Document:

The
      contract No.: 4100520082004020187

    

      Renminbi
        Fund of China Development Bank

    

    General
      Loan Contract

    (For
      Expressway Project)

    

    

    The
      loan
      type: Fundamental Construction

    The
      project name: The Expressway Project from Pingdingshan to Linru of Henan
      Province

    The
      borrower: The Pingdingshan Pinglin Toll Road Company Ltd.

    The
      loaner: China Development Bank

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    The
      Borrower:
      The
      Pingdingshan Pinglin Toll Road Company Ltd.

    Address:
      The
      Real
      Estate Mansion of Industrial and Commercial Bank of China, North Section of
      Zhongxing Road

    The
      legal
      representative: Li Xipeng

    Post
      Code: 467000

    The
      transactor: Zhang Chunxian

    Telephone
      No.: 86-375-2985168

    Fax:
      86-375-2935558

    

    The
      loaner:
      China
      Development Bank 

    Address:
      No. 29, Fuchengmenwai Str. Xicheng District, Beijing City

    The
      legal
      representative: Chen Yuan

    Post
      Code: 100037

    The
      Handling Branch: The Henan Branch of China Development Bank

    Address
      of the Branch: 16-18 floors of the Henan Newspaper Mansion, No. 28, East
Section
      of the
      Agriculture Road, Zhengzhou City

    The
      Superintendent of the Branch: Liu Yong

    Post
      Code: 450008

    The
      transactor: Wang Pengfei

    Telephone
      No.: 86-371-65795883

    Fax:
      86-371-65798520

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    For
      the
      construction of Pingdingshan-Linru Expressway Project of Henan Province, the
      borrower applies to the loaner for a RMB loan, and the loaner agrees to issue
      the loan. In accordance with the stipulations of relevant state laws and
      regulations, the loaner and borrower conclude this contract upon consensus
      through consultation, abiding by the principles of equality, voluntariness,
      fairness, honesty and credibility. 

    

    Article
      1 Definition

     

    Unless
      otherwise stipulated by the contract, the following words used in this contract
      shall have the definitions as below:

     

    I.
      Loan
      amount: refers to the loan amount that the loaner agrees to offer to the
      borrower. 

     

    II.
      Drawing date: refers to the date of transferring loan fund to deposit account
      which is specified in the contract by the two parties. 

     

    III.
      Principal repayment date: refers to the date of repaying the principal by the
      borrower that is stipulated in the contract. 

     

    IV.
      Loan
      account: is the account opened by the handling bank branch of the loaner to
      the
      borrower for recording such matters as loan principal issue and repayment of
      principal and interest. 

     

    V.
      Deposit account: is the account opened by the handling bank branch or settlement
      handling bank for the borrower to transact loan, transfer, deposit and
      settlement operations.

     

    VI.
      Fund
      payment: refers to the activity of paying loan fund by the loaner to the deposit
      account of the borrower opened in the handling branch or settlement handling
      bank in accordance with the demands of the borrower. 

     

    VII.
      Handling bank branch: refers to the branch office of the loaner specifically
      in
      charge of such relevant matters as signing contract on the project and
      management after loan in accordance with the authorization of the loaner.

     

    VIII.
      Settlement handling bank: refers to the bank responsible for providing
      settlement service for the borrower and supervising the use of loan fund related
      to the Contract as required in accordance with relevant agreement. 

     

    IX.
      Grace
      period: is the term for the borrower to pay loan interest only without repaying
      the principal.

     

    X.
      Business days: refer to the working days of the loaner excluding statutory
      holidays and public holidays.

     

    XI.
      Overdue loan: refers to the loan that is not repaid as per the principal
      repayment date agreed in the Contract. 

     

    XII.
      Diverted loan: refers to the loan diverted to other purposes instead of those
      agreed in the Contract. 

     

    XIII.
      Interest settlement date: is the date on which the borrower shall pay the
      interest to the loaner. The interest settlement date specified in the contract
      is the 20th of March, June, September and December every year. The last interest
      settlement date under the contract is the principal repayment date of the last
      loan, clearing
      the interest with the principal. In case of the statutory holiday and public
      holiday, the settlement date shall be postponed to the first business day of
      the
      loaner after the statutory holiday and public holiday; however, if the first
      business day of the loaner after the statutory holiday and public holiday is
      not
      in the same month with the settlement date specified in the contract, the
      settlement date shall be moved up to the last business day before the holiday.
      

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Article
      2 Loan amount

     

    The
      loan
      amount under the contract is RMB 1, 700,000,000 Yuan (only one point seven
      billion Yuan). 

    

    Article
      3 Usage of Loan 

     

    The
      usage
      of the loan under the contract is: Pingdingshan-Linru Expressway Project of
      Henan Province. 

     

    The
      borrower is not allowed to unwarrantedly use or divert the loan under the
      contract or use the fund in the fields explicitly prohibited by our country.
      A
      penalty interest shall be paid by the borrower in case of loan diversion.

    

    Article
      4 Loan Term 

     

    The
      loan
      term is from the drawing date of the first loan to the principal repayment
      date
      of the last loan stipulated in this contract, namely, from November 29, 2004
      to
      November 28, 2022, 18 years in total. Among the term, there is a grace period
      for 3 years, namely, from November 29, 2004 to November 28, 2007. 

    

    Article
      5 Loan Interest Rate, Loan Interest, Penalty Interest and Compound
      Interest

     

    The
      interest rate applied for the first time under the contract is 6.12% annually.
      

     

    The
      loan
      rate under the contract shall be adjusted once a full year since the drawing
      date of the first loan. Its adjusting standard shall be determined by the
      parties through further consultation. The adjusted rate shall be benchmark
      loan
      rate on adjusting day of the same level and period published by the People’s
      Bank of China in case both parties have not reached an agreement. 

     

    The
      penalty rate shall be charged on any overdue loan or diverted loan under the
      contract from the date of expiration or diverting day, until the overdue is
      returned or the act of diversion is corrected. 

     

    The
      penalty rate of overdue loan = loan rate in the contract × 130%

     

    The
      penalty rate of diverted loan = loan rate in the contract × 150%

     

    If
      the
      same loan is overdue and diverted simultaneously, the penalty rate on it selects
      the more serious one. 

     

    The
      compound interest is charged on the interest that cannot be paid as scheduled,
      and of which the compound interest is charged with the respective penalty rate
      on overdue loan or diverted loan whose interest not paid as scheduled.

     

    The
      interest shall be calculated on the loan under the contract from the date when
      the loaner transfers the fund into the deposit account of the borrower. The
      borrower shall put the interest payable into the deposit account opened by
      handling bank branch of the loaner before the interest settlement date, and
      the
      loaner collects it directly from the account; the borrower shall bear relevant
      expenditure of fund in transit in case of failure to pay the interest payable
      as
      specified in the contract.

     

    Article
      6 Terms of Drawing 

     

    The
      borrower shall conduct drawing subject to the fulfillment of the following
      terms: 

     

    I.
      The
      loan contract shall remain in effect and the borrower has not conducted the
      acts
      in breach of contract;

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    II.
      The
      capital fund shall be paid in the same proportion with the progress of the
      project;

     

    III.
      The
      application submitted by the borrower to the loaner through the “Forward Counter
      Network System” shall be in accordance with the relevant agreement signed in
      this respect;

     

    IV.
      The
      pledge contract as required by the Contract has been signed and come into
      effect. 

    

    Article
      7 Drawing

     

    The
      specific drawing plan of the loan fund under the contract shall be conducted
      in
      accordance with the annual loan contract signed by the borrower and the
      loaner.

     

    The
      borrower shall submit the
      Loan
      Voucher to
      the
      handling bank branch of the loaner before the agreed drawing day.

     

    In
      case
      of unable to draw the loan as per the date and the amount required by the
      contract for special reasons, the borrower shall present an application in
      written form to the loaner 15 days before the agreed drawing day, and sign
      the
      Agreement of Drawing Plan Change after examined and approved by the loaner.
      

     

    If
      the
      borrower has not drawn the loan according to the date and amount agreed in
      the
      drawing plan or the Agreement of Drawing Plan Change, the loaner has the right
      to put the fund as per agreed date and amount directly into the deposit account
      of the borrower opened by the handling bank branch of the loaner.

    

    Article
      8 Repayment 

     

    The
      borrower shall repay the principal and interest due on time and in full
      according to the repayment plan stated below:

     

    RMB
      1
      million Yuan on November 29, 2007; 

    RMB
      19
      million Yuan on May 20, 2008; RMB 20 million Yuan on November 20,
      2008;

    RMB
      20
      million Yuan on May 20, 2009; RMB 20 million Yuan on November 20,
      2009;

    RMB
      20
      million Yuan on May 20, 2010; RMB 20 million Yuan on November 20,
      2010;

    RMB
      20
      million Yuan on May 20, 2011; RMB 20 million Yuan on November 20,
      2011;

    RMB
      20
      million Yuan on May 20, 2012; RMB 20 million Yuan on November 20,
      2012;

    RMB
      60
      million Yuan on May 20, 2013; RMB 60 million Yuan on November 20,
      2013;

    RMB
      60
      million Yuan on May 20, 2014; RMB 60 million Yuan on November 20,
      2014;

    RMB
      60
      million Yuan on May 20, 2015; RMB 60 million Yuan on November 20,
      2015;

    RMB
      60
      million Yuan on May 20, 2016; RMB 60 million Yuan on November 20,
      2016;

    RMB
      60
      million Yuan on May 20, 2017; RMB 60 million Yuan on November 20,
      2017;

    RMB
      90
      million Yuan on May 20, 2018; RMB 90 million Yuan on November 20,
      2018;

    RMB
      90
      million Yuan on May 20, 2019; RMB 90 million Yuan on November 20,
      2019;

    RMB
      90
      million Yuan on May 20, 2020; RMB 90 million Yuan on November 20,
      2020;

    RMB
      90
      million Yuan on May 20, 2021; RMB 90 million Yuan on November 20,
      2021;

    RMB
      90
      million Yuan on May 20, 2022; RMB 90 million Yuan on November 28,
      2022;

    

    The
      borrower shall deposit the principal payable before the principal repayment
      date
      into its deposit account opened in the handling branch of the loaner, for the
      loaner to draw directly from the account. 

    

    In
      case
      that the principal repayment date is statutory holiday or public holiday, the
      borrower may choose to repay the loan on the last business day before the
      holiday, and the loaner will not calculate the interest by the contract interest
      rate of the days between the repayment date and the due date; the borrower
      may
      also choose to repay on the first business day after the holiday, and the loaner
      will additionally collect the interest of the days between the due date and
      the
      repayment date. The penalty interest will be charged from the due date as per
      the overdue loan in case of no repayment on the on the first business day after
      the holiday. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      borrower may apply to the loaner for adjusting repayment plan or an extension
      if
      it is unable to repay the loan principal in accordance with the repayment plan
      or loan term stipulated in the contract. The borrower shall put forward the
      written application to the loaner 60 days before the agreed principal repayment
      date, and sign the Agreement of Repayment Plan Change or Agreement of Loan
      Extension. 

     

    The
      penalty shall be charged if the borrower has not repaid the due loan principal
      as required by the contract. 

     

    Article
      9 Repayment Sequence 

     

    If
      the
      fund repaid by the borrower is less than the total amount due on the day agreed
      in the contract, the fund shall be arranged in the following
      sequence:

     

    I.
      To pay
      the expense, compensation, damages and breach penalty payable as required by
      the
      contract;

     

    II.
      To
      pay the penalty interest and compound interest payable;

     

    III.
      To
      pay the interest payable;

     

    IV.
      To
      pay the principal payable.

     

    The
      fund
      shall be paid according to the sequence of relevant funds if the amount paid
      by
      the borrower can not pay off the total fund of the same sequence.

     

    Article
      10 Advance Repayment 

     

    The
      borrower shall apply in written form 30 days before the drafted repayment date
      if he wants to repay in advance. After the loaner agrees in written form in
      advance, the borrower can repay the loan under this contract. The borrower
      can
      not repay the loan under this contract without loaner’s agreement in written
      form in advance.

     

    Article
      11 Account Management 

     

    The
      borrower shall open loan account and deposit account in the borrower’s handling
      branch before Nov. 29, 2004, which will be used by the loaner to offer loans,
      arrange settlement and reclaim principal and interest of loan. 

     

    Article
      12 Settlement Handling Bank 

     

    The
      loaner makes _________
      as
      settlement handling bank, and the borrower shall open account in settlement
      handling bank. The payment of capital in this account shall be supervised by
      loaner and settlement handling bank. 

     

    The
      detailed content of loan fund payment mentioned above is: petty repayment of
      Pingdingshan-Linru Expressway Project. 

     

    Settlement
      handling bank shall strictly appropriate fund according to intended use of
      the
      loan. If the fund required to be paid by the borrower is not in accordance
      with
      the usage stipulated in this contract, settlement handling bank shall
      momentarily stop to pay, inform loaner timely and decide for payment after
      negotiation with loaner’s handling bank. 

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Article
      13 Forward Counter

    

    The
      borrower shall enter into “Forward Counter Network System” according to
      requirements of the loaner, sign relevant agreements of entering into this
      system with loaner and transact payment settlement of loan according to relevant
      stipulations. 

    

    Article
      14 Statement and Guarantee of the Borrower 

     

    I.
      The
      borrower is a legal person established according to law with valid business
      license, and the borrower owns assets and operate its business according to
      law;

     

    II.
      The
      borrower’s internal authorization procedures for signing this contract have been
      finished, and the one signing this contract is a valid authorized
      representative. The contract is valid, namely, it has legal restraint force
      for
      borrower; 

     

    III.
      The
      financial report borrower offered to loaner is compiled according to current
      valid laws, regulations and accepted accounting standards, which truly and
      accurately reflects borrower’s financial position in the year of report;

     

    IV.
      Other
      materials borrower supplied to loaner are true and accurate, and the copies
      submitted all agree with the originals; 

     

    V.
      The
      borrower affirms that its loan project has approved by relevant examination
      and
      approval departments, and guarantee that all approval documents are true and
      legal; 

     

    VI.
      The
      technical plan, construction content and construction scale of loan project
      is
      reasonable and feasible, and the borrower has not the situations of reducing,
      expanding or breaking through construction scale and standard without
      authorization. 

    

    Article
      15 Fund Payment 

     

    The
      borrower shall forecast fund demands at the beginning of month and report the
      payment demands to the loaner’s handling bank branch in the form of telephone,
      fax or other forms. 

     

    The
      borrower shall submit basis of payment advice note and fund payment to loaner’s
      handling bank branch on drafted payment date. The loaner will approve above
      documents according to internal management procedures and transact payment
      procedures on the day when receiving payment advice note for the payment
      requirements are with true payment basis and complete after approval. The loaner
      can momentarily pay or withhold to pay for the payment basis is not true,
      complete or fund appropriation and project accomplishment is not accordant.
      

     

    Fund
      payment basis borrower submitted shall include: project budgetary estimate
      approved by authorized departments, project preliminary design, project
      contract, investment project list, investment plan and other materials loaner
      required borrower to supply, etc.

     

    Article
      16 Examination on Funds Use 

     

    After
      paying loan capital, the loaner has the right to examine loan capital use under
      this contract in field or non-field. The borrower shall submit execution
      situation of loan capital use and relevant capital use credence to loaner’s
      handling bank branch according to requirements of loaner; the loaner can examine
      use in field, and the borrower shall actively cooperate and offer relevant
      materials according to requirements of loaner. The loaner shall examine:

     

    I.
      Whether the project capital reaches according to the engagement; 

     

    II.
      Whether the intended use of the loan is changed, and during the process from
      loan payment to forming work quantity, whether there are loaner prohibited
      regions such as security trading, futures trading, real estate operation and
      risk investment, etc; 

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    III.
      Whether the project goes smoothly, whether there is serious accident, whether
      the major equipments are mounted timely and whether the construction period
      is
      prolonged; 

     

    IV.
      Check
      for project accumulated finished quantity and project image progress with
      project accumulated fiscal charges, and the charge expenses; 

     

    V.
      Whether the estimated total investment is in the budgetary estimate
      range;

     

    VI.
      Other
      situations loaner wanted to check 

     

    In
      the
      process of examination, if the loaner finds un-proper funds use causing loan
      project building successfully, he can require the borrower to amend within
      a
      definite time. 

    

    Article
      17 Information Disclosure

     

    I.
      During
      the building period of loan project under this contract, the loaner shall report
      last month loan project statistics monthly report to loaner’s handling bank
      branch according to requirements of loaner before 5th of each month, and submit
      the loan project annual report of last year to loaner’s handling bank branch
      according to form required by loaner before Feb. 15 of every year; 

     

    II.
      The
      borrower shall submit such relevant data as the financial settlement report
      of
      project completion to the loaner’s handling bank branch within 15 days after
      finishing the settlement report of the loan project under the contract;

     

    III.
      The
      borrower shall submit whole set of financial report of last year (including
      balance sheet, profit and loss statement, statement of cash flow and audit
      report) audited by CPA firm or department which approved by the loaner before
      March 31 of each year; submit last quarter’s whole financial report to the
      loaner in the first 10 days of every quarter; submit whole set of the first
      half
      year’s financial report to loaner before Sep. 10 annually; 

     

    IV.
      The
      borrower submits last year’s financial receipts and expenditures to the loaner
      before May 31 annually; 

     

    V.
      If the
      borrower changes name, address, registered capital, business scope, company
      types and articles of association, or large change in finance, he shall inform
      loaner 10 days before in written form and report relative materials to loaner
      to
      put on record. The legal representative or finance chief of the borrower changes
      greatly, timely inform loaner in written form. 

     

    VI.
      The
      loaner has the right to ask the borrower to supply the important dynamic
      information about funds utilization from project established to contract
      termination date, and the borrower shall supply timely. 

     

    Article
      18 Loan Project Supervision 

     

    I.
      The
      loaner can periodically visit the borrower and loan project to understand loan
      project situation adopting following methods: 

     

    1.
      To
      listen to the introduction of the borrower to the loan project;

     

    2.
      To
      look over the financial and accounting data and other relevant data, such as
      financial report, accounting document, and account books, etc.

     

    3.
      To
      enter into the construction project sites for examination, investigate and
      check
      the tendering and bidding, engineering quality and construction figure progress
      of the loan project, etc.

    

    4.
      To
      check the financial and capital situation of the borrower, acquaint with the
      situation from the employees, and listen to the opinions;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      borrower shall cooperate with the loaner on the activities above.

     

    II.
      If
      tendering and bidding the single project over 1 million Yuan under the contract,
      the borrower shall inform the loaner within 10 working days before the beginning
      of tendering and bidding activity. The loaner may conduct supervision and
      inspection on the activities and the borrower shall give cooperation. The ways
      of supervision and inspection are as follows:

     

    1.
      To
      examine the tender announcement, invitation for bidding, tender document and
      bidding document, and check the qualification level and credit standing of
      the
      bidder;

     

    2.
      To
      supervise the opening of tender and comment on tender, and sit in on the
      important meetings related to tendering and bidding matters;

     

    3.
      To
      investigate and understand the situation and hear the opinions from the
      tenderer, bidder, tender agency, relevant competent administrative department
      and tender notary organization;

     

    4.
      To
      review the report, contract and relevant documents of tendering and bidding
      conditions;

     

    5.
      To
      examine on site, and investigate and check the performance of tender
      results.

     

    III.
      The
      borrower shall invite the qualified engineering supervision organization for
      the
      supervision of engineering construction and equipment installation and debugging
      in accordance with relevant state stipulations of engineering supervision and
      industry requirements. As required by the loaner, the borrower shall provide
      relevant reports of engineering supervision in specified term.

     

    IV.
      The
      borrower shall cover insurance for relevant construction projects under the
      contract in accordance with relevant state stipulations and industry
      requirements. As required by the loaner, the borrower shall provide relevant
      copies of insurance contract or insurance documents in specified term.

     

    Article
      19 Rights and Obligations of the Borrower

     

    I.
      The
      borrower shall withdraw money according to the withdrawal plan agreed in the
      contract;

     

    II.
      The
      borrower shall repay the principal and interest of the loan according to the
      agreement in the contract; 

     

    III.
      If
      the borrower’s management assets transfer activity involves 50% of its total
      assets, the borrower shall firstly get loaner’s written consent;

     

    IV.
      If
      the borrower has title or system change activities such as company combination
      and dividing, the borrower shall inform the loaner the change plans 60 days
      in
      advance, and get the loaner’s consent. The above change plans shall not damage
      the loaner’s legal interests under this contract;

     

    V.
      If the
      value of pledges under this contract is reduced which influences the loan
      security, the borrower shall make up the pledges in the time limit required
      by
      the loaner, and both parties shall sign valid pledge contract under
      laws;

     

    VI.
      If
      the borrower provides guarantee for a third party and the guarantee assets
      will
      exceed 70% of the net assets in finance statements during the recent years,
      the
      borrower shall firstly get loaner’s written consent;

     

    VII.
      The
      borrower can not apply loan from the loaner with approaches like false claim
      of
      construction project; 

     

    VIII.
      The
      borrower shall cooperate with the credit rating work of the loaner, and provide
      relevant material required by the loaner. 

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Article
      20 Rights and Obligations of the Loaner

     

    I.
      The
      loaner has the right to reclaim loan principal and interest as stipulated in
      the
      contract; 

     

    II.
      After
      reaching a consensus through consultation with the borrower, the loaner has
      the
      right to decide whether to announce publicly the credit rating result of the
      borrower or not; 

     

    III.
      The
      loaner has the right to give annual recheck on the borrower’s credit and loan
      project during loan issuing period as stipulated in the contract to decide
      whether go on the issuing to the borrower; if match the condition, go on with
      the issuing and sign the annual loan contract; if do not match, cancel the
      loan;

     

    IV.
      The
      loaner shall perform the regulations of People's Bank of China on interest
      rates
      and interest charging;

     

    V.
      The
      loaner shall adjust the interest rate as stipulated in the contract, and shall
      inform the borrower the rate adjusting information. 

     

    Article
      21 Guaranty

     

    This
      contract adopts the following guaranty approaches:

     

    The
      pledger—Pingdingshan PingLin Toll Road Company Ltd. provides pledge guaranty
      with its part Toll Collection Right of Pingdingshan—Linru Expressway of Henan
      Province under laws; the pledge percentage of part Toll Collection Right enjoyed
      by the pledgee shall be equal with the percentage of this loan in the total
      loan
      of project of Pingdingshan—Linru Expressway under this contract. 

     

    The
      pledger shall sign valid pledge contract with the loaner timely according to
      laws. 

     

    Article
      22 Breaching Event and Responsibility of the Borrower

     

    I.
      If the
      borrower violates provisions in Article 15-19 or 21, or any statement and
      guaranty of the borrower in Article 14 is proved to be misleading, the loaner
      has rights to require the borrower to correct in limited time; if the borrower
      does not correct in limited time, the loaner has rights to carry out one or
      more
      measures as follows: 

     

    1.
      To
      stop issuing loan;

     

    2.
      To
      announce that the loan become due in advance and at the same time require the
      borrower to pay back the issued principal and interest in limited time, and
      has
      the right to deduct the repaying fund directly form the bank account of the
      borrower (when signing the contract, the borrower has authorized the loaner
      to
      exercise the above right to deduct the repaying fund directly); 

     

    3.
      To
      unilaterally terminate the contract.

     

    II.
      If
      the borrower violates the stipulations of other articles except the first
      article, the loaner has the right to require the borrower to correct in time
      limit; if the borrower does not correct as required, and the loaner has the
      right to require the borrower to pay liquidated damages of 0.1% of the borrowed
      funds when the violation happens. If the damages payment could not make up
      the
      economic loss of loaner, the loaner has the right to require the borrower to
      pay. 

     

    III.
      If
      there is lawsuit because of the borrower’s breach, the attorney fee of the
      loaner for the lawsuit must be paid by the borrower.

     

    Article
      23 Breaching Event and Responsibility of the Borrower

     

    I.
      If the
      loaner does not provide the loan for the borrower or charge the interest as
      stipulated in the contract, the borrower has the right to require the loaner
      to
      correct in time limit; the loss of the borrower must be paid by the
      loaner;

     

    II.
      If
      there is lawsuit because of the loaner’s breach, the attorney fee of the
      borrower for the lawsuit must be paid by the loaner.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Article
      24 Alteration and Termination of the Contract

     

    I.
      Unless
      otherwise stipulated, after the contract comes into effect, any party shall
      not
      unilaterally modify or terminate the contract. The alteration and termination
      of
      the contract shall be exercised by consensus of both the borrower and loaner
      and
      come into one written agreement;

     

    II.
      The
      loaner can transfer all or part of the rights under this contract to a third
      person, and the above transfer shall be informed to the borrower;

     

    III.
      If
      there are changes of state laws, regulations and policies which lead to all
      or
      part of the contract articles not meet the requirements of state laws,
      regulations and policies, the borrower and the loaner shall negotiate with
      each
      other to modify the relevant articles. 

     

    IV.
      The
      lender and borrower shall inform the other party timely and take effective
      measures to avoid the expanding of loss, if they can not fulfill the contract
      for the reason of force majeure. The party who suffered force majeure shall
      provide detailed force majeure information and documentary evidence from
      relevant government about the force majeure to the other party in 20 days when
      it happens. The lender and borrower shall work out corresponding resolution
      timely. 

     

    Article
      25 Completeness of contract 

     

    This
      contract consists of the complement, revision or alteration of each item.

     

    Article
      26 Secrecy

     

    Without
      agreement of the borrower and the loaner, either of them can not reveal the
      content of this contract to the third person. 

     

    Article
      27 Dispute settlement 

     

    If
      there
      is dispute between the borrower and the loaner when implementing the contract,
      both parties settle it through coordination; if it can not settled through
      coordination, solve it through lawsuit in the people’s court in the location of
      the loaner. 

     

    Article
      28 Others 

     

    I.
      This
      contract not completely matters concerned will be coordinated by the borrower
      and the loaner or executed according to stipulations of relevant laws and
      regulations. 

     

    II.
      This
      original contract is in duplicate, both the borrower and the loaner hold one;
      the copy has 11 pieces, the borrower holding 4, the loaner holding 6 and
      settlement handling bank holding 1.

     

    Article
      29 Effectiveness and Termination of Contract 

     

    This
      contract comes into effect from the date when the borrower and the loaner sign
      and seal on the contract, and terminates when all debts under this contract
      are
      discharged. 

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    The
      borrower:
      The
      Pingdingshan Pinglin Toll Road Company Ltd. (common seal)

    The
      legal
      representative: /s/ Li Xipeng  

    (Or
      the
      authorized agent) 

    Date:
      Nov. 29, 2004            

    

    The
      bank
      of deposit and its account number:

    

    The
      loaner:
      Special
      seal for contract of China Development Bank 

    The
      legal
      representative: /s/ Rong Geng

    (Or
      the
      authorized agent) 

     

    Date:
      Nov. 29, 2004            

    

    The
      contract signing place: Zhengzhou City, Henan ProvinceContract
      No: YBZ No.0051,
      2005

    

    

    Loan
      Contract of the Fixed Assets

    

    

    The
      Borrower (party A):
      Pingdingshan Pinglin Toll Road Company, Ltd.

    

    
      	Domicile(Address):	
              The
                Real Estate Mansion of Industrial and Commercial Bank of China, north
                section of Zhongxing Road

            

    

    

    The
      Legal Representative:
      /s/ Li
      Xipeng

    

    The
      Loaner (party B):
      The
      Pingdingshan Branch of Industrial and Commercial Bank of China

    

    Domicile
      (Address): No.37,
      Southern of Kuanggong Zhonglu Road, Pingdingshan City 

    

    The
      Legal Representative (Principal):
      /s/ Ren
      Yueling 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Contents

     

    
      	
              Article
                1 Statement and Warranty of Party A

            	
              2

            
	 	 
	
              Article
                2 the Type of the Loan

            	
              2

            
	 	
               

            
	
              Article
                3 the Use of the Loan

            	
              2

            
	 	 
	
              Article
                4 the Amount and Term of the Loan

            	
              3

            
	 	 
	
              Article
                5 the Interest Rate and Interest Calculation of the Loan

            	
              3

            
	 	 
	
              Article
                6 the Condition of the Drawing

            	
              3

            
	 	 
	
              Article
                7 the Arrangement of the Drawing

            	
              3

            
	 	 
	
              Article
                8 the Source of Repaying Capital and Repayment

            	
              4

            
	 	 
	
              Article
                10 the Rights and Obligations of Both Parties

            	
              5

            
	 	 
	
              Article
                11 the Responsibility of Breach

            	
              6

            
	 	 
	
              Article
                12 Validity, Alternation, Rescission and Termination of
                Contract

            	
              7

            
	 	 
	
              Article
                13 Resolution of Dispute

            	
              8

            
	 	 
	
              Article
                14 Other matters agreed upon by both parties

            	
              8

            
	 	 
	
              Article
                15 Supplementary Provisions

            	
              8

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Due
      to
      the need of Article 3.1 of the contract, Party A applies to loan from Party
      B
      hereby. Party B agrees to provide the loan to Party A. In order to define the
      rights and obligations of both parties, according to the Contract
      Law,
      Lending
      General Provisions
      and
      other relevant laws and regulations, both Party A and Party B conclude this
      contract through equal negotiated consensus.

     

    Article
      1 Statement and Warranty of Party A

     

    
      	
              1.1

            	
              Party
                A is an entity established lawfully with the qualification of legal
                person
                (or a branch authorized legally by the legal person), has the right
                to
                implement the contract lawfully.

            

    

    

    
      	
              1.2

            	
              The
                draft loan project under the contract has been approved by relevant
                government organs. 

            

    

    

    
      	
              1.3

            	
              All
                kinds of the accounting reports and material provided about the
                investigation, review and management of the loan project are true,
                accurate and complete.

            

    

     

    Article
      2 the Type of the Loan

     

    
      	
              2.1

            	
              The
                loan under the contract items is the loan for the fixed
                assets.

            

    

     

    Article
      3 the Use of the Loan

     

    
      	
              3.1

            	
              The
                use of the loan under the contract is: the
                construction of Pingdingshan-Linru Expressway Project.

            

    

    

    
      	
              3.2

            	
              Without
                the written agreement of Party B, Party A cannot change the use of
                the
                loan defined in the contract. 

            

    

     

    Article
      4 the Amount and Term of the Loan

     

    
      	
              4.1

            	
              The
                loan amount under the contract is: RMB
                600,000,000Yuan,
                Spelling Six
                Hundred Million Yuan.
                (In case of any discordance, the spelling number shall prevail. The
                same
                bellow).

            

    

    

    
      	
              4.2

            	
              The
                loan term under the contract is  
                months, from July
                22, 2005
                to
                July 21, 2020.

            

    

     

    Article
      5 the Interest Rate and Interest Calculation of the Loan

     

    
      	
              5.1

            	
              The
                interest rate under the contract items is made once in a
                year.

            

    

    

    
      	
              5.1.1

            	
              The
                interest rate of the first year is taken as the annual interest rate:
                5.508% (including all the loans lent physically within one year from
                the
                day the contract coming into
                force);

            

    

    

    
      	
              5.1.2

            	
              The
                interest rate of the second year and the after years (the day of
                the first
                payment of sums of money shall prevail) is fixed legally by Party
                B
                according to the legal interest rate of the corresponding level at
                that
                time, and Party B shall inform Party A in the written form within
                30 days
                from the day the interest rate changed. But that whether it is delivered
                or not doesn’t affect the
                implementation.

            

    

    

    
      	
              5.2

            	
              The
                interest of the loan under this contract is counted by days and settled
                every quarter. The settlement day of the interest is 20th of the
                end month
                of the quarter. The interest will be cleared as the capital is finished
                when the term of the loan is over.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	
              5.3

            	
              The
                interest of the loan under the contract is counted from the day of
                drawing
                the loan.

            

    

    

    
      	
              5.4

            	
              In
                the process of the implementation of this contract, if the People’s Bank
                of China adjusts the loan interest rate and the rate is suitable
                for the
                loan under this contract, Party B has no need to notice Party A but
                use
                the adjusted loan interest rate and method to calculate the interests
                according to the stipulations. 

            

    

     

    Article
      6 the Condition of the Drawing 

     

    
      	
              6.1

            	
              Before
                each drawing, the Party A should meet the following
                conditions:

            

    

    

    
      	
              6.1.1

            	
              Guarantee
                that the contract is established judicially and has come into
                force;

            

    

    

    
      	
              6.1.2

            	
              The
                capital in cash and other capitals which should be raised of the
                construction project with the loan under this contract has been in
                place
                in full amount according to the stipulated time and
                proportion;

            

    

    

    
      	
              6.1.3

            	
              Hasn’t
                overspend the cost or the overspent cost has been settled by
                itself;

            

    

    

    
      	
              6.1.4

            	
              Has
                finished the project progress according to the
                plan;

            

    

    

    
      	
              6.1.5

            	
              Has
                handled the drawing procedures to Party B as stipulated in the
                contract;

            

    

    

    
      	
              6.1.6

            	
              Has
                no breach event as stipulated in the
                contract;

            

    

    

    
      	
              6.1.7

            	
              Has
                provided other relevant material handling the loan as required by
                Party
                B.

            

    

     

    Article
      7 the Arrangement of the Drawing 

     

    
      	
              7.1

            	
              The
                drawing mode of the loan under the contract is implemented as agreed
                in
                item
                7.1.1     :

            

    

    

    
      	
              7.1.1

            	
              Party
                A draws the loan once off on the day of
                July 22, 2005,
                and transfer the entire loan to the account opened by Party B.
                

            

    

    

    
      	
              7.1.2

            	
              Party
                A draws the loan _/__ times totally, and the detailed drawing amount
                and
                date are as follows:

            

    

    

    
      	
              7.1.2.1

            	
              RMB    /     Yuan,
                spelling     /     on      
                /    
                ;

            

    

    

    
      	
              7.1.2.2

            	
              RMB    /     Yuan,
                spelling     /     on      
                /    
                ;

            

    

    

    
      	
              7.1.2.3

            	
              RMB     /     Yuan,
                spelling     /     on      
                /    
                ;

            

    

    

    
      	
              7.1.2.4

            	
              RMB    
/    
                Yuan,
                spelling     /     on      
                /    
                ;

            

    

    

    
      	
              7.1.2.5

            	
              RMB    
/    
                Yuan,
                spelling     /     on      
                /    
                ;

            

    

    

    
      	
              7.2

            	
              Party
                A shall draw the loan as agreed in item 7.1 of this contract. If
                having
                special reasons, Party A shall show the written application and can
                draw
                the loan in advance or putting off       
                /          
                 days
                through the written agreement of Party
                B.

            

    

    

    
      	
              7.3

            	
              If
                Party A requires canceling all or part of the non-drawn loans of
                this
                contract, Party A shall put forward the written application to Party
                B 30
                days earlier than the drawing day as stipulated in this contract
                and can
                cancelled with the written agreement of Party
                B.

            

    

    

    
      	
              7.4

            	
              The
                exact days of drawing and returning in this contract take the actual
                days
                recorded on the due bills handled by both parties. The due bills
                or the
                drawing document of the loan is the inseparable part of this contract.
                Except the date, if other recorded events are consistent with this
                contract, this contract shall prevail.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Article
      8 the Source of Repaying Capital and Repayment

     

    
      	
              8.1

            	
              The
                capital of the Party A returning the capital and interests of the
                loan
                under this contract items comes from the following but not limit
                to:

            

    

    

    
      	
              8.1.1

            	
              The
                business income and all the governable capitals;

            

    

    

    
      	
              8.1.2

            	
              The
                undistributed profits, depreciation and promotion of the enterprise
                every
                year;

            

    

    

    
      	
              8.2

            	
              No
                matter any other contract with Party A as one party have any agreement
                about the capital source of returning the loan, the agreement doesn’t
                affect Party A to implement the duties of the returning under this
                contract items. No matter what situation appears, Party A cannot
                cite item
                8.1 to refuse to implement the duties of returning the loan under
                this
                contract;

            

    

    

    
      	
              8.3

            	
              Party
                A should pay the interests in full amount quarterly according to
                the
                agreement of this contract, and repay the capital of the loan as
                agreed in
                item 8.3.2:

            

    

    

    
      	
              8.3.1

            	
              Repay
                all in one time: Party A should repay all the loan capitals on the
                day of
                /
                .

            

    

    

    
      	
              8.3.2

            	
              Repay
                all in many times: the detailed amount of the repayment and the date
                are
                shown as follows:

            

    

    

    
      	
              8.3.2.1

            	
               
                RMB 420,000 Yuan ,
                spelling
                Four Hundred and Twenty Thousand Yuan
                on
                November
                19, 2007;

            

    

    

    
      	
              8.3.2.2

            	
              RMB
                16,690,000 Yuan ,
                spelling
                Sixteen Million, Six Hundred and Ninety Thousand Yuan
                on
                November
                19,2008

            

    

    

    
      	
              8.3.2.3

            	
              RMB
                25,030,000Yuan ,
                spelling
                Twenty Five Million, Thirty Thousand Yuan
                on
                November 19,2009

            

    

    

    
      	
              8.3.2.4

            	
              RMB
                33,380,000Yuan ,
                spelling
                Thirty Three Million, Three Hundred and Eighty Thousand
                Yuan
                on
                November 19,2010

            

    

    

    
      	
              8.3.2.5

            	
              RMB
                66,760,000Yuan ,
                spelling
                Sixty Six Million, Seven Hundred and Sixty Thousand Yuan
                on
                November 19,2011

            

    

    

    
      	
              8.3.2.6

            	
              RMB
                66,760,000Yuan ,
                spelling
                Sixty Six Million, Seven Hundred and Sixty Thousand Yuan
                on
                November 19,2012

            

    

    

    
      	
              8.3.2.7

            	
              RMB
                33,380,000Yuan ,
                spelling
                Thirty Three Million, Three Hundred and Eighty Thousand
                Yuan
                on
                November 19,2013

            

    

    

    
      	
              8.3.2.8

            	
              RMB
                33,380,000Yuan ,
                spelling
                Thirty Three Million, Three Hundred and Eighty Thousand
                Yuan
                on
                November
                19,2014

            

    

    

    
      	
              8.3.2.9

            	
              RMB
                12,520,000Yuan ,
                spelling
                Twelve Million, Five Hundred and Twenty Thousand Yuan) on
                November 19,2015

            

    

    

    
      	
              8.3.2.10

            	
              RMB
                33,380,000Yuan ,
                spelling
                Thirty Three Million, Three Hundred and Eighty Thousand Yuan
                on
                November 19,2016

            

    

    

    
      	
              8.3.2.11

            	
              RMB
                104,310,000Yuan ,
                spelling
                One Hundred and Four Million, Three Hundred and Ten Thousand
                Yuan
                on
                November
                19,2017

            

    

    

    
      	
              8.3.2.12

            	
              RMB
                83,450,000Yuan ,
                spelling
                Eighty Three Million, Four Hundred and Fifty Thousand Yuan
                on
                November 19,2018

            

    

    

    
      	
              8.3.2.13

            	
              RMB
                90,540,000Yuan ,
                spelling
                Ninety Million, Five Hundred and Forty Thousand Yuan
                on
                November
                19,2019

            

    

    

    
      	
              9.2

            	
              Party
                A has the duty to assist the Party B actively and make Party B to
                sign the
                contract of guarantee whose No. is with
                the guarantor about the detailed guarantee affairs of this
                contract.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      	
              9.3

            	
              If
                the guarantee under this contract items occurs changes negative to
                the
                creditor’s rights of Party B, Party A should provide Party B the
                satisfactory guarantee separately according to the requirements through
                the notice of Party B.

            

    

     

    Article
      10 the Rights and Obligations of Both Parties 

     

    
      	
              10.1

            	
              the
                rights and obligations of Party A:

            

    

    

    
      	
              10.1.1

            	
              To
                draw and use the loan according to the terms and usage stipulated
                by this
                contract;

            

    

    

    
      	
              10.1.2

            	
              Cannot
                return the loan in advance without the written agreement of Party
                B;

            

    

    

    
      	
              10.1.3

            	
              To
                accept actively the investigation, learning and supervision of Party
                B to
                the use situation under this contract
                items;

            

    

    

    
      	
              10.1.4

            	
              To
                cooperate actively with the investigation, learning and supervision
                of
                Party B to the situation of the production, operation, the project
                construction and the financial affairs, and has the obligation to
                provide
                Party B the report forms of the relevant periods, such as the profit
                and
                loss statements, the asset and liability
                statements;

            

    

    

    
      	
              10.1.5

            	
              To
                support actively Party B to participate in the relevant affairs,
                such as
                the examination of the three calculations (budgetary estimate, budget
                and
                the final accounts), the project biding and the check and acceptance
                of
                the project etc.

            

    

    

    
      	
              10.1.6

            	
              To
                pay off the capital and interest of the loan under this contract
                items
                according to the agreement of this
                contract;

            

    

    

    
      	
              10.1.7

            	
              To
                undertake the expenditure of the relevant cost under this contract
                items,
                including but not limiting to the cost used for the notarization,
                the
                appraisal, evaluation, registration
                etc.

            

    

    

    
      	
              10.1.8

            	
              To
                the urging letter or files sent or delivered by other way by Party
                B, send
                off the acknowledgement of receipt within three day after signing
                for
                it;

            

    

    

    
      	
              10.1.9

            	
              If
                doing the actions, such as contract and leasing, restructuring the
                joint
                stock system, pooling, incorporating, annexing, splitting, reducing
                the
                capital, changing the stock rights, transferring the important assets
                and
                other actions enough to affect the rights and benefits of Party B,
                Party A
                shall notice Party B 30 days in advance, and get the written agreement
                of
                Party B, otherwise, cannot do the above acts before paying off all
                the
                debits.

            

    

    

    
      	
              10.1.10

            	
              If
                changing the industrial and commercial affairs of the registration,
                such
                as the domicile, communication address, business scope, the legal
                representatives, should notice Party B in written form seven days
                after
                the changing;

            

    

    

    
      	
              10.1.11

            	
              If
                there emerges any event composing risk to its normal operation or
                causing
                grand negative effect to implementing the returning duty of the loan,
                including but not limit to involvement of economic disputes, bankrupts,
                the deterioration of the financial affairs etc, shall inform Party
                B at
                once;

            

    

    

    
      	
              10.1.12

            	
              If
                there emerge closures of the business, dissolutions, stopping doing
                business for internal rectification, withdraw or cancellation of
                the
                business license shall inform Party B in written form 5 days after
                the
                emerging and ensure to return the capital and interest of the loan
                at
                once.

            

    

    

    
      	
              10.2

            	
              The
                rights and obligations of Party B:

            

    

    

    
      	
              10.2.1

            	
              To
                require the Party B to provide all the materials relevant to this
                loan;

            

    

    

    
      	
              10.2.2

            	
              To
                transfer and take from the account of Party According to the agreement
                of
                this contract or the laws the capital, interest, compound interest,
                fined
                interest and all the other cost Party A should repay according to
                the
                agreement of this contract;

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              10.2.3

            	
              To
                the situation that Party A escape the supervision of Party B, fail
                to pay
                up the capital and interest of the loan and other serious breaches
                to this
                contract, Party B have the right to do the sanction of credit, report
                to
                relevant departments or units, urge to take the money publicly through
                the
                news medias;

            

    

    

    
      	
              10.2.4

            	
              To
                provide the loan to Party A on schedule in full amount according
                to the
                agreement of this contract (except the parts falls to be paid by
                Party
                A);

            

    

    

    
      	
              10.2.5

            	
              To
                keep secret the material and situation provided by Party A about
                its
                credits, financial affairs, production, operation etc. except the
                parts
                stipulated in this contract or the laws and rules
                separately.

            

    

     

    Article
      11 the Responsibility of Breach

     

    
      	
              11.1

            	
              Both
                parties shall implement the obligations agreed in this contract after
                it
                comes into force. Either party shall undertake the responsibilities
                of the
                breach lawfully if it doesn’t implement or party implement the obligations
                agreed in this contract.

            

    

    

    
      	
              11.2

            	
              If
                Party A doesn’t handle or draw the loan as agreed in item 7.1 of this
                contract, Party B has the right to calculate and take the delaying
                penalty
                by days according to the interest rate of this
                contract;

            

    

    

    
      	
              11.3

            	
              If
                Party B doesn’t handle and issue the loan as agreed in item 7.1 of this
                contract, it shall pay the delaying penalty by days according to
                the
                interest rate of this contract.

            

    

    

    
      	
              11.4

            	
              If
                Party A return the loan under the contract items in advance without
                the
                written agreement of Party B, Party B has the right to calculate
                and take
                the interest according to the loan term and interest rate agreed
                in this
                contract.

            

    

    

    
      	
              11.5

            	
              If
                Party A doesn’t repay the capital and interest of the loan under this
                contract items by termination, Party B has the right to make it pay
                off in
                the limited time, do the counteracting right to all the account capital
                opened by Party A under the account of Party B, at the same time,
                calculate and take 2.295% interest by days to the overdue loan, calculate
                and take compound interest to the non-paid
                interest.

            

    

    

    
      	11.6	
              If
                Party A fails to make use of the loan as agreed in the contract,
                Party B
                has right to stop extending loan period, return part or even all
                loan in
                advance, or cancel the contract, charge 3.06/10000 interest by day
                for the
                loan default usage of Party A, and charge compound interest for unpaid
                interest. 

            

    

    

    
      	11.7	
              In
                the process of using loan, if Party A encounter has the situations
                listed
                in items 11.5 and 11.6 at the same time, Party B may punish it in
                term of
                seriousness,
                but cannot fine
                concurrently;

            

    

    

    
      	11.8	
              If
                Party A has one of the following actions, it shall correct its actions
                and
                adopt satisfactory remark measures within 7 days after receiving
                the
                notice from Party B, or Party B has right to stop or cancel loan
                undeliverable of Party A, return part or all loan in advance, if
                the loan
                cannot returned, it shall charge penalty by day based on overdue
                lending
                rate;

            

    

    

    
      	11.8.1	
              Party
                A provides false or hidden balance sheet, income statement and other
                financial information;

            

    

    

    
      	11.8.2	
              Party
                A fails to cooperate or refuse to accept supervision
                on lending, production
                operation and financing activities of Party
                B.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      
        	
                11.8.3
                  

              	
                Without
                  consent of Party B, Party A cannot transfer or punish, threateningly
                  transfer or punish the important parts of assets;

              
	 	 
	
                11.8.4

              	
                Important
                  parts or all assets were occupied by other creditor, were take
                  over by
                  designated client, recipient or similar personnel, or its assets
                  was
                  detained or froze, which may make party B suffer heavy
                  loss.

              
	 	 
	
                11.8.5

              	
                Without
                  the consent of the party B, Party A has a series of actions such
                  as
                  contract, lease, transformation in line with stock system, affiliation,
                  combination, merger, joint investment, splitting, capital reduction,
                  stock
                  rights alteration, important assets assignment, and other actions
                  are able
                  to affect the realization of rights and benefits of party B, which
                  threats
                  to the claim security of party B.

              
	 	 
	
                11.8.6

              	
                It
                  has the matters for industrial and commercial registration such
                  as
                  alteration of accommodation, mailing address, business scope and
                  legal
                  representative, or has the important investment to the outside
                  etc., which
                  causes the serious influence or menace on the claim of party
                  B.

              
	 	 
	
                11.8.7

              	
                Party
                  A involves serious financial disputes or financial position deteriorates
                  which affects or threats the realization of claim of party
                  B.

              
	 	 
	
                11.8.8

              	
                Other
                  situation may cause the realization of claim under the loan contract
                  of
                  party B may suffer from menace or serious
                  loss.

              

      

    

     

    Article
      12 Validity, Alternation, Rescission and Termination of
      Contract

     

    
      
        	
                12.1
                  

              	
                This
                  contract comes into effect upon both parties’ signature and seal, with
                  guarantee, it shall come into effect along with the validity of
                  the
                  guarantee contract, and ending on the date of lending principal,
                  interest,
                  compound interest, default interest, penalty and all other accrued
                  charge
                  under this contract paid off.

              
	 	 
	
                12.2
                  

              	
                Party
                  B has right to cancel the contract, and asks Party A to repay principal
                  and interest in advance and compensate for the loss, if one of
                  the
                  following situations occurs:

              
	 	 
	
                12.2.1

              	
                Conditions
                  of Party A as: go out of business, dissolve its company, stop doing
                  business for internal rectification, or its business license is
                  revoked or
                  cancelled;

              
	 	 
	
                12.2.2
                  

              	
                The
                  guarantee under this contract has unfavorable changes about financial
                  claim on Party B, and Party A hasn’t provided needed guarantee
                  separately;

              
	 	 
	
                12.2.3

              	
                Other
                  serious breach acts.

              
	 	 
	
                12.3
                  

              	
                If
                  Party A calls for extending of credit period, it shall present
                  a written
                  application and a written opinion on continuative guarantee of
                  guarantee
                  to Party B 30 days prior to the expiration of contract. After being
                  examined by Party B, signing the extending of credit period agreement,
                  the
                  loan period under this contract may extend correspondingly; this
                  loan
                  contract shall be executed continuously before the period extending
                  agreement signed by two parities.

              
	 	 
	
                12.4

              	
                After
                  the contract coming into effect, it can’t be changed without permission or
                  cancelled in advance except existing stipulation of this contract,
                  if they
                  really need to alter or terminate this contract, two parties shall
                  reach a
                  written agreement through consultation friendly. Before reaching
                  an
                  agreement of, this contract shall be executed
                  constantly.

              

      

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Article
      13 Resolution
      of Dispute

     

    

      13.1
        Dispute exist in
        the
        process of executing this contract, Party A and Party B shall settle the
        disputes through friendly negotiations; if no settlement, dispute shall be
        settled in term of item 13.1.2     
         as
        follows:

       

      13.1.1
        It
        may be arbitrated by      
 /      
.

       

      13.1.2
        It
        may be settled by lawsuit at local court of Party B.

    

     

    Article
      14 Other matters agreed upon by both parties

    

      14.1
        Upon
        the consensus of both parties through consultation, the Article 5 and Article
        2
        under this contract are changed as follows: the lending interest under this
        contract be charged by days, interest settlement monthly, interest expiration
        date on 20th of every mouth, the interest shall be paid off along with principal
        when the loan expiration. Rights and obligations of both parties shall agree
        to
        the changed contents.

       

      14.2
        The
        non-completely matters in this contract is in Attachment 1 .

       

      14.3                         .

    

     

    Article
      15 Supplementary Provisions

    

      15.1
        The
        attachment of this contract is an inseparable part of the contract and has
        the
        equal legal force with the original of the contract.

       

      15.2
        In
        the process of fulfilling this contract, if some drawing and repayment date
        is
        the non-banking day, it shall postpone to the next banking day.

       

      15.3
        This
        contract shall have two originals and each party will have one of them, which
        has the equal legal force. 

    

     

    Party
      A
      (common seal): The Pingdingshan Pinglin Toll Road Company Ltd.

    Legal
      representative (Or the authorized agent): Li Xipeng (signature)

    July
      29,
      2005

    

    Party
      B
      (common seal): Industrial and Commercial Bank of China, Pingdingshan
      Branch

    Legal
      representative (or person in charge) (Or the authorized agent): Zhang Zheng
      (signature)

    July
      22,
      2005

    

    Attachment
      I 

    

    According
      to Contract
      Law, Guaranty Law and
      other
      relevant laws and regulations, for the unstated terms in “Other Terms as Agreed
      upon by Both Parties” of the main contract, the two parties add the following
      terms upon consensus through equal
      negotiation:
      

    

    I.
      Party
      A shall timely, fully and correctly disclose
      the
      relationship among related parties and related business to Party B. Party B
      has
      the right to take remedy measures stipulated by main contract and the law if
      Party A fails to fulfill the obligation of the above information disclosure,
      or
      Party A and related parties have one of the following situations, which may
      cause unfavorable influence on the performance of obligations under the main
      contract of Party A: 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    1.
      Financial condition of Party A’s related party deteriorates;

    

    2.
      Party
      A or its related party is investigated and prosecuted as a case or taken
      punishment measures in accordance with law by judicial authority, administrative
      law enforcement authority for taxation, industrial and commercial, and
      administrative management authority; 

    

    3.
      There
      are changes occurred in controlling and controlled relationships between Party
      A
      and its related parties;

    

    4.
      The
      related party of Party A involves or may involve in important economic dispute,
      lawsuit and arbitration; 

    

    5.
      Main
      investors individual or key administrator of Party A have abnormal changes,
      or
      they are investigated or the personal freedom is restricted by judicial
      authority for suspected illegal behavior;

    

    6.
      Other
      matters may cause adverse influence on Party A raised by its related
      party.

    

    According
      to the Accounting
      Standard for Business Enterprises-Disclosure of Related Party Relationships
      and
      Transactions,
      the
      related parties hereof refer to:

    

    1.
      Other
      enterprises directly or indirectly controlled by Party A, or other enterprises
      directly or indirectly control Party A, and other enterprises controlled by
      the
      same enterprise together with Party A; 

    

    
      	
              2.

            	
              Joint
                enterprise of Party A; 

            

    

    

    
      	
              3.

            	
              Affiliated
                enterprise of Party A;

            

    

    

    
      	
              4.

            	
              Main
                investor individual, key administrator and intimate family members
                of
                Party A; 

            

      	 	 

      	5.	Other
              enterprises directly controlled by main investor individual, key
              administrator and intimate family members of Party
              A;

    

     

    Other
      words in this Article and the same words in Accounting
      Standard for Business Enterprises-Disclosure of Related Party Relationships
      and
      Transactions
      have the
      same meanings.

    

    II.
      Party
      A shall regularly report the guarantee condition to any other party to Party
      B,
      and promise that the information and guarantee amount provided for Party B
      are
      complete, real and accurate.

     

    III.
      Party A shall faithfully report the usage of each loan to Party B, promise
      that
      all loan borrowed from Party B will not flow into securities market and futures
      market in any from, and will not violate the relevant state regulations for
      equity capital investment.

    

    IV.
      If
      one of the following conditions occurs during the period of loan, Party B has
      the right to terminate loan in advance, stop extending unissued loan, and ask
      Party A to repay the partial or whole issued loan in advance, or ask Party
      A to
      provide legal and valid guarantee approved by Party B:

    

    1.
      Without the written approval of Party B, Party A sets mortagage or provides
      guarantee to other parties with its valid business property, which increases
      the
      loan risk of Party B; 

    

    2.
      Some
      indexes such as credit rating, profitability, assets-liabilities ratio, net
      cash
      flow of business activities of Party A are not in conformity with the credit
      loan conditions of Party B, or there are great changes on its production
      operations and financial condition, which rise serious adverse influence on
      Party B’s loan security.

    

    V.
      Party
      B has made clear prompts to Party A about the underline parts of contract
      attachment and main contract to draw enough attention of Party A, and made
      explanation according to the demand of Party A. Party A fully understand the
      actual meanings of underline parts and voluntarily promise to accept these
      terms.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    VI.
      Party
      A is willing to undertake all the expenses rising from recovering claim of
      Party
      B, which include but not limit to attorney fees, legal cost, preservation cost
      and execution expense, etc. 

    

    VII.
      The
      attachment is an important part of the main contract on “Other Terms as Agreed
      upon by Both Parties”, which has the equal legal force with main contract, and
      will not be invalid because of the invalidity of main contract. 

    

    VIII.
      In
      this attachment of contract, Party A refers to Pingdingshan
      Pinglin Toll Road Company Ltd.,
      Party
      B refers to Industrial and Commercial Bank of China, Pingdingshan Branch, and
      the number of main contract is
      YBZ
      No.0051, 2005

     

    
      
        
        

      

      
        11

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