Document:

Stock Transfer Agreement

EXHIBIT 4.22

Stock Transfer Agreement

AGREEMENT

BY AND BETWEEN

YANGPU LIANZHONG MINING CO., LTD.

AND

BAYANNAOER CITY FEISHANG COPPER CO., LTD.

ON STOCK TRANSFER OF

HAINAN NONFERROUS METAL MINING CO., LTD.

Agreement Number: ___________________

Stock Transfer Agreement

TABLE OF CONTENTS

			
	1.

	DEFINITIONS AND INTERPRETATION

	5

	2.

	TRANSFER OF STOCK

	6

	3.

	CONSIDERATION

	6

	4.

	STOCK TRANSFER PROCEDURES

	7

	5.

	EXTENSION OF EXPLORATION RIGHTS

	7

	6.

	REPRESENTATIONS AND WARRANTIES

	7

	7.

	INFORMATION DISCLOSURE AND CONFIDENTIALITY

	8

	8.

	TAXES AND EXPENSES

	9

	9.

	DEFAULT LIABILITY

	9

	10.

	FORCE MAJEURE 

	9

	11.

	AMENDMENT AND TERMINATION OF THE AGREEMENT

	9

	12.

	GOVERNING LAW

	10

	13.

	DISPUTE RESOLUTION

	11

	14.

	EFFECTIVE DATE OF THE AGREEMENT

	11

	15.

	OTHER CONVENTIONS

	11

2

Stock Transfer Agreement

THIS AGREEMENT is signed in Futian District of Shenzhen by and between:

Party A:

Yangpu Lianzhong Mining Co., Ltd.  (“Transferor”)

Address: Room 202, 2/F, Podium Building of ICBC Building, Yangpu Economic Development Zone

Legal representative: Li Feiwen

Party B:

Bayannaoer City Feishang Copper Co., Ltd.  (“Transferee”)

Address: Qingshan Industrial Park, Wulatehouqi County, Bayannaoer City, Inner Mongolia

Legal representative: Wang Genyin

WHEREAS

A.

HAINAN NONFERROUS METAL MINING CO., LTD. (hereinafter referred to as “Target Company” or “Hainan Nonferrous”), registered in the Administration of Industry and Commerce of Hainan Province on 27 September 2007, is a limited liability company organized and validly existing under the law of the People’s Republic of China with a registered capital of RMB68,000,000, a paid-up capital of RMB68,000,000 and a total of 68,000,000 shares issued and its business license registration number being 460000000014694.

B.

The Target Company is the rightful holder of 12 “Mineral Exploration Permits” issued by the Land Environment and Resources of Hainan Province as shown below:

					
	Number

	Exploration Projects

	Chart Numbers

	Exploration Area

	Validity Period

	T46120080302002736

	Mineral exploration of Dadao Molybdenum-Lead-Zinc Mine in Qianjia Town, Ledong County, Hainan Province

	E49E009004

	12.21 km2

	2010/02/28 ~ 2012/02/28

	T46120080602009176

	Mineral exploration of Baowenling Molybdenum-Lead-Copper Mine in Nanlin Town, Baoting County, Hainan Province

	E49E010007

	42.35 km2

	2010/02/28 ~ 2012/02/28

3

Stock Transfer Agreement

					
	T46120080602009175

	Mineral Exploration of Jinling Gold Mine in Chengmai County, Hainan Province

	E49E003009

	38.84 km2

	2010/01/06 ~ 2012/01/06

	T46120080602009178

	Mineral exploration of Xinyuan Lead-Zinc Mine in Dongfang City, Hainan Province

	E49E008004

	5.08 km2

	2010/01/06 ~ 2012/01/06

	T46120080602009174

	Mineral exploration of Yitong Copper Polymetallic Mine in Ledong County, Hainan Province

	E49E009005

	26.66 km2

	2010/01/06 ~ 2012/01/06

	T46120080602009173

	Mineral exploration of Laomaogou Lead-Zinc Mine in Zhongsha Town, Dongfang City, Hainan Province

	E49E008004

	5.49 km2

	2010/02/28 ~ 2012/02/28

	T46120080302002752

	Mineral exploration of Dayinling Copper Polymetallic Mine in Qiongzhong City, Hainan Province

	E49E004007

	26.33 km2

	2010/02/28 ~ 2012/02/28

	T46120080602009180

	Mineral exploration of Daogangling Lead-Zinc Mine in Baisha County, Hainan Province

	E49E006006

	14.60 km2

	2010/02/28 ~ 2012/02/28

	T46120080602009179

	Mineral exploration of Haoganling Molybdenum-Copper Mine in Fenghuan Town, Sanya City, Hainan Province

	E49E010006

	40.72 km2

	2010/05/01 ~ 2012/05/01

	T46120080302002753

	Mineral exploration of Zhengmianling Copper Polymetallic Mine in Anding County, Hainan Province

	E49E005010

	19.05 km2

	2010/05/01 ~ 2012/05/01

4

Stock Transfer Agreement

					
	T46120090902034197

	Mineral exploration of Baoshi Copper Polymetallic Mine in Baoting County, Hainan Province

	E49E001007

	26.47 km2

	2009/09/21 ~ 2011/09/21

	T46120090902034196

	Mineral exploration of Hanxiao Copper Mine in Qianjia Town, Ledong County, Hainan Province

	E49E009004

	8.55 km2

	2009/09/21 ~ 2011/09/21

C.

Party A is a shareholder of the Target Company, holding 48% of its equity interest (a total of 32,640,000.00 shares, hereinafter referred to as “Target Stock”), of which 18% (a total of 12,240,000.00 shares) are held by Yangpu Fengyu Industrial Development Co., Ltd. on behalf of Party A.

D.

Party B is a limited liability company organized and validly existing under the law of the People’s Republic of China

E.

The unaudited Balance Sheet of Hainan Nonferrous as of October 31, 2010 is shown in Appendix 1.

F.

Party B has been aware of the current situation of the Target Company and confirmed the acquisition of the Target Stock.  In view of this, the Parties to this Agreement have reached an agreement on the transfer of stock in accordance with the terms and conditions set out in this Agreement.

NOW IT IS HEREBY AGREED as follows by the Parties on the stock transfer of the Target Company in accordance with the “Company Law” and “Contract Law”:

1.

DEFINITIONS AND INTERPRETATION

In the Agreement, unless the context otherwise requires, the following words and expressions shall have the following meanings:

“Party A”

means Yangpu Lianzhong Mining Co., Ltd.;

“Party B”

means Bayannaoer City Feishang Copper Co., Ltd.;

“Transferor”

means Party A;

“Transferee”

means Party B;

“the Parties”

means Party A and Party B;

5

Stock Transfer Agreement

“a Party”

means either Party A or Party B;

“Target Company”

means Hainan Nonferrous Metal Mining Co., Ltd.;

“Target Stock”

means the 48% of the equity interest in the Target Company the Transferor holds;

“Exploration Rights”

means the rights as specified in the “Mineral Exploration Permits” held by the Target Company;

“this Agreement”

means this stock transfer agreement signed by both parties

“Target Company By-laws”

means “Hainan Nonferrous Metal Mining Co., Ltd.’s By-Laws”;

“Company Law”

means “the PRC Company Law”;

“Contract Law”

means “the PRC Contract Law”;

“Business Registrar”

means the Administration of Industry and Commerce of Hainan Province;

“Transfer Date”

means the date for transfer of information related to the Target Stock by the Transferor to the Transferee as well as the signing of the transfer checklist by both parties, which is also the completion date under this Agreement;

“Force Majeure”

means all the unforeseeable, unavoidable and insurmountable events that prevent either party from fully or partially fulfilling its obligations under this agreement or render the Target Company unable to carry on with its operation, including but not limited to such natural disasters as earthquake, hurricane, flooding, tsunami, landslide, lightning, etc. and war;

6

Stock Transfer Agreement

“the PRC”

means the People’s Republic of China which, for the purpose of this Agreement, shall exclude Hong Kong Special Administration Region, Macao Special Administration Region of the PRC and Taiwan;

“RMB”

means Renminbi, the lawful currency of the PRC

2.

TRANSFER OF STOCK

2.1

The Parties to this Agreement acknowledge and agree that the Transferor shall transfer the 48% of the equity interest in the Target Company it holds to the Transferee in accordance with the terms and conditions set out in this Agreement.

2.2

The Parties to this Agreement acknowledge and agree that the Transferor shall, upon receipt of RMB 30,000,000.00 as consideration for the stock transfer and as from the Transfer Date, simultaneously transfer all of its rights, obligations and responsibilities as specified in the Contract Law and the Target Company By-law to the Transferee.

2.3

The Parties to this Agreement acknowledge and agree that the rights and obligations the shareholders of the Target Stock are entitled to and assume respectively shall be defined in accordance with the Company Law and the Target Company By-laws.

3.

CONSIDERATION

3.1

The Parties to this Agreement acknowledge and agree that Party B and/ or its designated enterprise shall pay a total of RMB 30,000,000.00 for the purchase of the 48% of equity interest in Hainan Nonferrous as consideration.

3.2

Payment should be made in whole to the account designated by the Transferor within 7 business days after the execution of this Agreement.

3.2.1

Party A’s account:

Name of Account:

Yangpu Lianzhong Mining Co., Ltd.

Name of Bank:

Industrial and Commercial Bank of China Ltd. Yangpu Branch

Account Number:

2xxxxxxxxxxxxxxxxxx

7

Stock Transfer Agreement

4.

STOCK TRANSFER PROCEDURES

4.1

The Transferor shall, within 10 business days after the Transferee’s payment of the consideration, transfer all the information obtained as the shareholder of the Target Company to the Transferee so that both parties can sign the transfer checklist.  The Transferee shall, as from the Transfer Date, assume all rights and obligations of the Target Stock.  At the same time, the Transferee shall be entitled to the profits of the Target Company and the claims it owns and responsible for all of its liabilities.

4.2

The Transferor shall, within 20 business days after the Transferee’s payment of the consideration, deliver or procure to be delivered to the Transferee all the documents as may be necessary for the transfer of the Target Stock and assist the Transferee in completing the procedures for the changes in the Business Registrar.

4.3

Upon the completion of the procedures for the changes in the Business Registrar, the Transferee shall, in accordance with the Company Law of the PRC, possess all right to amend or redraft the Target Company’s By-laws, to appoint or dismiss any director, supervisor, senior management personnel and employee of the Target Company.

5.

EXTENSION OF MINING RIGHTS

The Parties to this Agreement agree that upon this Agreement becoming effective, the Transferee shall, should the Exploration Rights expire, be responsible for applying for extension of the Exploration Rights, assume the corresponding rights and obligations and bear all the taxes and fees for mining right application that are yet to pay.

6.

REPRESENTATIONS AND WARRANTIES

6.1

The Parties to this Agreement hereby warrant and represent as follows:

6.1.1

The Parties to this Agreement are legal persons with full legal capacity.

6.1.2

The Parties to this Agreement have obtained or guarantee to be able to obtain the authorization required for entering into this Agreement.

8

Stock Transfer Agreement

6.1.3

The execution and performance of this Agreement by the Parties to this Agreement shall not violate any law or any contractual obligations the Parties are subject to.

6.1.4

The Parties to this Agreement shall take all necessary measures to assist in the completion of all the procedures for transferring the Target Stock to the Transferee.

6.2

The Transferor hereby warrants and represents as follows:

6.2.1

As of the date of the signing of this Agreement, the Transferor is the legitimate holder of the Target Stock and the Target Company is the legitimate owner of the Exploration Rights and such stock and exploration rights are not pledged or mortgaged.

6.2.2

The Target Company is duly organized and validly existing under the law of the People’s Republic of China and there exists no dissolution or liquidation of the company, or termination or suspension of business by shareholders or the authority concerned.

6.3

The Transferee hereby warrants and represents as follows:

6.3.1

The Transferee acknowledges that it has full legal right to conduct the matters in respect of stock acquisition from the Transferor and full capacity to fulfill its obligations under this Agreement.

6.3.2

The Transferee acknowledges that it shall, as from the Transfer Date, fully assume the obligations and responsibilities of the shareholders of the Target Company that correspond to its equity ratio.

7.

INFORMATION DISCLOSURE AND CONFIDENTIALITY

7.1

The Parties to this Agreement shall not in any form disclose any information concerning this stock transfer to any third party unrelated to this stock transfer except under the following circumstances:

7.1.1

Disclosure of information is required by laws, administrative regulations or in the approval or register procedures stipulated in other normative documents.

7.1.2

Disclosure of information to a third party is necessary to fulfill the obligations or representations and warranties under this Agreement.

7.2

The Parties to this Agreement shall take all necessary measures to ensure that the informed members of staff of the Parties shall keep the information about this stock transfer confidential.

9

Stock Transfer Agreement

8.

TAXES AND EXPENSES

8.1

Any taxes and/ or expenses stipulated in the law, administrative regulations and other normative documents incurred in connection with this stock transfer shall be borne by the Transferor and/ or Transferee according to the law, administrative regulations and normative documents; any taxes and/ or expenses not stipulated in the law, administrative regulations and other normative documents shall be equally borne by the Transferor and Transferee.

9.

DEFAULT LIABILITY

9.1

Should a Party to this Agreement fail to fulfill its obligations under this Agreement or to perform its obligations in accordance with this Agreement, it shall continue to fulfill its obligations, take remedial measures or make compensation for breach of contract.

9.2

In the event Party B fails to make its payment at the time agreed upon in this Agreement, it is liable to pay liquidated damages on payments overdue by more than 30 days at the rate of 0.05% of the overdue amounts for each day overdue.

10.

FORCE MAJEURE

10.1

Should a Party to this Agreement be prevented from performing its obligations under this Agreement owing to an event of Force Majeure, it shall, depending on the impact of the event of Force of Majeure, be partially or completely exempt from the defaulting liabilities arising therefrom, except as otherwise stated in law.

10.2

In occurrence of Force Majeure the affected shall promptly notify the other party so as to mitigate the losses which may possibly be inflicted on the other party and provide documents evidencing the particulars of such occurrence within 10 business days after occurrence of Force of Majeure.

10.3

Should an event of Force of Majeure occur after a Party’s delay in performance of its obligations, that party shall not be exempt from defaulting liabilities.

11.

AMENDMENT AND TERMINATION OF AGREEMENT

11.1

The rights, obligations or responsibilities stipulated in this Agreement could be amended with the consent of the Parties to this Agreement. Approval and registration procedures required for making any amendment to this Agreement shall be completed in accordance with the relevant laws and administrative regulations.

10

Stock Transfer Agreement

11.2

No amendment of the rights and obligations under this Agreement shall be valid unless made in writing and duly signed by the legal representatives or authorized agents of the Parties to this Agreement.  Without the special authorization of the Parties to this Agreement, the designated representatives of the Parties to this Agreement shall have no right to agree the amendment of any of the provisions of this Agreement being made in any form.

11.3

Neither party shall transfer any of its rights and obligations under this Agreement to any third party without the written consent of the other.

11.4

Except as otherwise stipulated in this Agreement, neither party shall terminate this Agreement unilaterally.

11.5

In case one of the Parties intends to terminate this Agreement, the party intended shall notify the other party in writing regarding the said matter.  In this case, this Agreement shall be terminated on the day when the notification arrives at the other party.  Should the other party have any objections, it may request the court to determine the validity of the termination of the Agreement.

11.6

After the termination of this Agreement, the Parties shall cease to fulfill the obligations yet to be performed; in cases where the obligations have been performed, remedies in the form of restitution and loss compensation may be adopted, depending on the nature of the agreement and the extent to which the obligations have been performed.

11.7

The termination of the rights and obligations under this Agreement shall not affect the validity of the default liability, dispute resolution and governing law clauses in this Agreement.

12.

GOVERNING LAW

12.1

Unless stipulated otherwise in this Agreement, the determination, enjoyment, performance and assumption of the rights, obligations and responsibilities of the Parties under this Agreement shall be governed and construed by the laws of the PRC.

12.2

Where the terms laid down in this Agreement are not sufficiently precise or complete, the Parties to this Agreement shall reach a supplementary agreement in accordance with the governing law, reasonable business practice as well as the principle of credibility and honesty.

11

Stock Transfer Agreement

13.

DISPUTE RESOLUTION

13.1

Disputes arising out of or in connection with this Agreement shall be settled through negotiation.

13.2

Should the negotiation fail, any disputes related to this Agreement shall be submitted to the People’s Court of the place where this Agreement is signed.

14.

EFFECTIVE DATE OF THE AGREEMENT

14.1

This Agreement shall become effective as of the date when it is duly signed by the legal representatives or authorized agents of the Parties to this Agreement with common seal.

15.

OTHER CONVENTIONS

15.1

Appendix to the Agreement is an integral part of this Agreement and has the same legal force and validity as this Agreement.

15.2

This Agreement is made in four originals with the same legal force and validity, of which each party holds two.

(NEXT PAGE IS THE SIGNATURE PAGE)

12

Stock Transfer Agreement

(SIGNATURE PAGE TO STOCK TRANSFER AGREEMENT)

Party A:

Yangpu Lianzhong Mining Co., Ltd.  (“Transferor”)

Legal representative/ authorized representative: /s/ Li Feiwen

Date:  11 / 30 / 2010

  

Party B:

Bayannaoer City Feishang Copper Co., Ltd.  (“Transferee”)

Legal representative/ authorized representative: /s/ Wang Genyin

Date: 11 / 30 / 2010

13

Stock Transfer Agreement

APPENDIX 1:

HAINAN NONFERROUS CONSOLIDATED BALANCE SHEET

							
	HAINAN NONFERROUS METAL MINING CO., LTD

UNAUDITED CONSOLIDATED BALANCE SHEET

	 
	As at 31 October 2010

	Assets

	 
	Liabilities and Equity

	Current Assets:

	     

	RMB

	     

	Current Liabilities:

	     

	RMB

	Cash and bank balance

	 
	6,659,179.89 

	 
	Bills payable

	 
	-- 

	Financial assets held for trading

	 
	-- 

	 
	Accounts payable

	 
	-- 

	Account receivable - others

	 
	-- 

	 
	Receipt in advance

	 
	-- 

	Account receivable – related parties

	 
	-- 

	 
	Accrued payables

	 
	222,351.81 

	Bills receivable

	 
	-- 

	 
	Tax payable

	 
	(61,058.38)

	Other receivable

	 
	2,053,096.12 

	 
	Other payables

	 
	626,586.80 

	Deferred income –

unrecognized financial income

	 
	-- 

	 
	Dividend payable

	 
	-- 

	Inventories

	 
	77,901.55 

	 
	Capital lease obligation - current

	 
	-- 

	Prepayment

	 
	-- 

	 
	Deferred income tax liabilities

	 
	-- 

	Deferred expenses

	 
	(1,388.89)

	 
	Amount due to group companies

	 
	140,844.91 

	Deferred tax assets

	 
	-- 

	 
	Amount due to related parties

	 
	-- 

	Amount due from group

companies

	 
	120,200.78 

	 
	Amount due to associates

	 
	-- 

	Amount due from related

parties

	 
	3,088,739.92 

	 
	Total Current Liabilities:

	 
	928,725.14 

	Amount due from associates

	 
	-- 

	 
	Non-current Liabilities:

	 
	 

	Total Current Assets:

	 
	11,997,729.37 

	 
	Capital lease obligation – long-term

	 
	-- 

	Non-current Assets:

	 
	 
	 
	Deferred taxation –long-term

	 
	-- 

	Long-term deposits

	 
	-- 

	 
	Long-term loans

	 
	-- 

	Amount due from associates

	 
	-- 

	 
	Long-term payables

	 
	-- 

	Unrecognized finance charges

	 
	-- 

	 
	Total Non-current Liabilities:

	 
	-- 

	Fixed assets

	 
	1,757,465.55 

	 
	Equity:

	 
	 

	Land use rights

	 
	-- 

	 
	Paid-in capital

	 
	68,000,000.00 

	Construction in progress

	 
	680,511.56 

	 
	Additional paid-in capital

	 
	-- 

	Long-term equity investments -

subsidiaries

	 
	-- 

	 
	Reserves

	 
	(149,684.47)

	Long-term equity investments –

associates

	 
	-- 

	 
	Goodwill arising from

related acquisitions

	 
	-- 

	Long-term equity investments –

others

	 
	-- 

	 
	Other comprehensive income

	 
	-- 

	Intangible assets

	 
	9,678.70 

	 
	Opening retained earnings

	 
	(41,215,650.46)

	Mining rights

	 
	-- 

	 
	Profit for the current year

	 
	(13,232,895.55)

	Exploration rights

	 
	-- 

	 
	Interests Attributable to

Equity Holders of the Parent

	 
	13,401,769.53 

	Goodwill

	 
	-- 

	 
	Non-controlling Interests

	 
	114,890.51 

	Total Non-current Assets:

	 
	2,447,655.81 

	 
	Total Equity

	 
	13,516,660.04 

	Total Assets

	 
	14,445,385.18 

	 
	Total Liabilities and Equity

	 
	14,445,385.18 

14

Stock Transfer Agreement

APPENDIX 2:

TRANSFER CHECKLIST

1.

A copy of Hainan Nonferrous Metal Mining Co., Ltd.’s business registration documentation stamped with the official seals of the Administration of Industry and Commerce of Hainan Province;

2.

A copy of Hainan Nonferrous Metal Mining Co., Ltd. By-laws:

3.

Three copies of Hainan Nonferrous Metal Mining Co., Ltd. Inaugural Meeting and First Shareholders’ Meeting Resolution;

4.

Three copies of the Resolution of Hainan Nonferrous Metal Mining Co., Ltd. First Meeting of First Board of Directors;

5.

Two copies of the Resolution of Hainan Nonferrous Metal Mining Co., Ltd. First Meeting of First Supervisory Committee;

6.

A copy of the Minutes of Hainan Nonferrous Metal Mining Co., Ltd. Extraordinary General Meeting;

7.

A copy of the Minutes of Hainan Nonferrous Metal Mining Co., Ltd. 2007 Annual Inspection Report stamped with the official seals of the Administration of Industry and Commerce of Hainan Province;

8.

A copy of the Minutes of Hainan Nonferrous Metal Mining Co., Ltd. 2008 Annual Inspection Report stamped with the official seals of the Administration of Industry and Commerce of Hainan Province;

9.

A copy of the Minutes of Hainan Nonferrous Metal Mining Co., Ltd. 2009 Annual Inspection Report stamped with the official seals of the Administration of Industry and Commerce of Hainan Province;

10.

A photocopy of the original and duplicate copy of Hainan Nonferrous Metal Mining Co., Ltd.’s latest business license which has passed 2009 Annual Inspection.

Note: all documents listed above are original copies

			
	Transferor: /s/ Jiao Fangmin

	             

	Transferee: /s/ Cheng Manfu

	 
	 
	 

	Date: December 17, 2010

	 
	Date: December 17, 2010

15Loan Agreement

EXHIBIT 4.23

Record Number:

CMBC-HT184 (Company 2010)

Working Capital 

Loan Agreement

Number: Gong Jie Dai Zi 99112010288756

China Minsheng Banking Corp., Ltd.

TABLE OF CONTENTS

				
	Article 1

	     

	Purpose of Loan

	2

	Article 2

	 
	Amount and Tenure of Loan

	2

	Article 3

	 
	Calculation of Interest

	3

	Article 4

	 
	Disbursement and Payment of Loan

	5

	Article 5

	 
	Repayment of Loan

	8

	Article 6

	 
	Guarantee

	10

	Article 7

	 
	Party A’s Representations and Warranties

	10

	Article 8

	 
	Party B’s Rights and Obligations

	12

	Article 9

	 
	Default Liability

	13

	Article 10

	 
	Effectiveness of the Agreement

	15

	Article 11

	 
	Amendment and Termination of the Agreement

	15

	Article 12

	 
	Dispute Resolution

	16

	Article 13

	 
	Supplementary Provisions

	16

	Attachment 1   Party A’s Drawdown Date and Amount

	19

	Attachment 2   Party A’s Repayment Date and Amount

	20

	Attachment 3   Drawdown Application Form

	21

	Attachment 4   Financial Covenants

	24

1

Working Capital Loan Agreement

Borrower: 

Guizhou Puxin Energy Co., Ltd. (hereinafter referred to as “Party A”)

Address: 

Rm 29-1, Zhenhua Keji Building, Guiyang City

Postal code:

Legal representative/ 

Person-in-charge: 

Ren Xiaogang

Telephone: 

0851-6885112

Fax:

Bank:

Minsheng Bank Chongqing Branch

Account number: 

1xxxxxxxxxxxxxxx

Lender: 

Chongqing Branch of China Minsheng Banking Corp., Ltd. (hereinafter referred to as “Party B”)

Address:

9 North Jianxin Road 

Postal code:

400020

Legal representative/

Peron-in-charge:

Hu Yu

Telephone:

67695759

Fax:

67695761

According to the applicable laws and regulations of the People’s Republic of China (the “PRC”), Party A and Party B, after reaching an agreement through negotiations, hereby enter into and execute this Agreement.

Article 1

Purpose of Loan

Clause 1

The Loan under this Agreement shall be used for working capital (purchasing coal).  Without the written approval of Party B, Party A shall not alter the purpose of the loan.

Article 2

Amount and Tenure of Loan

Clause 2

The amount of the Loan under this Agreement shall be (in word) RMB Seventy 

2

Million Only or (in Arabic numerals) RMB 70,000,000.  In the event of any discrepancy between the amount in words and that in Arabic numerals, the amount in words shall prevail.

Clause 3

The working capital loan Party B shall provide for Party A under this Agreement shall be a:

¢

short term loan.

£

mid-long term loan.

Clause 4

The Loan under this Agreement shall have a tenure of one year.  The loan tenure shall start on December 14, 2010 (the contracted first drawdown date) and continue until December 14, 2011 (the contracted maturity date).  In case of any discrepancy between the contracted first drawdown date and the contracted maturity date, the actual drawdown date shall prevail.

Article 3

Calculation of Interest 

Clause 5

5.1

The interest rate on the loan under this Agreement (referred to as the Contracted Interest Rate) shall be 6.672% per annum (namely an annual rate equal to 20%  ¢  above   £  below the applicable 1-year base lending rate as stipulated by the People’s Bank of China on the day when this contract is signed, i.e. 5.56% per annum);

5.2

The date on which the loan under this Agreement is disbursed to the loan account Party A opens at Party B pursuant to Article 4 of this Agreement shall be the drawdown date under this Agreement.  The interest on the loan under this Agreement shall be calculated from the drawdown date.  On each interest payment date, Party A shall pay Party B the interest accrued from the drawdown date (including that day) or the day after the preceding interest payment date until that interest payment date (including that day) and the principal due (if applicable) on that interest payment date;

5.3

The method of interest calculation on the loan under this Agreement adopted and the interest payment option taken shall be:

£

The interest shall be calculated on a daily basis and payable on a monthly basis.  Interest payment date is the 20th day of each month.  The last interest payment date is the maturity date of the Loan;

3

¢

The interest shall be calculated on a daily basis and payable on a quarterly basis.  Interest payment date is the 20th or the last day of the last month of each quarter.  The last interest payment date is the maturity date of the Loan;

£

All principal and accrued interest shall be payable in a lump sum on the maturity date (applicable to loans with maturity within a year);

5.4

If Party A fails to repay the principal amount of the Loan on the due date, Party B shall charge Party B interest at a rate of 50% above the Contracted Interest Rate (referred to as the “Default Interest Rate”) on overdue sum from and including the due date to the actual payment date.  If Party A fails to repay the accrued interest and default interest on the due date, the Default Interest Rate shall be calculated monthly on the interest payment date, or in the case of last repayment, the last repayment date on a compound basis based on the actual number of days elapsed; (Note: the interest rate over the Contracted Interest Rate here should range from 30% to 50%)

5.5

If Party A fails to use the loan proceeds for the designated purpose, interest at a rate of 100% above the Contracted Interest Rate (referred to as the “Penalty Interest Rate”) shall be charged on the amount of proceeds used for purpose other than the designated one starting from the date when the loan proceeds are inappropriately used.  In the event of failure to pay the penalty interest on time, such penalty interest shall be calculated monthly on the interest payment date, or in the case of last repayment, the last repayment date on a compound basis based on the actual number of days that the loan proceeds are inappropriately used.  Party B may pursue action against Party A for other acts of default and shall at any time have the right to declare any part or the entire Loan under the Loan Agreement to be forthwith due and payable; (Note: the interest rate over the Contracted Interest Rate here should range from 50% to 100%)

5.6

Should the People’s Bank of China adjust the above base lending rate after this contract is signed (the “Adjustment”), the Contracted Interest Rate:

£

will not be adjusted accordingly;

¢

will be adjusted accordingly using the method of interest calculation as stipulated under Clause 5.1;

For the loan proceeds disbursed, the adjusted interest rate will be applied starting from the following day of the first interest payment date after the date of Adjustment.  Once the adjusted interest rate applies, the interest payment will be calculated based on the adjusted interest rate.

In the event of any change in the Contracted Interest Rate, all the Default 

4

Interest Rate and Penalty Interest Rate will be automatically adjusted, calculated accordingly and applied starting from the day when the adjusted Contracted Interest Rate applies.

Should the interest rate adjustment be made in accordance with Clause 5.6 under this Agreement, Party A and Party B are required to neither sign further agreement for the change of interest rate nor seek each other’s consent or inform the guarantors or obtain their consent.

Article 4

Disbursement and Payment of Loan

Clause 6

Upon the effectiveness of this Agreement, Party A may withdraw the proceeds of the Loan:

¢

in a lump sum.

£

in installments in accordance with the drawdown schedule specified in Attachment 1.

£

other options: _____________________________________________________.

Clause 7

If any part of the loan under this Agreement is to be disbursed, Party A must satisfy the following conditions precedent and submit a draw-down application as required by Party B at least three working days in advance, or Party B has the right to refuse Party A’s drawdown.  Should Party B, however, disburse the loan even if not all the following conditions precedent have been satisfied, Party B’s act shall not constitute or be deemed to constitute its defective performance under this Agreement:

7.1

Party A has provided the documents as required by Party B, including but not limited to the following:

7.1.1

Party A’s business registration certificate (with the latest annual inspection passed), organization code permit and tax registration certificate, Party A’s articles of association as in force for the time being, proof of identity of Party A’s legal representative and his/ her copy of identity card.

7.1.2

A list of names and specimen signatures of Party A’s directors and relevant senior officers mentioned in this Loan Agreement.

7.1.3

Resolutions of the Board of Directors/ shareholders authorizing the borrowing of the Loan and the power of attorney to sign on its behalf this Loan Agreement.

7.1.4

Party A’s signed drawdown application.

7.1.5

For loan proceeds whose disbursement is via discretionary payment, 

5

after the first disbursement, information about the use of the loan proceeds from the preceding disbursement should be provided before the next disbursement.

7.2

Party A has, in accordance with the relevant legal provisions, rules and regulations, obtained all the administrative permission and approval, and completed all the registration as well as other legal procedures related to the loan under this Agreement.

7.3

All the relevant loan guarantee documents have been duly executed and in full force and effect.  Mortgage right/ pledge right has been established.

7.4

There is no occurrence or persistence in any event of default.  In case the event of default shall have occurred, either waiver has been obtained from Party B or rectification has been performed to the satisfaction of Party B.

7.5

All the representations and warranties contained in Clause 13 of this Agreement made by Party A shall be true, correct and valid with the same effect as though made on and as of the drawdown date with reference to the facts and circumstances then existing.

7.6

There has been no material advance change in the financial condition of Party A between the signing of this Agreement and the drawdown date.

Clause 8 Disbursement of loan

Upon approval of Party A’s drawdown request, Party B shall provide the approved amount of loan proceeds by bank transfer to Party A’s Designated Account and interest shall be calculated from the drawdown date.  The loan account under this Agreement shall be:

¢

the escrow account

Bank:

Minsheng Bank Chongqing Branch                               

Account number:

1xxxxxxxxxxxxxxx                                 

£

the settlement account

Bank:

_______________________________________________________

Account number:

_____________________________________________

£

Others:

_________________________________________________________

Clause 9 Loan disbursement and payment mode

9.1

The loan proceeds Party B provides for Party A under this Agreement shall be disbursed

£

entirely via entrusted payment.

£

entirely via discretionary payment.

¢

via entrusted payment if the following conditions are satisfied and via discretionary payment in other circumstances.

6

Conditions for loan disbursement via entrusted payment:

¢

Party A requesting a single disbursement of over (but not including) RMB 25,000,000.

£

                      /                       .

9.2

The loan disbursement and payment modes stipulated in Clause 9.1 shall have the following meanings:

If the entrusted payment mode is adopted, upon approval of the drawdown application and such related documents as the business contracts that Party A should submit pursuant to the requirements of Attachment 3 of this Agreement, Party B shall, in accordance with Party A’s drawdown application and payment entrustment, disburse the corresponding amount of proceeds to Party A’s transacting party directly to pay for transactions that are in line with the agreed purpose.

If the discretionary payment mode is adopted, upon approval of the drawdown application Party A should submit pursuant to the requirements of Attachment 3 of this Agreement, Party B shall, in accordance with Party A’s drawdown application, transfer the corresponding amount of proceeds to Party A’s Designated Account to be paid to Party A’s transacting party for transactions that are in line with the agreed purpose at Party A’s own discretion.

Should the discretionary payment mode be adopted, Party A shall submit reports and information on the use of the loan proceeds to Party B on a £  monthly ¢  quarterly basis.  Furthermore, in case Party B has other additional requirements, Party A shall timely provide additional reports and information on the use of the loan proceeds as required by Party B.  Should there be other agreed forms of regulation, Party A shall also fulfill the regulatory requirements imposed by Party B.

9.3

Should there be a deterioration in Party A’s account status, a decline in the profitability of Party A’s major businesses or an abnormality in the use of the loan proceeds in the process of loan disbursement, Party B shall have the right to reduce the amount of loan proceeds to be disbursed by entrusted payment; Party B shall also have the right to withhold disbursement and payment of the loan proceeds and, in this case, Party B shall timely inform Party A of the need to negotiate over additional loan disbursement and payment conditions.

Clause 10 Loan disbursement

The loan proceeds in the Designated Account shall, as stipulated in Clause 9 under this Agreement, be disbursed via entrusted payment/ or discretionary payment.  Party 

7

A must submit a draw-down application and other related documents at least three working days in advance and Party B, upon approval of Party A’s application, shall disburse the requested amount of loan proceeds.  Should Party B consider Party A’s application unsuccessful, Party B shall have the right to require Party A to make adjustments or refuse Party A’s drawdown application and Party B, in this case, shall not be responsible for any liability and consequences arising from the loan disbursement delay.

Article 5

Repayment of Loan

Clause 11

11.1

Party A shall repay the principal:

¢

in full, in a single payment on the due date stipulated in Clause 4 of this Agreement;

£

in installments on the due dates in accordance with the repayment schedule specified in Attachment 2.

11.2

The following account shall be Party A’s Designated Proceeds Account under this Agreement:

Bank:

Minsheng Bank Chongqing Branch

Account number: 1xxxxxxxxxxxxxxx

The Designated Proceeds Account shall be used for handling sales proceeds and serve as the Loan Repayment Account.  If required by Party B, Party A shall enter into a loan repayment account management agreement with Party B.

11.3

Should the actual first drawdown date be different from the contracted first drawdown date, the maturity date under this Agreement shall be adjusted as follows:

11.3.1

If Party A opts for full repayment of principal at the time of expiry, the maturity date will be automatically adjusted in accordance with the loan tenure set forth in Clause 4 and the actual first drawdown date;

11.3.2

If Party A opts for repayment of principal in installments, the maturity date will be automatically adjusted in accordance with the loan tenure set forth in Clause 4 and the actual first drawdown date whereas the other principal repayment dates will not alter in response to the change of the first drawdown date.  The loan should be repaid in accordance with the repayment schedule specified in Attachment 2.

11.4

If the repayment date falls on a statutory holiday, payment shall be made on 

8

the first business day after that repayment date and interest will be calculated up to the actual repayment date.  Should the interest payment date fall on a statutory holiday, interest shall be calculated up to that interest payment date, but the actual interest payment shall be made on the first business day after that interest payment date.

11.5

Should there be insufficient funds to meet the principal and interest in Party A’s Loan Repayment Account, Party B has the right to directly debit the principal, interest, default interest, compound interest, liquidated damages and other expenses Party A is liable for pursuant to the provisions of this Agreement from the accounts Party A opened in the business establishments owned by China Minsheng Banking Corp. Ltd and Party B is not responsible for any loss or interest incurred.

11.6

Any grant of early repayment of the loan shall be conditional upon there being no default in payment of the loan under this Agreement. Party A should apply to Party B in writing for an early repayment ten (10) bank business days in advance. With respect to Party A’s application for early repayment,

¢

approval is granted and Party B shall not request payment of default interest from Party A.

£

approval is granted and, in addition to the loan interest receivable, which is calculated based on the actual number of days the proceeds are used and the contracted interest rate, Party B shall have the right to demand payment of early repayment default interest from Party A, the amount of which shall be calculated using the following formula:

early repayment default interest = early repayment amount X (the tenure of the loan under this Agreement – the actual length of time the loan proceeds are used) X daily default interest on a pro rata basis  /  

£

Party A shall not repay the loan early.

11.7

Should Party A consider a time extension for the repayment of the loan necessary, it should submit a “Loan Extension Application” to Party B at least thirty (30) days prior to the maturity day.  If Party B decides to grant the time extension, both parties shall enter into a “Loan Extension Agreement”.  In the event that Party B decides not to grant the extension application, Party A should pay the full amount of the loan due as scheduled.

9

Article 6

Guarantee

Clause 12

To ensure the loan under this Agreement can be fully settled, both parties agree to execute one or more of the following guarantees:

£

guarantee, see guarantee agreement number ____________________ for details.

£

collateral, see collateral agreement number _____________________ for details.

£

pledge, see pledge agreement number _________________________ for details.

£

others: __________________________________________________________.

Should Party A and Party B have entered into an integrated credit agreement, one or more of the following guarantees shall be executed:

¢

guarantee, maximum guarantee agreement number “Gong Bao Zi 99112010288803” signed by Wuhu Port Co. Ltd.

¢

guarantee, maximum guarantee agreement number “Gong Bao Zi 99112010288818” signed by Wuhu City Feishang Shiye Fazhan Co. Ltd.

£

collateral, maximum collateral agreement number ________________________.

£

pledge, maximum pledge agreement number ____________________________;

£

others: __________________________________________________________.

Article 7

Party A’s Representations and Warranties

Clause 13 Party A represents and warrants as follows:

13.1

Party A is a duly incorporated, validly existing and duly organized legal entity with full capacity for civil rights and civil acts to enter into and execute this Agreement and has obtained all the permits, permission, registration and documents required to sign this Agreement.

13.2

All the internal authorization procedures needed for signing this Agreement have been completed and are fully valid.  All the necessary actions and authorizations to enter into this Agreement and the obligations under this Agreement shall not contradict with the current articles of association, internal regulations, and any contracts, agreements or documents having a binding effect on Party A.

13.3

When this Agreement is signed, there has been and is no litigation, arbitration, administrative proceedings, actions taken by judicial or administrative agencies or potential material disputes against Party A which could or might have a material adverse effect on Party A’s performance of this Agreement.

13.4

The project under this Agreement and the borrowing under this Agreement comply with the applicable laws and regulations of the PRC and the requirements of Party B.

10

13.5

Party A does not have any material debt or contingent liabilities not disclosed to Party B.

13.6

Party A undertakes that all the information provided for Party B is true, complete and valid and it has not omitted or concealed any significant facts.

13.7

Party A undertakes that the loan proceeds shall be used in strict accordance with this Agreement and the purpose prescribed by the laws of the PRC and that the amount and use of the loan proceeds from each disbursement shall be in accord with those specified in that ‘Drawdown Application Form’; Party A undertakes not to misappropriate the loan proceeds or use the loan proceeds in investment in fixed assets, equity, etc., or in production and business areas and for purposes that are officially prohibited by the nation.

13.8

Party A shall accept the investigation, enquiry and supervision of Party B in respect of the use of proceeds under this Agreement.  Party A shall actively give assistance and cooperation to Party B in connection with its supervision over loan disbursement and post-disbursement management and other related investigations conducted and, if required by Party B, submit the relevant documents at any time.

13.9

Party A shall actively give assistance and cooperation to Party B in connection with its investigation, enquiry and supervision of production, operation and financial condition of Party A; Party A shall furnish to Party B copies of financial reports such as balance sheet, income statement, statement of cash flow, etc.

13.10

Party A shall promptly inform Party B in writing of any occurrence of an event (including but not limited to those events stipulated in Clause 13.3) threatening their normal operation or inhibiting their performance of the repayment obligations under this Agreement.

13.11

Without the prior written consent of Party B, Party A shall not undertake amalgamation, spin-off, merger, stock company reorganization, increase in debt financing, project contracting, leasing, joint venture, investment, application for business suspension for rectification, application for dissolution, application for reconciliation/ reform/ bankruptcy, transfer/ disposal of any of its material assets by any means, or other acts which shall affect the interests of Party B by altering the debt/ liability relationship under this Loan Agreement.

13.12

Should there be any changes in the registered address, company name or legal representative and senior officers of Party A during the life of this Agreement, a written notice should be given to Party B within seven (7) days after the change(s) is/ are made.

11

13.13

Party A undertakes to provide a new guarantee to the satisfaction of Party B or repay the loan under this Agreement before the maturity date in case the guarantor has violated any obligations and commitments under the guarantee agreement, the guarantor is incapable of providing guarantee, or there is a diminishment in the value or damage of the collateral.

13.14

The written consent of Party B is required if Party A shall transfer the liability under this Agreement to a third party.

13.15

Party A warrants that its business and credit standing are in good shape, there has been no material change in its other borrowings, and no bad records exist.

Article 8

Party B’s Rights and Obligations

Clause 14 The rights and obligations of Party B

14.1

Party B undertakes that the execution of this Loan Agreement has been properly authorized in full force and effect.

14.2

Upon Party A’s full performance of its designated obligations under this Agreement as well as other agreements reached between Party A and Party B in connection with this Agreement and the satisfaction of the conditions precedent, Party B should remit the full amount it undertakes to Party B as scheduled.

14.3

Party B is obliged to keep the information obtained under or in connection with this Agreement concerning Party A’s liabilities, finance, production, operation, etc. secure and confidential and should not, without prior consent of Party A, divulge in any form any of the aforementioned information to any other parties, except under the following conditions:

14.3.1

Disclosure is required by applicable law or regulation, or by the relevant authority or the stock exchange in which Party B is listed;

14.3.2

Disclosure in accordance with applicable law, rule and regulation to relevant parties or third party is required if Party B (i) transfers or assigns the debt under this Agreement to a third party; (ii) engages a trust to manage the debt under this Agreement; and (iii) conducts asset securitization exercise of which the debt under this Agreement is a part.

14.4

Party B shall announce its change of registered address in time while this Agreement is in effect.

14.5

Party B is not obliged to obtain the written consent of Party A or notify Party A if it has to transfer or assign its debt under this Agreement to a third 

12

party.

14.6

All the repayment made by Party A (including the monies received by Party B according to this Agreement) shall be applied and settled of debt in the following order: (1) expenses in connection with the enforcement of the debt and guarantee; (2) damage compensation; (3) liquidated damages; (4) compound interest; (5) penalty interest; (6) interest; (7) principal.  Party B shall have the right to modify the above order.

14.7

Party B has the right to conduct investigation and inspection of and supervision over Party A’s operation and guarantee provision as well as liability disputes involving Party A; Party B is entitled to regularly monitor and evaluate the value of the collateral or require Party A, in case the guarantor’s ability to guarantee decline, to provide additional guarantee at any time.

14.8

Concerning the escrow account Party A opens in accordance with this Agreement, Party B shall not sell important notes that can be used as means of payment such as checks, bank drafts, promissory notes, etc. or allow the withdrawal or repayment of the loan under this Agreement to be handled in branches other than the branch that shall disburse the loan proceeds under this Agreement.  Moreover, without Party B’s consent, Party A shall only complete the withdrawal or repayment procedures over the counter of the bank instead of online.

14.9

Party B is entitled to demand an early repayment of the loan in accordance with the sales proceeds condition of Party A.

14.10

Party B has the right to participate in Party A’s club deal loan, asset disposition and merger, spin-off, corporate restructuring, winding up exercises, etc.

Article 9

Default Liability

Clause 15

Party A shall be deemed to be in default under this Loan Agreement upon the occurrence of any or more of the following events:

15.1

The Guarantor fails to complete the guarantee formalities (whether caused by Party A or the Guarantor), or Party A fails to complete the drawdown procedures at Party B’s business offices as scheduled and such failure is not remedied within 30 days (including statutory holidays, Saturday and Sunday).  Party B has the right to demand penalty based on the amount in default, the actual number of days elapsed and the Default Interest Rate.  

13

In addition, Party B has the right to rescind this Agreement.

15.2

Party A fails to pay in time in accordance with this Agreement any sums hereunder and thereunder when due.

15.3

The balance sheet and income statement furnished by Party A to Party B are falsified or have concealed material facts.  Party A refuses the investigation, enquiry and supervision of Party B in connection with its use of proceeds under this Agreement, production, operation and financial activities.  Any representation or warranty made or deemed to be made by Party A in this Agreement is or proves to have been false, incorrect or misleading in any material respect when made or deemed to be made.

15.4

Party A explicitly states or expresses through its acts that it shall not perform this Agreement or any one of the obligations in other commitments, or the guarantor is in breach of any one of its obligations under the guarantee agreement.

15.5

Party A is in default of any one of the representations and warranties made in Article 7 of this Agreement, any other agreements signed between Party A and Party B, any contract or agreement to which Party A is one of the parties or any unilateral commitment or guarantee, thus constituting a default on other loan obligations or actually or probably accelerating the maturity of other loans.

15.6

Party A fails to use the proceeds for the purpose stipulated in this Agreement or withdraw the loan proceeds pursuant to Article 4 of this Agreement.

15.7

Party A fails to provide a new guarantee as demanded by Party B if there occurs a material adverse change in the condition of guarantee adversely affecting the debt of Party B, including without limitation the guarantee agreement or other forms of guarantee not being in full force and effect or being void or rescinded, the guarantor failing to possess part or all of its guarantee ability or explicitly expressing its intention not to perform or comply with its guarantee obligations, the guarantor failing to duly perform or observe any of its obligations or commitments under the guarantee agreement or other commitment to which it is a party, or the mortgaged or pledged property or assets being damaged, lost, impaired or diminishing in value.

15.8

There is a material change in Party A’s financial condition or a breach of the financial covenants under this Agreement by Party A.

15.9

Party A evades the requirement that loan proceeds be disbursed via entrusted payment by means of decentralization of its operation.

15.10

Party A’s Designated Account or Loan Repayment Account under this 

14

Agreement is frozen or any amount is deducted from either of the aforementioned accounts by the relevant authority, or there is litigation, arbitration, administrative penalties and judicial and administrative proceedings against Party A which may adversely affect Party A’s performance of this Agreement.

15.11

Party A fails to rectify any other material unfavorable conditions within the prescribed time required by Party B.

Clause 16

Upon the occurrence of any aforementioned event of default, Party B may exercise all of its rights under this Agreement, declare the entire loan under this Agreement to be due and payable at once, demand immediate repayment of the amounts already disbursed and cease extending the remaining tranche of the loan.

Clause 17

Upon the occurrence of an Event of Default by Party A, Party B may take legal proceeding against Party A.  Party A shall bear on a full indemnity basis all litigation, attorney, travelling and debt/ guarantee enforcement expenses in connection with the legal proceeding.

Clause 18

Provided that Party A has performed all its obligations under this Agreement, it shall have the right to demand liquidated damages from Party B if Party B fails to make the loan proceeds available on the prescribed date and in the prescribed amount.  The liquidated damages shall be calculated with reference to the default amount, the actual number of days elapsed and the Default Interest Rate.

Article 10

Effectiveness of the Agreement

Clause 18

This Agreement shall be effective after it is duly signed and sealed by the legal representatives/ the persons-in-charge or authorized agents of both parties.

Article 11

Amendment and Termination of Agreement

Clause 19

Upon the effectiveness of this Agreement, neither Party A nor Party B can amend or rescind it early at their own discretion.  This Agreement can only be amended or 

15

rescinded upon the mutual written agreement of both parties.

Article 12

Dispute Resolution

Clause 20

Disputes arising out of or in connection with the Loan Agreement shall be submitted to and settled in the People’s Court of the place where Party B is located.

Article 13

Supplementary Provisions

Clause 21

This Agreement is a specific business agreement under the integrated credit agreement numbered Gong Shou Xin Zi 99112010288819.

Clause 22

Notification and delivery

22.1

Any notice and written communication including with limitation any and all written documents and notices as stipulated by this Agreement to be made or delivered by one party to another shall be made by registered letter, facsimile, courier service, or other communication means to the designated address set out on page 2 of this Loan Agreement.

22.2

Any notices or written documents from one party to another shall be deemed to be sufficiently and duly served on the fourth day after having sent by registered letter.  Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission as evidenced by an automatically generated confirmation of transmission.  In case of courier delivery, any notices or written document shall be deemed to be sufficiently and duly served on the date when dispatched to the recipient’s address.  Should there be any change in the contact details of either party, the party concerned shall inform the counter party in writing in seven (7) days in accordance with this clause.  All subsequent notices and documents shall then be served according to the new contact.

Clause 23

The titles and headings of this Agreement are included herein for convenience of reference only and shall not govern the meaning and interpretation of the provisions of this Agreement.

16

Clause 24

Where there are options provided in this Agreement, filled boxes (¢) indicate the applicable provisions whereas empty boxes (£) indicate the inapplicable ones.

Clause 25

Other matters agreed by both parties

                                 /                                    

                                                                     

                                                                     

Clause 26

This Agreement is made in duplicate.  Party A, Party B and    /    each holds one original copy with the same legal effect.

Clause 27

Party B has explained all the clauses in the Agreement in details to Party A on signing the Agreement.  Both Party A and Party B have no further comment on all the clauses of the Agreement and fully and correctly understand the legal implications of their respective rights, obligations, restrictions and exclusion.

(NEXT PAGE IS THE SIGNATURE PAGE)

17

SIGNATURE PAGE TO WORKING CAPITAL LOAN AGREEMENT

This Agreement is signed between Party A and Party B on 14 (Day)/ 12 (Month)/ 2010 (Year) in Chongqing.

Party A (affixing the Official Seal)

/s/ Zhang Xiaoning

Legal Representative/ Person-in-charge (or Authorized Representative)

Party B (affixing the Official Seal)

Chongqing Branch of China Minsheng Banking Corp., Ltd.

/s/ Hu Yu

Legal Representative/ Person-in-charge (or Authorized Representative)

18

Attachment 1

Party A’s Drawdown Date and Amount

			
	Tranche

	Drawdown Date

	Amount (in word)

	1

	/

	/

	2

	/

	/

	3

	/

	/

	4

	/

	/

	5

	/

	/

	6

	/

	/

	7

	/

	/

	8

	/

	/

	9

	/

	/

	10

	/

	/

19

Attachment 2

Party A’s Repayment Date and Amount

			
	Tranche

	Repayment Date

	Amount (in word)

	1

	/

	/

	2

	/

	/

	3

	/

	/

	4

	/

	/

	5

	/

	/

	6

	/

	/

	7

	/

	/

	8

	/

	/

	9

	/

	/

	10

	/

	/

20

Attachment 3

Drawdown Application Form

Number: _______________

Applicant (Trustor, Party A):

                                             

Lender (Trustee, Party B):

                   Branch, China Minsheng Banking Corp., Ltd.

In accordance with the Working Capital Loan Agreement signed between Party A and Party B, numbered ________________, (referred to as ‘Loan Agreement’ hereunder), the disbursement of the loan under the Loan Agreement shall be subject to the supervision and approval of Party B.  Pursuant to the provisions of Loan Agreement, Party A now makes the following loan disbursement application:

Currency: ______________________________________________________

Amount: _______________________________________________________

Purpose: _______________________________________________________

(Fill in the purpose that is consistent with the attached materials)

The loan proceeds requested by Party A in this application shall be disbursed by:

£

entrusted payment

£

Party A shall furnish Party B with the business agreement signed between Party A and its transacting party and other documents required by Party B; Party A warrants that the business agreement and documents furnished are true, correct and valid, and the amount of loan proceeds requested by Party A in this application and its authorization shall comply with the agreed terms of the business agreement.

£

Party A hereby unconditionally and irrevocably authorizes Party B to disburse the requested amount of loan proceeds in accordance with the following payment schedule:

21

							
	Serial number

	Account name (recipient’s full name)

	Bank

	Account number

	Amount (accurate to the nearest cent)

	Loan purpose

	Remarks

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

£

discretionary payment

£

Party A undertakes to use the loan proceeds from this disbursement for the purpose specified in this drawdown application form.  Party A shall not change the specified purpose without the written consent of Party B, or Party A shall be liable for the corresponding default pursuant to the Loan Agreement.

£

Party A hereby unconditionally and irrevocably authorizes Party B to disburse the requested amount of loan proceeds to the following account Party A opens at Party B:

Account name: ____________________________________________

Account number: __________________________________________

Bank: ___________________________________________________

Party A confirms that it has furnished Party B with all the documents related to this drawdown application as required by Party B and warrants that the aforementioned documents are true, correct and valid, or it shall be liable for default pursuant to the Loan Agreement.

				
	 
	Applicant (Trustor) (Affixed Seal):

	     

	 

	                                  

	 
	 
	 

	 
	 
	 
	 

	 
	Application (Authorization) Date: 

	 
	____________________

	 
	 
	 
	   D    M     Yr

22

Attached documents:

£

Business agreement: _____________________ (agreement name and number)

£

Details of the preceding discretionary payment

£

Other documents required by Party B: __________________________________

_________________________________________________________________

_________________________________________________________________

23

Attachment 4

Financial Covenants

/

24

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