Document:

Unassociated Document

    Exhibit
10.78

     

    Agreement
No.: 2010 An Shang Gong Si Bu Jie Zi No. 011

     

    Anyang
Commercial Bank Co., Ltd. of

     

    Loan
Agreement

     

    Borrower
(Party A): Henan
Shuncheng Group Coal Coke Co., Ltd

     

    Legal
Representative: WANG
Xinshun

     

    Domicile:
South Gongye Road,
Tongye Town

     

    Identity
Card Number (Applicable when Party A is a natural
person):______________

     

    Lender
(Party B): of Anyang Commercial Bank Co., Ltd.

     

    Domicile:
No.11, Jiangfang Road,
Anyang

     

    Legal
Representative/Head of the Bank: Fei FU

     

    Place of
Signature of the Agreement: Anyang Commercial Bank Co.,
Ltd.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Party A
files a loan application with Party B based on the usage stipulated in Article
2.1 of the Agreement. Party B agrees to provide the aforesaid loan. According to
Agreement Law, Lending General Provisions as
well as other relevant laws and regulations, and on the basis of equal
consultations, Party A and Party B hereby make and enter into the Agreement to
define their respective rights and obligations.

     

    
      Article
1    Type
of the Loan

    

     

    1.1 The
loan under the Agreement is a short-term
loan.

    
       

      Article
2    Usage
of the Loan

    

     

    2.1 The
loan under the Agreement is intended for the following usage: the working capital (for
purchasing raw coal used in production).

     

    2.2.
Without Party B's written consent, Party A shall not change the usage of the
loan stipulated in the Agreement.

     

    
      Article
3    Amount
and Term of the Loan

    

     

    3.1 The
amount of the loan under the Agreement is (Amount in words) Twenty Million Yuan Only
YUAN (Amount in figures) RMB 20,000,000
Yuan.

     

    3.2 The
term of the loan under the Agreement is from April 14th, 2010 to April
13th, 2011.

     

    3.3 Party
A shall make withdrawal of the loan as stipulated in Article 3.2 in one lump
sum. The loan note shall be an integral part of the Agreement: in case there is
any discrepancy between the amount or the date on the loan note and in the
Agreement, those on the loan note shall prevail; in case there is any
discrepancy between the items other than the amount and the date on the loan
note and in the Agreement, those in the Agreement shall prevail.

     

    
      Article
4    Interest
Rates and Interests of the Loan

    

     

    4.1 The
loan interest under the Agreement shall be calculated by the day based on the
actual borrowing days starting from the actual withdrawal date (the daily
interest rate = the monthly interest rate/30) and settled monthly/quarterly on (the
20th
day of each month/ the 20th day in the last month of
each quarter) (hereinafter referred to as “the interest settlement
date”). In case the interest settlement date isn’t a banking day, it would be
postponed to the next banking day. When the loan becomes due, the interest shall
be paid together with the principal.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    4.2 The
interest rate of the loan under the Agreement shall be determined according to
Article 4.2.1
as follows:

     

    4.2.1 A
Fixed interest rate. The interest rate under the Agreement shall be determined
as 50 %
floating up/down on the basis
of 4.425‰,
i.e., the benchmark interest rate for the loan of the corresponding grade
applied on the actual withdrawal date by People’s Bank of China, and the monthly
interest rate shall be applied at 6.6375‰. The interest
rate of the loan will not be adjusted within the whole term of the
Agreement.

     

    4.2.2 B
Floating interest rate. The interest rate under the Agreement shall be
determined as /
% floating up/down of / ‰, i.e., the
benchmark interest rate for the loan of the corresponding grade applied on the
actual withdrawal date by People’s Bank of China, and the monthly interest rate
shall be applied at  / ‰. In
case that People’s Bank of China adjusts the interest rate, new applicable
interest rate shall be determined as per the floating ratio agreed by the
parties from the 10th day of
the next month.

     

    4.2.3
Others:                                                             
     /                                                                   .

     

    4.3 In
case that People’s Bank of China adjusts the loan interest rate or the method of
determining the loan interest rate, the relevant regulations of People’s Bank of
China shall be followed.

     

    
      Article
5    Withdrawal
Conditions

    

     

    Withdrawal
conditions for Party A are as follows:

     

    5.1 The
Agreement comes into effect;

     

    5.2 Party
A opens an account necessary for performing the Agreement required by Party
B;

     

    5.3 Party
A doesn’t encounter any significant business or financial changes, which may
adversely affect Party B’s rights and interests under the
Agreement;

     

    5.4 If it
is a project loan, the following withdrawal conditions shall also be
met:

     

    5.4.1 The
capital funds or other funds to be raised for the project under construction
which the loan is intended for have been fully in place in the specified time
and at the specified ratio;

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    5.4.2
There hasn’t been any cost overrun or the cost overruns have been covered by
Party A’s self-raised funds;

     

    5.4.3 The
work progress has been accomplished on schedule;

     

    5.4.4 The
project for which the loan is intended has been supervised in accordance with
the stipulations on construction engineering;

     

    5.5 Other
withdrawal conditions stipulated by laws or agreed by the parties:

     

                                                                                               
   /                                                                                               .

     

    If the
aforesaid withdrawal conditions are not simultaneously met, Party B shall be
entitled to reject Party A's application.

     

    
      Article
6    Mode
of Repayment

    

     

    6.1
Whatever agreements on Party A’s source of funds for repayment have been
stipulated in any other Agreement to which Party A is a party, they may not in
any way affect Party A’s performance of its repayment obligations under the
Agreement.

     

    6.2 Party
A shall pay the interest in full amount and on due time as stipulated in the
Agreement, and repay the principal under the Agreement according to Article 6.3.1 as
follows:

     

    6.3.1
Repayment of the principal in one lump sum. Party A shall repay the whole
principal of the loan on April 13th, 2011.

     

    6.3.2
Installment repayment of the principal according to the following dates and
amounts:

     

    6.3.2.1
___________ (Year/Month/Day), RMB_________Yuan (Amount in figures) (Amount in
words) ______________________________________________________.

     

    6.3.2.2
___________ (Year/Month/Day), RMB_________Yuan (Amount in figures) (Amount in
words) ______________________________________________________.

     

    6.3.2.3
___________ (Year/Month/Day), RMB_________Yuan (Amount in figures) (Amount in
words) ______________________________________________________.

     

    6.3.2.4
___________ (Year/Month/Day), RMB_________Yuan (Amount in figures) (Amount in
words) ______________________________________________________.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    6.3.2.5
___________ (Year/Month/Day), RMB_________Yuan (Amount in figures) (Amount in
words) ______________________________________________________.

     

     (If
necessary, separate sheets may be added.)

     

    6.3.3
Other modes of repayment: _______________________________________.

     

    6.4 If
Party A intends to prepay all or part of the loan, Party A shall submit a
written application to Party B at least 30 days in advance and obtain Party B’s
written consent.

     

    6.5 The
principal prepaid by Party A shall be used to offset the last mature loan in
reverse order of that in Article 6.3.2 of the Agreement.

     

    6.6 Party
A shall deposit sufficient money for the payable interest or principal in the
account opened in Party B before the interest settlement dates or the repayment
date of the principal as stipulated in the Agreement, and Party A shall take
initiative to repay or authorize Party B to take the initiative to deduct the
corresponding amount on the interest settlement dates or the repayment
date.

     

    6.7
Unless otherwise agreed by the parties, if both the principal and the interests
are overdue by Party A at the same time, Party B shall be entitled to decide the
priority of repaying the principle, interest, default interest, compound
interest or various incidental charges; under the condition of installment
repayment, if several mature installments and overdue installments exist under
the Agreement, Party B shall be entitled to decide the liquidation order of
Party A’s any installment; if several loans in several separate loan Agreements
between Party A and Party B become due, Party B is entitled to decide which
Agreement to be performed by any of Party A’s repayment.

     

    
      Article
7    Guarantee

    

     

    7.1 The
mode of guarantee for the loan under the Agreement is surety.

     

    7.2 Party
A shall actively assist Party B to conclude and sign the surety Agreements with
the guarantor on concrete guarantee issues under the Agreement, with the
Agreement numbers of 2010 An Shang Gong Si Bu Bao
Zi No. 011-1 and 2010 An Shang Gong Si Bu Bao Zi No. 011-2 respectively.
Meanwhile, Party A shall complete all the necessary procedures such as
registration, notarization and insurance etc. in accordance with the
requirements of Party B.

     

    
      Article
8    Rights
and Obligations of the Two Parties

    

     

    8.1 Party
A’s Rights and Obligations:

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    8.1.1
Party A shall withdraw and use the loan in accordance with the term and usage
stipulated in the Agreement, not misappropriate or divert the loan, and
consciously accept Party B’s supervision over its usage of the
loan;

     

    8.1.2
Party A shall be responsible for the authenticity, effectiveness, legitimacy,
accuracy and completeness of the materials provided during the review
process;

     

    8.1.3
Party A shall consciously accept Party B’s investigations into, knowledge of and
supervision over the conditions of the usage of the loan under the Agreement,
the work process of the project, the project sales (presales) and lease, the
usage of the loan funds and the return funds of the project; meanwhile, Party A
shall be obliged to provide Party B with the relevant accounting statements in
each period such as the income statement and the balance sheet etc;

     

    8.1.4
Party A shall actively assist Party B to participate in the relevant issues such
as investigations into the estimate, the budget and the final account of the
project for which the loan is intended, the project tendering and the final
acceptance of the completed project;

     

    8.1.5
Party A shall repay the principle and the interest under the Agreement in
accordance with the terms and conditions therein; if Party A requests to prepay
all or part of the loan, it shall obtain Party B’s consent;

     

    8.1.6
Party A shall authorize Party B to submit Party A’s enterprise credit
information during the loan (or credit) term to Credit Information Center of
People’s Bank of China (or other statutory financial regulators), and meanwhile
authorize Party B to inquire in the aforesaid institutions and to utilize the
materials such as Party A’s enterprise credit information;

     

    8.1.7 For
any Agreement, lease, remolding with the stock system, affiliation, combination,
merger, joint venturing, separation, decrease of registered capital, changes in
ownership, transfer of assets, external investment or any other activity which
may adversely affect the realization of Party B’s rights and interests, Party A
shall give a thirty-day prior notice to Party B and obtain Party B’s written
consent. Otherwise, the implementation of the above actions is not allowed
before the liquidation of the whole loan.

     

    8.1.8
Should any changes take place in Party A’s domicile, contact address, business
scope or legal representative etc., Party A shall give a written notice to Party
B within five days after the change;

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      8.1.9
Should any other events which might pose dangers for Party A’s normal operations
or have a material adverse effect on the obligations of repayment hereunder
happen, including but not limited to being involved in material economic
disputes, bankruptcy, deterioration in production business or financial
situations, or being engaged in illegal activities by the legal representative
or people in charge, Party A shall promptly give a written notice to Party
B.

       

      8.1.10
Under the circumstances of being out of business, dissolution, stopping business
for internal rectification, revocation of business license or being revoked,
Party A shall give a written notice to Party B within five days after the
aforesaid events, and make sure to repay the principal and interest
immediately;

       

      8.1.11
Within the valid term of the Agreement, if Party A provides guarantee in
whatever forms to a third party, it shall obtain Party B’s written
consent;

       

      8.1.12 If
situations such as off production, out of business, cancellation of
registration, revocation of business license, bankruptcy, deterioration in
financial situations and operation loss happen to the guarantor for the loan
hereunder, which causes the guarantor to lose the guarantee capacity partly or
wholly, or the value of the mortgage or pledge rights for the loan hereunder is
depreciated, Party A shall promptly provide other guarantees acceptable to Party
B.

       

      8.1.13
Party A hereby ensures that its production and operation as well as the related
activities conform to the relevant laws and regulations, including but not
limited to the industrial policy, the public finance and taxation policy, and
regulatory rules on market access, environmental assessment, energy saving and
emission reduction, energy consumption and pollution control, resource
utilization, land and urban planning and labor security etc. If any of the
aforesaid violations or risks may arise, Party A agrees that Party B shall be
entitled to take the measures including but not limited to cessation of the
loan, recovery of the loan ahead of schedule, disposal of the mortgaged/pledged
properties ahead of schedule, and requirements for Party A to add the liability
insurance with regard to energy consumption and pollution etc.;

       

      8.1.14 If
the net profit after tax in relevant fiscal year is zero or negative, or the
profit after tax is insufficient to make up the accumulated loss of past fiscal
years, or the profit before tax is not used to discharge any principal, interest
and fees payable by Party A in the current fiscal year, or the profit before tax
is insufficient to repay the principal, interest and fees of the next fiscal
year, Party A may not distribute the dividends or bonus to its shareholders in
whatever forms;

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      8.1.15 If
the loan is a real estate loan, with Party B’s consent, Party A shall
preferentially entrust Party B to handle mortgage loans for house buyers of the
project for which the loan is intended;

       

      8.1.16
Party A shall assume the expenses related with the Agreement and the guarantee
hereunder, including but not limited to the fees charged for notarization,
insurance, identification, evaluation, registration, lawyer service,
transformation and storage etc.

       

      8.2 Party
B’s Rights and Obligations

       

      8.2.1
Party B may require Party A to provide all the materials relating to the loan
under the Agreement;

       

      8.2.2 In
accordance with the Agreement or the law, Party B shall be entitled to deduct
directly from Party A’s accounts the principle, interest, compound interest,
default interest, and any other fees payable by Party A;

       

      8.2.3 As
far as the liquidation priority is concerned, the loan between the Party A and
Party B is superior to the loan from Party A's shareholders to Party
A;

       

      8.2.4 For
Party A’s evasion of Party B’s supervision, default on the principal and
interest of the loan or any other serious breach of the Agreement, Party B shall
be entitled to impose credit sanctions, to report to the departments and
entities concerned, and to collect the loan by public notice via news
media;

       

      8.2.5
Party B shall grant the loan to Party A in full amount and on schedule according
to the provisions of the Agreement (with the exceptions of the delays arising
from the reasons attributable to Party A);

       

      8.2.6
Party B shall be entitled, in accordance with the requirements of Administrative Measures on Bank
Credit Registration and Consultancy and Administrative Measures on
Individual Credit Information Collecting, to register the loan under the
Agreement and its guarantee status, and permit the relevant financial
institutions to inquire the aforesaid information;

       

      8.2.7
Party B shall keep confidential the materials and information on Party A’s
debts, finance, production and operations etc. provided by Party A, unless
otherwise agreed upon by the Agreement or stipulated by laws and
regulations.

       

      
        Article
9    Party
A’s Representations

      

       

      Party A
hereby represents that:

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      9.1 If
Party A is a legal person or an unincorporated organization, Party A is legally
registered and operated, and has full capacity for civil rights and capacity for
civil conduct necessary to execute and perform the Agreement; if Party A is a
natural person, it has the qualifications of a civil subject, i.e., the full
capacity for civil rights and capacity for civil conduct necessary to execute
and perform the Agreement;

       

      9.2 The
Agreement is executed and performed out of its genuine declarations of intention
of Party A, obtains all legal and effective authorizations required by Party A's
articles of association and bylaws, and is not in violation of any binding
agreements, Agreements, or other legal documents. Party A has obtained or will
obtain all the required approval, consent, documentation or registration for
executing and performing the Agreement;

       

      9.3 All the
documents, financial statements, certifications and other information provided
by Party A to Party B under the Agreement are true, complete, accurate and
effective;

       

      9.4 The
business background that Party A represents to Party B is real and legal, not
for any illegal purposes such as money laundering;

       

      9.5 Party
A does not conceal any fact that may affect Party A and the guarantor's
financial condition or performance capability;

       

      9.6 If
Party A has executed or will execute with the guarantor of the Agreement a
counter-guarantee agreement or similar agreement regarding its guarantee
obligation under the Agreement, this counter-guarantee agreement or similar
agreement will not undermine any of Party B’s rights under the
Agreement;

       

      9.7 If
the loan under the Agreement is intended for a project to be constructed, Party
A ensures that it has got approval from the relevant governmental
authorities;

       

      9.8 Other
items represented by Party A: ______________________/_____________.

       

      
        Article
10  □ 
 Disclosure of Related Party Transactions within the Group to Which
Party A Belongs

      

      (Optional
clause, mark with “√” in “□” if applicable
and “×” if
not applicable)

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      10.1
Party A belongs to the group clients confirmed by Party B in accordance with
Guidelines on the Management
of Risks of Credits Granted by Commercial Banks to Group Clients. Party A
shall report details of the related party transactions involved with more than
10% of the net assets, including the relationship among the transaction parties,
the transaction items, the amounts of the transactions, the nature of the
transactions, the corresponding ratios and the pricing policies (including the
transactions with token payments instead of real payments).

       

      10.2
Under any of the following circumstances, Party B shall be entitled to take the
unilateral decision to cease the grant of the unissued loan to Party A and to
recover part or whole of the principal and interest ahead of schedule: Party A
uses the false Agreement entered into with interested parties and discounts on
or pledges claims such as notes receivable or accounts receivable without
genuine trade background to cheat the bank of capital or credit; material
merger, purchase and reorganization etc. happen to Party A, which in Party B’s
opinion may affect the security of the loan; Party A utilizes related party
transactions to evade repayment of bank loans; or other circumstances stipulated
in Article 18 of Guidelines on
the Management of Risks of Credits Granted by Commercial Banks to Group
Clients.

       

      
        Article
11    Liabilities
for Breach of the Agreement

      

       

      11.1 Once
the Agreement comes into effect, both Party A and Party B shall duly perform
their respective obligations under the Agreement. Either Party that fails to
perform part or whole of its obligations under the Agreement shall bear the
liabilities for breach of the Agreement according to law.

       

      11.2 If
Party A prepays the loan under the Agreement without Party B’s consent, Party B
shall be entitled to charge the interest according to the loan term and the
interest rate as stipulated in the Agreement.

       

      11.3.1 If
Party A fails to repay the principal of the loan when it becomes due, Party B
shall be entitled to request Party A to repay it within a time limit, and
meanwhile, as an event of material breach, Party B shall be entitled to recover
other undue loans that Party A has received from Party B. Party A hereby
authorizes Party B to deduct the corresponding amount from all the accounts of
Party A which are opened with Anyang Commercial Bank CO. LTD or all its branches
to repay the loan under the Agreement. Meanwhile, for the overdue loan, a
default interest calculated by raising 50% on the basis of
the interest rate specified in the Agreement will be charged.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      11.3.2 If
Party A fails to repay the interest of the loan in accordance with the
stipulated time herein, Party B shall be entitled to request Party A to repay it
within a time limit or to recover the loan. Party A hereby authorizes Party B to
deduct the corresponding amount from all the accounts of Party A which are
opened with Anyang Commercial Bank CO. LTD of Anyang or all its branches to
repay the loan under the Agreement. For the accrued interest payable, within the
loan term, Party B may charge a compound interest on the basis of the interest
rate stipulated in the Agreement, and after the loan becomes due, Party B may
charge a compound interest on the basis of the interest rate as stipulated in
Article 11.3.1.

       

      11.4 If
Party A fails to comply with the usage of the loan stipulated herein, Party B
shall be entitled to cease the grant of the loan, to recover part or whole of
the loan, and even to dissolve the Agreement. For the amount not used for
purpose as stipulated in the Agreement, Party B may charge a default interest
calculated by raising 100 % on the basis of
the interest rate specified in the Agreement from the breach date. Meanwhile,
for the accrued interest payable, Party B may charge a compound interest
calculated by raising / % on the basis of
the interest rate specified in the Agreement.

       

      11.5 In
case that the circumstances listed in Articles 11.3.1 and 11.4 happen to Party
A’s usage of the loan concurrently, instead of simultaneous application, the
higher default interest shall be applied.

       

      11.6 In
any of the following circumstances, Party A shall correct it and take remedial
measures to the satisfaction of Party B within 5 days after the receipt of Party
B’s notice. Otherwise, Party B shall be entitled to recover part or whole of the
loan ahead of schedule. For the irrecoverable, liquidated damages may be charged
at the overdue loan rate for each day:

       

      11.6.1
Party A provides Party B with the financial statements and other documents which
are falsified or conceal important facts;

       

      11.6.2
Party A fails to cooperate with or refuses to accept Party B’s supervision over
its usage of the loan, as well as its relevant production operations and
financial activities;

       

      11.6.3
Without Party B’s consent, Party A transfers or disposes of, or threats to
transfer or dispose of the material parts of its assets;

       

      11.6.4
The essential parts or whole of Party A’s properties are possessed by other
creditors, or taken over by trustees, receivers or other similar persons, or
seized or frozen, which may cause heavy loss to Party B;

       

      11.6.5
Without Party B’s consent, Party A conducts activities such as Agreement, lease,
remolding with the stock system, affiliation, combination, merger, joint
venturing, separation, decrease of registered capital, changes in ownership,
transfer of assets, external investment or any other activities sufficient to
adversely affect the realization of Party B’s rights and interests, which may
jeopardize the security of Party B’s creditor rights;

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      11.6.6
The changes in Party A’s business registration items such as domicile, contact
address, business scope or legal representative etc. seriously affect or threat
to seriously affect the realization of Party B’s creditor rights;

       

      11.6.7
Party A’s being out of business, dissolution, cessation of business for internal
rectification, revocation of business license, revocation, involvement in major
economic disputes or deterioration in financial situations seriously affect or
threat to seriously affect the realization of Party B’s creditor
rights;

       

      11.6.8
Within the valid term of the Agreement, Party A provides the guarantee for a
third party’s debt without Party B’s written consent;

       

      11.6.9 In
the event that the guarantor of the loan under the Agreement encounters the
circumstances listed in Article 8.1.12, Party A fails to provide additional
guarantee acceptable to Party B;

       

      11.6.10
Party A conducts any other activity that may result in threats to the
realization of Party B’s creditor rights or cause heavy loss to Party
B.

       

      
        Article
12    Effectiveness,
Alteration, Dissolution and Termination

      

       

      12.1 The
Agreement shall come into effect upon signature and seal by both parties, or
under the conditions of guarantee, it shall come into effect as soon as the
guarantee Agreement comes into effect. The Agreement may not be terminated until
the date when the principal, interest, compound interest, default interest,
liquidated damages and all other payables are cleared off.

       

      12.2
Under any of the following circumstances, Party B shall be entitled to dissolve
the Agreement and to require Party B to repay the principal and interest of the
loan as well as the compensations for losses:

       

      12.2.1
Party A is out of business, dissolved, ordered to stop business for internal
rectification, revocation of business license or revoked itself.

       

      12.2.2
The guarantee under the Agreement undergoes changes to the disadvantage of Party
B’s creditor’s rights, and Party A fails to provide other necessary guarantees
required by Party B;

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      12.2.3
Party A fails to repay the loan on time, or fails to use the loan as stipulated
in the Agreement, or fails to pay the interest or undergoes other serious breach
of the Agreement.

       

      12.3 If
Party A needs to extend the term of the loan, it shall submit a written
application together with the guarantor’s written consent of continuous
guarantee to Party B at least 30 days prior to the expiration of the Agreement.
The term of the loan under the Agreement won’t be extended until the application
is examined and approved by Party B and both parties sign an extension
agreement; before the extension agreement is signed by both parties, the
Agreement shall continue to be performed.

       

      
        Article
13    Notarization

      

       

      13.1 If
either party to the Agreement asks for notarization, the Agreement shall be
notarized in one of the notary offices specified by the state and the fees for
notarization shall be assumed by Party A.

       

      13.2
Party A and Party B hereby agree and confirm that: if the Agreement is notarized
by the notary office as a creditor’s right document with the force of compulsory
enforcement, in case Party A fails to repay the principal, interest and other
payables on time, or violates other obligations stipulated in the Agreement,
Party B shall be entitled to directly file an application with the competent
people’s court for compulsory enforcement.

       

      
        Article
14    Dispute
Settlement

      

       

      14.1 Any
dispute or controversy arising out of or in connection with the performance of
the Agreement shall be settled through consultations of the two parties. In case
no settlement can be reached, the dispute or controversy shall then be settled
according to Article 14.1.2 as
follows:

       

      14.1.1
Arbitration, conducted by Anyang Arbitration Commission;

       

      14.1.2
Litigation, governed by the people's court at Party B’s place of
domicile.

       

      14.2 During the period of dispute
settlement, the other clauses not in dispute shall continue to be
performed.

       

      
        Article
15    Other
Issues Agreed by Both Parties

      

       

      15.1
During the performance of the Agreement, Party B’s any tolerance or grace for
Party A’s any nonperformance or delays in performance shall not undermine,
affect or restrict any of Party B’s rights stipulated by the Agreement or the
relevant laws and regulations, nor shall it be deemed as Party B’s approval or
acquiescence of any nonperformance, nor shall it be deemed as Party B’s waiver
of taking further measures in the future against Party A’s nonperformance now or
in the future.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      15.2
Party B shall be entitled to recover the loan ahead of schedule according to the
conditions of funds return.

       

      15.3
_______________________________________________________________________.

       

      .

       

      
        Article
16    Miscellaneous

      

       

      16.1 The
appendices hereto are an integral part of the Agreement, which shall have the
same legal effect.

       

      16.2
During the performance of the Agreement, in case certain withdrawal date isn’t a
banking day, it would be postponed to the next banking day.

       

      16.3
Party A hereby confirms that the following address and recipient shall be taken
as the address of service to which Party B will send various notices and letters
for the purpose of Party B’s exercise of rights under the
Agreement:

       

      Address:
Tongye Town, Anyang
County

       

      Post
Code: 455141        Recipient:
Xinshun
WANG   Telephone: 3237806

       

      If the
address of service confirmed above by Party A changes, Party A shall give a
written notice to Party B within 5 days after the change; otherwise, materials
such as various notices and letters sent by Party B to the address confirmed
above shall be deemed to have been served. For any notice, demand or other
communications to Party A sent by Party B under the Agreement, including but not
limited to letters by telex, telegram or fax, they shall be deemed to have been
served to Party A immediately after they are sent.

       

      16.4 If
for business necessity, Party B needs to entrust other institutions of Anyang
Commercial Bank CO. LTD of Anyang to perform the rights and obligations under
the Agreement or have other institutions of Anyang Commercial Bank CO. LTD of
Anyang to undertake and manage the loan business under the Agreement, Party A
shall agree with such entrustment or undertaking. Other institutions of Anyang
Commercial Bank CO. LTD of Anyang that are authorized Party B or that undertake
and manage the loan business shall be entitled to all the rights under the
Agreement and may, in the name of themselves, submit any dispute under the
Agreement to the court or the arbitration committee, or apply to the people's
court for compulsory enforcement.

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      16.5 The
Agreement is executed in four sets, and
each party (Party A, Party B and the relevant departments) holds one which has
the same legal effect.

       

      
        Article
17    Prompt

      

       

      17.1 Party B has drawn Party
A’s full attention to understand all the clauses hereof wholly and correctly,
and explained the relevant clauses in detail on the request of Party A. Both the
parties have reached common understanding with regard to the
Agreement.

       

      IN WITNESS WHEREOF, each party
hereto has caused the Agreement to be sealed and signed by its duly authorized
representative.

       

      Borrower
(Party A): Henan Shuncheng Group Coal Coke Co., Ltd

       

      Legal
Representative:  /s/ Xinshun Wang

       

      (Or
Authorized Representative)

       

      April 14th, 2010

       

      Lender
(Party B): Anyang Commercial Bank
CO. LTD

       

      Legal
Representative (or Officer):

       

      (Or
Authorized Representative) [illegible]

       

      April 14th,
2010

      
        
           

        

        
          15Unassociated Document

     

    Exhibit
10.79

     

    Agreement
No.: 2010 Nian Shui Ban Zi No.
No.0004     

     

    Commodity
Financing Agreement

     

    Important
Prompt: the Agreement is legally made and entered into on an equal and free will
basis and through friendly consultation of two parties, which represents their
genuine declarations of intention. To safeguard Party B’s lawful rights and
interests, Party A hereby draws Party B’s full attention to the whole terms and
conditions stipulating the rights and obligations of two parties, especially to
the content of highlighted parts.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Party A
(Lender/Pledgee): Anyang Shuiye Branch of
Industrial and Commercial Bank of China

     

    Domicile
(Address): Fuyan Road,
Shuiye Town, Anyang County

     

    Head of
the Bank: Xiaohua
LIU

     

    Party B
(Borrower/Pledgor): Henan Shuncheng Group Coal
Coke Co., Ltd

     

    Domicile
(Address): South
Gongye Road, Tongye Town, Anyang County

     

    Legal
Representative: Xinshun
WANG

     

    Party B
files a loan application to Party A based on the usage stipulated in Article 1.1
of the Agreement. To ensure the performance of its obligations under the
Agreement, Party B is willing to provide the guaranty of pledge as well as other
guarantees. On the basis of equality and through consultation, the Agreement is
hereby made and entered into by two parties who shall abide by it
jointly.

     

    
      Article
1   The Purpose of the loan, amount and term

    

     

    1.1           The
loan under the Agreement is intended for the usage of purchasing raw
materials. Without Party A's written consent, Party B shall not
misappropriate or divert the loan.

     

    1.2           The
currency and amount of the loan under the Agreement is RMB 36,000,000.00 (Amount in
words: RMB Thirty-six Million Yuan only) (In case there is any
discrepancy between the amount in figures and the amount in words, the amount in
words shall prevail).

     

    1.3           The
term of the loan under the Agreement is six months, starting
from the first withdrawal date.

     

    1.4           The
actual withdrawal dates and repayment dates shall be subject to the loan notes,
which shall be an integral part of the Agreement and have the same legal effect
with the Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Article
2   Interest Rates and Interests

    

     

    2.1         If
the currency of the loan under the Agreement is RMB, the interest rate shall be
determined by:

     

    
      
        	
              	
                2.1.1

              	
                Adding
      the floating range to the benchmark interest rate of the withdrawal date.
      Thereinto, the benchmark interest rate is the corresponding RMB loan
      interest rate of People’s Bank of China with the same period and grade as
      the term of the loan stipulated in Article 1.3 of the Agreement; the
      floating range is10%.

              

      

    

     

    
      
        	
              	
                2.1.2

              	
                In
      case that the benchmark interest rate is adjusted after Party B’s
      withdrawal,item (C) in the
      following shall be adopted:

              

      

    

     

    
      A.  The
rate shall be adjusted every __/__
(3/6) month/months,   which is referred to as “a floating
period”. The date of determining the interest rate of the first floating period
shall be the actual withdrawal date, and the date of determining the interest
rate of the second floating period shall be the corresponding date following a
full floating period after the withdrawal date, and so forth. If there is no
corresponding date to the withdrawal date in the adjusting month, then the last
date of the adjusting month shall be deemed as the corresponding
date.

    

     

    The
corresponding date to the withdrawal date is the corresponding date following a
full floating period after the withdrawal date. For example, if the withdrawal
date is May 9, XXX Year, then, the corresponding date for the second floating
period is August 9, XXX Year in case of a 3-month period and November 9, XXX
Year in case of a 6-month period.

     

    B. On
each June 21st and
December 21st after
the withdrawal date, the interest rate will be adjusted according to the
effective benchmark interest rate and the floating range stipulated in Article
2.

     

    C. The
interest rate of the loan will not be adjusted within the whole term of the
Agreement.

     

    2.1.3
Others: ______/___________.

     

    2.2         If
the loan under the Agreement is a foreign exchange, the interest rate will be
calculated through:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              A.

            	
              Fixed
      Annual Rate of   /  ;

            

    

     

    
      
        	
                
                

              	
                B.

              	
                LIBOR
      of ___/___months plus __/__BP (Base Point) of the margin with a floating
      period of ____/__ months. LIBOR refers to the inter-bank offered rate of
      the loan currency under the Agreement as shown in the “LIBO=” page of
      REUTRES financial telecommunication terminal two banking days prior to
      each interest period (11:00 am, London time). The first interest period is
      from Party B’s actual withdrawal date to the first interest settlement
      date; the last interest period is from the date following the end of the
      previous interest period to the final repayment date; and other interest
      periods are from the date following the end of the previous interest
      period to the next interest settlement
date.

              

      

    

     

    2.3           In
case that Party B fails to repay the loan on due date, the above-mentioned
method of determining the interest rate shall still apply to the overdue
amount.

     

    2.4           In
case that People’s Bank of China adjusts the method of determining the loan
interest rate, the relevant regulations of People’s Bank of China shall be
followed.

     

    2.5           After
grant of the loan, the interest shall be calculated per day and settled per
___/___ (Month/Quarter/Half a year). The daily interest rate = the annual
interest rate/360. When the loan becomes due, the interest shall be paid in the
form of matching the principal. For monthly settlement, the 20th day of each
month is the interest settlement date; for quarterly settlement, the 20th day in
the last month of each quarter (i.e., March, June, September and December) is
the interest settlement date; and for semi-annual settlement, June 20th and
December 20th of each year are the interest settlement dates.

     

    
      Article
3   The Guaranty of Pledge

    

     

    3.1           Party
B, of its own free will, provides the guaranty of pledge for its performance of
the obligations under the Agreement.

     

    3.2           The
guaranteed Principal Credit is   /  
(currency and in capital, hereinafter referred to as the “Principal”) which equals to
the balance between the financing amount hereunder and the deposit amount paid
by the Party B.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.3         The
scope of the guaranty of pledge covers principal, interest, interest penalties,
compound interest, liquidated damages, damage awards, the storage charges, the
expense for the realization of the pledge and any other expenses associated with
the pledge.

     

    3.4         Party
A and Party B reach the agreement on the pledged property as
follows:

     

    
      
        	
              	
                3.4.1

              	
                The
      pledged property will be handed over toChina Wai Yuen Henan
      Co. (hereinafter referred to as “the Supervisor”), who shall
      exercise control and supervision over the pledged property and issue
      relevant custody voucher. More detailed information on the pledged
      property is provided in the Warehouse Receipt Specific to
      Pledge of Movables (or List of Pledged
      Property) in the Supervision Agreement on
      Commodity Financing Pledge (No.
_____).

              

      

    

     

    
      
        	
              	
                3.4.2

              	
                When
      Party B provides the pledge, the value of the pledged property agreed upon
      by both parties is used for calculating the pledge ratio of the Agreement,
      but not used as the valuation basis for the disposal of the pledged
      property by Party A, and it does not constitute any restriction on Party
      A’s exercise of the right of
pledge.

              

      

    

     

    
      
        	
              	
                3.4.3

              	
                Within
      the duration of the pledge, Party A shall be entitled to alter the market
      value of the pledged property according to the market price changes of the
      pledged property. If the ratio of the market value of the pledged property
      to the total unrepaid financing principal and interest drops down
      to %, Party
      B shall, within five (5) working days after receiving Party A’s
      written notice, provide additional pledged property or pay security
      deposit so that the pledge ratio will be restored to the pledge ratio at
      the time of pledging. Otherwise, Party A is entitled to dispose of the
      pledged property according to the provisions of the Agreement and be first
      compensated with the proceeds from such disposal; if the pledge ratio
      drops down to  %, Party
      A is entitled to directly dispose of the pledged property and be first
      compensated with the proceeds from such
  disposal.

              

      

    

     

    3.5         Party
A and Party B reach agreement on the handover and supervision of the pledged
property as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                3.5.1

              	
                The
      handover procedures of the pledged property under the Agreement shall be
      specified in theSupervision Agreement on
      Commodity Financing Pledge signed by and among Party A, Party B and
      the Supervisor. Party A and Party B shall jointly issue a Pledge Notice (or Notice on Type, Price and
      Minimum Requirement of the Pledged Property) to the Supervisor and
      the Supervisor shall issue relevant custody voucher after confirming its
      consistency with the physical goods. The expenses accrued from the
      warehousing and supervision of the pledged property as well as the mode of
      payment shall be specified in the Supervision Agreement on
      Commodity Financing
Pledge.

              

      

    

     

    
      
        	
              	
                3.5.2

              	
                The Warehouse Receipt Specific to
      Pledge of Movables (or List of Pledged
      Property) of the pledged property under the Agreement will be
      issued directly to Party A by the Supervisor. The ownership certificate,
      invoice and other relevant materials of the pledged property will be
      handed over to Party A upon joint confirmation by Party A and Party
      B.

              

      

    

     

    
      
        	
              	
                3.5.3

              	
                If
      Party B performs its debts upon expiry of debt performance term or Party B
      liquidates the guaranteed creditor’s rights in advance, Party A shall
      timely inform the Supervisor in writing to discharge supervision of
      pledge. The Supervisor shall return the pledged property to Party B in
      accordance with theSupervision Agreement on
      Commodity Financing
Pledge.

              

      

    

     

    3.6    
    Party A and Party B reach agreement on the custody and
deposit of the pledged property as follows:

     

    
      
        	
              	
                3.6.1

              	
                If
      Party A may not keep the pledged property under good custody, thus with
      the possibility of resulting in loss or damage to the pledged property,
      Party B may request Party A to have the pledged property deposited, with
      expenses to be borne by Party
B.

              

      

    

     

    
      
        	
              	
                3.6.2

              	
                If
      the pledged property provided by Party B is damaged or devaluated
      considerably, to the extent of being sufficient to jeopardize Party A’s
      rights, and Party B refuses to provide a corresponding guaranty, Party A
      shall be entitled to auction or sell the pledged property to realize all
      the guaranteed creditor’s rights under the Agreement with the proceeds
      from such disposal in advance, or to have the pledged property deposited
      with a third party as agreed upon by both parties, with depositing
      expenses to be borne by Party
B.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.7         Party
A and Party B reach agreement on the insurance of the pledged property as
follows:

     

    
      
        	
              	
                3.7.1

              	
                Before
      the pledged property is handed over to the Supervisor and the Warehouse
      Receipt Specific to Pledge of Movables (or List of Pledged Property) is
      issued, Party B shall process the basic insurance and additional ____
      insurance procedures of the property insurance for the pledged property
      with relevant insurance institutions. The term of insurance shall not be
      shorter than the expiry date of this Agreement and the amount insured
      shall not be less than the principal and its interest under the
      Agreement.

              

      

    

     

    
      
        	
              	
                3.7.2

              	
                Party
      B shall expressly write in the insurance policy: when an insured event
      occurs, Party A shall be the first beneficiary. The insurance policy shall
      not contain any clause which may limit Party A’s rights and interests. The
      insurance policy shall be handed over to and kept by Party A. If an
      insured event occurs before Party B performs all its obligations under the
      Agreement, the insurer shall directly pay the insurance compensation to
      the account designated by Party A. If Party B has performed all its
      obligations under the Agreement, Party A shall return such insurance
      policy to Party B.

              

      

    

     

    
      
        	
              	
                3.7.3

              	
                Within
      the valid term of the Agreement, Party B shall not interrupt or withdraw
      insurance for whatever reasons. In case of insurance interruption or
      withdrawal, Party A shall be entitled to handle insurance procedures on
      behalf of Party B, with any and all expenses arising thereof to be borne
      by Party B.

              

      

    

     

    
      
        	
              	
                3.7.4

              	
                As
      for the insurance compensation, Party B agrees that Party A is entitled to
      adopt any of the following ways, and Party B shall assist Party A in
      handling relevant procedures:

              

      

    

     

    
      
        	
              	
                A.

              	
                Liquidate
      or prematurely liquidate the principal debt, interest and relevant
      expenses under the Agreement;

              

      

    

     

    
      
        	
              	
                B.

              	
                Convert
      into time deposit, with certificate of deposit to be used for pledge
      purpose;

              

      

    

     

    
      
        	
              	
                C.

              	
                With
      Party A’s consent, use the insurance compensation to repair the pledged
      property so as to restore its
value;

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                D.

              	
                Have
      the insurance compensation deposited with a third party designated by
      Party A;

              

      

    

     

    
      
        	
              	
                E.

              	
                After
      Party B provides a new guaranty meeting Party A’s requirements, Party B
      may dispose of the insurance compensation at its own
      discretion.

              

      

    

     

    
      
        	
              	
                F.

              	
                Others:                     /                           
      .

              

      

    

     

    
      Article
4   Withdrawal

    

     

    4.1          For
withdrawal, Party B must meet the following preconditions, or else Party A has
no obligation to grant any loan:

     

    
      	
               
      

            	
              A.

            	
              Party
      B has completed the withdrawal application procedures as required by Party
      A;

            

    

     

    
      	
               
      

            	
              B.

            	
              Party
      B has completed the guaranty of pledge procedures as required by Party
      A;

            

    

     

    
      	
               
      

            	
              C.

            	
              Party
      A has acquired the Warehouse Receipt Specific to Pledge of Movables (or
      List of Pledged Property) signed and issued by the
    Supervisor;

            

    

     

    
      	
               
      

            	
              D.

            	
              Party
      B has handed over to Party A the complete legal documents in connection
      with the financing, including, but not limited to the ownership
      certificate, invoice, the original insurance policy and other relevant
      materials of the pledged property;

            

    

     

    
      	
               
      

            	
              E.

            	
              Party
      B hasn’t breached any provision stipulated in the
    Agreement;

            

    

     

    
      	
               
      

            	
              F.

            	
              Others:
      ___________________/__________________________________.

            

    

     

    4.2          When
applying for withdrawal, Party B must submit a Notice on Withdrawal to Party A
with 3 working days in advance. Once submitted, the Notice on Withdrawal may not
be revoked without Party A’s written consent.

     

    4.3          After
Party B meets all the preconditions of withdrawal, Party A pays the loan to the
following account opened or specified by Party B in Party A, which shall be
deemed as Party A’s fulfillment of its loan obligation:

     

    
      	
               
      

            	
              Account
      Name: Henan
      Shuncheng Group Coal Coke Co.,
Ltd

            

    

     

    
      	
               
      

            	
              Account
      No.: 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              Bank
      of Deposit: Anyang Shuiye Branch
      of Industrial and Commercial Bank of
  China

            

    

     

    
      Article
5   Repayment

    

     

    5.1          Party
B shall pay the interest in full amount and on due time as stipulated in the
Agreement, and repay the principal under the Agreement according to A  as
follows:

     

    
      	
               
      

            	
              A.

            	
              One-time
      repayment upon maturity;

            

    

     

    
      	
               
      

            	
              B.

            	
              Repayment
      of the loan according to the following dates and
  amounts:

            

    

     

    [blank]                                        
 ;

     

    [blank]                                        
 ;

     

    [blank]                                         
;

     

     
(If necessary, separate sheets may be added.)

     

    5.2           Party
B shall deposit sufficient money for the payable principal, interest and other
expenses in the account opened in Party A on the banking date just before the
stipulated repayment date and interest settlement date, and Party B shall
authorize Party A to take the initiative to deduct the corresponding amount on
the repayment date and the interest settlement date.

     

    5.3           If
the money within Party B’s repayment account is insufficient to pay off the
matured principal, interest and other fees, Party A is entitled to decide on the
deduction sequences.

     

    5.4           If
Party B requests to prepay all or part of the loan, Party B shall give a written
notice to Party A at least 10 banking days in advance.

     

    5.5           When
prepaying the loan, Party B shall also pay compensation equal to ___ % of the
prepaid amount to Party A, together with the payment of payable interest and
principal on the prepayment date.

     

    5.6           When
prepaying the loan, Party B shall also pay off the due principal, interest and
all other expenses payable as stipulated in the Agreement up to the prepayment
date. The prepayment of loan shall not be withdrawn once again.

     

    5.7           Party
B shall use the same currency with the balance under the Agreement for repayment
or prepayment.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Article
6   Realization of the Right of Pledge

    

     

    6.1          Party
B fails to pay off the matured debt in the performance period or debt declared
maturity ahead of time, then Party A is entitled to enforce the right of
directly and take priority to be repaid with the amount from the disposal of the
pledge;

     

    6.2          Party
B shall assist Party A to dispose the pledge in accordance with provisions
hereof;

     

    6.3          The
loan is mature but Party B fails to repay the Principal, interest and other
fees, then Party A is entitled to dispose the pledge hereunder;

     

    6.4          If
any circumstance under section 3.4.3 occurs, then Party A is entitled to dispose
the pledge hereunder;

     

    6.5          In
case any circumstance below occurs, Party A is entitled to dispose the pledge
ahead of time and take priority to be repaid:

     

    
      	
               
      

            	
              6.5.1

            	
              Provided
      that debt hereunder has occurred partly or wholly but not yet fully
      performed, the Agreement is
terminated;

            

    

     

    
      	
               
      

            	
              6.5.2

            	
              The
      loan is withdrawn ahead of time in accordance with other circumstances
      stipulated hereof without the creditor’s right realized or fully
      realized.

            

    

     

    
      	
               
      

            	
              6.5.3

            	
              If
      occurrence of any circumstance stipulated in section 8.11, 8.12, Party B
      fails to provide additional
guaranty.

            

    

     

    
      	
               
      

            	
              6.5.4

            	
              Any
      other circumstances stipulated hereof where Party A may realize the right
      of pledge ahead of time.

            

    

     

    6.6         The
right of pledge shall be applicable to the fruits arising from the pledge and
compensation amount, insurance benefit, damages resulting from the destroy, loss
or requisition.

     

    
      Article
7   Party B’s Representations and Warrants

    

     

    Party B
makes the following representations and warrants to Party A, which shall remain
in effect throughout the valid term of the Agreement:

     

    7.1          Party
B has legal qualifications to be the borrower and the civil legal capacity to
execute and perform the Agreement;

     

    7.2          All
the documents and materials provided by Party B to Party A are true, accurate,
complete and effective in all aspects, without any false record, misleading
statement or gross omission;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.3          Party
B has obtained all required authorizations or approvals, and the execution as
well as performance of the Agreement will not violate Party B’s articles of
association, related laws and regulations, or any other Agreements which have
been signed or are being performed by Party B;

     

    7.4          Party
B does not conceal any litigation, arbitration or claim in which Party B is
involved;

     

    7.5          Party
B makes the following representations and warrants as for the guaranty of pledge
under the Agreement:

     

    
      
        	
              	
                7.5.1

              	
                Party
      B is the full, valid and lawful owner of the pledged property under the
      Agreement and the pledged property is free of disputes over ownership or
      management rights.

              

      

    

     

    
      
        	
              	
                7.5.2

              	
                The
      provision of guaranty of pledge by Party B is of its own accord and all
      declarations of intention under the Agreement are
  true.

              

      

    

     

    
      
        	
              	
                7.5.3

              	
                The
      pledged property under the Agreement can be pledged without any
      restriction in accordance with
law;

              

      

    

     

    
      
        	
              	
                7.5.4

              	
                Party
      B has already made an adequate and reasonable written statement of the
      defects of the pledged property under the
  Agreement;

              

      

    

     

    
      
        	
              	
                7.5.5

              	
                No
      disposal, including but not limited to mortgage, pledge, donation or
      transfer, has been set for the pledged property under the Agreement before
      the Agreement is signed.

              

      

    

     

    
      
        	
              	
                7.5.6

              	
                When
      Party B fails to perform its obligations under the Agreement as agreed,
      whether Party A has any other guaranties (including, but not limited to,
      guarantee, mortgage, pledge, letter of guarantee, standby L/C, etc) as for
      the creditor’s rights under the Agreement, Party A is entitled to directly
      request Party B to undertake the guaranty liability within its guaranty
      scope, and Party B waives the right of defense in connection
      therewith.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Article
8   Party B’s Undertakings

    

     

    Party B
hereby undertakes to Party A that:

     

    8.1          Party
B shall withdraw and use the loan in accordance with the term and usage set
forth in the Agreement, and the loan shall not in whatever forms flow to the
stock market or the futures market, neither shall it be used for equity
investment or any other purposes prohibited or restricted by relevant laws and
regulations;

     

    8.2          Party
B shall pay off the loan principal, interest and other payables in accordance
with the provisions stipulated in the Agreement;

     

    8.3          Party
B shall provide financial accounting materials such as the financial statement,
the income statement and the statement of cash flow etc, and actively coordinate
with Party A to check its production, management and financial
conditions;

     

    8.4          For
any contract, lease, remoulding in stock system, joint venture, merger,
separation, decrease of registered capital, transfer of substantial assets or
creditor’s rights, important external investment, or any other activities of
Party B which may adversely affect Party A’s rights and interests, Party B shall
give Party A 30 days prior notice and obtain Party A’s prior written consent or
make proper arrangement for the realization of Party A’s debt to the
satisfaction of Party A. Otherwise, the implementation of the above actions is
not allowed.

     

    8.5          Party
B shall inform Party A timely if any of the following circumstances
occurs:

     

    
      	
               
      

            	
              A.

            	
              Any
      changes in Party B’s articles of association, business scope, registered
      capital, legal representative, address and
  telephone;

            

    

     

    
      	
               
      

            	
              B.

            	
              Being
      out of business, dissolution, liquidation, stopping business for internal
      rectification, revocation of business license, being revoked or being
      applied for bankruptcy;

            

    

     

    
      	
               
      

            	
              C.

            	
              Having
      been involved in or may be involved in material economic disputes,
      litigation or arbitration, or with properties legally confiscated, seized
      or controlled;

            

    

     

    
      	
               
      

            	
              D.

            	
              Being
      engaged in suspected gross cases or economic disputes by members of broad
      of directors or incumbent senior
managers;

            

    

     

    
      	
               
      

            	
              E.

            	
              Disputes
      over the ownership of the pledged
property.

            

    

     

    8.6          Party
B shall timely disclose the related party transactions to Party A;

     

    8.7          Party
B shall timely sign for the collection notices sent or delivered in various ways
by Party A;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.8          Within
the valid term of the Agreement, if Party B provides guaranty in whatever forms
to a third party, Party A’s rights and interests shall not be damaged in any
way;

     

    8.9          Within
the valid term of the Agreement, Party B shall not donate, transfer or otherwise
dispose of the pledged property under the Agreement;

     

    8.10        Party
B shall assume the relevant expenses under the Agreement, including, but not
limited to, lawyer’s service, identification, inspection, evaluation,
warehousing, supervision, transaction and legal expenses;

     

    8.11        If
Party B’s behaviors are sufficient to devaluate the pledged property, Party B
shall stop such behaviors. If the pledged property has been devaluated, Party B
is obliged to restore the value of the pledged property, or to provide a
guaranty corresponding to the reduced value.

     

    8.12        Within
the duration of right of pledge, if the pledged property is devaluated, damaged
or lost due to the behavior of a third party, the compensation thus obtained
shall be deposited into the account designated by Party A. In the event that
Party B fails to provide the new guaranty acceptable to Party A, Party B agrees
that Party A may use such compensation to guarantee the performance of the right
of credit under the Agreement. Meanwhile, the portion of the pledged property
not devaluated is still used as the guaranty for the creditor’s rights. If Party
B provides a new guaranty acceptable to Party A, Party A shall refund the
compensation to Party B.

     

    8.13        If
Party A’s right of pledge is infringed or likely to be infringed by any third
party, Party B is obliged to forthwith inform Party A and to assist Party A in
being free from such infringement.

     

    8.14       After
the Agreement becomes effective, if Party A transfers the principal creditor’s
right to any third person in accordance with law, Party B shall undertake the
guaranty responsibility within the original scope of guaranty of
pledge.

     

    8.15        After
Party B liquidates all its debts under the Agreement, Party B will not undertake
the guaranty responsibility any more. If the liquidation by Party B is held to
be invalid by the judicial body, Party B shall continue to undertake the
guaranty responsibility within the original scope of guaranty of
pledge.

     

    8.16        Without
Party A’s written consent, Party B shall not transfer all or part of its rights
or obligations under the Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Article
9   Party A’s Undertakings

    

     

    Party A
makes the following Undertakings to Party B:

     

    9.1          Party
A will grant the loan to Party B in accordance with the provisions of the
Agreement;

     

    9.2          Party
A shall keep confidential the materials and information on Party B’s debts,
finance, production and operations etc. provided by Party B, unless otherwise
agreed upon by the Agreement or stipulated by laws and regulations.

     

    9.3          Party
A is obliged to keep the pledged property in good custody. The agreement on the
custody of the pledged property is specified in the “Supervision Agreement on
Commodity Financing Pledge” signed by and among Party A, Party B and the
Supervisor.

     

    9.4          Within
the valid term of the Agreement, if Party A transfers the principal creditor’s
rights legally, it shall inform Party B in time.

     

    9.5          After
the proceeds from disposal of the pledged property under the Agreement are used
to repay all the debts within the scope of guaranty of pledge under the
Agreement, the remaining portion, if any, shall be refunded to Party
B.

     

    
      Article
10   Breach of the Agreement

    

     

    10.1       Party
B shall be deemed as breach of the Agreement under any of the following
circumstances:

     

    
      	
               
      

            	
              A.

            	
              Party
      B fails to repay principal, interest or any other payables under the
      Agreement, fails to use the loan for the stipulated purpose, fails to
      perform any other obligations under the Agreement, or violates any
      presentation, warranty or promise made under the
  Agreement;

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      guaranty under the Agreement undergoes changes to the disadvantage of
      Party A’s creditor’s rights, and Party B fails to provide other pledges
      accepted by Party A;

            

    

     

    
      	
               
      

            	
              C.

            	
              Party
      B fails to pay off any of other matured debts (including declared maturity
      ahead of time), or non-performance or violation of the obligations under
      other Agreements have affected or may affect the performance of its
      obligations under the Agreement;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              D.

            	
              Party
      B encounters serious business difficulties, which have adversely affected
      or may adversely affect the performance of its obligations under the
      Agreement;

            

    

     

    
      	
               
      

            	
              E.

            	
              Party
      B’s assets are legally confiscated, seized or enforced compulsorily, which
      has affected or may affect the performance of its obligations under the
      Agreement;

            

    

     

    
      	
               
      

            	
              F.

            	
              Party
      B is involved in or may be involved in any significant economic dispute,
      litigation or arbitration, which has affected or may affect the
      performance of its obligations under the
  Agreement;

            

    

     

    
      	
               
      

            	
              G.

            	
              Party
      B is legally put on file for investigation or adopted coercive measures
      upon by judicial authorities, or administrative law enforcement organs and
      administration authorities such as industrial and commerce departments and
      tax bureaus etc, which has affected or may affect the performance of its
      obligations under the Agreement;

            

    

     

    
      	
               
      

            	
              H.

            	
              Unusual
      changes take place in Party B’s main individual investors or main
      managers, or they are legally investigated or their personal freedom is
      restricted for illegal or criminal activities, which have affected or may
      affect Party B’s performance of its obligations under the
      Agreement;

            

    

     

    
      	
               
      

            	
              I.

            	
              Party
      B is out of business, dissolved, liquidated, stopped business for
      rectification, revoked of business license, revoked or applied for
      bankruptcy;

            

    

     

    
      	
               
      

            	
              J.

            	
              Party
      B makes untrue representation or statements in Article 7 of the
      Agreement;

            

    

     

    
      	
               
      

            	
              K.

            	
              The
      Agreement becomes invalid due to Party B’s
  fault;

            

    

     

    
      	
               
      

            	
              L.

            	
              Any
      other circumstances which may adversely affect Party A’s rights and
      interests under the Agreement.

            

    

     

    10.2           If
Party B breaches the Agreement, Party A is entitled to require Party B to
rectify the breach within a specified time limit if necessary; or, Party A is
entitled to adopt any of the following measures:

     

    
      	
               
      

            	
              A.

            	
              Stop
      granting the loan to Party B, and cancel all or part of the amount not
      withdrawn yet;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              B.

            	
              Declare
      that all or part of the loan under the Agreement shall become due
      immediately and require Party B to repay
  immediately;

            

    

     

    
      	
               
      

            	
              C.

            	
              Directly
      dispose of the pledged property under the Agreement, and use the amount
      thus obtained to first liquidate the creditor’s rights as stipulated in
      the Agreement;

            

    

     

    
      	
               
      

            	
              D.

            	
              Require
      Party B to compensate Party A for Party A’s direct loss caused by Party
      B’s breach of Agreement, including, but not limited to, the expenses on
      the realization of the creditor’s rights such as attorney fees and legal
      expenses etc.

            

    

     

    
      	
               
      

            	
              E.

            	
              Other
      measures as stipulated in laws and regulations or agreed upon in the
      Agreement.

            

    

     

    10.3           If
Party B fails to repay the matured loan (including declared maturity ahead of
time) in accordance with the stipulated time herein, Party A is entitled to
charge a default interest for the overdue loan from the overdue date, which is
calculated by rising /
% on the basis of the interest rate specified in this Agreement. For the
interests not paid in due time, the default interest rate herein shall be
adopted to calculate the compound interest.

     

    10.4           If
Party B fails to comply with the usage of the loan stipulated herein, Party A is
entitled to charge a default interest for the amount in default from the breach
date, which is calculated by rising ___ % on the basis of the interest rate
specified in the Agreement. For the interests not paid in due time within the
misappropriation period, the default interest rate herein shall be adopted to
calculate the compound interest.

     

    10.5           In
case that the circumstances listed in Article 10.3 and Article 10.4 happen to
Party B concurrently, instead of simultaneous application, the higher default
interest shall be applied.

     

    10.6           If
Party B fails to repay the matured principal, interest, default interest or
other payables (including declared maturity ahead of time) in accordance with
the stipulated time herein, Party A is entitled to deduct the corresponding
amount from all the domestic currency accounts and foreign currency accounts of
Party B which are opened in Party A or other branches or sub-branches of
Industrial and Commercial Bank of China. If any currency of deduction is
different from that under the Agreement, it shall be converted in accordance
with Party A’s applicable sales exchange rate at the date of deduction. Party B
shall assume the interest and other expenses accrued within the period from the
date of deduction to the date of liquidation (the date when Party A converts the
deducted amount to the currency of the loan and actually liquidates Party B’s
debt in accordance with the state administrative policies on foreign exchanges),
as well as any balance arising from the exchange rate fluctuation during this
period.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Article
11   Effectiveness, Alteration, Dissolution and
Termination

    

     

    11.1           The
Agreement is formed on the date when it is signed by legal representative or
authorized representative of each party and stamped by both parties’ company
seal; and the Agreement shall take effective on the date that the pledge
property is delivered to the Supervisor and the Supervisor issues related
acceptance certificate.

     

    11.2           Any
alteration or amendment to the Agreement shall be made in written form through
negotiation of two parties. The alternation clauses or agreements shall be
deemed as an integral part of the Agreement, which shall have the same legal
effect. Excluding the altered or amended part, the remaining part remains in
effect and the altered or amended part shall be applicable until the alteration
and amendment take effects.

     

    11.3           After
Party B fulfills all its obligations under the Agreement, Party A shall inform
the supervisor to release the pledge.

     

    11.4           The
alteration or dissolution of the Agreement shall not affect the rights of
parties to claim for damages. The dissolution of the Agreement shall not affect
the validity of the dispute settlement clause.

     

    
      Article
12   Dispute Settlement

    

     

    12.1           The
formation, validity, construction, performance and dispute settlement shall be
governed by law of the People’s Republic of China. Any dispute or controversy
arising out of or in connection with the Agreement shall be settled through
negotiation. In case no settlement can be reached, the dispute or controversy
shall then be settled according to Item B of the
following:

     

    A.
Arbitration, which shall be conducted in_______/_____ (the full name of the
arbitration committee) in ______/_____ (the place of arbitration) according to
the commission’s arbitration rules in effect; the arbitration award rendered
shall be final and binding upon both parties.

     

    B.  Litigation,
which is governed by the people's court at Party A’s place of
domicile.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Article
13   Miscellaneous

    

     

    13.1           No
failure on the part of Party A to exercise, partial exercise of or delay in
exercising any right under the Agreement shall constitute as a waiver or change
thereof or of any other rights or preclude its further exercise thereof or of
any other rights.

     

    13.2           The
invalidity or unenforceability of any provision of the Agreement shall not in
any way affect the validity or enforceability of the remaining provisions or the
validity of the whole Agreement.

     

    13.3           The
terms “Related Parties”, “Related Parties Relationship” “Related Party
Transactions”, “Main Individual Investors” and “Key Managers” referred to in the
Agreement shall be constructed to have the same meaning with those in Accounting Standards for Business
Enterprises - Disclosure of Related Party Relationships and
Transactions and
its subsequent amendments.

     

    13.4           
This Agreement is executed in duplicate, and each party holds one which has the
same legal effect.

     

    
      Article
14   Other Terms

    

     

    14.1           Where
Party B causes liability accidents by violation of relevant laws and
regulations, regulatory rules or industrial standards in the fields of food
safety, production security and environment protection etc, which have
materially affected or may materially affect the performance of its obligations
under the Agreement, Party B shall notify Party A in a timely manner; Party A,
based on the effects to what degree that the above circumstances may impose on
Party B’s credit status and performance capability, adopts one or more remedies
below: cease to release loan in progress; declare loan mature ahead of time,
recover part or the entire loan ahead of time; terminate this Agreement; other
necessary remedies as considered by Party A..

     

    14.2           other

     

    
      
        	
                
                

              	
                14.2.1

              	
                The
      loan under the Agreement may not be used for equity investment in the
      stock market or the futures market etc or for any other
      purposes.

              

      

    

     

    14.2.2  
_______/_______

     

    
      Article
15   Appendices

    

     

    15.1           The
appendices hereto are an integral part of the Agreement, which shall have the
same legal effect.

     

    15.2           The
appendices hereto include: _____________/______________________.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15.3           Party A:
(Seal) Industrial and Commercial Bank of China

     

    Officer
(Authorized Representative):  /s/ Xiaohua Liu

     

    Party B:
(Seal)

     

    Legal
Representative (Authorized Representative): (Signature or Stamp)

     

    [company seal and stamp]

                Date of Agreement:
/

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"}]]