Document:

EXHIBIT
      10.1

    BANK
      OF CHINA

     

    Loan
      Contract

    (For
      Short Term)

     

    
      	
              The
                Borrower:

            	
              Luoshan
                finding Chemical Co., Ltd.

            
	
              Business
                License No.:

            	
              4130282000056

            
	
              Legal
                Representative:

            	
              Zhou
                Dianchang

            
	
              Address:

            	
              Xicheng
                Industrial Zone, Luoshan

            
	
              A/C
                and opening Bank:

            	
              Bank
                of China, Luoshan Sub-branch, 29925708092001

            
	
              TEL:

            	
              0S76-2168518

            
	 	 
	
              The
                Lender:

            	
              Bank
                of China, Luoshan Sub-branch

            
	
              Legal
                Representative:

            	
              Wang
                Yong'an

            
	
              Address:

            	
              No.110
                Chengguan Xidajie, Luoshan

            
	
              TEL:

            	
              0376-2176253

            

    

     

    According
      to the applicable laws, the Borrower and Lender, after reaching an agreement
      through negotiations, hereby enter into this contract pursuant to Borrowers
      application to Lender for a short-term Reaminbi loan.

     

    Article
      1  The
      Loan

     

    The
      total
      loan amount (in capital letters) is RMI3 TEN MILLION exactly, RMB 10,000,000
      (equivalent to US 1,250,000 dollars).

     

    Article
      2  Term

     

    The
      loan
      term is twelve months, ranging from the designed Advance Date of the loan to
      the
      last designed Repayment Date of the loan. Shall the designed Advance Date be
      some particular period, the beginning day of that period shall be deemed as
      the
      outlined "Advance Date".

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Article
      3  Use

     

    The
      loans
      credited under the Contract shall be solely used for purchasing raw materials
      and shall not be diverted on any other purposes of uses unless with a prior
      written consent of the Lender.

     

    Article
      4  Interest
      rate & Calculation

     

    The
      annual interest rate: 5.58%, counted from the actual advance date and by actual
      loan days and amount with the calculation base of 360 days per
      annum.

     

    The
      formula on interest calculation:

     

    The
      interest due under this loan contract shall be collected by each quarter, say
      on
      March 20, June 30, September 20th
      and
      December 20 every year.

     

    Article
      5  Conditions
      on Loan Advance

     

    Shall
      the
      Borrower fail to meet any one of the following conditions, the Lender has the
      right to refuse its application on the advance of the loan.

     

    
      	1)  	
              submit
                the written advance application and related certifications on the
                uses of
                the loan five days earlier;

            

    

    
      	 	 

    

    
      	2)  	
              the
                loan contract and its appendixes have all been
                effected;

            

    

    
      	 	 

    

    
      	3)  	
              the
                guaranty under this Contract as said in Article 4 hereof has been
                effected;

            

    

    
      	 	 

    

    
      	4)  	
              the
                Borrower has already established the bank accounts for the loan advance,
                interest and other expense payment and loan repayment
                accordingly;

            

    

    
      	 	 

    

    
      	5)  	
              submit
                the Board Resolution and the Letter of Designation regarding this
                Loan
                Contract, which has been approved by the Board Meeting or other relevant
                authorities;

            

    

    
      	 	 

    

    
      	6)  	
              submit
                the name-list and their signatory samples, the persons of whom shall
                sign
                either on the contract or voucher;

            

    

    
      	 	 

    

    
      	7)  	
              there
                has no occurrence of default as said in Article 11
                hereof;

            

    

    
      	 	 

    

    
      	8)  	
              meet
                other conditions co-designated by both parties or pursuant to applicable
                laws & regulations.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Article
      6  Loan
      Advance Date

     

    The
      Borrower shall advance the total loan amount on March 31, 2006 by one time.

     

    Article
      7  Loan
      Advance Procedure

     

    Each
      time
      as of the advance, the Borrower shall submit the advance application as required
      and complete all the relevant procedures as well.

     

    Article
      8  Payment
      on the Loan

     

    The
      Borrower shall repay the principal and interest in full under the repayment
      schedule below.

     

    
      	
              Repayment
                Times

            	
              Repayment
                Date

            	
              Repayment
                Amount

            	 	
              Repayment
                Times

            	
              Repayment
                Date

            	
              Repayment
                Amount

            
	
              1
                (Bullet Loan)

            	
              2007-03-31

            	
              RMB
                10,000,000

            	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

    

    The
      Borrower may make adjustment to above repayment schedule subject to the written
      application 30-day earlier than the maturity date. Any changes or revision
      made
      to the schedule shall be co-confirmed by both parties in advance.

     

    The
      repayment in advance is allowed but subject to a fifteen-day prior notice to
      the
      Lender while the Lender has the right to collect the 10% interest payable on
      the
      advance payment part as the compensation. Whereas, the prepayment shall not
      be
      re-advanced once approved by the Lender.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Article
      9  Guaranty

     

    The
      total
      loan under this Contract shall adopt the 1) and 2) methods to provide
      guaranty:

     

    
      	1)	
              Mr.
                Zhou Dianchang and Mr. Wang Guiquan have the joint liability to provide
                the guaranty on loan repayment and thereby shall sign the separate
                Guarantee Contract numbered 2006 LuoZhongYinBaoZi
                No. 001
                and 2006 LuoZhongYinBaoZi
                No. 002
                with the Bank of China.

            

    

    
      	2)	
              Luoshan
                Ending Chemical Co., Ltd. shall also provide security and sign a
                separate
                Security Contract numbered 2006
                LuoZhongYinDiZi No  001
                with the Bank of China.

            

    

     

    When
      the
      financial conditions of the guarantor deteriorates, its solvency distinctively
      descends, or its guarantee capability is distinctively weakened or forfeited
      because the guaranty devalues, is damaged or destroyed, the Lender has the
      right
      to request either new guaranty or to replace the Guarantor for the security
      on
      the loan.

     

    Article
      10  Declaration
      and Warranties

     

    The
      Borrower hereby makes the declaration
      as
      follows:

     

    
      	1)  	
              that
                the Borrower is legally registered and
                incorporated;

            

    

    
      	 	 

    

    
      	2)  	
              that
                the Borrower has obtained the warrant required under this
                Contract;

            

    

    
      	 	 

    

    
      	3)  	
              that
                all the files, data, statements and vouchers provided by the Borrower
                are
                true, accurate, integrate and
                effective;

            

    

    
      	 	 

    

    
      	4)  	
              that
                the Borrower has not hidden any following occurrence or possible
                occurrence which might affect the judgment towards its contract
                performance:

            

    

    
      	 	 

    

    
      	i)  	
              if
                there have any big severe law breaches and violation behaviors or
                claims
                on compensation related to either the Borrower or its key
                management;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	ii)  	
              if
                the Borrower has any default under other
                contracts;

            

    

     

    
      	iii)  	
              if
                the Borrower has assumed any debts, contingent liability or the security
                and guaranty to the third party;

            

    

     

    
      	iv)  	
              if
                there has any lawsuit or arbitration suspended;
                and

            

    

     

    
      	v)  	
              other
                occasions that might affect the financial conditions and solvency
                of the
                Borrower.

            

    

     

    The
      Borrower hereby makes the warranties
      as
      follows:

     

    
      	1)  	
              that
                the Borrower assures to promptly provide the most updated financial
                statements and related materials requested by the Lender, including
                but
                not limited to the previous-year financial statements and other files
                or
                data regarding the financial conditions and operation results of
                the
                Borrower;

            

    

    
      	 	 

    

    
      	2)  	
              that
                if the

            

    

    
      	 	 

    

    
      	3)  	
              that
                the Borrower would fully cooperate with the Lender for purposes of
                supervision and inspection on uses of fund borrowed under this Loan
                Contract;

            

    

    
      	 	 

    

    
      	4)  	
              that
                when the Borrower's registered capital, operational system or the
                organizational form of property ownership is materially changed,
                including
                but not limited to, the practices of contracting, leasing operations,
                joint operations, joint-stock reconstruction, mergers & acquisition,
                joint-venture or cooperation, split-off & subsidiaries establishment,
                the transfer of property ownership, capital reduction, winding-up,
                dissolution and bankruptcy application, a prior written notice shall
                be
                delivered to the Lender and the approval is required if any above
                actions
                could cause an unfavorable impact towards the solvency of the
                Borrower;

            

    

    
    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	5)  	
              that
                the Borrower's act as a guarantor to a third party would not have
                the
                material adverse effect on its
                solvency;

            

    

    
      	 	 

    

    
      	6)  	
              that
                the liquidation sequence of the loan under this Contract is in priority
                than the loans from the Borrower’s shareholders and no less than those
                indebtedness of same category;

            

    

    
      	 	 

    

    
      	7)  	
              that
                any of the following occurrences would be promptly noted to the
                Lender:

            

    

    
      	 	 

    

    
      	i)  	
              any
                types of breach or violation either under this Contract or any other
                contracts;

            

    

     

    
      	ii)  	
              when
                the Borrower alters its accreditation, amends the articles of association,
                replaces its key management personnel, or makes key resolutions on
                the
                internal organizational framework;

            

    

     

    
      	iii)  	
              when
                any material changes on Borrower's finance occurs or its financial
                conditions deteriorates;

            

    

     

    
      	iv)  	
              when
                the Borrower has been involved into any kind of big lawsuits or
                arbitration cases; or

            

    

     

    
      	v)  	
              when
                other issues that may significantly affect the Borrower's financial
                position or solvency have occurred

            

    

     

    
      	8)  	
              that
                the Borrower shall deposit the full amount of the principal and interest
                due 15 days earlier to the account;

            

    

    
      	 	 

      	9)  	
              that
                the loan settlement under this Loan Contract shall be processed in
                the
                branches of the Bank of China with the total amount up to the requirements
                of the Lender; or

            

    

    
      	 	 

      	10)  	
              that
                the Borrower shall not distribute the interests or dividends in any
                types
                when the net profit after tax in related financial years is either
                zero or
                negative or is not enough to offset the accumulated loss of previous
                years, or the profit before tax hasn't been used to liquidate the
                Lender's
                principal, interest and expenses due or insufficient to pay the principal,
                interest and expenses of next term.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Article
        11  Defaults
        & Disposal

    

     

    In
      case
      Party A fails to repay the loan on schedule and neither reaches any further
      agreement, Party B shall collect the overdue interest with a daily rate of
      2.1
      of ten thousand percent.

     

    In
      case
      that the Borrower uses the loan on any other purposes rather than the
      contractual one, the Lender has the right to impose a penalty interest rate
      of a
      daily 5 of ten thousand percent on the embezzled amount.

     

    The
      Lender may cease to release or cancel the loan funds unused by the Borrower
      and
      unilaterally declare all principals under the Loan Contract become due in
      advance in case of any following events occurred:

     

    
      	1)  	
              if
                the Borrower is delinquent to repay the principal and interest overdue
                for
                over 30 days;

            

    

    
      	 	 

      	2)  	
              if
                the embezzlement of the total loan amount overdue exceeds RMB 5
                million;

            

    

    
      	 	 

      	3)  	
              if
                the Borrower violates its declaration to be true or its warranties
                in
                Article 14;

            

    

    
      	 	 

      	4)  	
              if
                the Borrower has any defaults or breaches under other
                contracts;

            

    

    
      	 	 

      	5)  	
              if
                the Guarantor or mortgager has any breach under the guaranty that
                may
                affect its performance on the contractual
                obligations;

            

    

    
      	 	 

      	6)  	
              if
                the operation of the Borrower terminates, wind-up, withdraws or goes
                into
                bankruptcy;.

            

    

    
      	 	 

      	7)  	
              if
                the financial conditions of the Borrower or its Guarantor is significantly
                affected; or

            

    

     

    S)
      if the
      Borrower fails to provide new guaranty when the old ones have been devalued,
      damaged, destroyed, sealed up or frozen.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
      12  Deduction

     

    The
      Borrower hereby irrevocably authorizes the Lender to directly withdraw funds
      from its deposit accounts in the Bank of China for the recovery of the
      principal, interest, penalty interest and other fees unpaid subject to the
      approval of the Borrower.

     

    Article
      13  Taxes
      & Expenses

     

    The
      Borrower shall undertake the taxes and expenses incurred under this Contract,
      its performance and related disputes settlement, including but not limited
      to
      the stamp duty, interest withholding tax, legal fare, execution charge, attorney
      fee, notarial charge and etc.

     

    Article
      14  Cancellation,
      Transfer & Preservation of the Rights

     

    The
      Borrower shall fully repay the loan in terms of the Contract and shall only
      make
      a cancellation proposal subject to the approval of the Lender.

     

    Without
      the written approval of the Lender, the Borrower shall not transfer anything
      under this Contract to the third ply

     

    Article
      15  Alteration
      & Termination

     

    Upon
      the
      mutual written approval, the Loan Contract can be revised, complemented or
      terminated with all the revised and supplementary part inseparable to the whole
      Contract.

     

    Article
      16  Applicable
      laws, disputes settlement and jurisdiction

     

    This
      Loan
      Contract is under the jurisdiction of PRC laws.

     

    Any
      disputes concerning the contract shall be resolved through mutual negotiations
      initially; shall this fail, following method can be adopted as agreed by both
      parties: apply the legal procedure at the local court where Lender locates.
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
      17  Appendix

     

    The
      appendixes attached hereafter and other related documents & materials
      confirmed by both parties under this Loan Contract are inseparable components
      to
      this Loan Contract and holds equivalent legal force.

     

    Article
      18  Validation

     

    This
      Loan
      Contract shall become effective once signed by legal representatives or
      authorized representatives with official seals of both parties.

     

    This
      Loan
      Contract is in quadruple with each party holding one copy of equivalent legal
      force.

     

    Article
      19  Remarks

     

    Both
      the
      Lender and the Borrower have fully negotiated regarding the terms and conditions
      under this Loan Contract. The Lender has

     

    
      	
              Borrower:

            	
              Luoshan
                Jinding Chemical Co., Ltd.

            	
              Lender:

            	
              Bank
                of China, Luoshan Sub-branch

            
	 	 	 	 
	 	 	 	 
	
              Legal
                Representative or Authorized Representative:

            	
              Legal
                Representative or Authorized Representative:

            
	
              Zhou
                Dianchang

            	
              Fan
                Wanzhou

            
	
              (Signature)

            	
              (Signature)

            
	 	 
	 	 
	
                /s/  Zhou
                Dianchang                            

            	
                /s/  Fan
                Wanzhou                                        

            
	 	 
	
              Date: March 31,
                2006.EXHIBIT
      10.2

     

     

    RMB
      CURRENCY LOAN CONTRACT

     

    China
      Construction Bank

     

    Henan
      Branch

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    Borrower
      (hereinafter to as Party A): Luoshan Jinding Chemical Co.,
      Ltd

     

    Lender
      (hereinafter to as Party B): Xinyang Branch of China Construction
      Bank

     

    Party
      A
      hereby applies loan from Party B and Party B agrees to issue the loan. Party
      A
      and Party B hereby agree to enter into this Contract for the observance and
      performance of the parties in accordance with relevant laws and
      regulations.

    

    ARTICLE
      1 SUM OF THE LOAN

    Party
      A
      borrows from Party B RMB
      SIX MILLIOM EXACTLY..

     

    ARTICLE
      2 PURPOSE OF THIS LOAN

    This
      loan
      will be used by Party A fornormal
      working capital turnover. 

     

    ARTICLE
      3 TERM OF THIS LOAN

    The
      term
      of this loan is 12
      months
      from
January
      1st, 2006
      to
January
      1st, 2007.

     

    Where
      the
      starting date of the loan under this contract is different from that recorded
      on
      the transference certificate of loan, the date recorded on the transference
      certificate of loan of the first issuance of loan shall prevail. The
      transference certificate of loan constitutes part of this Contract and has
      the
      equal binding effect as this Contract. 

     

    ARTICLE
      4 INTEREST RATE, DEFAULT INTEREST RATE, CACULATION OF INTEREST AND SETTLEMENT
      OF
      INTEREST

     

    
      	1.	
              Interest
                Rate

            

    

     

    The
      interest rate of the loan under this Contract is monthly rate and the rate
      is
      calculated in the way as is provided in (a) as follows:

     

    
      	(a)	
              Fixed
                rate. The rate will be fixed at 5.115 ‰ during the loan
                term;

            

    

     

    
      	(b)	
              Floating
                rate. The rate is ___ (raised/reduced)
                by
                every ___ month(s)
                from the standard interest rate from the date of value. The rate
                adjustment day shall be the corresponding day of the date of value
                in the
                adjustment month. Where there’s no corresponding day of the date of value
                in the month, the last day of the month shall be the rate adjustment
                day.

            

    

     

    
      	2.	
              Default
                interest rate

            

    

     

    
      	(a)	
              The
                default interest rate is monthly
                rate.

            

    

     

    
      	(b)	
              Where
                Party A fails to use the loan within the purpose scope of this Contract,
                the first default interest rate as follows shall be
                applied:

            

    

     

    
      	(i)	
              Fixed
                rate at 10.23%.

            

    

     

    
      	(ii)	
              Floating
                rate. The rate is raised by every ___ month(s)
                from the standard interest rate from the date of value. The default
                interest rate adjustment day shall be the corresponding day of the
                date of
                value in the adjustment month. Where there’s no corresponding day of the
                date of value in the month, the last day of the month shall be the
                default
                interest rate adjustment day.

            

    

     

    
      	(c)	
              The
                overdue default interest rate of the loan under this Contract shall
                be
                that of (i) as follows:

            

    

     

    
      	(i)	
              Fixed
                rate at
                10.23 ‰ ;

            

    

     

    
      	(ii)	
              Floating
                rate. The rate is raised every ___ month(s)
                from the standard interest rate from the date of value. The default
                interest rate adjustment day shall be the corresponding day of the
                date of
                value in the adjustment month. Where there’s no corresponding day of the
                date of value in the month, the last day of the month shall be the
                default
                interest rate adjustment day.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    
      	3.	
              The
                day date of value under this article is the day when the fist loan
                issued
                under this Contract is transferred to Party A’s
                account.

            

    

     

    The
      standard interest rate at the time when the first loan is issued under this
      Contract shall be the loaning interest rate of the same grade promulgated and
      executed by People’s Bank of China on the date of value. The standard interest
      rate henceforth shall be the loading interest promulgated and executed by
      People’s Bank of China on the day when loaning interest rate of the same grade
      or default interest rate is adjusted as is prescribed above. Where People’s Bank
      of China stops promulgate the loaning interest rate of the same grade, the
      standard rate shall be the loaning interest rate of the same grade commonly
      accepted in the bank industry or the usual loaning interest rate of the same
      grade on the adjustment day, unless the two parties have different agreement
      on
      it. 

     

    
      	4.	
              The
                loaning interest is calculated from the day when the loan is transferred
                to Party A’s account. The interest of loans under this contract is
                calculated according to days. Daily interest=monthly interest/30=yearly
                interest/360. Where Party A fails to pay interest timely, compound
                interest is calculated from the second day.

            

    

     

    
      	5.	
              Settlement
                of Interest

            

    

     

    
      	(a)	
              Where
                the loan applies fixed rate, the interest is calculated at the agreed
                rate. Where the loan applies floating rate, the interest is calculated
                at
                the rate as defined at each floating period. Where there are several
                rate
                changes in an individual interest settlement period, the interest
                rate of
                the interest settlement period is calculated with the interest of
                each
                floating period calculated first and interests of each floating period
                added together on the settling day.

            

    

     

    
      	(b)	
              The
                interest of loans under this Contract is settled monthly and the
                settling
                day is the 20th day of each month. 

            

    

     

    ARTICLE
      5 THE ISSUANCE AND USE OF THE LOAN

     

    
      	1.	
              The
                Preconditions for Loan Issuance

            

    

     

    
      	(a)	
              Only
                when the following conditions are met will Party B have the obligation
                to
                issue the loan unless it waives all or part of the
                conditions:

            

    

     

    
      	(i)	
              Party
                A has finished ratification, registration, delivery and other legal
                procedures in accordance with the provisions of laws and
                regulationså

            

    

     

    
      	(ii)	
              Where
                there’s assurance for this Contract, the assurance contract or other
                assurances that meet the requirement of Party B has been in
                effectå

            

    

     

    
      	(iii)	
              Party
                A hasn’t constituted any of the breaches as agreed in this
                Contract;

            

    

     

    
      	(iv)	
              Other
                conditions agreed by the parties on the issuance of
                loan.

            

    

     

    
      	(b)	
              Party
                B shall issue the loan within ten working days of bank after Party
                A has
                satisfied all the above conditions.

            

    

     

    2.
       Loan
      Use
      Plan

     

    (a)
      Jan.
      5th,
      2006,
      Sum:
RMB
      6,000,000  ;

    (b) _____
      (date),
      Sum: ____________;

    (c) _____
      (date),
      Sum: ____________;

    (d) _____
      (date),
      Sum: ____________;

    (e) _____
      (date),
      Sum: ____________;

    (f) _____
      (date),
      Sum: ____________.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      6 REPAYMENT

     

    
      	1.	
              Principles
                of Repayment

            

    

     

    The
      repayment of Party A under this Contract shall be maid in accordance with the
      following principles:

     

    
      	(a)	
              Where
                the principal hasn’t been repaid over 90 days since the due date, the
                interest hasn’t been paid over 90 days since the due date, or where the
                loan hasn’t expired or the repayment of principal or interest hasn’t
                exceeded 90 days since the due date while Party A has stopped its
                production and operation or that the project related to the loan
                stopped,
                or other loans as prescribed in laws or regulations, the repayment
                shall
                be made with principal prior to
                interest;

            

    

     

    
      	(b)	
              As
                for loans not included in (a), the interest shall be paid before
                principal
                and paid off with principal.

            

    

     

    
      	2.	
              Payment
                of Interest

            

    

     

    Party
      A
      shall pay to Party B the due interest on interest settling days. The first
      day
      of interest payment shall be the first interest settling day after the issuance
      of the loan. The interest shall be paid off at the last repayment. 

     

    
      	3.	
              Principal
                Repayment Plan

            

    

     

    Party
      A
      shall repay the principal in the following plan:

     

    (a)Jan.
      5th,
      2007,
      Sum:
RMB
      6,000,000  ;

    (b)
      ______ (date),
      Sum: ___________;

    (c)
      ______
      (date),
      Sum: ___________;

    (d)
      ______
      (date),
      Sum: ___________;

    (e)
      ______
      (date),
      Sum: ___________;

    (f)
      ______
      (date),
      Sum: ___________.

     

    
      	4.	
              Method
                for Repayment

            

    

     

    Party
      A
      shall get the due money ready in Party B’s account before the repayment days as
      agreed in this Contract and transfer it for repayment or transfer money from
      other accounts for repayment on the repayment day as agreed in this Contract.
      Where Party A fails to repay timely, Party B is entitled to transfer the money
      from Party B’s account in China Construction Bank.

     

    
      	5.	
              Advance
                Repayment

            

    

     

    
      	(a)	
              Party
                A shall notify Party B when it pays interest in
                advance.

            

    

     

    
      	(b)	
              Party
                A shall submit to Party B an application in written form thirty working
                days earlier before it repays the principal in advance and can only
                repay
                all or part of the principal at Party B’s consent.
                

            

    

     

    The
      interest shall be calculated according to the actual days that Party A uses
      the
      loan and the loaning interest rate as prescribed in Article 4 of this Contract
      when Party A repays principal in advance. 

     

    Party
      A
      agrees to pay compensation to Party B when it repays the principal in advance.
      Sum of compensation=the amount of principal repaid in advance×the
      number of months between the actual repayment day and the due repayment
      day×1.5‰.
      It
      shall be calculated as one month where the period between the actual repayment
      day and the due repayment day is less than a month. 

     

    Where
      Party A makes the repayment gradually, it shall repay in the converse order
      of
      the repayment plan if it repays part of the principal in advance. The loaning
      interest rate agreed in this Contract shall apply to the remaining loan after
      the advance repayment. 

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    ARTICLE
      7 ASSURANCE FOR THE LOAN

     

    Where
      there’s
      assurance for the loan, it shall be the first or second method as
      follows:

     

    
      	1.	
              Guaranty;

            

    

     

    
      	2.	
              Mortgage;

            

    

     

    
      	3.	
              Pledge;

            

    

     

    
      	4.	
              Stand-by
                letter of credit;

            

    

     

    
      	5.	
              Credit
                Insurance.

            

    

     

    
      	6.	
              Others:
                _______________________________.

            

    

     

    ARTICLE
      8 RIGHTS AND OBLIGATIONS OF PARTY A

     

    
      	1.	
              Rights
                of Party A

            

    

     

    
      	(a)	
              Require
                Party B to issue the loan as agreed in this
                Contract;

            

    

     

    
      	(b)	
              Use
                the loan within the purpose as is agreed in this
                Contract;

            

    

     

    
      	(c)	
              Apply
                to Party B for the extension of the loan as in accordance to the
                conditions prescribed by Party B;

            

    

     

    
      	(d)	
              Require
                Party B to keep confidential the financial information and business
                secrets in production and operation provided by Party A unless otherwise
                prescribed in laws and regulations.

            

    

     

    
      	2.	
              Obligations
                of Party A

            

    

     

    
      	(a)	
              Provide
                financial and fiscal information as well as information on production
                and
                operation at Party B’s requirement, including but not limited to
                submitting to Party B the balance sheet of the last quarter and the
                income
                statement to the end of the last quarter (income and expenditure
                statement
                for public service unit) within ten working days of bank of the first
                month of each quarter and submitting the statement of cash flow of
                the
                year at the end of the year. Party A shall be responsible for the
                trueness, integrity and effectiveness of the information it
                submits;

            

    

     

    
      	(b)	
              Use
                the loan within the purpose agreed in this Contract and shall not
                use it
                for any other purposes;

            

    

     

    
      	(c)	
              Cooperate
                and accept actively and voluntarily the investigation and supervision
                of
                Party B on its production and operation, finance and its use of the
                loan
                under this Contract;

            

    

     

    
      	(d)	
              Repay
                the principal and interest of the loan timely in accordance to this
                Contract;

            

    

     

    
      	(e)	
              Party
                A and its investors shall not withdraw their capital distribution
                or
                transfer their capitals to avoid its debt to Party B.
                

            

    

     

    
      	(f)	
              Before
                paying off the principal and interest to Party B, it shall not provide
                assurance to third party with the capital formed from the loan under
                this
                Contract without Party B’s consent.

            

    

     

    
      	(g)	
              During
                the term of this Contract, where Party A intends to provide assurance
                to
                other people’s debt and where the assurance affects its repayment capacity
                under this Contract, it shall notify Party B in writing in advance
                and
                acquire Party B’s consent. 

            

    

     

    
      	(h)	
              Where
                production stop, business suspension, registration cancellation,
                bankruptcy or operation loss happens to the guarantor under this
                contract
                or where it is recalled which makes it loses fully or partly its
                corresponding assuring capability of this loan, or the value of mortgages,
                impawned properties decreases or they are destroyed or lost accidentally,
                Party A shall provide timely to Party B other assurances that it
                recognizes. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    
      	(i)	
              During
                the term of this Contract, where the name, legal representative,
                domicile,
                business scope, registered capital changes of Party A changes, Party
                A
                shall notify Party B timely.

            

    

     

    
      	(j)	
              During
                the term of this Contract, where there are situations of
                contractingôlease,
                shareholding reform, joint business, combination, annexation, division,
                joint venture, operation suspension for rectification application,
                bankruptcy application that would affect the realization of Party
                A’s
                creditor’s right happen to Party A, Party A shall notify Party B 60 days
                in advance and fulfill the repayment of loan and assurance under
                this
                Contract with Party B’s consent and at its requirement.
                

            

    

     

    
      	(k)	
              During
                the term of this Contract, where there are situations of production
                stop,
                business suspension, registration cancellation, business license
                cancellation, the legal representative or person in charge’s involvement
                in law breaching activities or major litigation, or where there is
                serious
                difficulty in production and operation or the serious financial
                degradation that have important negative effect on Party A’s performance
                of the repayment obligation, Party A shall notify Party B immediately
                and
                fulfill the repayment of loan and assurance under this Contract at
                Party
                B’s requirement.

            

    

     

    
      	(l)	
              Pay
                the expenses like lawyer service, insurance, assessment, registration,
                safekeeping fee, appraisal, notarization relevant to this Contract
                and the
                assurance under which. 

            

    

     

    ARTICLE
      9 RIGHTS AND OBLIGATIONS OF PARTY B

     

    
      	1.	
              Rights
                of Party B

            

    

     

    
      	(a)	
              Know
                the production and operation as well as finance situation of Party
                A and
                require Party A to provide relevant documentation like plans and
                financial
                accounting reports;

            

    

     

    
      	(b)	
              Transfer
                money in any currency that Party A has on its account in China
                Construction Bank for any payment that Party A shall make to Party
                B
                arising from this Contract.

            

    

     

    
      	2.	
              Obligations
                of Party B

            

    

     

    
      	(a)	
              Issue
                loan in due amount on due day as are agreed in this Contract, unless
                the
                delay is caused by Party A;

            

    

     

    
      	(b)	
              Keep
                confidential the financial information and business secrets in production
                and operation provided by Party A unless otherwise prescribed in
                laws and
                regulations.

            

    

     

    ARTICLE
      10 LIABILITIES FOR BREACH

     

    
      
        	1.	
                Breaches

              

      

    

     

    
      	(a)	
              Breaches
                of Party A

            

    

     

    
      	(i)	
              It
                fails to submit true, integrated and effective information on finance,
                production and operation and other relevant
                information;

            

    

     

    
      	(ii)	
              It
                fails to use the loan in the purpose as is agreed in this
                Contract;

            

    

     

    
      	(iii)	
              It
                fails to repay the principal and interest of this loan on due
                day;

            

    

     

    
      	(iv)	
              It
                refuses or impedes Party B’s investigation and supervision on its use of
                loan;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    
      	(v)	
              It
                transfers its asset and takes out capital to avoid the
                obligation;

            

    

     

    
      	(vi)	
              The
                degradation of its business and finance makes it unable to render
                performance that is due or it is involved in major litigation or
                arbitration or other legal conflicts that Party B considers as may
                affect
                or impair or have affected or impaired its rights and interests under
                this
                Contract;

            

    

     

    
      	(vii)	
              Any
                other obligations that it has have affected or may affect its performance
                of obligation to Party B under this
                Contract;

            

    

     

    
      	(viii)	
              It
                fails to render other performance that is due to China Construction
                Bank;

            

    

     

    
      	(ix)	
              During
                the term of this Contract, there are business method changing or
                business
                mechanism changing conducts like contracting, lease, combination,
                annexation, joint venture, division, joint business, shareholding
                reform
                that Party B considers as may affect or impair or have affected or
                impaired its rights and interests under this
                Contract;

            

    

     

    
      	(x)	
              Other
                situations that Party B considers would affect the realization of
                it’s
                creditor’s right.

            

    

     

    
      	(xi)	
              It
                breaks other obligations as agreed in this
                Contract.

            

    

     

    
      	(b)	
              Party
                A shall be deemed breaching the contract where it fails to provide
                new
                assurances to Party B that meet its requirement when the following
                events
                happen to the guarantor:

            

    

     

    
      	(i)	
              Contracting,
                lease, combination, annexation, joint venture, division, joint business,
                shareholding reform, bankruptcy or cancellation of the guarantor
                that
                would affect its joint assuring
                liability.

            

    

     

    
      	(ii)	
              The
                guarantor provides to third party assurance that is beyond its
                affordability;

            

    

     

    
      	(iii)	
              The
                guarantor loses or may lose its capability of
                assurance;

            

    

     

    
      	(iv)	
              Other
                breaches of the guarantor as are agreed in the assurance
                contract.

            

    

     

    
      	(c)	
              Party
                A shall be deemed breaching the contract where it fails to provide
                new
                assurances to Party B that meet its requirement when the following
                events
                happen to the Mortgagee:

            

    

     

    
      	(i)	
              The
                Mortgagee fails to insure the pawn as required by Party B or it fails
                to
                dispose the proceeds from insurance as agreed in the mortgage
                contract;

            

    

     

    
      	(ii)	
              The
                Mortgagee fails to dispose damages paid by a third party for the
                damage,
                disappearance or value reduce it causes to the
                Mortgage;

            

    

     

    
      	(iii)	
              The
                Mortgagee disposes the Mortgage through donation, transference, lease,
                multiple mortgage or other methods without Party B’s written
                consent;

            

    

     

    
      	(iv)	
              The
                Mortgagee disposes the Mortgage with Party B’s consent while it fails to
                dispose the money from Mortgage disposal in accordance with the mortgage
                contract.

            

    

     

    
      	(v)	
              The
                Mortgagee fails to resume the value of the Mortgage or provide other
                assurance that is recognized by Party B when the damage, disappearance
                or
                value reduce of the Mortgage affects the performance of obligation
                under
                this Contract;

            

    

     

    
      	(vi)	
              Other
                breaches of the Mortgagee as are agreed in the mortgage
                contract.

            

    

     

    
      	(d)	
              Party
                A shall be deemed breaching the contract where it fails to provide
                new
                assurances to Party B that meet its requirement when the following
                events
                happen to the pledgor:

            

    

     

    
      	(i)	
              The
                pledgor fails to insure the pawn as required by Party B or it fails
                to
                dispose the proceeds from insurance as agreed in the pledge
                contract

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    
      	(ii)	
              The
                pledgor fails to dispose damages paid by a third party for the damage,
                disappearance or value reduce it causes to the pledged
                property;

            

    

     

    
      	(iii)	
              The
                pledgor disposes the pledged property with Party B’s consent while it
                fails to dispose the money from pledged property disposal in accordance
                with the pledge contract.

            

    

     

    
      	(iv)	
              The
                pledgor fails to resume the value of the pledged property or provide
                other
                assurance that is recognized by Party B when the damage, disappearance
                or
                value reduce of the pledged property affects the performance of obligation
                under this Contract;

            

    

     

    
      	(v)	
              Other
                breaches of the pledgor as are agreed in the pledge
                contract.

            

    

     

    
      	(e)	
              Party
                A shall be deemed breaching the contract where Party A fails to provide
                new assurances required by Party B when the assurance contract or
                other
                assurances hasn’t comes into effect or are revoked, or that the assuror
                loses all or part of its assuring capability or rejects to perform
                the
                assurance obligation. 

            

    

     

    
      	2.	
              Remedies
                for Breaches

            

    

     

    Party
      B
      is entitled to exert one or several right(s) as follows where the above breaches
      from (a) to (e) happen:

     

    
      	(a)	
              Terminate
                issuing the loan, declare the loan expires at the time and require
                Party A
                to repay all the principal, interest and expenses of the loan whether
                due
                or not.

            

    

     

    
      	(b)	
              Claim
                liquidated damages from Party A at the rate of 0.21‰
                of
                the principal each day.

            

    

     

    
      	(c)	
              Where
                Party A fails to use the loan in the purpose as agreed in this Contract,
                claim interest and compound interest at the default interest rate
                and
                other interest settlement method agreed in this Contract from the
                day when
                Party A fails to use the loan in the agreed purpose to the day when
                both
                principal and interest are paid off for the amount of the loan that
                Party
                A uses for other purpose other than the agreed purpose.
                

            

    

     

    
      	(d)	
              Before
                the loan expires, claim compound interest at the loaning rate and
                interest
                settlement method agreed in Article 4 for the interest that Party
                A fails
                to pay off timely.

            

    

     

    
      	(e)	
              After
                the overdue of the loan, claim interest and compound interest at
                the
                default interest rate and other interest settlement method agreed
                in this
                Contract from the day the loan is overdue to the day when both principal
                and interest are paid off for the principal and interest of the loan
                that
                Party A fails to pay off (including the principal and interest of
                the loan
                that is declared by Party B as wholly or partly pre-expires). The
                overdue
                of the loan means that Party A fails to make full repayment timely
                or that
                the number of times it repays the loan after the due date of the
                gradual
                repayment plan agreed in this
                Contract.

            

    

     

    
      	(f)	
              Transfer
                money in any currency from Party A’s account in China Construction
                Bank.

            

    

     

    
      	(g)	
              Require
                Party A to provide new assurances that meet the requirement of Party
                B of
                debts under this Contract.

            

    

     

    
      	(h)	
              Exert
                the right to realizing assurance.

            

    

     

    
      	(i)	
              Terminate
                this Contract.

            

    

     

    ARTICLE
      11 OTHER AGREEMENTS

    1.
      _______________________________________;

    2.
      _______________________________________;

    
      3.
        _______________________________________;

      4._______________________________________.

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

      

    

    

    ARTICLE
      12 SETTLEMENT OF DISPUTE

     

    All
      the
      disputes arising during the performance of this Contract shall be solved through
      negotiation and where negotiation fails to solve, the following first method
      shall be applied:

     

    
      	1.	
              Bring
                lawsuit to the people’s
                court at Party B’s domicile.

            

    

     

    
      	2.	
              Submit
                the dispute to __________________ (Name
                of Arbitral Organization) for arbitration which shall be conducted
                in __________ (Place
                of Arbitration) in
                accordance with the rules then in effect of the arbitration commission.
                The award resulting from such arbitration shall be final and binding
                on
                the parties.

            

    

     

    The
      provisions that are not involved in dispute shall still be performed during
      litigation or arbitration. 

     

    ARTICLE
      13 COMING INTO EFFECT OF THE CONTRACT

     

    This
      Contract comes in to effect on the legal representative (person in charge)
      or
      the authorized attorney of Party A and the person in charge or the authorized
      attorney of Party B sign and stamp the official seal on the contract.

     

    ARTICLE
      14 

     

    The
      Contract is in quintuplicate.

     

    ARTICLE
      15 RECITALS

     

    
      	1.	
              Party
                A knows clearly the business scope and the scope of authority of
                Party
                B.

            

    

     

    
      	2.	
              Party
                A has read all the provisions of this Article and Party B has made
                corresponding explanation to provisions at Party A’s requirement. Party A
                has fully known and understood the meanings and corresponding legal
                effects of the provisions of this
                Contract.

            

    

     

    
      	3.	
              Party
                A has the right to sign this
                Contract.

            

    

     

    Party
      A
      (official seal): Luoshan
      Jinding Chemical Co., Ltd

    Legal
      representative (person in charge) or authorized attorney (signature):

    

    Party
      B
      (official seal): Xinyang
      Branch of China Construction Bank

    Legal
      representative (person in charge) or authorized attorney
      (signature):

    

    On
      January 5th,
      2006

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    Contract
      No.: Year 2006 No. 001

    

    Type
      of
      Loan: Floating capital for industrial enterprise

    

    The
      Borrower (Party A): Luoshan Jinding Chemical Co., Ltd.

    Address:
      Xicheng Industrial Zone, Luoshan

    Postcode:
      464200

    Legal
      Representative: Zhou, Dianchang

    FAX:2068158

    /s/
      Zhou Dian Chang

    

    The
      Lender (Party B): Xinyang Branch of China Construction Bank

    Address:
      ChangAn Road, Xinyang

    Postcode:
      464000

    Person
      in
      Charge: Zong, Su

    TEL:
      6260312             FAX:

    /s/
      Xinyang Branch of China Construction
      Bank

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]