Document:

Unassociated Document

    
      Exhibit
10.37 

      
        

      

    

     

    Trade
Financing 001

     

    Letter
of Credit Issuance Contract

     

    (“this Contract”)

    

    Contract
No.: Jian An Xin Zheng [2009] Shun Cheng 002

    

    Party
A:

     

    Henan
Shuncheng Group Coal Coke Co., Ltd.

    

    Legal
Address: Southern Industrial Road, Tongye Town

    

    Legal
Representative (or the Principal): Wang Xinshun (王新顺)

    

    Tel:
2959988

    Fax:
2959988

    Zip Code:
455141

    

    Party
B:

     

    Henan
Province Branch of China Construction Bank

     

    Legal
Address: Garden Road No. 80, Zhengzhou City

    

    The
Principal: Huibin Xu (许会斌)

    

    Tel:

    Fax:

    Zip Code:
455003

    F8 12-21

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      
        

      

    

     

    In order
to strengthen the mutual cooperation between Party A and Party B on the import
and export trade financing transactions, upon Party A’s application, Party B
agrees to issue the credit for Party A under the terms and conditions of this
Contract.  For the purpose of clarifying both Parties’ rights and
obligations, based on both Parties’ consensus reached through mutual
negotiations and according to relevant laws, regulations and rules, Party A and
Party B hereby conclude this Contract for both Parties to abide by.

    

    
      	
              1.

            	
              Credit
      Amount

            

    

    Upon
Party A’s application, Party B shall issue an irrevocable documentary credit for
Party A in an amount of Euro Two Hundred and Four
Thousand (currency and amount in words) (“Credit Amount”) and the amount
of over shipment shall not exceed 5% of the Credit
Amount (“Over-shipment
Amount”).

    

    
      	
              2.

            	
              Earnest
      Money

            

    

    Party A
commits that it shall deposit earnest money in a special account for receiving
the earnest money it opened in Party B within one working day
after signing this Contract according to Party B’s requirement, which serves as
a pledge to secure Party B’s creditor’s right under this
Contract.  The earnest money for issuing the credit is equal to 105%
of the Credit Amount plus the Over-shipment Amount (if any) as defined in
Article 1 above, that is, RMB Two Million Three
Hundred Thousand (currency and amount in words) (“Earnest Money”).

    

    Name of
the Special Account for Receiving the Earnest Money: Henan Shuncheng Group Coal
Coke Co., Ltd.

    Account
No.:

    Interest
for the Earnest Money: interest rate for current
account

    

    Within
the pledge duration of the Earnest Money, Party A shall not withdraw, transfer
or dispose of by any means the fund deposited in the special account for
receiving the Earnest Money.

    

    
      	
              3.

            	
              Cost
      for Credit Issuance

            

    

    The cost
for credit issuance shall be collected in an amount of

     

    1.5‰ of the Credit
Amount.

    

    For the
cost arising after the credit issuance but unforeseeable when submitting the
application for credit issuance, which shall be borne or paid by Party A
according the Parties’ agreement or the banking industry’s common practice,
Party B shall have the right to directly deduct the fund from the account opened
by Party A in China Construction Bank’s system for such cost.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              4.

            	
              Preconditions
      for Party B to Issue the Credit to Party
A

            

    

    

    Party B
is obliged to issue the credit to Party A only upon the full satisfaction of all
the following conditions, unless Party B waives all or part
thereof:

    

    
      	
            	
              4.1

            	
              Party
      A has already handled and completed all relevant formalities of approval,
      registration, delivery and insurance, as well as other statutory
      formalities under this Contract, in accordance with relevant laws and
      regulations.

            

    

    

    
      	
            	
              4.2

            	
              The
      security to Party B’s satisfaction have become and remained
      effective.

            

    

    

    
      	
            	
              4.3

            	
              Party
      A does not breach any provisions of this
  Contract.

            

    

    

    
      	
            	
              4.4

            	
              Other
      conditions:

            

    

    _____________________________________

    

    _____________________________________

    

    
      	
              5.

            	
              Application
      of Uniform Customs and Practice for Documentary Credits
      (“UCP”)

            

    

    Unless
otherwise agreed by the Parties, Party A agrees Party B to handle the matters
under the credit in accordance with applicable UCP of International Chamber of
Commerce and the latest version thereof on the date when Party B issuing the
irrevocable documentary credit, and Party A agrees to bear relevant obligations
and liabilities arising therefrom.

    

    
      	
              6.

            	
              Issuance
      and Modification of the Credit

            

    

    When
applying with Party B to issue the credit, Party A shall provide the documents
and materials in relation to the underlying contract according to Party B’s
requirement, and shall ensure the above documents, materials, and the related
underlying transaction to be true and legal.

    

    Party B’s
requirement that Party A shall provide the documents and materials in relation
to the underlying contract shall not be interpreted as that Party B shall be
responsible for the authenticity and legality of Party A’s
transaction.

    

    The
content of the credit applied by Party A shall be subject to that of the actual
credit issued by Party B.  Where any modification to the credit is
required, Party A shall submit a credit modification application letter to Party
B, and Party B will determine to conduct the modification or not as the case may
be.  Party A shall ensure to pay all the expenses arising from the
credit modification (including relevant banking expense that the overseas
beneficiary refuses to bear).

    

    Where the
place in the application letter for credit issuance and in the application
letter for credit modification is required to be written in English, it shall be
filled out in English.  Where shall be in English while is filled out
in Chinese, which results in any discrepancies, Party A shall bear all the
liabilities arising therefrom.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      

    

     

    Where
there are any discrepancies resulting from ambiguous wording or illegibly
handwriting or print in the credit application, credit modification application
or other documents, Party A shall bear all the liabilities arising
therefrom.

    

    
      	
              7.

            	
              Payment
      under the Credit

            

    

    
      	
            	
              7.1

            	
              Party
      A shall advise Party B in writing to honour (pay/ accept/incur a deferred
      payment undertaking) or refuse to honour within the deadline provided in
      Party B’s advise note of the credit document; where Party A fails to
      advise Party B in writing within the prescribed deadline, Party B has the
      right to decide to honour or refuse to honour at its full discretion and
      Party A agree to undertake all the liabilities and consequences arising
      therefrom.

            

    

    

    
      	
            	
              7.2

            	
              Where
      Party A determines the presentation under the credit is not a complying
      presentation and proposes to requests Party B not to honour, Party A shall
      provide to Party B a written request and explanation for not to honour
      within the deadline provided in the advise note of the credit document,
      listing all the discrepancies, and Party A shall return Party B all the
      documents and materials transferred by Party
B.

            

    

    

    
      	
            	
              7.3

            	
              Party
      B has the right to check the documents independently and to determine
      whether the presentation under the credit is complying or not at its full
      discretion.  Where Party B determines the presentation is not
      complying after its independent check, it has the right to determine how
      to deal with the discrepant document and whether to accept the
      discrepancies or not at its full discretion.  Party A’s
      acceptance of the discrepancies or not shall not affect Party B’s final
      determination on whether to accept the discrepancies or
      not.  Provided that Party B determines the presentation under
      the credit is complying, it may
honour.

            

    

    

    
      	
            	
              7.4

            	
              If
      the credit applied by Party A is a sight credit, and Party B determines
      the presentation constitutes a complying presentation or accepts the
      discrepancies as required by Party A, then Party A shall commit that it
      shall pay off all the payables to Party B within the deadline provided in
      the advise note of the credit document issued by Party
  B.

            

    

    

    
      	
            	
              7.5

            	
              If
      the credit applied by Party A is a usance credit, and Party B determines
      the presentation constitutes a complying presentation or accepts the
      discrepancies as required by Party A, and based on which Party B has
      already honored, then Party A shall commit that it shall pay off all the
      payables to Party B before the due date of
  payment.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
            	
              7.6

            	
              Party
      A shall commit to pay the following payments to Party B within the time
      limit required by Party B, including but not limited to, trade payables,
      relevant commission charge, tele-transmission cost and other costs under
      the credit, the interest on overdue payments, liquidated damages and
      compensations arising from Party B’s prepayment under the credit which
      shall be borne by Party A, any relevant banking expenses that the overseas
      beneficiary refuses to bear, all the expenses for the purpose of realizing
      Party B’s creditor’s rights (including but not limited to litigation cost,
      arbitration cost, property preservation cost, travelling expenses,
      enforcement expenses, appraisal cost, auction cost, notary cost, delivery
      cost, announcement cost, attorney
cost).

            

    

    

    
      	
              8.

            	
              Disclaimer
      on Transmission and Translation

            

    

    Party B
assumes no liability or responsibility for the consequences arising out of
delay, loss in transit, mutilation or other errors arising in the transmission
of any messages or delivery of letters or documents.

    

    Where
Party B is obliged to honour or reimburse, even when the document has been lost
in transit, Party A is still required to pay all the payables to Party B
according to this Contract.

    

    Party B
assumes no liability or responsibility for errors in translation or
interpretation of technical terms and may transmit credit terms without
translating them.

    

    
      	
              9.

            	
              Disclaimer
      for Acts of an Instructed Party

            

    

    Party B
selecting and utilizing the services of other third parties for the purpose of
giving effect to the instructions of Party A does so for the account and at the
risk of Party A.

    

    Party B
assumes no liability or responsibility should the instructions it transmits to
any other third party not be carried out correctly.

    

    Party A
shall be bound by and liable to indemnify Party B against all obligations and
responsibilities imposed by foreign laws and usages.

    

    
      	
              10.

            	
              Underlying
      Contract Dispute or Credit Fraud

            

    

    Where any
dispute arising from the underlying contract on which the credit issuance is
based or Party B suffers any loss due to a third party’s reason, Party A shall
be liable for relevant indemnifications.

    

    Where any
dispute arises from the underlying contract in which the credit is involved or
the credit fraud occurs, and if Party B, Party B’s nominated bank, Party B’s
authorized person or confirmation bank has already honoured, or the negotiation
bank has already negotiated, Party A shall commit to pay all the payables to
Party B according to this Contract no matter whether the said dispute or credit
fraud is settled or not.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              11.

            	
              Other
      Rights and Obligations of the
Parties

            

    

    
      	
            	
              11.1

            	
              Unless
      otherwise agreed by the Parties, Party B has the right to select the
      advising bank, the negotiation bank and the confirmation bank for the
      credit, and has the right to entrust other third party to handle the
      matters related to the credit.

            

    

    

    
      	
            	
              11.2

            	
              The
      RMB and foreign currency settlements under the credit applied by Party A
      shall be handled through Party B.

            

    

    

    
      	
            	
              11.3

            	
              As
      requested by Party B, Party A shall provide true, lawful and effective
      financial statements and relevant information, as well as the information
      related to all its opening bank (such as, the names, account numbers,
      deposit balance, etc.).  Party A shall accept Party B’s
      supervision over its production, operation, and financial
      activities.  Party A shall not illegally withdraw its capital,
      transfer asset or take any other measures to evade its debt toward Party
      B.

            

    

    

    
      	
            	
              11.4

            	
              Without
      Party B’s written consent, Party A shall not transfer its asset at low
      price or free of change, abate a debt of third party, or untimely exercise
      or waive to exercise its creditor’s rights or any other
      rights.

            

    

    

    
      	
            	
              11.5

            	
              Where
      there is any change to Party A’s name, legal representative (or
      principal), legal address, business scope, registered capital, company’s
      (enterprise’s) articles of association or other registered items with
      Administration for Industry and Commerce, Party A shall notify Party B in
      writing within ____ working days after such
  change.

            

    

    

    
      	
            	
              11.6

            	
              Where
      Party B honors an un-complying presentation according to Party A’s
      direction, or where Party B refuses to honor after both Party A and Party
      B determine that a presentation does not comply, Party A shall bear all
      the liabilities arising therefrom.

            

    

    

    
      	
            	
              11.7

            	
              Party
      A shall not take advantage of affiliated transaction to evade the debts
      toward Party B; shall not take advantage of the fake contract concluded
      with its affiliates, to arbitrage banking fund or credit by means of
      discount or pledge of such claims as notes or accounts receivables, etc.
      without actual trade background in the
bank.

            

    

    

    
      	
            	
              11.8

            	
              If
      Party A is a group client, Party A shall timely report to Party B the
      information about its affiliated transactions concerning 10% of its net
      assets or more, including: (1) the affiliated relationships of all parties
      to the transaction; (2) the transaction project and transaction nature;
      (3) the amount of transaction or the corresponding proportion; and (4) the
      pricing policies (including the transactions with no amount or with
      symbolic amount).

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              12.

            	
              Liability
      for Breach of Contract and Remedies in Events which Jeopardizing Party B’s
      Creditor’s Right

            

    

    

    
      	
            	
              12.1

            	
              The
      following events shall be deemed as Party A’s breach of
      contract:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Party
      A breaches any provisions of this Contract or any statutory
      duties.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Party
      A expresses explicitly or indicates by its conduct that it will not
      perform any of its obligations under this
  Contract.

            

    

    

    
      	
            	
              12.2

            	
              The
      events which may jeopardize Party B’s creditor’s rights,
      include:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Party
      B shall regard it will jeopardize the security of the creditor’s rights
      under this Contract where any of the following events arise: Party A has
      any of contractual operation, trusteeship (take-over), leasing,
      shareholding system reform, reduction of registered capital, investment,
      joint operation, merger, acquisition, buy-up and reorganization, split-up,
      joint venture, filling (or being called for) for suspending business for
      rectification, filing for dissolution, being called for cancelled, filing
      (or being called for) for bankruptcy, or controlling shareholder/actual
      controller changes,  or transfer of material assets, production
      suspension, business close-down, being charged of high-rate fines by
      competent authorities, or the registration being cancelled, the business
      licenses being revoked, or being involved in significant legal disputes,
      or great difficulties in the production and business, or financial status
      deteriorating, or the legal representative or the major principals
      incapable of performing duties
regularly.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Party
      B shall regard it will jeopardize the security of the creditor’s rights
      under this Contract where any of the following events arise: Party A fails
      to pay off other matured debts (including the matured debts towards the
      branches of China Construction Bank of all levels or the matured debts
      toward other third parties), Party A transfers the asset at low price or
      free of charge, abates a debt of a third party, is remiss in exercising
      its creditor’s right or other rights, or Party A provides security to a
      third party;

            

    

    

    
      	
               
      

            	
              (3)

            	
              Party
      B shall regard it will jeopardize the security of the creditor’s rights
      under this Contract where Party A’s shareholder abuses the company’s legal
      person status or the shareholder’s limited liabilities for the purpose of
      evading debts.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
               
      

            	
              (4)

            	
              Party
      B shall regard it will jeopardize the security of the creditor’s rights
      under this Contract in case the guarantor has any of the following
      events:

            

    

    

    
      	
               
      

            	
              (i)

            	
              The
      guarantor breaches any provisions of the guarantee contract or any of its
      representation and warranty is false, incorrect or
  omitted.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      guarantor has any of contractual operation, trusteeship (take-over),
      leasing, shareholding system reform, reduction of registered capital,
      investment, joint operation, merger, acquisition, buy-up and
      reorganization, split-up, joint venture, filling (or being called for) for
      suspending business for rectification, filing for dissolution, being
      called for cancelled, filing (or being called for) for bankruptcy, or
      controlling shareholder/actual controller changes,  or transfer
      of material assets, production suspension, business close-down, being
      charged of high-rate fines by competent authorities, or the registration
      being cancelled, the business licenses being revoked, or being involved in
      significant legal disputes, or great difficulties in the production and
      business, or financial status deteriorating, or the legal representative
      or the major principals incapable of performing duties regularly, which
      may impair the guarantor’s capability to undertake the
      guarantee.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              It
      is in any other circumstance which will or may cause it to lose its
      guarantee capability.

            

    

    

    
      	
               
      

            	
              (5)

            	
              Party
      B shall regard it will jeopardize the security of the creditor’s rights
      under this Contract where the following events arises in respect to the
      mortgage and pledge:

            

    

    

    
      	
               
      

            	
              (i)

            	
              The
      mortgaged property or the pledged property is damaged, lost or the value
      of which decreases caused by the third party’s action, the national
      collection, confiscation, expropriation, gratuitous withdrawal,
      demolition, vary of market conditions, or any other
    reasons.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      mortgaged property or the pledged property is sealed up, withheld, frozen,
      transferred and deducted, liened, auctioned, supervised by the
      administrative authorities, or whose ownership is being in
      dispute.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              The
      mortgagor or the pledgor breaches any provisions of the mortgage or pledge
      contract or any of its representation and warranty is false, incorrect or
      omitted.

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
               
      

            	
              (iv)

            	
              Other
      circumstances which may jeopardize the realization of Party B’s mortgage
      right or pledge right.

            

    

    

    
      	
               
      

            	
              (6)

            	
              Party
      B shall regard it will jeopardize the security of the creditor’s rights
      under this Contract where the security is not established, or does not
      come into effect, becomes invalid, is cancelled, is terminated, or the
      guarantor breaches contract or expresses explicitly or indicates by its
      conduct that it will not perform its guarantee obligations, or the
      guarantor losses all or part of its guarantee capabilities, or the value
      of the collateral decreases; or

            

    

    

    
      	
               
      

            	
              (7)

            	
              Other
      circumstances which may jeopardize the security of the creditor’s right
      under this Contract regarded by Party
B.

            

    

    

    
      	
            	
              12.3

            	
              Where
      Party A breaches the contract or any circumstance which may jeopardize the
      security of Party B’s creditor’s rights occurs, Party B is entitled to
      exercise one or more of the following
rights:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Where
      Party B makes any prepayment, Party B has the right to collect the
      interest on overdue payments according to the overdue loan rate as of the
      prepayment date; and the overdue loan rate is (1+50%)×normal loan
      rate.

            

    

    

    
      	
               
      

            	
              (2)

            	
              For
      Party A’s payables, Party B has the right to directly transfer and deduct
      the fund from Party A’s account for receiving the earnest money opened in
      Party B, or from Party A’s other accounts opened in the system of China
      Construction Bank, or from Party A’s other receivables, to collect such
      payables.

            

    

    

    
      	
               
      

            	
              (3)

            	
              Dispose
      of the documents and/or the goods under the
  credit.

            

    

    

    
      	
               
      

            	
              (4)

            	
              Exercise
      its security rights;

            

    

    

    
      	
               
      

            	
              (5)

            	
              Require
      Party A to supplement the earnest money or provide other types of security
      which can be recognized by Party B;

            

    

    

    
      	
               
      

            	
              (6)

            	
              Other
      available measures according to the
law.

            

    

    

    
      	
              13.

            	
              Miscellaneous

            

    

    
      	
            	
              13.1

            	
              Expenses

            

    

    Unless
otherwise agreed by the Parties, the attorney’s fee, insurance, appraisal,
registration, preservation, identification, notarization, etc. under this
Contract or in relation to the security under this Contract shall be borne by
Party A.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      

    

     

    All the
actual expenses for the purpose of realizing Party B’s creditor’s rights
(including but not limited to litigation cost, arbitration cost, property
preservation cost, travelling expenses, enforcement expenses, appraisal cost,
auction cost, notary cost, delivery cost, announcement cost, attorney cost,
etc.) shall all be borne by Party A.

    

    
      	
            	
              13.2

            	
              Fund
      Transfer and Deduction for the
Payables

            

    

    For all
the payables of Party A under this Contract, Party B is entitled to forcibly
transfer or deduct the fund (in RMB or other currency) in the account opened by
Party A in the system of China Construction Bank to collect such payables
without notifying Party A in advance.  Where any foreign exchange
settlement and purchase formality or foreign exchange sale and purchase
formality is required, Party A is obliged to assist Party B to handle it and
relevant exchange rate risk shall be borne by Party A.

    

    
      	
            	
              13.3

            	
              Usage
      of Party A’s Information

            

    

    Party A
shall agree Party B to check Party A’s credit status from the credit data base
established upon the approval of People’s Bank of China and other competent
credit departments or from other relevant units or departments, and shall agree
Party B to submit Party A’s information to the credit data base established upon
the approval of People’s Bank of China and other competent credit
departments.  Party A shall also agree Party B can use and disclose
Party A’s information reasonably according to its business demand.

    

    
      	
            	
              13.4

            	
              Collection
      by Announcement

            

    

    Party B
is entitled to announce to relevant departments or units and to conduct the
collection by announcement through the media against Party A’s breach of
contract.

    

    
      	
            	
              13.5

            	
              Evidential
      Effect of Party B’s Record

            

    

    Unless
there is any reliable and definite evidence to the contrary, Party B’s internal
financial records related to the principal, interest, costs, repayment, etc.,
and any document, certificate and Party B’s collection record and certificate
made or kept by Party B arising from Party A’s handling of the principal and
interest repayment transactions, shall constitute an effective evidence
certifying the definite debtor-creditor relationship between Party A and Party
B.  Party A shall not raise any objection by the excuse that the
aforesaid records, recordation, document and certificate are made unilaterally
by Party B.

    

    
      	
            	
              13.6

            	
              Non-waiver

            

    

    Party B’s
rights under this Contract shall not affect and preclude its rights under the
applicable laws and regulations and under other contracts.  Any
tolerance, allowance, preference to any of breach of contract or any delay, or
the delay in exercising any right under this Contract shall not be regarded as a
waiver to the rights and interests under this Contract or as a permission or
recognition to any breach of contract, nor shall limit, preclude or impede the
continuing exercise of such right or any other rights, nor shall cause Party B
to undertake obligations and liabilities toward Party A.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
            	
              13.7

            	
              In
      addition to the debt under this Contract, where Party A has any other due
      debt toward Party B, Party B has the right forcibly transfer or deduct the
      fund (in RMB or other currency) in the account opened by Party A in the
      system of China Construction Bank, which will be firstly used to pay off
      any due debt, and Party A shall agree not to raise any
      objection.

            

    

    

    
      	
            	
              13.8

            	
              Party
      A shall notify Party B immediately in writing upon any change of Party A’s
      mail address or contact methods, and any losses arising from untimely
      notification shall be borne by Party A on its
  own.

            

    

    

    
      	
            	
              13.9

            	
              This
      Contract shall be interpreted and the true intention of the provisions
      thereof shall be determined according to the purpose for concluding this
      Contract, terms and expressions used in this Contract, the contents of the
      relevant provisions of this Contract, the transaction practices, the
      international practices (including but not limited to the applicable UCP
      of International Chamber of Commerce and the latest version thereof on the
      date when Party B issuing the irrevocable documentary credit ) and the
      principle of good faith.

            

    

    

    
      	
            	
              13.10
      

            	
              The
      application letter for the documentary credit issuance, the application
      letter for credit modification and other relevant documents submitted by
      Party A to Party B shall be the integral parts of this Contract, which
      shall have the same legal effect with this
  Contract.

            

    

    

    
      	
            	
              13.11

            	
              According
      to the business demand, Party B is entitled to authorize other branches of
      China Construction Bank to exercise and perform the rights and obligations
      under this Contract, and Party A shall agree Party B’s such
      authorization.

            

    

    

    
      	
            	
              13.12

            	
              Dispute
      Settlement

            

    

    Any
dispute arising out from the performance of this Contract can be settled by
negotiations, if no agreement can be reached after the negotiation, the said
dispute shall be settled through (2) provided below:

    
      	
               
      

            	
              (1)

            	
              File
      a lawsuit to the People’s Court where Party B is
  located.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Submit
      the dispute to Zhengzhou Arbitration Committee (Anyang Tribunal) for
      arbitration (in Anyang Municipality) in accordance with its applicable
      rules.  The arbitration award is final and binding on the
      Parties.

            

    

    

    During
the litigation or arbitration proceedings, other provisions of this Contract
which is not being disputed shall be performed as well.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
            	
              13.13

            	
              Effectiveness

            

    

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

    

    
      	
               
      

            	
              (1)

            	
              This
      Contract has been signed and stamped by Party A’s legal representative (or
      principal) or authorized
representative;

            

    

    

    
      	
               
      

            	
              (2)

            	
              This
      Contract has been signed and stamped by Party B’s principal or authorized
      representative; where Party B authorizes its subordinated branch to sign
      this Contract, and then this Contract has been signed and stamped by the
      principal of such branch.

            

    

    

    
      	
            	
              14.

            	
              This
      Contract has three original copies.

            

    

    

    
      	
            	
              15.

            	
              Other
      Provisions

            

    

    

    
      	
               
      

            	
              (1)

            	
              Where
      there is any discrepancy between this Contract and the “Commitment Letter
      for Import Credit Transaction” issued by Party A before signing this
      Contract, this Contract shall
prevail.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Party
      B authorizes Anyang Branch of China Construction Bank Stock Limited
      Company to sign and stamp this Contract on its
  behalf.

            

    

    

    
      
        	
              	
                (3)

              	
                Party
      A and Party B agree that, Party A shall perform its obligations under this
      Contract towards Anyang Branch of China Construction Bank Stock Limited
      Company, where Party A fails to perform its obligations toward Anyang
      Branch of China Construction Bank Stock Limited Company or fails to
      perform its obligations according to this Contract, Party A shall be held
      liable for breach of
contract.

              

      

    

    

    
      	
               
      

            	
              (4)

            	
              Where
      any damages incurred to Party B arising from Party A’s breach of contract,
      Anyang Branch of China Construction Bank Stock Limited Company is entitled
      to directly claim against Party A.

            

    

    

    
      	
            	
              16.

            	
              Representation

            

    

    

    
      	
              
              

            	
              (1)

            	
              Party
      A is clearly aware of Party B’s business scope and
      authorizations.

            

    

    

    
      	
              
              

            	
              (2)

            	
              Party
      A has already read all the provisions of this Contract.  Upon
      Party A’s request, Party B has already provided explanations to this
      Contract accordingly.  Party A has being clearly aware of and
      fully understand all the provisions of this Contract and the correspondent
      legal consequences thereof.

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              
              

            	
              (3)

            	
              Party
      A’s execution and performance of this Contract is in compliance with the
      applicable laws, administrative regulation and rules and Party A’s
      articles of association or internal organization documents, and has
      already been approved by Party A’s internal authority and/or national
      competent authorities.

            

    

    

    Party A
(Stamp):

    Henan
Shuncheng Group Coal Coke Co., Ltd

    Signed by
the Legal Representative (Principal) or Authorized Representatives: /s/ Wang Xinshun

    Date: _
day _ month _year

    

    Party B
(Stamp):

    Anyang
Branch of China Construction Bank

    Signed by
the Principal or Authorized Representative: [illegible]

    Date: _
day _ month _year

    
      
         

      

      
        13Unassociated Document

    Exhibit
10.38

    

     Luo
Yin (2010) [Zhengzhou Fen]Hang Jie Zi No. 2100010

    

    RMB LOAN
AGREEMENT

    

    (For
Corporation)

    

    BANK OF
LUOYANG

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Borrower:
Henan Shuncheng Group
Coal Coke Co., Ltd.

    

    Lender:
Zhengzhou
Branch of the Bank of Luoyang

    

    To clear
the rights and responsibilities of the Borrower and Lender, according to
applicable laws and regulations, the Borrower and Lender, after reaching an
agreement through negotiations, hereby enter into this Loan
Agreement.

    

    
      Article
1    Type
and Amount of the Loan

    

    

    
      	
              1.1

            	
              Type
      of the loan under this Loan Agreement shall be current fund
      loan.

            

    

    

    
      	
              1.2

            	
              Loan
      amount (full-form characters): RMB Twenty million
      yuan.

            

    

    

    
      Article
2    Use
of the Loan

    

    

    Purchase of raw
material

    

    
      Article
3     Duration
of the Loan

    

    

    
      	
              3.1

            	
              Loan
      term: 12 months,
      from January 28, 2010 to January 27,
  2011.

            

    

    

    
      	
              3.2

            	
              Within
      the term of this Loan Agreement, the release date and repayment date shall
      be subject to the Loan Voucher.

            

    

    

    
      Article
4    Interest
Rate and Interest Calculation

    

    

    
      	
              4.1

            	
              Interest
      rate under this Loan Agreement, shall be 5.31‰ per month
      and shall be subject to the interest rate provided by People's Bank of
      China on the disbursement date of the
Lender.

            

    

    

    
      	
              4.2

            	
              The
      interest of the loan under this Loan Agreement is to be accrued from the
      disbursement day and settled monthly
      (month/season). The settlement date is the 20th day of each month
      (month/season). All principal and interest shall be paid in full on
      the day the term of the Loan
expires.

            

    

    

    
      	
              4.3

            	
              In
      the case that the Borrower prepays the loan with the prior consent of the
      Lender the interest shall still be calculated according to the interest
      rate and actual term of the loan.

            

    

    

    
      	
              4.4

            	
              During
      the term of this Loan Agreement, in the event that People's Bank of China
      adjusts the relevant regulations and such adjustments are applicable to
      the loan hereunder, the Lender may implement such regulations of People's
      Bank of China and Bank of Luoyang without noticing the
      Borrower.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      Article
5     Release
of the Loan

    

    

    
      	
              5.1

            	
              The
      Lender shall only be liable to release of funds under the Loan Agreement
      provided that the following precedent conditions have been satisfied
      except that the waive or waive partly to the provisions
      herein:

            

    

    

    
      	
              5.1.1

            	
              Borrower
      has performed all the approvals, registrations, delivery and other
      legally-required procedures in accordance with relevant laws and
      regulations;

            

    

    

    
      	
              5.1.2

            	
              Where
      there is guarantee of this Loan Agreement, a related Guarantee Agreement
      meeting the requirements of the Lender has come into effect and such
      Guarantee and insurance will continue to be
  effective.

            

    

    

    
      	
              5.1.3

            	
              No
      event of default provided in this Loan Agreement has been conducted by the
      Borrower;

            

    

    

    
      	
              5.1.4

            	
              Other
      provisions of both parties:                            
      /                          
         

            

    

    

    
      	
              5.1.5

            	
              Release
      Plan:                                               
      /           
                                

            

    

    

    
      Article
6    Source
of Repayment and Repayment of the Loan:

    

    

    
      	
              6.1

            	
              The
      source of the repayment includes but not limited to revenue, profits and
      other legal income.

            

    

    

    
      	
              6.2

            	
              The
      order of the repayment of the normal Loan herein shall abide by the order
      of the interest first and then the
principal.

            

    

    

    
      	
              6.3

            	
              The
      Borrower shall pay to the Lender the due interest on the settlement day.
      The first payment of the interest is on the first settlement day and the
      interest shall be paid off together with the
  principal.

            

    

    

    
      	
              6.4

            	
              Repayment
      method: The
      Borrower shall repay the principal under this Loan Agreement in full on
      the due date in lump sum.

            

    

    

    
      	
              6.5

            	
              The
      Borrower shall, prior to the due date provided herein, reserve the payable
      funds in the account opened with the Lender and repay the Loan under this
      Loan Agreement on the Borrower's own initiative, or withdraw funds from
      other accounts to the account of the Lender on the due date. In the case
      that the Borrower fails to repay to the Lender as speculated herein the
      Lender shall have the right to withdraw funds from the account at Bank of
      Luoyang opened by the Borrower.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      Article
7    Guarantee

    

    

    
      	
              7.1

            	
              The
      guarantor under this Loan Agreement is Anyang Xinpu Steel
      Co., Ltd , Anyang County Bailianpo Coal Co., Ltd and Wang Xinshun,
      who shall be jointly and severally
      guarantee with respect to the loan
  hereunder.

            

    

    

    
      	
              7.2

            	
              The
      Borrower shall be obliged to actively assist the Lender to enter into the
      guarantee Agreement with the number of [Luoyin Zhengzhou Fen Hang Baozi
      100202D210001000B-1, 100202D210001000B-2, 100202D210001000B-3] with the
      said guarantor.

            

    

    

    
      Article
8     Rights
and Responsibilities of the Borrower

    

    

    
      	
              8.1

            	
              The
      Borrower shall have the following
rights:

            

    

    

    
      	
              8.1.1

            	
              To
      require the Lender to disburse the Loan in accordance with the provisions
      herein;

            

    

    
      	
              8.1.2

            	
              To
      use the funds subject to the purposes provided
  herein;

            

    

    
      	
              8.1.3

            	
              To
      require the Lender to keep confidential the relevant financial materials
      provided by the Borrower and the business confidential information with
      respect to the production and operation except as otherwise provided by
      laws and regulations.

            

    

    

    
      	
              8.2

            	
              The
      Borrower shall have the following
  responsibilities:

            

    

    

    8.2.1           The
borrower shall provide the relevant financial and accounting materials and
production and operation situation materials, including but not limited to
submitting the financial statements up to the end of last month to the Lender by
the tenth day of every month, and be liable of the authenticity, integrity and
effectiveness of such materials.

    

    8.2.2           The
borrower shall use the funds subject to the purposes provided herein and shall
not misappropriate and embezzle the funds. The borrower and its investor shall
not surreptitiously withdrawn funds or transfer assets to avoid the liabilities
to the Lender.

    

    8.2.3           The
Borrower shall actively cooperate with the Lender and accept the examination and
inspection of its production and operation, financial activities and the
situation of the use the Loan under this Loan Agreement;

    

    8.2.4           The
Borrower shall repay the principal and interest of the loan herein pursuant to
this Loan Agreement.

    

    8.2.5           The
Borrower shall not, prior the fully repayment of the principal and interest of
the loan herein, provide Guarantee with the loan hereunder or the assets
generated by the loan, which could influence the ability of the Borrower to
repay the funds. In the event that the shareholder transfers the investment the
Borrower shall notice the Lender in writing in advance and obtain the consent of
the Lender.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.2.6      
      The Borrower shall, prior the fully
repayment of the principal and interest of the loan herein, notice the Lender in
writing in advance in the case that the name, residential address, legal
representative (person in charge), business scope or registered capital is
changed.

    

    8.2.7     
       In the event that Agreement with,
lease, re-organization according to modern corporate system, co-operation, merge
and acquisition, dissolution, joint venture, filling for suspension business for
rectification and bankruptcy occurs to the Borrower it shall, prior the fully
repayment of the principal and interest of the loan herein, notice the Lender in
writing 60 days in advance to obtain the consent of the Lender and fulfill the
repayment and guarantee of the loan hereunder according to the requirements of
the Lender.

    

    8.2.8    
        Prior to the repayment of
interest of loan of the Lender, In the event that cease of production, business
suspension, logout registration, withdrawal of the business license, illegal
activities conducted by the legal representative or chief leader, involvement of
the major law suits, great difficulties in the production or business operation
or aggravating financial situation occurs to the Borrower, which may produce the
substantial adverse effect on the implement of the repayment liabilities
hereunder, it shall promptly notice the Lender in writing and fulfill the
repayment and guarantee of the loan hereunder according to the requirements of
the Lender.

    

    8.2.9    
        Where the guarantor of this Loan
Agreement violates the provisions in the guarantee Agreement, or the cease of
production, business suspension, logout registration, withdrawal of the business
license, bankruptcy or loss in the business operation, which could cause the
incapability, in whole or partly, of the Guarantee hereunder, occurs to such
guarantor, or the value of the mortgaged or pledged properties reduces or the
said properties destroyed by accident, the Borrower shall promptly provide other
Guarantee verified by the Lender.

    

    8.2.10    
      The expenses and fees such as legal fees,
insurance, verification, registration, custody, notarization, deposit and
appraisal with respect to this Loan Agreement or the guarantee hereunder shall
be born by the Borrower.

    

    
      Article
9    Rights
and Responsibilities of the Lender

    

    

    
      	
              9.1

            	
              The
      Lender shall have the following
rights:

            

    

    

    
      	
              9.1.1

            	
              To
      know the business operation and financial activities situation of the
      Borrower and to require the Borrower to provide the documentation such as
      relevant plan and statistics, financial and accounting
    report.

            

    

    
      	
              9.1.2

            	
              When
      collecting or collecting in advance in accordance with the provisions
      hereunder the principal, interest, default interest, overdue interest,
      compound interest and other payable fees and expenses of the Borrower, to
      withdraw the payable funds from the account opened by the Borrower in Bank
      of Luoyang.

            

    

    

    
      	
              9.2 

            	
              The
      Lender shall have the following
  responsibilities:

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              9.2.1

            	
              To
      release the loan hereunder fully and in time in accordance with the
      provisions hereunder except the delay caused by the
    Borrower.

            

    

    
      	
              9.2.2

            	
              To
      keep confidential the relevant financial materials provided by the
      Borrower and the business confidential information with respect to the
      production and operation except as otherwise provided by laws and
      regulations.

            

    

    

    
      Article
10    Effectiveness,
Modification, Cancellation and Termination of the Agreement

    

    

    
      	
              10.1

            	
              This
      Loan Agreement will become effective upon the signature of the legal
      representative (responsible person) or authorized representative of the
      Borrower or affixing of the official seal and the signature of the person
      in charge or authorized representative and affixing of the official seal
      of the Lender.

            

    

    

    
      	
              10.2

            	
              Should
      the Borrower need to extend the term of the loan the Borrower shall apply
      to the Lender 30 days prior to the due date of the loan and obtain the
      written consent of the Lender.

            

    

    

    
      	
              10.3

            	
              The
      assignment of the liability hereunder to any third party shall be subject
      to the written consent of the Lender. This Loan Agreement shall remain in
      effect prior to the assigned party entering into new loan Agreement with
      the Lender.

            

    

    

    
      	
              10.4

            	
              Where
      either the Borrower or the Lender needs to amend the other provisions
      hereunder the Lender shall be noticed in writing and such amendments shall
      be agreed by both parties upon the
negotiations.

            

    

    

    
      	
              10.5

            	
              The
      agreements to amend the contents of this Loan Agreement by both parties
      shall be considered to be agreed by the guarantor in writing except the
      extension of the implementation period of the liability and increase of
      the principal of this loan.

            

    

    

    
      Article
11    Default
Liability

    

    

    
      	
              11.1

            	
              Should
      the Borrower violate article 8.2 hereunder or the Lender consider other
      circumstances exist, which could cause material effect of the implement of
      the credit, the Lender shall have the right to perform the following one
      or several rights:

            

    

    

    
      	
              11.1.1

            	
              The
      Borrower shall be liable to pay the Lender penalty equivalent to ten
      percent of the principal.

            

    

    
      	
              11.1.2

            	
              The
      Lender ceases to release the funds, or declare the term of the loan
      expires immediately and require the Borrower to repay all of the
      principal, due or undue, interest and all of the expenses and fees for the
      fulfillment of the credit (including but not limited to the fees of
      lawyers, lawsuits, arbitration, property preservation, business travel and
      enforcement).

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              11.1.3

            	
              In
      the event that the Borrower fails to use the funds under this loan
      according to the purpose provided herein or fails to repay in time the due
      principal and interest the penalty interest shall be accrued from the day
      that such misuse happens or the loan becomes due, till the day that all of
      the principal and interest be paid off. Such penalty interest shall be 50%
      and 50%, respectively, more than the provided interest of this loan. Where
      the People’s Bank of China adjusts the relevant regulations the Lender may
      implement such regulations without noticing the
  Lender.

            

    

    
      	
              11.1.4

            	
              The
      interest that the Lender fails to pay in time pursuant to the provisions
      herein, prior to the due time of this loan, the compound interest shall be
      calculated in accordance with the method of the interest calculation
      hereunder.

            

    

    
      	
              11.1.5

            	
              Where
      the default liabilities provided in the guarantee Agreement shall be born
      by the guarantor the Borrower shall be considered as default; or where the
      circumstances provided under article 8.2.6 of this Loan Agreement the
      Lender has the right to require guarantor to provide new guarantee, which
      satisfies the Lender, with respect to all the debt hereunder, should
      guarantor fails to provide such new guarantee the Lender shall cease to
      release the funds immediately and require the Borrower to repay all of the
      principal, due or undue, interest and all of the expenses and fees for the
      fulfillment of the credit (including but not limited to the fees of
      lawyers, lawsuits, arbitration, property preservation, business travel and
      enforcement).

            

    

    
      	
              11.1.6

            	
              In
      the event that the default event occurs to the Borrower or guarantor and
      the Borrower fails to repay all of the principal and interest according to
      the requirements of the Lender, the Lender shall have the right to
      withdraw the funds from the accounts of the Borrower opened at Bank of
      Luoyang.

            

    

    
      	
              11.1.7

            	
              To
      implement the guarantee rights.

            

    

    
      	
              11.1.8

            	
              To
      terminate this Loan Agreement.

            

    

    

    
      	
              11.2

            	
              In
      event that the Lender violates article 9.2 under this
      Agreement

            

    

    

    
      	
              11.2.1

            	
              The
      Borrower shall pay 10% default
      penalty to the Lender.

            

    

    
      	
              11.2.2

            	
              The
      Borrower shall be liable for all the loss caused to the
      Lender.

            

    

    

    
      Article
12    Other
Clauses

    

    

    Supplementary
clauses regarding the interest: The interest under this Loan Agreement shall be
floating interest. Within the term of this Agreement, in the event that the
People’s Bank of China adjusts the loan interest, the interest of this Loan
Agreement shall be implemented in accordance with the loan interest of the same
period on the 21st day of the following month of such adjustment, and the Lender
will not send a specific notice to the Borrower.

    

    
      Article
13    Resolution
of Disputes

    

    

    
      	
              13.1

            	
              Any
      disputes arising out of, or in connection with the execution of this
      Agreement shall be settled through the consultations between two parties;
      where the agreements fail to be reached through such consultation, such
      disputes shall be summated to the court of the legal address of the
      Lender.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              13.2

            	
              During
      the period of the suit or arbitration, the provisions not related to the
      resolution of disputes shall still continue to be
    implemented.

            

    

    

    
      Article
14    Miscellaneous

    

    
      	
              14.1

            	
              The
      Borrower understands clearly the business scope of the Lender and
      authorization.

            

    

    

    
      	
              14.2

            	
              Upon
      the requirements of the Lender the Borrower has already made the relevant
      interpretation with respect to the provisions herein. The Borrower fully
      knows and understands clearly the meaning of the provisions herein and
      corresponding results.

            

    

    

    
      	
              14.3

            	
              The
      Loan Voucher under this Loan Agreement and related documents and materials
      confirmed by both parties are inseparable components of this Loan
      Agreement with the same legal effect of this Loan
    Agreement.

            

    

    

    
      	
              14.4

            	
              This
      Loan Agreement has two originals, which are identical to each other with
      each of the parties holding one copy. Each copy has the same legal
      effect.

            

    

    

    
      
        	
                The
      Borrower (seal)

                 

              	 	
                The
      Lender (seal)

                 

              
	
                Legal
      Representative (Main Responsible Officer) or Authorized Agent: /s/ Wang
      Xinshun

                 

              	 	
                Legal
      Representative (Main Responsible Officer) Authorized Agent:
      [illegible]

              
	
                Date:
      January 28, 2010

              	 	
                Date:
      January 28, 2010

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"}]]