor to disclose the
      aforementioned information to the Lessor’s lawyer, accountant and other
      consultants, as well as the Lessor’s investor or any branches,
      subsidiaries, affiliates, existing or potential assignees, and authorizes
      the Lessor to make the disclosure according to the requirements of the
      regulatory institute of China.

            

    

     

    
      	
            	
              41.2

            	
              If
      the Lessee or any guarantor fails to perform any obligations under this
      Contract or the Leasing Transactions, the Lessor may provide the said
      information directly to the credit agency or the credit assessment
      institution without the Lessee’s consent or notifying the Lessee in any
      form.

            

    

     

    
      	
              42.

            	
              Miscellaneous

            

    

     

    
      	
            	
              42.1

            	
              The
      Lessee warrants that its execution of this Contract or its performance of
      the obligations under this Contract or its usage of the Lease Item is not
      an act without authorization or is not an act going against its company
      articles of association by whatever
means.

            

    

     

    
      	
            	
              42.2

            	
              Any
      amendment, supplement or revision to this Contract shall be in writing and
      shall become effective after it is being signed and stamped by the legal
      representatives or the duly authorized representatives of the Parties. Any
      amendment, supplement or revision to this Contract shall be deemed to
      constitute an integral part of this Contract and bearing the same legal
      effect with this Contract.

            

    

     

    
      	
            	
              42.3

            	
              Due
      to this Contract is irrevocable, in principle, the Lessee is not allowed
      to prepay within 1 year from the Lease Commencement Date to terminate the
      leasing contract; however, if the Lessee has no record of breach of
      contract, from the second year of the lease, the Lessee may apply to pay
      the break-up fees on the designated repayment date to terminate this
      Contract.  After the Lessor received the Lessee’s written early
      termination application and approved the said application, and after the
      Lessee paid off the break-up fees on the designated repayment date to the
      Lessor, the Lessee will not be deemed to have any breach of
      contract.

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    The
written early termination application of the Lessee shall appoint one date 15
days after the application date to be the repayment date.  After the
Lessee repays the break-up fees in one lump sum on the designated repayment date
to the Lessor, the Lessee will immediately get the ownership of the Lease
Item.  The break-up fees shall be calculated as follows:

     

    
      	
               
      

            	
              (1)

            	
              List
      all the remaining outstanding leasing payments, including but not limited
      to the due and unpaid Rental, undue Rental, surcharge for delay of
      performance and the purchase price at the
  expiration.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Use
      the cash deposit to offset the leasing payments from the purchase price at
      the expiration, the last installment of the Rental, to the former
      installments of the Rental, till the cash deposit is completed
      offset.

            

    

     

    
      	
               
      

            	
              (3)

            	
              Based
      on each installment of the leasing payment which is not offset and the
      period between the due date and the designated repayment date, take the
      benchmark loan rate of 1-year term published by the People’s Bank of China
      as the discount rate to calculate the discount value, the break-up fees
      shall be equal to the sum up of the discount values calculated
      therefrom.

            

    

     

    
      	
            	
              42.4

            	
              Unless
      the Lessee has performed the obligations according to Article 42.3, the
      following events shall be deemed as the Lessee’s breach of
      contract:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      major assets of the Lessee or the guarantor are preserved by the court, or
      implemented or other enforceable measures are taken to such major assets,
      and which are not released within 15
days;

            

    

     

    
      	
               
      

            	
              (2)

            	
              Any
      litigation, arbitration or administrative proceeding is filed against the
      Lessee, and if the judgment/award may cause significantly adverse impact
      on the Lessee’s financial status;
and

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      equity interest or business of the Lessee has any material
      change.

            

    

     

    
      	
            	
              42.5

            	
              Under
      the following situations, the Lessor is entitled to terminate this
      Contract without the consent of the Lessee, and the Lessee shall
      compensate all the losses suffered by the Lessor arising from such
      termination:

            

    

     

    
      	
            	
              (4)

            	
              The
      Lessee or the guarantor shuts down, suspends its business, suspends its
      production, goes into reorganization, merged, or transfers its all or
      material assets; and

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (5)

            	
              Any
      petition in bankruptcy by or against the Lessee is filed or a
      administrative receiver or liquidator or trustee is appointed to the
      Lessee, or the Lessee goes into the procedures of liquidation,
      conciliation, reorganization or other similar
  proceeding.

            

    

     

    
      	
            	
              42.6

            	
              The
      Lessee agrees that this Contract, its accessory Entrust Purchase Contract
      as well as the guarantee contracts shall go through the formalities of
      notarization with a nature of enforceability.  After the Lessor
      and the Lessee completed the formalities of the enforceable notarization
      on this Contract, its accessory Entrust Purchase Contract, the guarantee
      contracts and the equity pledge agreement, if the Lessee fails to or not
      fully perform the obligations under this Contract, the Lessor has the
      right to apply for an enforcement certificate with the notary office, and
      apply for the enforcement with the competent People’s Court by the
      original notarial certificate and the enforcement
      certificate.  The Lessee is willing accept to the enforcement
      according to the law.  The notary fees arising from the
      notarization of this Contract, its accessory Entrust Purchase Contract and
      the guarantee contracts shall be borne by the
  Lessee.

            

    

     

    
      	
              43.

            	
              Effectiveness

            

    

     

    This
Contract shall come into effect after the following conditions are fully
satisfied:

     

    
      	
            	
              (1)

            	
              The
      legal representatives or authorized representatives of the Parties affix
      signatures and stamps to this Contract and relevant notarial formalities
      are completely done.

            

    

     

    
      	
            	
              (2)

            	
              The
      guarantors of the Lessee, the Lessee and the Lessor have signed relevant
      guarantee contracts (Contract No. YHZL (09)02ZL024-BZ001) and Contract No.
      YHZL (09)02ZL024-BZ002).

            

    

     

    
      	
            	
              (3)

            	
              The
      pledgor of the Lessee (HENAN SHUNCHENG GROUP COAL COKE CO., LTD), and the
      Lessor have signed relevant pledge agreement which has come into effect
      (Contract No. YHZL
(09)02ZL024-ZY001).

            

    

     

    
      	
            	
              (4)

            	
              The
      Lessor received the original copy of the shareholder’s resolution of the
      Lessee approving the financial
leasing.

            

    

     

    
      	
              44.

            	
              Counterpart

            

    

     

    This
Contract and each Leasing Transaction can be signed by the Parties in 6 original
copies, all the said documents shall constitute an integrated set of
document.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    In
witness thereof, this Contract is signed on the date written in the first page
hereof.

    

    Lessor:
AVIC I INTERNATIONAL LEASING CO., LTD.

    Authorized
Representative: [illegible]

    Name:

    

    Lessee:
HENAN SHUNCHENG GROUP COAL COKE CO., LTD.

    Authorized
Representative: Xinshun Wang (王新顺) /s/ Wang
Xinshun

    Name:

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    Annex
1- Schedule of Leasing

    No.
YHZL (09)02ZL024

    

    This
Schedule is signed based on the Financing Leasing Contract (“Contract”) with the
abovementioned serial number.  All the provisions of the Contract
shall be incorporated into this Schedule and shall constitute an independent
leasing contract of the Lease Item listed in this Schedule.  Unless
otherwise specifically defined herein, the terminologies defined in the Leasing
Contract shall be applied to this Schedule.

    

    
      	
              1.

            	
              Details
      of the Leasing Items

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          No.

                                        	 	
                                          Equipment

                                        	 	
                                          Number

                                        	 	
                                          Type

                                        	 	
                                          Contract Price

                                        	 	
                                          Manufacturer

                                        
	
                                          1

                                        	 	
                                          Direct-fired
      Generator Set

                                        	 	 	1	 	 
      	 	 	32,606,000.00	 	
                                          U.S.
      Solar Company

                                        
	 
      	 	 
      	 	 	 	 	 
      	 	 	9,220,000.00	 	 
      
	 
      	 	 
      	 	 	 	 	 
      	 	 	378,430.22	 	 
      
	
                                          2

                                        	 	
                                          Waste
      Heat Boiler

                                        	 	 	1	 	 
      	 	 	2,700,000.00	 	
                                          Nanjing
      Nan Guo Power Equipment Co., Ltd. (Phase II)

                                        
	
                                          3

                                        	 	
                                          Waste
      Heat Boiler

                                        	 	 	1	 	 
      	 	 	2,980,000.00	 	
                                          Nanjing
      Nan Guo Power Equipment Co., Ltd.

                                        
	
                                          4

                                        	 	
                                          Gas
      Compressor

                                        	 	 	2	 	 
      	 	 	5,960,000.00	 	
                                          Shenyang
      Tou Ping Machinery Shareholdings Co. Ltd.

                                        
	
                                          5

                                        	 	
                                          Nitrogen
      Generator

                                        	 	 	2	 	 
      	 	 	1,000,000.00	 	
                                          Sichuan
      Tian Yi Science Technology Shareholdings Co. Ltd.

                                        
	
                                          6

                                        	 	
                                          Nitrogen
      Compressor

                                        	 	 	2	 	 
      	 	 	500,000.00	 	
                                          Sichuan
      Kong Fen Jian Yang Compressor Branch Company

                                        
	
                                          7

                                        	 	
                                          Air
      Compressor

                                        	 	 	2	 	 
      	 	 	470,000.00	 	
                                          Henan
      Province Guo Xin Electromechanical Complete Equipment Co.,
      Ltd.

                                        
	
                                          8

                                        	 	
                                          Demineralized
      Water Preparation System

                                        	 	 	1	 	 
      	 	 	1,150,000.00	 	
                                          Jiangsu
      Xin Lin Environmental Protection Equipment Co., Ltd.

                                        
	
                                          9

                                        	 	
                                          High/Low
      Voltage Switch Cabinet

                                        	 	 	38	 	 
      	 	 	1,460,000.00	 	
                                          Henan
      Suo Ling Electric Co., Ltd.

                                        
	
                                          10

                                        	 	
                                          Desulfurizing
      Tower and Ammonia Still

                                        	 	 	7	 	 
      	 	 	1,680,000.00	 	
                                          Anyang
      Municipality Heng Wei Petrochemical Equipment Co., Ltd.

                                        
	
                                          11

                                        	 	
                                          Total

                                        	 	 	 	 	 
      	 	 	60,104,430.22	 	 
      

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    The
detailed configurations of the equipment shall be based on the equipment list
under the Purchase Contract.

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

    
      	
              2.

            	
              Leasing
      Term

            

    

    Leasing
Term: 5 years, total to 60 months.

    Lease
Commencement Date: the Lease Commencement Date shall be the date when the Lessor
makes the first installment payment according to the Entrust Purchase
Contract.

    

    
      	
              3.

            	
              Delivery
      Place

            

    

    The
Delivery Place of the Leasing Items is the place where HENAN SHUNCHENG GROUP COAL
COKE CO., LTD. is located (North of Tongye Town, Anyang County, Henan
Province).

    

    
      	
              4.

            	
              Rental

            

    

    The total
price of the equipment is RMB
60,104,430.22.

    Lease
Rate: The bank’s benchmark loan rate of 3 to 5-year term plus 1.5% (i.e. Lease
Rate = Bank’s benchmark loan rate of the same term + 1.5%), which shall be
adjusted simultaneously with the adjustment of the bank’s benchmark loan
rate.

    

    Payment
Method of the Rental: Each month shall be one period for each payment
installment of the Rental and the Rental shall be paid at each end of the
period; the Rental shall be determined by the equal annual payment
method.  The first three months after the Lease Commencement Date
shall be grace period, during which, the Lessee shall pay interest to the Lessor
monthly at each end of the period.

    

    Rental
for the First Period to the Third Period: the rental shall be RMB
305,983.71 for each period.

    

    Rental
for the Fourth Period to the Sixtieth Period: the rental shall be RMB 1,039,683.69 for
each period.

    

    The total
Rental shall be RMB
60,179,921.59.

    

    Payment
Schedule of the Rental: shall be paid once a month.

    

    Liquidated
Damages: it shall be calculated based on the total unpaid Rental plus other
expenses.

    

    The
Lessee shall pay the Lessor the Rental and other payables on or before the due
date to the following account:

    Company
Name: AVIC I INTERNATIONAL LEASING CO., LTD.

    Bank:
Shanghai Jing An Branch of Bank of China

    Account
No.: 

    
      
        	 	 
	
                5.

              	
                Rental
      for 0 Period and Cash Deposit

              

      

    

    Rental
for 0 Period: RMB
10,221,430.22

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    

    Cash
Deposit: RMB
7,813,000; during the Leasing Term, the Lessor will not pay interest for
Lessee’s cash deposit, however, the cash deposit shall be the calculating base
for the Rental, and the cash deposit can be used to offset the Rental for the
last several periods.

    

    
      	
              6.

            	
              Management
      Fee and Insurance Fee for the Lease

            

    

    

    The
Management Fee shall be paid in 5 installments by the Lessee to the Lessor
according to the following schedule:

    

    
      	
              (1)

            	
              The
      first installment of the Management Fee: shall be paid within 5 working days
      after this Contract comes into effect and shall be 1.5% of the
      financing.

            

    

    
      	
              (2)

            	
              The
      second to the fifth Management Fee: shall be paid on the day corresponding
      to the Lease Commencement Date of each leasing year and shall be 1.5% of
      the outstanding principal.

            

    

    
      	
              (3)

            	
              The
      Management Fee shall not be returned under any
    circumstances.

            

    

    

    Management
Fee Breakdown

    
      
        
          
            
              
                
                  
                    	
                            First
      Installment of the Management Fee

                          	 	¥	748,245.00	 
	
                            Second
      Installment of the Management Fee

                          	 	¥	646,730.11	 
	
                            Third
      Installment of the Management Fee

                          	 	¥	502,386.54	 
	
                            Fourth
      Installment of the Management Fee

                          	 	¥	347,052.21	 
	
                            Fifth
      Installment of the Management Fee

                          	 	¥	179,890.22	 
	
                            Total

                          	 	¥	2,424,304.08	 

                  

                

              

            

          

        

      

    

    

    Insurance
Premium: It shall be paid by the Lessee to the Lessor in installments
respectively on the day corresponding to the Lease Commencement Date of each
leasing year, which is 0.1% of the outstanding payable Rental at the beginning
of each leasing year.

    

    Insurance
Premium Breakdown (RMB)

    
      
        
          
            
              
                	
                        First
      Installment of the Insurance Premium

                      	 	 	61,916.08	 
	
                        Second
      Installment of the Insurance Premium

                      	 	 	50,994.25	 
	
                        Third
      Installment of the Insurance Premium

                      	 	 	38,015.66	 
	
                        Fourth
      Installment of the Insurance Premium

                      	 	 	25,192.40	 
	
                        Fifth
      Installment of the Insurance Premium

                      	 	 	12,536.30	 
	
                        Total

                      	 	 	188,654.69	 

              

            

          

           

        

      

    

    
      	
              7.

            	
              Purchase
      Price at the Expiration

            

    

    Purchase
Price at the Expiration: RMB
60,100.00

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
              Security

            

    

    Security
Methods:

    Xinshun
Wang and its spouse, Xinming Wang and its spouse, and Junsheng Cheng and its
spouse shall provide a guarantee with joint and several liabilities (Contract
No. YHZL (09)02ZL024-BZ001);

    Anyang
County Bailianpo Coal Co., Ltd. Huotuo Coal Mine shall provide a credit
guarantee (Contract No. YHZL (09)02ZL024-BZ002);

    The
Lessee pledges its 9.27% equity interest in Anyang Commercial Bank (Contract No.
YHZL (09)02ZL024-ZY001).

    

    
      	
              9.

            	
              Preconditions
      for the Payment

            

    

    The
Lessor’s payment is in 2 installments:

    The
Lessor shall make the first installment payment after the Lessee provides the
following documents or makes the following payments:

    

    
      	
              1.

            	
              The
      Lessor received the business license of the Lessee, the shareholders’
      resolution on approving the financial leasing of HENAN SHUNCHENG GROUP
      COAL COKE CO., LTD.

            

    

    
      	
              2. 

            	
              The
      Lessor received the signed Payment Notice of the equipment from the
      Lessee.

            

    

    
      	
              3.

            	
              The
      Lessor received the Acceptance certificate of the leasing equipment signed
      by the Lessee.

            

    

    
      	
              4.

            	
              The
      Lessor received the copies of the Purchase Contract of the Leasing Items
      (the copies shall be identical to the originals evidenced by affixing the
      Lessee’s company stamp thereon).

            

    

    
      	
              5.

            	
              The
      Lessor received the first installment of the Management Fee, the first
      installment of Insurance Premium and the contract notarial fees paid
      by the Lessee.

            

    

    
      	
              6.

            	
              The
      equity pledge registration formalities of the “Equity Pledge Contract”
      (Contract No. YHZL (09)02ZL024-ZY001) has been
  completed.

            

    

    

    After the
Lessor received the Rental for 0 Period and the cash deposit paid by the Lessee,
the Lessor shall make the second installment payment.

    

    In
witness thereof, this Schedule shall come into effect after being signed and
stamped on the date written in the first page hereof.

    Lessor:
AVIC I INTERNATIONAL LEASING CO., LTD.

    Authorized
Representative: [illegible]

    Name:

    Position:

    Lessee:
HENAN SHUNCHENG GROUP COAL COKE CO., LTD.

     

    Authorized
Representative: Xinshun Wang (王新顺) /s/ Wang
Xinshun

    Name:

    Position:

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

    Annex 2-
Acceptance Certificate

    

    No.
YHZL(09)02ZL024-YS001

    

    This
Acceptance Certificate is signed and issued based on the Schedule (No. YHZL
(09)02ZL024) of the Financing Leasing Contract.

    

    Unless
otherwise specifically defined herein, the terminologies in this Acceptance
Certificate shall have the same meaning as those in the Financing Leasing
Contract.

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            No.

                                          	 	
                                            Equipment

                                          	 	
                                            Number

                                          	 	
                                            Type

                                          	 	
                                            Contract Price

                                          	 	
                                            Manufacturer

                                          
	
                                            1

                                          	 	
                                            Direct-fired
      Generator Set

                                          	 	 	1	 	 
      	 	 	32,606,000.00	 	
                                            U.S.
      Solar Company

                                          
	 
      	 	 
      	 	 	 	 	 
      	 	 	9,220,000.00	 	 
      
	 
      	 	 
      	 	 	 	 	 
      	 	 	378,430.22	 	 
      
	
                                            2

                                          	 	
                                            Waste
      Heat Boiler

                                          	 	 	1	 	 
      	 	 	2,700,000.00	 	
                                            Nanjing
      Nan Guo Power Equipment Co., Ltd. (Phase II)

                                          
	
                                            3

                                          	 	
                                            Waste
      Heat Boiler

                                          	 	 	1	 	 
      	 	 	2,980,000.00	 	
                                            Nanjing
      Nan Guo Power Equipment Co., Ltd.

                                          
	
                                            4

                                          	 	
                                            Gas
      Compressor

                                          	 	 	2	 	 
      	 	 	5,960,000.00	 	
                                            Shenyang
      Tou Ping Machinery Shareholdings Co. Ltd.

                                          
	
                                            5

                                          	 	
                                            Nitrogen
      Generator

                                          	 	 	2	 	 
      	 	 	1,000,000.00	 	
                                            Sichuan
      Tian Yi Science Technology Shareholdings Co. Ltd.

                                          
	
                                            6

                                          	 	
                                            Nitrogen
      Compressor

                                          	 	 	2	 	 
      	 	 	500,000.00	 	
                                            Sichuan
      Kong Fen Jian Yang Compressor Branch Company

                                          
	
                                            7

                                          	 	
                                            Air
      Compressor

                                          	 	 	2	 	 
      	 	 	470,000.00	 	
                                            Henan
      Province Guo Xin Electromechanical Complete Equipment Co.,
      Ltd.

                                          
	
                                            8

                                          	 	
                                            Demineralized
      Water Preparation System

                                          	 	 	1	 	 
      	 	 	1,150,000.00	 	
                                            Jiangsu
      Xin Lin Environmental Protection Equipment Co., Ltd.

                                          
	
                                            9

                                          	 	
                                            High/Low
      Voltage Switch Cabinet

                                          	 	 	38	 	 
      	 	 	1,460,000.00	 	
                                            Henan
      Suo Ling Electric Co., Ltd.

                                          
	
                                            10

                                          	 	
                                            Desulfurizing
      Tower and Ammonia Still

                                          	 	 	7	 	 
      	 	 	1,680,000.00	 	
                                            Anyang
      Municipality Heng Wei Petrochemical Equipment Co., Ltd.

                                          
	
                                            11

                                          	 	
                                            Total

                                          	 	 	 	 	 
      	 	 	60,104,430.22	 	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    Acceptance
Date: _____________.

    

    The
Lessee hereby confirms that all the Lease Item listed above:

    

    
      	
              1.

            	
              have
      already completely been inspected and accepted by the Lessee on the
      Acceptance Date;

            

    

    
      	
              2. 

            	
              meet
      all the Lessee’s requirements on the function, usage and other aspects;
      and

            

    

    
      	
              3. 

            	
              is
      delivered “as is”.

            

    

    

    Lessee:
HENAN SHUNCHENG GROUP COAL COKE CO., LTD.

     

    Authorized
Signatory: Xinshun Wang (王新顺) /s/ Wang
Xinshun

     

    Date:

    
      
         

      

      
        36Unassociated Document

    Exhibit
10.34

    

    Form
of Guarantee Agreement

    

    Number:
2009 Nian 6310517131 Bao Zi NO. 003-[_]

    

    Guarantor:

     

    [Business
License NO.:

     

    Legal
Representative/Manager:]

     

    [Identification
NO.:]

     

    [Domicile:]

     

    [Residential
Address:]

     

    Telephone:              Fax::

     

    Creditor:
Anyang Branch, Bank of China

     

    Legal
Representative/Manager: Shi Lei

     

    Domicile:
Wenfeng Road, Anyang City    Postal Code:
455000

     

    Telephone:
0372-2926786   Fax: 0372-2926786

     

    To
guarantee the fulfillment of debt under the “Principal Agreement” as stipulated
in Article 1 hereunder, the Guarantor are willing to provide guarantee to the
Creditor, the Agreement is enacted by equal negotiation of two parties. Unless
as otherwise provided herein, terms hereof shall be interpreted in accordance
with the Principal Agreement.

     

    
      	
              Article
      1

            	
              Principal
      Agreement

            

    

     

    The
Principal Agreement of the Agreement is:

     

    RMB Loan Agreement (short
term) (Agreement Number: 2009 Nian 6310517131 Zi NO. 003) and its
amendment or supplement signed between the Creditor and Henan Shuncheng Group
Coal Coke Co., Ltd.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              Article
      2

            	
              Principal
      Creditor’s Rights

            

    

     

    Creditor’s
Rights under the Principal Agreement constitute the Principal Credit hereof,
including principal, interests (including legal interest, contract interest,
compound interest, default interest), liquidated damages, compensation, fees to
realize the Creditor’s Rights (including but not limited to legal fees, lawyer's
fees, notarization fees, enforcement fees), losses caused to the Creditor due to
the Debtor’s breach of contract and other dues.

     

    
      	
              Article
      3

            	
              Type
      of Guarantee

            

    

     

    Type of
guarantee hereof is the [first] option hereunder: (Note: selection shall be
based on the actual condition; if left without selection, it will be considered
that the first option is selected)

     

    
      	
              1.

            	
              Guarantee
      with joint and several liabilities

            

    

     

    
      	
              2.

            	
              General
      Guarantee

            

    

     

    
      	
              Article
      4

            	
              Commence
      of Guarantee Liability

            

    

     

    If the
Debtor does not pay off to the Creditor in any normal due date or due date ahead
of schedule, the Creditor is entitled to require the Guarantor to fulfill
guarantee liability.

     

    The
normal due date in the paragraph above is the date, as stipulated in the
Principal Agreement, to repay the principal and interest or the date on which
the Debtor shall effect any payment to the Creditor according to provisions
thereof, and etc.

     

    The due
date ahead of schedule in the paragraph above is the date as proposed by the
Debtor and agreed by the Creditor, and the date on which the Creditor requires
the Debtor to repay the principal and interest of loans and/or any other fees
ahead of the due date in accordance with provisions thereof.

     

    In case
the Principal Debt is secured by any other guarantee or mortgage in addition to
Guarantee hereof, such additional guarantee or mortgage shall not constitute an
argument for the Guarantor to defense the Creditor, and shall in no way affect
any creditor’s rights and its exercise.

     

    
      	
              Article
      5

            	
              Guarantee
      Period

            

    

     

    The
guarantee period of the Agreement is two years from the deadline of the
repayment period of the Principal Credit.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If the
Principal Credit is to be repaid in installments, then the guarantee period two
years from the date on which the Agreement taking into effect to the deadline of
repayment period of the last debt.

     

    
      	
              Article
      6

            	
              Limitation
      of action for the Guaranteed Debt

            

    

     

    In case
the Principal Credit are not paid off and the guarantee is of joint and several
liabilities, then if the Creditor require the Guarantor undertake guarantee
liability as stipulated in Article 5 hereof prior to the deadline of the
Guarantee Period, on and from the same date that the Creditor require the
Guarantor undertake guarantee liability, guarantee liability occurs and
commences while the limitation of action is applied.

     

    In
circumstances of general guarantee, the Creditor files a lawsuit or applies for
arbitration against the Debtor before the deadline of the guarantee period as
stipulated in Article 5 hereof, on and from the same date on which the judgment
or arbitration award taking into effect, the guarantee liability will commence
and the limitation of action is applied.

     

    
      	
              Article
      7

            	
              Relation
      between the Agreement and Principal
Agreement

            

    

     

    In case
two parties to the Principal Agreement terminate or make the Principal Agreement
due ahead of the schedule, the Guarantor shall take the guarantee liability for
interest of the Principal Credit in effect according to the Principal
Agreement.

     

    Two
parties to the Principal Agreement agree to change the Principal Agreement,
except for circumstances of change of currency, interest rate, amount, term, and
others leading to amount of Principal Credit increased, or to extend the
fulfillment period thereof, the consent of the Guarantor is not necessary and
the Guarantor shall take guarantee responsibility for the changed Principal
Agreement.

     

    In
circumstances that the Guarantor’s consent are necessary, and if there is no
written consent from the Guarantor or the Guarantor refuses, the Guarantor shall
not take guarantee liability for the increased amount of Principal Credit and
the guarantee period shall be the original period if extending the fulfillment
period of the Principal Agreement.

     

    If two
parties do the inward documentary credit business after the Creditor issues the
Sight L/C to the Debtor, or two parties do the inward documentary credit
business after the Creditor issues the Usance L/C to the Debtor and the
documentary credit period is no later than the valid period of L/C, there is no
need to obtain the Guarantor’s written consent, the Guarantor shall take
guarantee of joint and several liabilities for the inward documentary credit
financing or other consecutive financing in other forms, guarantee period will
be two years from the date on which the documentary credit agreement taking into
effect to the deadline of repayment period of the creditor’s
rights.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If two
parties do the inward documentary credit business after the Creditor issues the
Usance L/C to the Debtor and the documentary credit period is longer than the
validity period of L/C, it needs to obtain the Guarantor’s written consent, then
the Guarantor shall take guarantee of joint and several liabilities for the
inward documentary credit financing or other  consecutive financing in
other forms, guarantee period shall be two years from the date on which the
documentary credit agreement taking into effect to the deadline of repayment
period of the creditor’s rights.

     

    
      	
              Article
      8

            	
              Declaration
      and Commitment

            

    

     

    The
Guarantor states and undertakes as follows:

     

    
      	
              1.

            	
              The
      Guarantor is legally established and exists in good standing; the
      Guarantor has the civil rights and utter capability to execute and perform
      this Agreement.

            

    

     

    
      	
              2.

            	
              The
      Guarantor fully understands the content of the Principal Agreement; the
      execution and performance of this contract is based on the Guarantor’s
      real intent and free will while the Guarantor has already obtained all the
      legal and valid authorization as required by its Articles of Association
      or other inner management files.

            

    

     

    If the
Guarantor is a company, the Guarantee hereof has already been passed by the
board of directors and shareholders meeting according to the provisions of its
Articles of Association; If there are limitation provisions applicable to the
guaranteed total amount and separate guarantee amount in the Articles of
Association, the guarantee hereof shall not exceed the stipulated
limit.

     

    Legal
representative or authorized representative signing the Agreement on behalf of
the Guarantor shall sign this Agreement with legal, valid authorization from the
company; execution and performance of this Agreement shall not cause the
Guarantor to breach any contracts, agreements or other legal documents
constraining the Guarantor.

     

    
      	
              3.

            	
              The
      Guarantor shall provide all the accurate, real, complete and valid
      documents and materials to the
Debtor;

            

    

     

    
      	
              4.

            	
              The
      Guarantor shall accept the Creditor’s supervision and inspection as of the
      production and operation condition, financial condition, and the Guarantor
      shall provide assistance and
coordination;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              5.

            	
              The
      Guarantor does not conceal any already-taken significant liability as to
      the execution date hereof;

            

    

     

    
      	
              6.

            	
              If
      there are some circumstances that may affect the Guarantor’s financial
      condition and performance capability, including but not limited to the
      division, merger, joint operation, joint venture with foreign investment,
      cooperation, contract operation, reorganization, restructuring, going
      public and other changes of operation forms, decrease in registered
      capital, transfer of significant asset or stock equity, undertaking of
      significant liabilities, dissolution, revocation, bankruptcy application
      (or be applied), or involved in major litigation or arbitration, the
      Guarantor shall notify the Creditor in a timely
  manner.

            

    

     

    
      	
              Article
      9

            	
              Disclosure
      of the Inner Related Parties of the Group and Related
      Transaction

            

    

     

    Two
parties agree to adopt the [first]/[second] paragraph hereunder:

     

    
      	
              1.

            	
              The
      Guarantor doesn’t belong to the group customer determined by the Creditor
      according to Guidelines
      to the Risk Management of Giving Credit of the Commercial Bank Group
      Customers,( ‘Guidelines’ for
      short)

            

    

     

    
      	
              2.

            	
              The
      Guarantor belongs to the group customer determined by the Creditor
      according to Guidelines, the
      Guarantor shall report to the Creditor the related transaction with an
      amount of more than 10% of its net asset in a timely manner according to
      Article 17 of Guidelines, including
      the relation among transaction parties, transaction items and nature of
      the transaction, transaction amount or its proportion, pricing policies
      (including transaction without any price or only with nominal
      amount).

            

    

     

    
      	
              Article
      10

            	
              Breach
      and its Disposition

            

    

     

    The
Guarantor shall constitute a breach by one of the following
circumstances:

     

    
      	
              1.

            	
              The
      Guarantor doesn’t fulfill guarantee liability timely according to the
      provisions of the Agreement;

            

    

     

    
      	
              2.

            	
              The
      Guarantor makes fraudulent statement in the Agreement or breaches its
      commitment made hereof;

            

    

     

    
      	
              3.

            	
              There
      happens any incident stipulated in paragraph 6 of Article 8 hereof which
      severely affects the Guarantor’s financial condition and fulfillment
      capability;

            

    

     

    
      	
              4.

            	
              The
      Guarantor terminates operation or there happens dissolution, revocation or
      bankruptcy;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              5.

            	
              The
      Guarantor breaches other provisions hereof regarding to the parties’
      rights and duties;

            

    

     

    
      	
              6.

            	
              There
      happens breach of any contract among the Guarantor and the Creditor or
      other institutions such as Bank Of China
  Limited.

            

    

     

    In case
there occurs any breach as above mentioned, then the Creditor is entitled to
adopt following measures respectively or jointly as of each separate
circumstance:

     

    
      	
              1.

            	
              Require
      the Guarantor to correct the breaches within a time limit and fulfill the
      guarantee liability timely;

            

    

     

    
      	
              2.

            	
              Decrease,
      suspend or terminate the line of credit to the Guarantor totally or
      partly;

            

    

     

    
      	
              3.

            	
              Suspend
      or terminate, totally or partly, to accept the Guarantor’s loan
      application under other contracts; Suspend or terminate, totally or
      partly, loan release of trade financing in
  process;

            

    

     

    
      	
              4.

            	
              Declare
      due immediately, totally or partly, the Guarantor’s unpaid principal,
      interests and other payables in connection with loan or trade financing
      loan under other contracts ;

            

    

     

    
      	
              5.

            	
              Terminate
      or relieve the Agreement, terminate or relieve other contracts between the
      Guarantor and the Creditor totally or
partly;

            

    

     

    
      	
              6.

            	
              Require
      the Guarantor to compensate losses caused to the Creditor resulting from
      the breach of contract;

            

    

     

    
      	
              7.

            	
              It
      only needs to send notice beforehand or afterwards for the Creditor to
      deduct the money saved in the account that the Guarantor opens with the
      Creditor for purpose to pay off all or part of debt that the Guarantor
      owned to the Creditor. The undue money in the account shall be considered
      as due ahead of time. If the currency in the account is different from the
      pricing currency of the Creditor’s business, it shall be calculated by the
      exchange settlement or sales rate then adopted by the Creditor as of the
      deduction.

            

    

     

    
      	
              8.

            	
              Other
      measures the Creditor taking for
necessary.

            

    

     

    
      	
              Article
      11

            	
              Rights
      Reserved

            

    

     

    If one
party doesn’t exercise the rights according to the provisions hereof totally or
partly or require the other party to fulfill and undertake duty and obligation
totally or partly, it shall not constitute abandonment to such right or
exemption to the other Party’s duty and obligation.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In case
one party grant the other party any tolerance, grace period or delay to exercise
rights hereof, it shall not affect such party to exercise any rights according
to this contract, laws and regulations, and it shall not be considered as
abandonment to such right as well.

     

    
      	
              Article
      12

            	
              Changes,
      Amendment and Termination

            

    

     

    The
contract is agreed by both two parties, and can be revised or amended in
written; any revision or amendment shall be an inseparable part to this
Agreement.

     

    Except
for otherwise provided by laws and regulations or conventions by parties, the
Agreement shall not be terminated before completion of fulfillment of all the
rights and duties hereunder.

     

    Except
for otherwise provided by laws and regulations or conventions by parties, any
invalid provision of the Agreement shall not affect the legal effect of other
provisions.

     

    
      	
              Article
      13

            	
              Governing
      Laws and Settlement of Disputes

            

    

     

    The
Agreement is governed by laws of the People’s Republic of China.

     

    Both
parties may first resolve all the disputes and argues through negotiation; if
negotiation fails, both parties agree to adopt the same dispute resolution
manner as stated in the Principal Agreement.

     

    During
the dispute resolution process, if the dispute doesn’t affect the fulfillment of
other provisions of the Agreement, other provisions shall continue to be
performed.

     

    
      	
              Article
      14

            	
              Expenses

            

    

     

    Except
for otherwise provided by law or parties, the expenses arising from execution
and performance of the Agreement and resolution of any dispute (including
attorney fees), shall be afforded by the Guarantor.

     

    
      	
              Article
      15

            	
              Attachment

            

    

     

    The
attachment confirmed by both parties constitutes inseparable part to the
Agreement with the same legal effect.

     

    
      	
              Article
      16

            	
              Others

            

    

     

    
      	
              1.

            	
              Without
      the Creditor’s written consent, the Guarantor shall not transfer any
      right, duty of the Agreement to a third
party.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              2.

            	
              If
      the Creditor, due to business demand, needs fulfill the rights and duties
      hereof through assigning other institutions of Bank of China Limited, the
      Guarantor shall agrees with such arrangement; such institutions of Bank of
      China Limited will have authority to implement all the rights hereof and
      have authority to file a lawsuit to the court or an arbitration to the
      arbitration body as of disputes arising from or related to the
      Agreement.

            

    

     

    
      	
              3.

            	
              Without
      affecting other terms and conditions hereof, the Agreement is legally
      binding to both parties and their own legal successor and
      assignee.

            

    

     

    
      	
              4.

            	
              Except
      for otherwise provided, the domicile both parties designated hereof is the
      correspondence and communication address, and both party commits to inform
      the other party in written notice when and if its correspondence and
      communication address is changed.

            

    

     

    
      	
              5.

            	
              The
      titles and business names in the Agreement are used for convenience, which
      cannot be used as interpretation of summary of the Articles herein as well
      as interpretation of rights and responsibilities of both
      parties.

            

    

     

    
      	
              Article
      17

            	
              Agreement
      Coming Into Effect

            

    

     

    This
Guarantee Agreement shall come into effect as soon as the legal representative,
manager or authorized representative of both parties signing their names and
making the company’s seal.

     

    The
contract is in triplicate, each party and the Debtor holds one, with the same
legal effect.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Guarantor:

     

    [Signature
of the authorized representative:]

     

    Date:
June 30th,
2009

     

    Creditor:
Anyang Branch of Bank of China Limited

     

    Signature
of the authorized representative:

     

    Date:
June 30th,
2009

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]