Document:

Unassociated Document

    
      Exhibit
10.39 

      
        

      

    

    

    Maximum
Amount Mortgage Agreement

    

    Agricultural
Bank of China

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

     

    Maximum
Amount Mortgage Agreement

    

    NO.
41906200900000502

    

    Mortgagee
(Full Name): Anyang
Branch, Agricultural Bank of China

    Mortgagor
(Full Name): One: Henan Shuncheng Group Coal
Coke Co., Ltd

                                            Two:

                                            Three:

    

    Whereas
the Mortgagor, of his own will, provides a mortgage of maximum amount for the
creditor’s rights arising from a series of business Agreements (hereinafter
referred to as the Principal Agreement) by and between the Mortgagee and Henan Shuncheng Group Coal
Coke Co., Ltd which are signed in accordance with Article 1 under this
Agreement. Each party of this Agreement enacts this Agreement by reaching
consent through consultation in accordance with the law and provision of
China.

     

    
      Article
1  the
Guaranteed Principal Creditor’s Rights and the Maximum Amount

    

     

    
      	
              1.1

            	
              The
      Mortgagor, of his own will, provide security to the following creditor’s
      rights between the Mortgagee and the Mortgagor, and the maximum amount of
      the guaranteed creditor’s rights is seventy five millions only RMB (¥75,000,000).
      The foreign currency transaction is converted in accordance with the
      selling price of the date of transaction under the Item (1)
      below.

            

    

    
      	
            	
              (1)

            	
              The
      Mortgagee deals with the creditor’s rights from each agreed business from
      25th June, 2009 to
      24th June, 2010.
      This period is the determination period of guaranteed creditor’s rights of
      maximum amount. The aforesaid business includes: (subject to the item
      marking “√”)

            

    

    √□Loan in RMB/Foreign
Currency □Establishment of L/C derating the security deposit

    □Packing
loan   □Discount on commercial bill □Import documentary
credit

    
      	
               
      

            	
              □Letter
      of guarantee □Acceptance of commercial bill □Export documentary credit
      □other business:___/___

            

    

    
      	
            	
              (2)

            	
              The
      following outstanding principal and its relevant interest, default
      interest, compound interest, expenses and etc are formed between the
      Mortgagee and debtor, and the interest, default interest, compound
      interest expenses and etc thereof are calculated in accordance with the
      relevant Principal Agreement till the date of actual
      liquidation.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Agreement Name

                                      	 	
                                        Agreement Number

                                      	 	
                                        Outstanding Principal

                                      	 	
                                        Currency

                                      
	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    (The
additional table added for the lack of table hereof is the component of this
Agreement.)

    
      	
              1.2

            	
              The
      kind, amount, rate and time limit of each business transaction guaranteed
      hereof subject to the relevant legal documents or
      certificates.

            

    

    
      	
              1.3

            	
              Within
      the period and maximum amount of the mortgage agreed hereof, the Mortgagee
      does not need to deal with procedures of guarantee case by case when
      issuing the agreed loan or providing other bank
  credit

            

    

    
      	
              1.4

            	
              The
      currency of the business transaction occurs in the period and within the
      maximum amount of the mortgage is not limited, and the Mortgagor shall
      take the responsibility of guarantee by use of the same currency with the
      original one.

            

    

    

    
      Article
2  Scope
of the Guarantee

    

     

    The scope
of the guarantee includes the principal of creditor’s right, interest, default
interest, compound interest, penalty, compensation for damage, litigation
(arbitration) fee, lawyer fee, deposition fee, title transfer fee and all the
expenses arising from the realization of the creditor’s rights and mortgage
rights by the Mortgagee.

    Regarding
part exceeding the maximum amount due to change of currency rate, the Mortgagor
shall bear the responsibility of guarantee of its own will.

     

    
      Article
3  the
Mortgage Property

    

     

    
      	
              3.1

            	
              The
      Mortgagor agrees to set the machinery
      equipment as the mortgage property. The aforesaid mortgage property
      refers to (list name and number): List of Chattel
      Mortgage, NO.41906200900000502-1. This list is an integral part
      hereof and has the equal legal effect of this
  Agreement.

            

    

    
      	
              3.2

            	
              The
      aforesaid mortgage property is priced provisionally in RMB of two hundred and
      seventy-five million three hundred and eighty-one thousand and sixty-six
      only (¥275,381,066),
      and the final value thereof is subject to the proceeds obtained from the
      actual disposition of mortgage property when realizing the mortgage
      rights.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        

      

       

      Article
4  Warrants
of the Mortgagor

    

     

    
      	
              4.1

            	
              The
      Mortgagor has got the authority as required by the mortgage hereof in
      accordance with the relevant regulations and
  procedures.

            

    

    
      	
              4.2

            	
              The
      Mortgagor has a complete and undisputed right of ownership or right of
      disposition on the mortgage
property.

            

    

    
      	
              4.3

            	
              The
      mortgage property may be circulated or transferred
  legally.

            

    

    
      	
              4.4

            	
              The
      mortgage property is not sealed up, distained or placed under
      surveillance。

            

    

    
      	
              4.5

            	
              The
      Mortgagor shall honestly inform of the delinquent tax, the construction
      works proceeds of mortgage property and the conditions of the mortgage
      property which has already been pledged or
  rented.

            

    

    
      	
              4.6

            	
              The
      Mortgagor has got the consent of co-owners of the mortgage property in
      respect of the mortgage matters
hereof.

            

    

    
      	
              4.7

            	
              In
      the period of mortgage, the Mortgagor shall inform the Mortgagee in
      written form promptly when one of the following conditions
      occurs:

            

    

    
      	
            	
              (1)

            	
              The
      mortgage property is sealed up, distained, placed under surveillance or
      taken other coercive measures;

            

    

    
      	
            	
              (2)

            	
              The
      Mortgagor changes its capital structure or the management system,
      including but not limited to contracting, leasing, remoulding of
      shareholding system, joint operation, consolidation, separation, joint
      venture, assets transfer and etc.

            

    

    
      	
            	
              (3)

            	
              The
      Mortgagor is rescinded, the business license is revoked, ordered to close
      or other dismissal reasons occur.

            

    

    
      	
            	
              (4)

            	
              The
      mortgager applies for bankruptcy, reformation and compromise or be applied
      for bankruptcy and reformation.

            

    

    
      	
              4.8

            	
              As
      of the mortgage property, there does not exist other conditions impacting
      the Mortgagee to realize the mortgage
right.

            

    

    

    
      Article
5  Effectiveness
of the Mortgage Right

    

     

    The
effectiveness of the mortgage right is governed by the mortgage property’s
accession things, accession rights, substitution objects, isolates, annexed
things, mixtures, processed things and other properties and rights provided by
laws and regulations.

    

    
      Article
6  Possession
and Management of the Mortgage Property

    

     

    
      	
              6.1

            	
              The
      mortgage property hereof is possessed and managed by the Mortgagor who has
      the obligation of appropriate management and reasonable using. The
      Mortgagee is entitled to supervise and check the management and using
      conditions of the mortgage
property.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              6.2

            	
              In
      the period of mortgage, the Mortgagor shall not bestow, transfer, rent,
      remortgage or take other dispositions in any manners to the mortgage
      property without the written consent of the Mortgagee. If the mortgager
      transfer, rent or dispose the mortgage property in any other manners with
      the written consent of the Mortgagee, the obtained proceeds shall be used
      to liquidate the guaranteed claims in advance or to be
      deposited.

            

    

    
      	
              6.3

            	
              In
      the period of mortgage, if the mortgage property is damaged, lost,
      expropriated, requisitioned, or owned by the third person due to
      annexation, mixture and processing, the Mortgagor shall take effective
      measures promptly to avoid the enlargement of damage and simultaneously
      inform the Mortgagee promptly in writing. The Mortgagee is entitled to
      enjoy the priority of having his claim satisfied with the obtained
      insurance proceeds or compensations; and the Mortgagee is entitled to
      request to liquidate the debt in advance or deposit if the performance
      period of the guaranteed claim does not
expire.

            

    

    
      	
              6.4

            	
              In
      the period of mortgage, if the value of mortgage property reduces, the
      Mortgagee has the right to request the Mortgagor to restore the original
      value or provide security recognized by the Mortgagee corresponding to the
      amount of the lost value.

            

    

    

    
      Article
7  Insurance
of the Mortgage Property

    

     

    
      	
              7.1

            	
              The
      Mortgagor shall deal with the relevant insurance in accordance with the
      demand of the Mortgagee, and appoint the Mortgagee as the primary
      beneficiary of this insurance and deliver the policy originals to the
      Mortgagee.

            

    

    
      	
              7.2

            	
              The
      insurance premium is paid by the Mortgagor, who shall pay for the full
      insurance premium on time and perform other obligations under the
      insurance Agreement (including the insurance policy or other insurance
      certificates, hereinafter inclusive). In the period of the mortgage, the
      Mortgagor does not pay for the insurance premium or deal with the
      insurance (renewal of insurance) procedures, the Mortgagee is entitled to
      pay for it or deal with the procedure while the relevant expenses shall be
      borne by the Mortgagor. The mortgager agrees the Mortgagee to directly
      collect the aforesaid expenses from its account openedwith the
      Mortgagee.

            

    

    
      	
              7.3

            	
              In
      the period of the mortgage, the Mortgagor shall not modify, dismiss or
      terminate the insurance Agreement unilaterally or negotiating with the
      insurer without the written consent of the Mortgagee; and shall not waive
      claim right of the insurance benefit or right of claim against any third
      person.

            

    

    
      	
              7.4

            	
              In
      the period of the mortgage, if the insurance accident happens to the
      mortgage property, the Mortgagor shall inform the insurer and the
      Mortgagee promptly, and deals with the matters of claim for compensation.
      The Mortgagor who does not inform promptly or claim for compensation
      resulting in the loss of the Mortgagee, shall take the responsibility of
      compensation.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      Article
8  Registration
of the Mortgage

    

     

    
      	
              8.1

            	
              The
      Mortgagor shall deal with the registration procedures of the mortgage in
      relevant registration institution within five (5) days after this
      Agreement takes effect; the mortgage property’s certificate of other
      rights, registration documents of the mortgage or other certificates of
      other rights are possessed and managed by the
  Mortgagee.

            

    

    
      	
              8.2

            	
              In
      the period of the mortgage, if it is needed to deal with the registration
      procedure of modification with registration institution, the Mortgagor
      shall deal with the relevant procedures
  promptly.

            

    

    
      	
              8.3

            	
              In
      the period of the mortgage, if the Mortgagee intends to transfer the right
      of mortgage of maximum amount in accordance with this Agreement, the
      Mortgagor shall assist the Mortgagee and the transferee to deal with the
      relevant procedures of modification
  registration.

            

    

    

    
      Article
9  Transfer
of the Right of Mortgage

    

     

    
      	
              9.1

            	
              Before
      the claim of the guaranteed mortgage of maximum amount hereof is
      confirmed, the Mortgagee, who transfers partial rights of creditor, is
      entitled to transfer the relevant rights of
  mortgage.

            

    

    
      	
              9.2

            	
              After
      the creditor’s right guaranteed by mortgage of maximum amount hereof is
      confirmed, the Mortgagee, who transfers partial creditor’ rights, may not
      transfer the relevant rights of
mortgage.

            

    

    

    
      Article
10    Confirmation
of the Guaranteed Creditor’s Right

    

     

    The
creditor’s right guaranteed by mortgage of maximum amount hereof is confirmed
when one of the following conditions occurs:

    
      	
              10.1

            	
              The
      Expiration of determination term of the creditor’s right. Expiration
      includes the determination term expiration of the creditor’s right
      provided in Article 1 hereof, and the determination term expiration of the
      creditor’s right declared by the Mortgagee in advance in accordance with
      national laws and regulations or this Agreement. If the debtor breaks the
      obligations of the Principal Agreement or the Mortgagor breaks the
      obligation hereof, the Mortgagee is entitled to declare that the
      determination term of the creditor’s right is expired in
      advance.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              10.2

            	
              New
      creditor’s right is impossible to
happen.

            

    

    
      	
              10.3

            	
              The
      mortgage property is sealed up or
distained.

            

    

    
      	
              10.4

            	
              The
      debtor or the Mortgagor is declared bankruptcy or
    dismissed.

            

    

    
      	
              10.5

            	
              Other
      conditions regarding determination of creditor’s right provided by laws
      and regulations.

            

    

    

    
      Article
11    Realization
of the Right of Mortgage

    

     

    
      	
              11.1

            	
              When
      one of the following conditions occurs, the Mortgagee is entitled to
      perform the right of mortgage, and consult with the Mortgagor to convert
      the mortgage property into money or take priority to get paid out of the
      proceeds from auction or sale of the mortgage property. If the obtained
      proceed is not enough to satisfy the guaranteed creditor’s right hereof,
      the Mortgagee may choose to use the proceeds to restore the capital,
      interest, default interest, compounding interest or expensed and
      etc.

            

    

    
      	
            	
              (1)

            	
              In
      case the performance period of any debt under any Principal Agreement
      expires, but the Mortgagee has not been paid off. Expiration includes the
      expiration of debt performance period as stipulated under Principal
      Agreement, and the declared expiration ahead of time by the Mortgagee in
      accordance with national laws and regulations or this
      Agreement.

            

    

    
      	
            	
              (2)

            	
              The
      debtor or the Mortgagor is dismissed, business license is revoked, ordered
      to be close down or taken upon other
measures.

            

    

    
      	
            	
              (3)

            	
              The
      debtor or the Mortgagor is accepted to apply for bankruptcy by the
      people’s court or to be ordered to
  reconciliation.

            

    

    
      	
            	
              (4)

            	
              The
      debtor or the Mortgagor is dead, declared of disappearance or declared of
      death.

            

    

    
      	
            	
              (5)

            	
              The
      mortgage property is sealed up, distained, placed under surveillance or
      taken other enforcement measures.

            

    

    
      	
            	
              (6)

            	
              The
      mortgage property is damaged, lost, expropriated or
      requisitioned.

            

    

    
      	
            	
              (7)

            	
              The
      Mortgagor does not restore the value of the mortgage property or provide
      for the relevant guarantee in accordance with the Mortgagee’s
      demand.

            

    

    
      	
            	
              (8)

            	
              The
      Mortgagor breaks the obligations
hereof.

            

    

    
      	
            	
              (9)

            	
              Other
      conditions affects severely the realization of right of mortgage
      hereof.

            

    

    
      	
              11.2

            	
              If
      there exist two or more Mortgagors with a real right (including the
      mortgage property provided by the debtor) simultaneously, the Mortgagee is
      entitled to perform the real right for mortgage in respect of any or each
      real right.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              11.3

            	
              If
      the Mortgagor is a third person beyond the debtor and the debtor provides
      the guarantee of property for the guaranteed creditor’ right, and the
      Mortgagee waives this real right for mortgage, mortgage priority or
      modifies the real right for guarantee, the Mortgagor agrees to continue
      providing guaranteed mortgage for the claim under the Principal Agreement
      in accordance with this Agreement. This Real Right for Mortgage is formed
      in the guarantee of property provided by the debtor for the creditor’s
      right under the Principal
Agreement.

            

    

    

    
      Article
12    Liability
for Breach of Agreement

    

     

    
      	
              12.1

            	
              After
      this Agreement comes into effect, the Mortgagee who does not perform the
      Agreement obligation resulting in the loss of the Mortgagor shall take the
      relevant liability of compensation.

            

    

    
      	
              12.2

            	
              The
      Mortgagor who has one of the following circumstances shall pay for penalty
      to the Mortgagee at_____ percentage (____ %) of the maximum balance of the
      guaranteed creditor’s right hereof; in addition, the Mortgagor shall pay
      for the full compensation simultaneously if resulting in loss of the
      Mortgagee.

            

    

    
      	
            	
              (1)

            	
              Does
      not get the legal and effective authority as required by the mortgage
      hereof;

            

    

    
      	
            	
              (2)

            	
              Does
      not accurately inform of the delinquent tax, the construction works
      proceeds of mortgage property, and the conditions of existing the
      intercommunity, disputes, demurrals, mortgage property being mortgaged or
      rented or being sealed up, distained or place under
      surveillance;

            

    

    
      	
            	
              (3)

            	
              Does
      not deal with the registration procedures in accordance with this
      Agreement;

            

    

    
      	
            	
              (4)

            	
              Does
      any unauthorized disposition of the mortgage property without the written
      consent of the Mortgagee;

            

    

    
      	
            	
              (5)

            	
              Does
      not restore the value of the mortgage property or provide for the relevant
      guarantee in accordance with the Mortgagee’s
  demand;

            

    

    
      	
            	
              (6)

            	
              Other
      behaviors which breach this Agreement or impact the achievement of the
      right of mortgage.

            

    

    

    
      Article
13    Bearing
of the Expenses

    

     

    The
expenses of registration, evaluation, insurance, identification, notarization,
deposition of the mortgage property are borne by the Mortgagor.

    

    
      Article
14    Solutions
to Conflicts

    

     

    Any
conflicts arising from the performance of this Agreement shall be settled
through the negotiation by both parties, or resolved through method _____ of the
following ways:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

     

    
      	
              14.1

            	
              Litigation.
      Any litigation shall be subject to the jurisdiction of the people’s court
      in the Creditor’s location.

            

    

     

    
      	
              14.2

            	
              Arbitration.
      The conflicts shall be submitted to ____/____ (name of the arbitral
      institution) and resolved in accordance with its applicable
      rules.

            

    

     

    During
the period of litigation or arbitration, the other clauses not in dispute shall
be performed continuously.

     

    
      Article
15    Other
Issues

    

     

    No.1: The
Mortgagor shall actively check the debtor’s operation condition and occurrence
and performance conditions of each business hereunder. The Principal Agreement,
related legal documents or notes will not be served to the
Mortgagor.

     

    No.2:
/.

     

    
      Article
16    Execution
of the Agreement

    

     

    The
agreement will come into effectiveness upon the signature or stamp by both
sides.

     

    
      Article
17

    

     

    This
agreement is executed in four originals, and
one for each party, one for the debtor and one for registration authority, each
with the same legal effectiveness.

     

    
      Article
18    Note

    

     

    The
Mortgagee has required the Mortgagor to understand every single clause fully and
accurately; and the creditor has explained relevant articles upon the
Mortgagor’s request; thus, both parties have achieved common understanding as of
this agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

    

     

    Mortgagee:

     

                 (Seal)

     

    Legal
Representative

     

    /Authorized
Representative:     the
signature   [illegible]

     

    Mortgagor: Henan Shuncheng
Group Coal Coke Co., Ltd

     

    (Seal)

     

    Legal
Representative

    /Authorized
Representative:   the
signature     /s/ Wang Xinshun

     

    Execution
Date: 25th June,
2009

     

    Execution
Place: Anyang Branch, Agricultural Bank of ChinaUnassociated Document

    Exhibit
10.40

    Maximum
Amount Guarantee Agreement

     

    NO.
419005200900095094

     

    Guarantee/
Creditor (Full Name): Anyang Branch, Agricultural
Bank of China

     

    Guarantor
(Full Name): One: Henan Anyang Hubo Cement
Co., Ltd

     

    Two:
Xinshun
WANG

     

    Three:

     

    Whereas
the Guarantor, of his own will, provides a guarantee of maximum amount for the
creditor’s rights from a series of business agreements (hereinafter referred to
as the “Principal Agreement”) by and between the Guarantee and Henan Shuncheng Group Coal
Coke Co., Ltd (the “Debtor”) in accordance with
Article 1 hereof. Each party of this agreement enacts this contract by reaching
consensus through consultation in accordance with the laws and provisions of
China.

     

    
      Article
1 the
Guaranteed Principle Creditor’s right and the Maximum Amount

    

     

    
      	
              1.1

            	
              The
      Guarantor, of his own will, secures the following creditor’s right between
      the Guarantee and the Debtor, and the guaranteed creditor’s right is
      subject to a maximum of RMB Seventy Five Millions
      (¥75,000,000).
      The foreign currency transaction is converted in accordance with the
      selling price of the date of transaction under 1.1.1 of Article
      1.

            

    

     

    
      	
            	
              1.1.1

            	
              The
      Guarantee deals with the creditor’s right arising from every agreed
      business from 25th June, 2009
      to
      24th June, 2010.
      This period is the determination period for the maximum guaranteed
      creditor’s right. The aforesaid business includes: (subject to the item
      marking “√”)

            

    

     

     ̈Loan in
RMB/Foreign Currency

     

     ̈Discount
of Commercial Bill

     

     ̈Bank
Letter of Guarantee

     

     ̈Outward
Documentary Bills

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     ̈Inward
Documentary Bills

     

     ̈Acceptance
of Commercial Bills

     

     ̈Outward
Documentary Bills

     

     ̈L/C
Opening in Case of Deposit Decrease

     

     ̈other
business:____/___

     

    
      	
            	
              1.1.2

            	
              The
      following outstanding creditor’s right principal and its relevant
      interest, default interest, compound interest and expenses etc are formed
      between the Guarantee and Debtor, and the interest, default interest,
      compound interest expenses and etc thereof shall be accrued in accordance
      with the relevant Principle Agreement till the date of actual
      liquidation.

            

    

     

    
      
        
          
            	
                    Agreement Name

                  	 	
                    Agreement

                    Number

                  	 	 	
                    Outstanding Principal

                  	 	 	
                    Currency

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 

          

        

      

    

    (The
additional table added for the lack of table hereof is the component of this
agreement.)

     

    
      	
              1.2

            	
              The
      type, amount, rate and time limit of every business transaction guaranteed
      hereof shall be subject to the relevant legal documents or
      certificates.

            

    

     

    
      	
              1.3

            	
              Within
      the period hereof and maximum amount of the guarantee agreed hereof, the
      Creditor does not need to deal with procedures of guarantee one by one
      when issuing the agreed loan or providing credits of other
      banks.

            

    

     

    
      	
              1.4

            	
              The
      currency of the business transaction occurs in the period hereof and
      within the maximum amount of the guarantee is not limited, and the
      Guarantor takes the responsibility of guarantee with the same currency as
      the original one.

            

    

     

    
      Article
2 Scope
of the Guarantee

    

     

    The scope
of the guarantee includes the principal sum of principal creditor’s right,
interest, default interest, compound interest, penalty, compensation for damage,
litigation (arbitration) fee, lawyer fee, and all the expenses realizing the
creditor’s rights and guarantee rights by the Guarantee.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    As for
part exceeding the maximum balance due to the change of currency rate, the
Guarantor shall bear the responsibility of guarantee of its own
will.

     

    
      Article
3 Type
of Guarantee

    

     

    The
guarantee under this agreement shall be suretyship with joint and several
liabilities.  When there are two or more Guarantors, the Guarantors
shall bear joint and several liabilities to the Creditor.

     

    
      Article
4 Guarantee
Period

    

     

    
      	
              4.1

            	
              The
      guarantee period shall be two years from the date on which deadline for
      the Debtor to complete its obligations under the Principal
      Agreement. 

            

    

     

    
      	
              4.2

            	
              The
      guarantee period for the acceptance of bank acceptance bill and L/C
      issuance finance or that under the letter of guarantee shall be two years
      from the date on which the Creditor effects advance money for the
      Debtor.

            

    

     

    
      	
              4.3

            	
              The
      guarantee period for discount of commercial bill shall be two years from
      the date on which such bill
expires.

            

    

     

    
      	
              4.4

            	
              Where
      the Creditor and the Debtor come to a grace period agreement on the time
      limit for the Debtor’s fulfillment of the debt regulated by the principal
      Agreement, the Guarantor shall continue to bear the guarantee
      responsibility.  The guarantee period shall be two years from
      the date on which the grace period
expires.

            

    

     

    
      	
              4.5

            	
              In
      case that the issues stated in the Principal Agreement or any laws and
      regulations lead to the Principal Agreement is declared mature by the
      Creditor before the expiration date hereof, the guarantee period shall be
      two years from such declared maturity
date.

            

    

     

    
      Article
5 Undertakings
of the Guarantor

    

     

    
      	
              5.1

            	
              It
      has duly obtained legal and valid authorization to execute and perform
      this Agreement.

            

    

     

    
      	
              5.2

            	
              The
      Guarantor shall be liable for true, complete and valid financial report,
      articles of association and other relevant documents and information and
      shall assist the Creditor to supervise and check the Guarantor’s operation
      and financial condition.

            

    

     

    
      	
              5.3

            	
              In
      case that the Debtor fails to perform its obligations under the Principal
      Agreement, the Guarantor undertakes that it, of its own free will, will
      perform the guarantee obligation.

            

    

     

    
      	
              5.4

            	
              When
      the Guarantor fails to perform his guarantee obligation under this
      agreement, the Creditor is entitled to deduct relevant sum from any
      account of the Guarantor directly.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              5.5

            	
              The
      Guarantor shall notice the Creditor in writing immediately upon the
      occurrence of the following events:

            

    

     

    
      	 	
              5.5.1

            	
              Any
      change to company name, residential address, legal representative, contact
      method or others;

            

    

     

    
      	 	
              5.5.2

            	
              Any
      change to the ownership, top management or any amendment to Memorandum and
      Article of Associations, or any adjustment to organizations for the
      Guarantor;

            

    

     

    
      	 	
              5.5.3

            	
              Deterioration
      of financial status, encountering great operation difficulties or involved
      in significant litigation or arbitration
issues.

            

    

     

    
      	 	
              5.5.4

            	
              Cease
      of production, cease of business, termination of business being applied
      bankruptcy or rectification;

            

    

     

    
      	 	
              5.5.5

            	
              Cancellation
      of business registration or revocation of business license, being closed
      down or other causes to be
dissolved;

            

    

     

    
      	 	
              5.5.6

            	
              The
      Guarantor involved in any matters that will negatively affect the benefits
      of the Creditor.

            

    

     

    
      	
              5.6

            	
              The
      Guarantor shall notify the Creditor 15 days in advance in a written form
      and obtain written consent from the Creditor before it undertakes any of
      the following actions:

            

    

     

    
      	 	
              5.6.1

            	
              The
      Guarantor changes its capital structure or operation mechanism, including
      but not limited to contracting, renting, remolding with the stock system,
      joint operation, merger, take-over, de-merger, joint venture, asset
      transfer, applying for business cease for internal rectification purpose,
      applying for dissolution, applying for
  bankruptcy.

            

    

     

    
      	 	
              5.6.2

            	
              If
      the Guarantor provide guarantee for benefit of a third party or use its
      main capital directly or indirectly to set up guarantee or pledge
      guarantee for benefit of itself or a third party, and such is likely to
      negatively influence the Guarantor’s capacity to perform its obligations
      under this agreement.

            

    

     

    
      Article
6 Determination
of Guaranteed Credit’s right

    

     

    In case
of any of the following circumstances, the maximum guaranteed creditor’s right
is determined:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              6.1

            	
              Expiration
      of Creditor’s right Determination Period. “Expiration of Creditor’s right
      Determination Period” includes the expiration of creditor’s right
      determination as stipulated in Article 1 and the declared expiration by
      the Creditor in accordance with the state laws and regulations or
      provisions hereof. In case that the Debtor breaches any provision
      stipulated in the Principal Agreement or the Guarantor breaches any
      obligations hereunder, then the Creditor is entitled to accelerate the
      expiration of creditor’s right determination
  period.

            

    

     

    
      	
              6.2

            	
              There
      impossibly happens any new creditor’s
right.

            

    

     

    
      	
              6.3

            	
              The
      Debtor or the Guarantor is declared bankruptcy or its business license is
      revoked.

            

    

     

    
      	
              6.4

            	
              Other
      circumstances as stipulated by
laws.

            

    

     

    
      Article
7 Performance
of Guarantee Liability

    

     

    
      	
              7.1

            	
              In
      case of any of the following circumstances, the Creditor is entitled to
      require the Guarantor to perform guarantee liability. If the amount paid
      by the Guarantor is insufficient to repay the guaranteed creditor’s right
      hereunder, then the Creditor is entitled to decide the priority to repay
      principal, interest, default interest, compound interest and other
      dues;

            

    

     

    
      	 	
              7.1.1

            	
              In
      case that the debt under the Principal Agreement is mature but the
      Creditor is not repaid. “Mature” includes that debt is mature in
      accordance with expiration date stipulated in the Principal Agreement and
      the debt is declared mature by the Creditor in accordance with the state
      laws and regulation as well as the provisions under the Principal
      Agreement.

            

    

     

    
      	 	
              7.1.2

            	
              Bankruptcy
      application against the Debtor and Guarantor is accepted by the people’s
      court or the bankruptcy reconciliation is ordered by the
      court;

            

    

     

    
      	 	
              7.1.3

            	
              cancellation
      of company registration, revocation of business license, being ordered to
      close down or occurrence of dissolution
causes;

            

    

     

    
      	 	
              7.1.4

            	
              The
      Debtor or the Guarantor dies or is legally declared dead or missing by the
      court.

            

    

     

    
      	 	
              7.1.5

            	
              The
      Guarantor breaches its obligations
hereof;

            

    

     

    
      	 	
              7.1.6

            	
              Other
      circumstances may adversely affect realization of the creditor’s
      right.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              7.2

            	
              Where
      there is security upon a real right concurrently set for the benefit of
      the guaranteed Principal Credit in addition to the guarantee hereunder,
      the Creditor is entitled to require the Guarantor to perform guarantee
      liability prior to the security upon a real
  right.

            

    

     

    
      	
              7.3

            	
              Where
      the Debtor provides security upon a real right and the Creditor waives
      such security upon a real right or its priority or alters the security
      upon a real right, the Guarantor agrees to continue to provide surety ship
      with joint and several liabilities. “Security upon a real right” refers to
      security upon a real right set by the Debtor for the benefit of the
      guaranteed Principal Credit.

            

    

     

    
      Article
8 Liability
for Breach of Agreement

    

     

    
      	
              8.1

            	
              After
      the contract becomes effective, the Creditor shall compensate the
      Guarantor for any loss caused to the Guarantor resulting from its breach
      of contract.

            

    

     

    
      	
              8.2

            	
              If
      any of circumstances happens to the Guarantor, the Guarantor shall pay
      liquidated damages of 10% of the maximum balance to the Creditor in
      addition to compensate all the losses caused to the
    Creditor:

            

    

     

    
      	 	
              8.2.1

            	
              The
      Guarantor fails to obtain all the legal and valid authorization necessary
      for this contract;

            

    

     

    
      	 	
              8.2.2

            	
              The
      Guarantor fails to provide financial statement, articles of association
      and other documents or information which are true, complete and
      valid;

            

    

     

    
      	 	
              8.2.3

            	
              The
      Guarantor fails to notice the Creditor promptly in case any circumstance
      under section 5 of Article 5
happens.

            

    

     

    
      	 	
              8.2.4

            	
              The
      Guarantor fails to obtain consent from the Creditor prior to its
      implementation of any circumstance under section 6 of Article
      5.

            

    

     

    
      	 	
              8.2.5

            	
              Other
      circumstances that breach provisions hereof or adversely affect the
      Creditor to realize its creditor’s
right.

            

    

     

    
      Article
9 Solutions
to Conflicts

    

     

    Any
conflicts arising from the performance of this contract shall be settled through
the negotiation by both parties, or resolved through the first one of the
following ways:

     

    
      	
              9.1

            	
              Litigation.
      Any litigation shall be subject to the jurisdiction of the people’s court
      in the Creditor’s location.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              9.2

            	
              Arbitration.
      The conflicts shall be submitted to ___/____ (names of the arbitral
      institution) and resolved in accordance with its applicable
      rules.

            

    

     

    During
the period of litigation or arbitration, the other clauses not in dispute shall
be performed continuously.

     

    
      Article
10     Other
Issues

    

     

    No.1: The
Guarantor should be initiative to understand the operating condition of the
debtor and all the happenings of different types of businesses under the
agreement.

     

    The
Principal Agreement, relevant legal documents or certificates which relates to
the the Principal Agreement will not be delivered to the guarantor.

     

    The Guarantor shall
undertake guarantee liability prior to the mortgage upon a real
right.

     

    
      Article
11     Effectiveness
of the Agreement

    

     

    The
agreement will come into effectiveness upon the signature or stamp by both
sides.

     

    
      Article
12

    

     

    This
agreement is executed in Four originals, and
as the Creditor, the guarantor and the Debtor respectively holds ONE with the same
legal effectiveness.

     

    
      Article
13     Reminder

    

     

    The
Guarantee/Creditor has required the Guarantor to understand every single clause
fully and accurately; meanwhile, the creditor has explained relevant articles
upon the Guarantor’s request; thus, both parties have achieved common
understanding as of this agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Creditor:
Anyang Branch, Agricultural Bank of China

     

    (Seal)

     

    Legal
Representative

     

    /Authorized
Representative:   the
signature   
[illegible]

     

    Guarantor: Henan Anyang Hubo
Cement Co., Ltd

     

    (Seal)
[illegible]

     

    Guarantor:
Wang Xinshun 

     

    Legal
Representative /s/ Wang Xinshun

     

    /Authorized

     

    Representative:   (the
signature)

     

    Execution
Date: 25th June,
2009

     

    Execution
Place: Anyang Branch, Agriculture Bank of China

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