Document:

Unassociated Document

    

      Exhibit
10.86

      

      Maximum
Guarantee Agreement

      

      Code
of the Agreement:

      

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

      Address:
South Industry Road, Tongye Town, Anyang County, Henan Province. Postal
Code:

      Legal
Representative/Responsible Person: Wang Xinshun

      Fax:                                                                                                Tel:

      

      Creditor
(Party B): Anyang Branch, Construction Bank of China

      Address:                                  Postal
Code:

      Legal
Representative/Responsible Person:

      Fax:                                                                                                Tel:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      WHEREAS

       

      Party B
has continuously granted the Option 5 credit of
the following credits to Anyang Yuxin Active Lime Co., Ltd (hereinafter referred
to as the “Debtor”) and will sign and/or has signed agreement of loan in RMB,
agreement of loan in foreign currency, bank acceptance agreement, agreement of
issuing L/C, agreement of issuing Letter of Guarantee and/or other legal
documents with the Debtor from to (hereinafter
referred to as the “Term for Determining the Creditor's Rights”). All the
agreements, agreements and/or other legal documents mentioned hereinabove signed
during the Term for Determining the Creditor's Rights are hereinafter referred
to as “the Principal Agreement”.

       

      Option
1     Releasing loan in RMB or Foreign
Currency;

      Option
2     Acceptance of Commercial Draft;

      Option
3     Issuing L/C;

      Option
4     Issuing Letter of Guarantee;

      Option
5     Other mode of granting credit: domestic
guarantee;

      Party A
voluntarily assumes the maximum guarantee liability for the loans of the Debtor
under the Principal Agreement (specified hereinabove).

       

      The
parties have reached a consensus to conclude this agreement in accordance
with relevant laws and regulations and will commit themselves to the terms and
conditions as stipulated hereunder.

       

      
        Article
1  Scope
of Guarantee and the Maximum Amount

      

       

      1.1      The
guarantee covers all debts under the Principal Agreement, including but not
limited to loan principal, interest (including default interest and compound
interest), liquidated damages, compensation, other expenses that shall be repaid
to Party B by the Debtor (including but not limited to the procedure fee,
telecommunication charges, incidentals and the banking charges relevant to the
L/C the Beneficiary reluctant to assume prepaid by Party B), and the expenses
attributable to the exercise of guarantee rights and the Creditor’s rights by
Party B (including but not limited to litigation fee, arbitration fee, charges
for preservation of property, travel expenses, enforcement fee, evaluation fees,
charges for auction of property, notarization fees, expenses for service,
announcement fee and attorney fee).

       

      1.2      The
Maximum Amount guaranteed by this Agreement is RMB 10,000,000 (TEN MILLION YUAN)
and shall be decreased correspondingly with the amount that already paid due to
that Party A fulfills its guarantee obligation pursuant to this
Agreement.

       

      1.3      The
scope of guarantee shall remain available to the loans, advances, interest,
expenses or any other Creditor’s rights of Party B, notwithstanding the time
when the loans, advances, interest, expenses or rights actually incur or rise is
not in the Term for Determining the Creditor’s Rights. The expiry date of the
term for performance of the debts under the Principal Agreement shall not
subject to the expiry date of the Term for Determining the Creditor’s
Rights.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        Article
2  Mode
of Guarantee

      

       

      The
guarantee mode hereof is guarantee with joint and several
liabilities.

       

      
        Article
3  Guarantee
Period

      

       

      3.1      Guarantee
period of the Agreement is calculated by giving creditor of the debtor in one
sum, that is , from the date of signature of the principal agreement of giving
credit to two year after the maturity date of debt under the Agreement and is
two years after the maturity date of each debt.

       

      3.2      The
Guarantee Period shall be two years as of the expiry date provided in the
extension agreement if an extension agreement is reached regarding debt of the
Principal Agreement between the Debtor and the Creditor. The Guarantor’s joint
and several liabilities for the debts shall remain in force in the extended
period without the Guarantor’s prior content.

       

      3.3      The
Guarantee Period shall be two years as of the early maturity date of the debts
in case Party B announces the early maturity according to the laws and
regulations or the Principal Agreement.

       

      
        Article
4  Independence
of the Guarantee Agreement

      

       

      This
Agreement is independent of the Principal Agreement in the
validity, in other words, the validity of this Agreement will not be affected in
the events that the Principal Agreement is not
established or established without effectiveness, or the Principal Agreement is
invalid in whole or in part, or the Principal Agreement is cancelled
or terminated. Party A shall assume the joint and several liabilities for the
debts incurred in the return of property or arising out of the reimbursement of
the loss if it has been confirmed that the Principal Agreement is not
established or established without effectiveness, or the Principal
Agreement is invalid in
whole or in part, or the Principal Agreement is cancelled or terminated.  

       

      
        Article
5  Alteration
of the Principal Agreement

      

       

      5.1      Party
A hereby agrees to assume the guarantee liability on the Maximum Amount stated
in this Agreement in the Scope of Guarantee defined in the Agreement in case of
any alteration agreed by to the Principal Agreement (including but not limited
to any extension of loan term or any increase of the amount of the loan
principal) and any consensus reached between Party B and the Debtor in the
Principal Agreement, without the notification of such alternation and consensus
in such case.

       

      5.2      The
guarantee liability of Party A shall not be relieved in case of any one of the
following circumstances:

       

      
        	
                5.2.1

              	
                the
      restructuring, consolidation, merger, division, increase & decrease of
      the registered capital, joint venture, consortium and change of name of
      Party B or the Debtor;

              

      

       

      
        	
                5.2.2

              	
                Party
      B entrusts its obligations under the Principal Agreement to the third
      party.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                5.2.3

              	
                the
      guarantee under this Agreement is to be transferred with the transfer of
      the Creditor’s rights under the Principal
  Agreement.

              

      

       

      
        	
                5.2.4

              	
                Party
      A shall assume the joint and several liabilities in accordance with the
      Agreement notwithstanding the transfer of the Creditor’s rights or the
      debts under the Principal Agreement has not yet taken effect, or is
      invalid or such transfer is cancelled or
  terminated.

              

      

       

      
        Article
6  Guarantee
Liability

      

       

      6.1      Party
A shall assume the guarantee liability in the scope of guarantee in case of the
maturity of the debt under the Principal Agreement or the infringement of the
provisions of the Principal Agreement by the Debtor, or in case that the Debtor
fails to repay the debt in due time and in full when Party B announces the early
maturity of the debts under the Principal Agreement according to the terms and
conditions of the Principal Agreement or the relevant laws and
regulations.

       

      Party A
shall pay the liquidated damage 0.05% of the overdue amount on a daily basis
from the date of expiry to the date when Party A pays up the payable amounts in
case that Party A fails to pay the due amounts in full in the term required by
Party B. The maximum liability stated in this Agreement shall not be the upper
limit of the sum of the guarantee liability Party A assumes and the liquidated
damage mentioned hereinabove in this case.

       

      6.2      No
matter whether Party B has other surety for the Creditor’s rights under the
Principal Agreement (including but not limited to guarantee, mortgage, pledge,
Letter of Guarantee and Standby L/C), whether the surety mentioned hereinabove
has established, and/or whether the surety has taken effect, and/or whether
Party B has claimed its rights against other guarantors, and/or whether the
third party agrees to assume the debt in part or in whole under the Principal
Agreement, and/or whether the above-mentioned surety is provided by the Debtor
itself, the guarantee liability Party A shall undertake under this Agreement
shall not be relieved and Party B can directly ask Party A to assume its
guarantee liability in the scope of guarantee in accordance with the Agreement,
free of any objection from Party A.

       

      6.3      Party
A shall hold harmless Party B from and against any damages or losses related to
or arising out of the claim of right of subrogation or right of recourse by
Party A if the debt under the Principal Agreement can not get a full settlement
even after Party A performed its guarantee liability since the maximum guarantee
liability defined in this Agreement is less than the amount of the actual debt
balance under the Principal Agreement. In addition, Party A agrees that the
repayment of the debts under the Principal Agreement shall have priority over
the exercise of the right of subrogation or right of recourse.

       

      In other
words, prior to the full settlement of the debts of Party B:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                6.3.1

              	
                Party
      A agrees not to claim right of subrogation or right of recourse against
      the Debtor or other guarantors. Party A shall apply the amounts it
      acquires in case that Party A somehow performs the rights mentioned
      hereinabove first in the settlement of the outstanding
    debt.

              

      

       

      
        	
                6.3.2

              	
                Party
      A agrees not to claim its rights on the collateral or the amounts it
      receives after the disposition of the collateral as a result of its right
      of subrogation or any other reasons in case that guarantee in rem is also
      attached to the debt under the Principal Agreement, and in this case the
      collateral and the amounts mentioned hereinabove will be used to repay the
      debt balance first;

              

      

       

      
        	
                6.3.3

              	
                The
      amounts Party A receives due to the counter guarantee which the Debtor or
      other guarantors may provide to Party A shall be first used in the
      settlement of the overdue debt of Party
B.

              

      

       

      6.4      Party
A shall have a full understanding of Interest Rate Risk (IRR), on this account
Party A shall assume the joint and several liabilities on the increased
interest, default interest and compound interest as a result of the adjustment
of interest rate and the change of the method for calculating or settling the
interest made by Party B in accordance with the provisions of the Principal
Agreement or in response to the change of national interest policy.

       

      6.5      Party
B is entitled to deduct the amounts in RMB or in other currencies from the
accounts the Debtor opens in Construction Bank of China’s business system for
the settlement of any one due debt in case that the Debtor is indebted to Party
B besides the debts under the Principal Agreement, and the deduction will not
constitute any relief to the guarantee liability of Party A.

       

      
        Article
7  Other
Obligations of Party A

      

       

      7.1      Party
A is responsible for the supervision of the employment of the loan (including
the use of the loan). Party A shall accept the supervision made by Party B on
its capital, property and business condition and submit relevant information,
documents or materials such as the financial statement as required by Party B
and shall promise all documents and materials submitted to Party B are accurate,
real, complete and valid. Party A shall not provide the guarantee beyond its
guarantee capability to the third party without the prior written consent of
Party B;

       

      7.2      In
case of the following circumstances: contracting, taking-over,
leasing, shareholding system reform, decrease of registered capital,
investment, consortium, consolidation, merger, acquisition and reconstruction,
division, joint venture with foreign investment (or cooperation), applying for
or being applied for restructuring, applying for dissolution, being revoked,
applying for or being applied for bankruptcy, change of controlling shareholders
or actual controller or transfer of significant asset,  being
shut-down, being imposed on huge amount of penalty by relevant
authorities,  revocation of Business License, cancellation of
registration, being involved in big legal disputes, deteriorating financial
situation, or experiencing serious difficulties in its production and
operations, inability of legal representatives or major responsible person to
perform responsibilities, or incapacitation of legal representatives or major
responsible person to assume the guarantee liability, Party A shall notify Party
B in a timely manner and be responsible for the commitment, transfer or
succession of the guarantee liability under the Agreement as required by Party B
or providing new guarantee accepted by Party B for the performance of the
Principal Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      7.3      In
case of change of business registration items such as name, legal representative
or responsible person, domicile, scope of business, registered capital or
articles of association, Party A shall give Party B a written notification with
relevant materials attached thereto in three business days after the
change.

       

      
        Article
8  Other
Clauses

      

       

      8.1      the
deduction of payables

       

      Party B
is entitled to deduct the payable amounts in RMB or other currencies owed by
Party A under this Agreement from the accounts Party A opens in the business
system of Construction Bank of China, without prior notification to Party A.
Party A shall assist Party B in handling the procedures of settlement and sale
of foreign exchange or procedures of foreign exchange trading if any and shall
bear the exchange rate risk.

       

      8.2      Use
of Party A’s Information

       

      Party A
allows Party B to make inquiries on the credit standing of Party A in relevant
authorities or organizations or in the credit database approved by People’s Bank
of China and the institutions in charge of credit rating and credit information
collection, and also authorizes Party B to provide the credit information of
Party A to the credit database approved by People’s Bank of China and the
institutions in charge of credit rating and credit information collection. Party
A hereby agrees that Party B has the right to use and disclose the information
of Party A in a proper manner for business necessity.

       

      8.3      Loan
Collection by Announcement

       

      Party B
has the right to inform the relevant authorities or organizations of the
infringement by Party A and collect the loan by issuing a public notice through
the news media.

       

      8.4      Evidentiary
Effect of Party B’s Record

       

      In the
absence of reliable and conclusive evidence to the contrary, Party B’s
accounting record of loan principal, interest, expenses and repayment history,
the documents and voucher prepared or preserved by Party B verifying the
drawing, repayment and payment of interest by the Debtor and the record or
voucher of loan collection by Party B shall be the effective and conclusive
evidence of the debt under the Principal Agreement. Unilateral preparation or
preservation of the record, data, documents and voucher by Party B shall not be
a ground for Party A to raise its objection in this case.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      8.5      Retention
of Rights

       

      The
rights Party B enjoys under this Agreement shall not affect and deny other
rights accessible to Party B in accordance with laws, regulations and other
agreements. Any tolerance, extension, preferential measure or delay in
performing any right under this Agreement shall not be deemed as waiver of the
rights and interests under the Agreement nor be considered as permission or
approval of any infringement of this Agreement and shall neither affect,
preclude and hinder any further exercise thereof or other rights by Party B nor
impose any liability or obligation on Party B.

       

      The
guarantee liability Party A shall assume under this Agreement shall not be
relieved in case Party B refuses to exercise or delays the exercise of any right
under the Principal Agreement or Party B has not exhausted the remedies of the
Principal Agreement. Nevertheless the guarantee liability of Party A will be
relieved correspondingly in case of the debt relief made by Party
B.

       

      8.6       Dissolution
or Bankruptcy of the Debtor

       

      Party A
shall notify Party B of reporting claims upon being informed that the Debtor has
filed or been filed for dissolution or bankruptcy proceedings and shall
participate in the bankruptcy proceedings in a timely manner for the beforehand
exercise of right of recourse. In case Party A fails to exercise the right of
recourse in advance after it knows or should know the dissolution or bankruptcy
proceedings of the Debtor, Party A shall bear the losses thereof if
any.

       

      Notwithstanding
the provisions of Clause 5.2 of the Section, in case of a compromise agreement
or reorganization plan reached between Party B and the Debtor during the
bankruptcy proceedings, the rights Party B enjoys under this Agreement will not
be damaged due to the compromise agreement or reorganization plan, nor will the
guarantee liability of Party A be relieved. Party A shall not defend against the
claim of rights raised by Party B with the provisions of the compromise
agreement or reorganization plan. Party B retains the right to ask Party A to
pay off the outstanding debt arising from the concession made by Party B to the
Debtor in the compromise agreement or reorganization plan.

       

      8.7      Dissolution
or Bankruptcy of Party A

       

      In case
Party A has filed or been filed for dissolution or bankruptcy, Party B is
entitled to participate in the liquidation or bankruptcy proceedings and report
claims notwithstanding the debt under the Principal Agreement has not yet
matured.

       

      8.8      Party
A shall promptly notify Party B in writing of the change in case of Party A
changes the postal address or contact information. Any losses caused by delayed
notifying shall be borne by Party A.

       

      8.9      Settlement
of Disputes

       

      All
disputes and argues arising from the performance of this agreement shall be
solved through negotiation by the parties; if negotiation fails, the parties
agree to adopt the Option One of the
following settlement of disputes:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Option 1
Submit the disputes to the court at the domicile of Party B;

      Option 2
Submit the disputes to__________Board of
Arbitration in accordance with its arbitration rules effective at the time of
application. Place of Arbitration__________ The award of the arbitration
shall be final and binding upon both parties.

      During
the lawsuit or arbitration, other provisions in the agreement that may not
be affected shall be performed continuously.

       

      8.10    Executing
the Agreement

       

      The
agreement shall be effective as of the date of signing by legal representatives
or authorized representatives of the Parties and sealed by the
Parties.

       

      8.11    The
Agreement shall be in duplicate.

       

      8.12    Other
Provisions

       

      
        
          
            	
                    No.

                  
	 
      

          

        

      

       

      
        Article
9  Statement
& Commitment of Party A

      

       

      9.1      Party
A is fully aware of the business scope and scope of authority;

       

      9.2      Party
A has read all clauses of the Agreement and the Principal Agreement and Party B
has provided explanation to the clauses as required by Party A. Party A hereto
has accurate and correct understanding of the terms and conditions of this
Agreement and the Principal Agreement and the legal consequences.

       

      9.3      Party
A is legally qualified to be a guarantor and Party A provides the guarantee
pursuant to the laws, regulations, rules and the provisions of Party A’s
articles of association or corporate document and with the approval of
managements and/or authorities. All losses caused by Party A’s unauthorized
signing of the Agreement shall be borne by Party A, including but not limited to
compensating the losses Party B suffers in full.

       

      9.4      Party
A hereby confirms that it has a full understanding of the asset, debt, business,
credit standing and creditworthiness of the Debtor, the capacity and authority
for the Debtor to execute the Principal Agreement and the terms and conditions
of the Principal Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (No
clauses in the signature page)

      

      Party
A:

      

      Common
Seal:

      

      Legal
Representative or

      Authorized
representative:  /s/ Wang Xinshun

      

      Party
B:

      

      Common
Seal:

      

      Legal
Representative or

      Authorized
representative
(signature): [illegible]

      

      Dated
5th
Jan. 2010Unassociated Document

    
      Exhibit
10.87 

        
          

        

      

    

     

    Agreement No.: (2008) An Shang
Gong Si Bu Bao Zi No. 014-2

    

    Anyang
Commercial Bank

                

    Guarantee
Agreement

    

    The Guarantor (Party A): Henan
Shuncheng Group Coal Coke Co. Ltd.

    Legal
Representative: Wang Xinshun

    Address:
South Industry Road, Tongye Town

    ID Number
(in case Party A is a natural person):____________________

    

    The Creditor (Party B): Anyang
Commercial Bank

    Address:
No. 11 Liberation Avenue

    Legal
Representative / Responsible Person: Fu Fei

     

    In the Eighth Floor of Anyang
Commercial Bank

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    
 

    For the
purpose of ensuring the performance of the obligation of the Debtor under the
loan Agreement dated on November 26th, 2008
between Anyang County Rural Road Administration (the “Debtor”) and Party B of
this Agreement with the loan agreement (2008) An Shang Gong Si Bu Jie Zi No. 14
(hereinafter referred to as “Principal Agreement”), Party A is willing to
provide a guarantee to Party B.  In order to specify the rights and
obligations of both parties, according to Contract Law, Guarantee Law and other
relevant laws and regulations and through equally consultation, Party A and
Party B hereby enter into this Agreement.

    

    
      Article
1  Representations
and Warranties of Party A

    

    

    
      	
              1.1

            	
              Party
      A represents and warrants that:

            

    

    

    
      	
              1.1.1

            	
              If
      Party A is a legal person or other organization, Party A is duly
      registered and legally existing, it has the fully civil capacity for
      rights and actions to enter into and perform this Agreement; if Party A is
      a natural person, Party A is a legally qualified body, it has the fully
      civil capacity for rights and actions to enter into and perform this
      Agreement;

            

    

    
      	
              1.1.2

            	
              Party
      A has fully understand the content of the Principal Agreement, the
      execution and performance of this Agreement is based on the true will of
      Party A, it has duly obtained legal and effective authorization according
      to its articles of association and other internal management
      documents;

            

    

    
      	
              1.1.2.1

            	
              If
      Party A is a corporation, the guarantee provided by it has been approved
      by its board of directors, board of shareholders or general meeting of
      shareholders as specified in its articles of associations; if limitations
      of total guarantee amount or single guarantee amount is specified in its
      articles of associations, the guarantee provided in this Agreement does
      not exceed such limitations;

            

    

    
      	
              1.1.2.2

            	
              The
      legal representative or authorized representative that represents Party A
      to sign this agreement has obtained legal and effective authorization from
      the corporation, the execution and performance of this Agreement will not
      violate any binding contracts, agreements or other legal documents to
      Party A.

            

    

    
      	
              1.1.3

            	
              All
      the documents and materials provided by Party A to Party B are true,
      complete, accurate and valid;

            

    

    
      	
              1.1.4

            	
              Party
      A accepts the supervision and inspection on its operation status,
      financial status by Party B and shall provide assistance and
      cooperation;

            

    

    
      	
              1.1.5

            	
              If
      any events occurs that may affect the financial status and performance
      capacity of Party A, which includes but not limited to spin-off, merger,
      cooperation, joint venture or joint cooperation with foreign party,
      contractual operation, restructuring, reform, pre IPO in any manner that
      changes its operation method, reducing registered capital, major asset or
      equity transfer, accepting big loan, close down, stopping business,
      dissolution, being suspend for internal rectification, being revoked
      business license, deterioration of financial status, bankruptcy (applied
      by Party A or others), or being involved into major litigation or
      arbitration, Party A shall promptly inform Party B in
    writing;

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      
 

    
      	
              1.1.6

            	
              Within
      the effective period of this Agreement, if spin-off, merger, stock system
      transforming or other event occurs to Party A, Party A shall ensure that
      all of its guarantee liability will be well
  performed.

            

    

    
      	
              1.1.7

            	
              Where
      Party A shall perform the guarantee liability, it shall authorize Party B
      to directly withdraw from all of its bank accounts opened with Anyang
      Commercial Bank and all of the branches of the bank to repay the debt
      under the Principal Agreement.

            

    

    

    
      Article
2  Category
and Amount of the Principal Credit that is Guaranteed

    

    

    
      	
              2.1

            	
              The
      principal credit guaranteed under this Agreement is the loan issued by
      Party B according to the Principal Agreement, with the amount of RMB (in
      word) Twenty Million (in number) 20,000,000
  Yuan.

            

    

    

    
      Article
3  Time
Period for the Performance of Debt by the Debtor in the Principal
Agreement

    

    

    
      	
              3.1

            	
              The
      performance period of the Principal Agreement commences on November 26th,
      2008 and ends on November 25th, 2010.  Any changes for such
      period shall be in accordance with the Principal
  Agreement.

            

    

    

    
      Article
4  Mode
of Guarantee

    

    

    
      	
              4.1

            	
              The
      mode of guarantee under this Agreement shall be joint liability
      guarantee.

            

    

    
      	
              4.2

            	
              If
      there is more than one guarantor, the guarantors are joint liability
      guarantors and shall assume joint liability guarantee
      together.

            

    

    

    
      Article
5  Scope
of Guarantee

    

    

    
      	
              5.1

            	
              The
      guarantee under this Agreement shall cover the principal, interests,
      default interests, compound interest, penalties, compensations, expenses
      required to realize the creditor’s right (including but not limited to
      litigation fees, arbitration fees, lawyer fees, travel expenses,
      enforcement expenses, preservation expenses, valuation expenses, auction
      or sales fees, transfer registration fees, notice fees) and all other
      payable expenses.

            

    

    

    
      Article
6  Term
of Guarantee and Limitation of Action

    

    

    
      	
              6.1

            	
              The
      term of guarantee under this Agreement is two years from the maturity date
      of the performance period for the debtor in the Principal
      Agreement.

            

    

    

    
      	
              6.2

            	
              If
      Party B requests the debtor in the Principal Agreement to perform the debt
      in advance according to law or the Principal Agreement, the term of
      guarantee is two years after Party B notify the debtor in the Principal
      Agreement in writing to perform the debt in
  advance.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
 

    
      	
              6.3

            	
              If
      the principal credit is repaid by several installments, the term of
      guarantee shall commence on the effective date of this Agreement until two
      years after the maturity date of the debt that shall be paid in the last
      installment.

            

    

    

    
      	
              6.4

            	
              If
      the principal credit is not paid off and Party B requests the guarantor to
      assume the guarantee liabilities before the maturity date of the term of
      guarantee in this article, the limitation for action shall be calculated
      and applied from the date the creditor require the guarantor to perform
      its guarantee liability.

            

    

    

    
      Article
7  Realization
of Guarantee Right

    

    

    
      	
              7.1

            	
              If
      the debtor in the Principal Agreement fails to perform its repayment
      obligations for loan principal, interests and relevant expenses according
      to the Principal Agreement, Party B may directly claim compensation from
      Party A and directly withdraw the amount that the debtor in the Principal
      Agreement shall pay from any bank accounts of Party A opened with Party B
      or any branches of Party B.

            

    

    

    
      	
              7.2

            	
              If
      both guarantee in rem and guarantee in person exist on the guaranteed
      creditor’s right and the debtor in the Principal Agreement fails to
      perform its due debt or any events occurs that the creditor’s right shall
      be realized as agreed by the parties in this Agreement, Party B has the
      right to decide and choose the guarantee in rem to realize its creditor’s
      right or require Party A to assume the guarantee
  liability.

            

    

    

    
      	
              7.3

            	
              If
      any of the following events occurs, Party B has the right to notify Party
      A in writing to request Party A to assume the guarantee liability in
      advance:

            

    

    

    
      	  	
              7.3.1

            	
              The
      Principal Agreement is terminated according to the Principal Agreement or
      law;

            

    

    
      	  	
              7.3.2

            	
              The
      debt shall be repaid in advance according to other events provided the
      Principal Agreement, but the creditor’s right under the Principal
      Agreement is not realized or fully
realized.

            

    

    

    
      	
              7.4

            	
              If
      the creditor in the Principal Agreement waives the guarantee in rem or the
      order of guarantee in rem or changes the creditor’s right, other
      guarantors (and/or Party A) undertake that they will still assume the
      guarantee liability.

            

    

    

    
      Article
8  Rights
and Obligations of Party A

    

    

    If any of
the following events occur to Party A, it shall notify Party B in
time:

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      
  

    
      	
              8.2.1

            	
              The
      operation mechanism changes, e.g. contractual operation, leasing, joint
      cooperation, merger, acquisition, spin-off, stock system transforming,
      joint venture or joint cooperation with foreign party,
    etc.;

            

    

    
      	
              8.2.2

            	
              Change
      of business scope and registered capital, equity
  change;

            

    

    
      	
              8.2.3

            	
              Deterioration
      of financial status or being involved into major economic
      dispute;

            

    

    
      	
              8.2.4

            	
              Bankruptcy,
      stopping business, dissolution, being suspend for internal rectification,
      being revoked business license or be
revoked;

            

    

    
      	
              8.2.5

            	
              Change
      of address, telephone, legal
representative;

            

    

    

    
      	
              8.3

            	
              If
      any of the events provided in article 8.2.1 or article 8.2.2 occurs, Party
      A shall inform Party B 30 days before the occurrence of such events; if
      any other events of the above article occur, Party A shall inform Party B
      within 5 days after the occurrence of such
  events.

            

    

    

    
      	
              8.4

            	
              During
      the term of guarantee, Party A shall not provide any guarantee to any
      third party that will exceed its capacity of guarantee, or dispose its
      asset in a manner that may damage its capacity of guarantee, Party A shall
      not damage the rights and interests of Party B.  Party A is
      obliged to provide Party B with its balance sheet and a statement of its
      guarantee status, and provide statements or other document which truly
      reflects its financial status periodically or any time as required by
      Party B.

            

    

    

    
      	
              8.5

            	
              During
      the effective period of this Agreement, if events occur to Party A such as
      spin-off, merger, stock system transforming or other events, Party A
      undertakes that it will duly perform all of its guarantee liability under
      this Agreement;

            

    

    

    
      	
              8.6

            	
              During
      the effective period of this Agreement, if Party B assigns the principal
      creditor’s right to a third party, Party A shall assume the joint
      guarantee liability within the same scope of guarantee under this
      Agreement.  Party B shall inform Party A in
  time.

            

    

    

    
      	
              8.7

            	
              Party
      A is obliged to accept the collection documents sent by Party B and send
      the receipts to Party B; Party A is obliged to send out the receipts for
      the collection letter or other collection documents (including but not
      limited to by mail, fax, telegraph, teletype, email, and etc.) within
      three business days after receiving such letter or
    documents.

            

    

    

    
      Article
9  Rights
and Obligations of Party B

    

    

    
      	
              9.1

            	
              Party
      B has the right to request Party A to provide relevant documents to prove
      the legal identity of Party A.

            

    

    

    
      	
              9.2

            	
              Party
      B has the right to request Party A to provide financial reports or other
      materials that are able to reflect the credit status of Party
      A.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              9.3

            	
              If
      the performance period expires and part or all of the creditor’s right of
      Party B is not repaid, Party B is entitled to request Party A to assume
      the guarantee liability according to this
  Agreement.

            

    

    

    
      	
              9.4

            	
              If
      any of the following events occurs, Party B is entitled to request party A
      to assume the guarantee liability in advance through written notice, Party
      B shall perform such guarantee liability within 10 days after it receives
      such notice:

            

    

    

    
      	  	
              9.4.1

            	
              Party
      B legally terminates the Principal Agreement according to the Principal
      Agreement;

            

    

    
      	  	
              9.4.2

            	
              Party
      B collects the loan in advance according to other events provided in the
      Principal Agreement.

            

    

    

    
      	
              9.5

            	
              During
      the effective period of this Agreement, if Party B legally assigns the
      principal creditor’s right to a third party, it shall inform Party A in
      time.

            

    

    

    
      	
              9.6

            	
              Party
      B is entitled to register the guarantee status of Party A according to
      Bank Credit Loan
      Registration Consultation Administrative Method and Individual Credit
      Administrative Method, and allow relevant financial organization to
      inquiry the information of Party A.

            

    

    

    
      Article
10  Event
of Default and Handling

    

    

    
      	
              10.1

            	
              If
      any of the representations and warranties of Party A in Article 1 is
      false, which impose any damage to Party B, Party A shall compensate such
      damage.

            

    

    

    
      	
              10.2

            	
              After
      this Agreement becomes effective, Party A and Party B shall fully perform
      their obligations under this Agreement, if any party fails to perform or
      fully perform its obligation, it shall assume relevant default liability
      and compensate the other party any and all damages imposed by
      it.

            

    

    

    
      Article
11  Effectiveness,
Amendment Termination and Suspension of this Agreement

    

    

    
      	
              11.1

            	
              This
      Agreement shall come into effect upon signature and stamp by Party A and
      Party B and ends when all the loan principal, interest, default interests,
      compound interest, penalties, compensations, expenses required to realize
      the creditor’s right and all other payable expenses under the Principal
      Agreement are fully paid off.

            

    

    

    
      	
              11.2

            	
              This
      Agreement is independent to the Principal Agreement and it shall remain
      effective if the Principal Agreement is not effective.  Party A
      shall still assume liabilities according to this Agreement if the
      Principal Agreement is not
effective.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      
  

    
      	
              11.3

            	
              After
      this Agreement becomes effective, neither party may amend or terminate
      this Agreement unless written agreement is entered into by the parties
      through negotiation if it is necessary to amend or terminate this
      Agreement.  This Agreement shall keep in effective before the
      execution of such written
agreement.

            

    

    

    
      Article
12  Notarization

    

    

    
      	
              12.1

            	
              Party
      A and Party B hereby agree and confirm that if this Agreement is notarized
      by notary public office, it will be an enforceable document to the
      creditor’s right.

            

    

    

    
      Article
13  Dispute
Resolution

    

    

    
      	
              13.1

            	
              Any
      dispute arising out of the performance of this Agreement shall be first
      resolved through negotiations between Party A and Party B, if such dispute
      cannot be resolved through negotiations, Article 13.1.2
      shall be used to resolve such
dispute:

            

    

    

    
      	  	
              13.1.1

            	
              Arbitration
      with Anyang Arbitration Commission;

            

    

    
      	  	
              13.1.2

            	
              Litigation
      with the court where Party B
locates.

            

    

    

    
      Article
14  Other
Issues Agreed by the Parties

    

    

    
      	
              14.1

            	
              During
      the performance period of this Agreement, if Party A delays the
      performance of its obligation in this Agreement, or Party B tolerates any
      default or delay by Party A, it will not damage, affect or limit any
      rights of Party B provided in this Agreement or specified in any laws and
      regulations, it will not be deemed as an allowance or permit to such
      default or any waive of adoption of any action or future action to Party A
      by Party B on such default.

            

    

    
      	
              14.2

            	
              ____/____

            

    

    
      	
              14.3

            	
              ____/____

            

    

    

    
      Article
15  Miscellaneous

    

    

    
      	
              15.1

            	
              The
      annexes of this Agreement are an integral part of this Agreement, the
      annexes and this Agreement shall have the same legal
    effect.

            

    

    

    
      	
              15.2

            	
              Party
      A confirms all kinds of notices, letters and other materials will be sent
      by Party B to Party A to the following address and attention when Party B
      exercises its rights under this
Agreement:

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      
 

    Address:
South Industry Road, Tongye Town, Anyang County

    Post
code: 455141   Attention: Wang
Xinshun   Telephone: ______

    

    Party A
confirms that if the address shall be changed, it shall inform Party B in
writing within 5 days after such change, otherwise Party B will send all kinds
of notices, letters and other materials to the above confirmed address, and it
will be deemed delivered.  Any notice, requirement or other
communication from Party B to Party A, which includes but not limited to by
teletype telegraph, fax, or other methods, once such notice, requirement or
other communication is send out, it will be deemed delivered to Party
A.

    

    
      	
              15.3

            	
              If
      for business needs, Party B needs to entrust other institutions of Anyang
      Commercial Bank to perform its rights and obligations under this Agreement
      or assign the loan service under this Agreement to other institutions of
      Anyang Commercial Bank to manage such loan, Party A hereby approves the
      above changes.  Other institutions of Anyang Commercial Bank
      authorized by Party B or assigned from Party B with the loan service, or
      any other institution of Anyang Commercial Bank which accepted the loan
      business under this Agreement, has all the rights under this agreement,
      and it also has the right to submit to court or arbitration commission for
      litigation or arbitration or apply for enforcement with its own
      name.

            

    

    

    
      	
              15.4

            	
              This
      Agreement shall be executed in four original copies, each Party A and
      Party B and relevant authorities shall have one original copy, all the
      original copies shall have the same legal
  effect.

            

    

    

    
      Article
16  Notice

    

    

    
      	
              16.1

            	
              The
      creditor has asked the guarantor to fully and completely understand all
      the above articles under this Agreement and explains to the guarantor
      relevant articles as required by the guarantor.  The parties
      have the same understanding to this
Agreement.

            

    

    

    Signed
and stamped by the parties:

    

    The
Guarantor (Party A):

    [stamp of
Henan Shuncheng Group Coal Coke Co. Ltd. here]

    

    Legal
Representative:  /s/ Wang Xinshun

    (or
authorized representative)

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      
 

    [stamp of
Wang Xinshun here] [signature of Wang Xinshun here] [Fingerprint of Wang Xinshun
here]

    

    November
26th,
2008

    

    The
Creditor (Party B):

    [stamp of
Anyang Commercial Bank here]

    

    Legal
Representative (Responsible Person):

    (or
authorized representative)

    

    /s/ Wang
[illegible]

    

    November
26th,
2008

    
      
         

      

      
        8

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