Document:

Unassociated Document

    Exhibit
10.35

    

    Agreement
No.: 2009 Nian Shui Ban Zi No. 14

     

    Commodity
Financing Agreement

     

    Important
Prompt: the Agreement is legally made and entered into on an equal and free will
basis and through friendly consultation of two parties, which represents their
genuine declarations of intention. To safeguard Party B’s lawful rights and
interests, Party A hereby draws Party B’s full attention to the whole terms and
conditions stipulating the rights and obligations of two parties, especially to
the content of highlighted parts.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Party A
(Lender/Pledgee): Anyang Shuiye Branch,
Industrial and Commercial Bank of China

     

    Domicile
(Address): Fuarn Road,
Shuiye Town, Anyang County

     

    Head of
the Bank: LIU
Xiaohua

     

    Party B
(Borrower/Pledgor): Henan Shuncheng Group Coal
Coke Co. Ltd.

     

    Domicile
(Address): South
Gongye Road, Tongye Town, Anyang County

     

    Legal
Representative: WANG
Xinshun

     

    Party B
files a loan application to Party A based on the usage stipulated in Article 1.1
of the Agreement. To ensure the performance of its obligations under the
Agreement, Party B is willing to provide the guaranty of pledge as well as other
guarantees. On the basis of equality and through consultation, the Agreement is
hereby made and entered into by two parties who shall abide by it
jointly.

     

    
      Article
1    The
purpose of the loan, amount and term

    

     

    1.1       The
loan under the Agreement is intended for the usage of purchasing raw coal.
Without Party A's written consent, Party B shall not misappropriate or divert
the loan.

     

    1.2       The
currency and amount of the loan under the Agreement is RMB 30,000,000.00 (Amount
in words: RMB Thirty Million Yuan only) (In case there is any discrepancy
between the amount in figures and the amount in words, the amount in words shall
prevail).

     

    1.3       The
term of the loan under the Agreement is six months, starting
from the first withdrawal date.

     

    1.4       The
actual withdrawal dates and repayment dates shall be subject to the loan notes,
which shall be an integral part of the Agreement and have the same legal effect
with the Agreement.

     

    
      Article
2     Interest
Rates and Interests

    

     

    2.1       If
the currency of the loan under the Agreement is RMB, the interest rate shall be
determined by:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              
              

            	
              2.1.1 
      

            	
              Adding
      the floating range to the benchmark interest rate of the withdrawal date.
      Thereinto, the benchmark interest rate is the corresponding RMB loan
      interest rate of People’s Bank of China with the same period and grade as
      the term of the loan stipulated in Article 1.3 of the Agreement; the
      floating range is 10%.

            

    

     

    
      	
              
              

            	
              2.1.2 
      

            	
              In
      case that the benchmark interest rate is adjusted after Party B’s
      withdrawal, item (A) in the
      following shall be adopted:

            

    

     

    
      
        	
                 
      

              	
                A.  The
      rate shall be adjusted every 6 months.
      The date of determining the interest rate of the first period shall be the
      actual withdrawal date, and the date of determining the interest rate of
      the second period shall be the corresponding date following a full period
      after the first withdrawal date, and so forth. If there is no
      corresponding date to the withdrawal date in the adjusting month, then the
      last date of the adjusting month shall be deemed as the corresponding
      date.

              
	 	 
	
                 

              	
                The
      corresponding date to the withdrawal date is the corresponding date
      following a full period after the withdrawal date. For example, if the
      withdrawal date is May 9 of that Year, then, the corresponding date for
      the second period is August 9 of that Year in case of a 3-month period and
      November 9 of that Year in case of a 6-month period.

              
	 	 
	
                 

              	
                B.
      On each June 21st
      and December 21st
      after the withdrawal date, the interest rate will be adjusted according to
      the effective benchmark interest rate and the range stipulated in Article
      2.

              
	 	 
	 	
                C.
      The interest rate of the loan will not be adjusted within the whole term
      of the Agreement.

              

      

    

     

    
      	
            	
              2.1.3

            	
              Others:
      ______/___________.

            

    

     

    2.2      If
the loan under the Agreement is a foreign exchange, the interest rate will be
calculated through:

     

    
      	
              
              

            	
              A.

            	
              Fixed
      Annual Rate of   /  ;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                
                

              	
                B.

              	
                LIBOR
      of ___/___months plus __/__BP (Base Point) of the margin with a floating
      period of ____/__ months. LIBOR refers to the inter-bank offered rate of
      the loan currency under the Agreement as shown in the “LIBO=” page of
      REUTRES financial telecommunication terminal two banking days prior to
      each interest period (11:00 am, London time). The first interest period is
      from Party B’s actual withdrawal date to the first interest settlement
      date; the last interest period is from the date following the end of the
      previous interest period to the final repayment date; and other interest
      periods are from the date following the end of the previous interest
      period to the next interest settlement
date.

              

      

    

     

    2.3       In
case that Party B fails to repay the loan on due date, the above-mentioned
method of determining the interest rate shall still apply to the overdue
amount.

     

    2.4       In
case that People’s Bank of China adjusts the method of determining the loan
interest rate, the relevant regulations of People’s Bank of China shall be
followed.

     

    2.5       After
grant of the loan, the interest shall be calculated per day and settled per ___
(Month/Quarter/Half a year). The daily interest rate = the annual interest
rate/360. When the loan becomes due, the interest shall be paid in the form of
matching the principal. For monthly settlement, the 20th day of each month is
the interest settlement date; for quarterly settlement, the 20th day in the last
month of each quarter (i.e., March, June, September and December) is the
interest settlement date; and for semi-annual settlement, June 20th and December
20th of each year are the interest settlement dates.

     

    
      Article
3  The
Guaranty of Pledge

    

     

    3.1       Party
B, of its own free will, provides the guaranty of pledge for its performance of
the obligations under the Agreement.

     

    3.2       The
guaranteed Principal Credit is  (currency and in capital, hereinafter
referred to as the “Principal”) which equals to
the balance between the financing amount hereunder and the deposit amount paid
by the Party B.

     

    3.3       The
scope of the guaranty of pledge covers principal, interest, interest penalties,
compound interest, liquidated damages, damage awards, the storage charges, the
expense for the realization of the pledge and any other expenses associated with
the pledge.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.4      Party
A and Party B reach the agreement on the pledged property as
follows:

     

    
      
        	
                
                

              	
                3.4.1

              	
                The
      pledged property will be handed over to China Wai Yuen Henan
      Co. (hereinafter referred to as “the Supervisor”), who shall
      exercise control and supervision over the pledged property and issue
      relevant custody voucher. More detailed information on the pledged
      property is provided in the Warehouse Receipt Specific to
      Pledge of Movables (or List of Pledged
      Property) in the Supervision Agreement on
      Commodity Financing Pledge (No.
      HN-GS-9093).

              

      

    

     

    
      
        	
                
                

              	
                3.4.2 

              	
                When
      Party B provides the pledge, the value of the pledged property agreed upon
      by both parties is used for calculating the pledge ratio of the Agreement,
      but not used as the valuation basis for the disposal of the pledged
      property by Party A, and it does not constitute any restriction on Party
      A’s exercise of the right of
pledge.

              

      

    

     

    
      
        	
                
                

              	
                3.4.3 

              	
                Within
      the duration of the pledge, Party A shall be entitled to alter the market
      value of the pledged property according to the market price changes of the
      pledged property. If the ratio of the market value of the pledged property
      to the total unrepaid financing principal and interest drops down to 125 %, Party B
      shall, within five (5) working days after receiving Party A’s written
      notice, provide additional pledged property or pay security deposit so
      that the pledge ratio will be restored to the pledge ratio at the time of
      pledging. Otherwise, Party A is entitled to dispose of the pledged
      property according to the provisions of the Agreement and be first
      compensated with the proceeds from such disposal; if the pledge ratio
      drops down to 120%, Party A
      is entitled to directly dispose of the pledged property and be first
      compensated with the proceeds from such
  disposal.

              

      

    

     

    3.5      Party
A and Party B reach agreement on the handover and supervision of the pledged
property as follows:

     

    
      
        	
                
                

              	
                3.5.1

              	
                The
      handover procedures of the pledged property under the Agreement shall be
      specified in the Supervision Agreement on
      Commodity Financing Pledge signed by and among Party A, Party B and
      the Supervisor. Party A and Party B shall jointly issue a Pledge Notice (or Notice on Type, Price and
      Minimum Requirement of the Pledged Property) to the Supervisor and
      the Supervisor shall issue relevant custody voucher after confirming its
      consistency with the physical goods. The expenses accrued from the
      warehousing and supervision of the pledged property as well as the mode of
      payment shall be specified in the Supervision Agreement on
      Commodity Financing
Pledge.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                
                

              	
                3.5.2

              	
                The Warehouse Receipt Specific to
      Pledge of Movables (or List of Pledged
      Property) of the pledged property under the Agreement will be
      issued directly to Party A by the Supervisor. The ownership certificate,
      invoice and other relevant materials of the pledged property will be
      handed over to Party A upon joint confirmation by Party A and Party
      B.

              

      

    

     

    
      
        	
                
                

              	
                3.5.3

              	
                If
      Party B performs its debts upon expiry of debt performance term or Party B
      liquidates the guaranteed creditor’s rights in advance, Party A shall
      timely inform the Supervisor in writing to discharge supervision of
      pledge. The Supervisor shall return the pledged property to Party B in
      accordance with the Supervision Agreement on
      Commodity Financing
Pledge.

              

      

    

     

    3.6      Party
A and Party B reach agreement on the custody and deposit of the pledged property
as follows:

     

    
      
        	
                
                

              	
                3.6.1

              	
                If
      Party A may not keep the pledged property under good custody, thus with
      the possibility of resulting in loss or damage to the pledged property,
      Party B may request Party A to have the pledged property deposited, with
      expenses to be borne by Party
B.

              

      

    

     

    
      
        	
                
                

              	
                3.6.2

              	
                If
      the pledged property provided by Party B is damaged or devaluated
      considerably, to the extent of being sufficient to jeopardize Party A’s
      rights, and Party B refuses to provide a corresponding guaranty, Party A
      shall be entitled to auction or sell the pledged property to realize all
      the guaranteed creditor’s rights under the Agreement with the proceeds
      from such disposal in advance, or to have the pledged property deposited
      with a third party as agreed upon by both parties, with depositing
      expenses to be borne by Party
B.

              

      

    

     

    3.7      Party
A and Party B reach agreement on the insurance of the pledged property as
follows:

     

    
      
        	
                
                

              	
                3.7.1

              	
                Before
      the pledged property is handed over to the Supervisor and the Warehouse
      Receipt Specific to Pledge of Movables (or List of Pledged Property) is
      issued, Party B shall process the basic insurance and additional __/__
      insurance procedures of the property insurance for the pledged property
      with relevant insurance institutions. The term of insurance shall not be
      shorter than the expiry date of this contract and the amount insured shall
      not be less than the principal and its interest under the
      Agreement.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                
                

              	
                3.7.2

              	
                Party
      B shall expressly write in the insurance policy: when an insured event
      occurs, Party A shall be the first beneficiary. The insurance policy shall
      not contain any clause which may limit Party A’s rights and interests. The
      insurance policy shall be handed over to and kept by Party A. If an
      insured event occurs before Party B performs all its obligations under the
      Agreement, the insurer shall directly pay the insurance compensation to
      the account designated by Party A. If Party B has performed all its
      obligations under the Agreement, Party A shall return such insurance
      policy to Party B.

              

      

    

     

    
      
        	
                
                

              	
                3.7.3

              	
                Within
      the valid term of the Agreement, Party B shall not interrupt or withdraw
      insurance for whatever reasons. In case of insurance interruption or
      withdrawal, Party A shall be entitled to handle insurance procedures on
      behalf of Party B, with any and all expenses arising thereof to be borne
      by Party B.

              

      

    

     

    
      
        	
                
                

              	
                3.7.4

              	
                As
      for the insurance compensation, Party B agrees that Party A is entitled to
      adopt any of the following ways, and Party B shall assist Party A in
      handling relevant procedures:

              

      

    

     

    
      
        	
                
                

              	
                A.

              	
                Liquidate
      or prematurely liquidate the principal debt, interest and relevant
      expenses under the Agreement;

              

      

    

     

    
      
        	
                
                

              	
                B.

              	
                Convert
      into time deposit, with certificate of deposit to be used for pledge
      purpose;

              

      

    

     

    
      
        	
                
                

              	
                C.

              	
                With
      Party A’s consent, use the insurance compensation to repair the pledged
      property so as to restore its
value;

              

      

    

     

    
      
        	
                
                

              	
                D.

              	
                Have
      the insurance compensation deposited with a third party designated by
      Party A;

              

      

    

     

    
      
        	
                
                

              	
                E.

              	
                After
      Party B provides a new guaranty meeting Party A’s requirements, Party B
      may dispose of the insurance compensation at its own
      discretion.

              

      

    

     

    
      
        	
                
                

              	
                F.

              	
                Others:                     /                        
      .

              

      

    

     

    
      Article
4  Withdrawal

    

     

    4.1       For
withdrawal, Party B must meet the following preconditions, or else Party A has
no obligation to grant any loan:

     

    
      
        	
                 
      

              	
                A.

              	
                Party
      B has completed the withdrawal application procedures as required by Party
      A;

              

      

    

     

    
      	
               
      

            	
              B.

            	
              Party
      B has completed the guaranty of pledge procedures as required by Party
      A;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              C.

            	
              Party
      A has acquired the Warehouse Receipt Specific to Pledge of Movables (or
      List of Pledged Property) signed and issued by the
    Supervisor;

            

    

     

    
      	
               
      

            	
              D.

            	
              Party
      B has handed over to Party A the complete legal documents in connection
      with the financing, including, but not limited to the ownership
      certificate, invoice, the original insurance policy and other relevant
      materials of the pledged property;

            

    

     

    
      	
               
      

            	
              E.

            	
              Party
      B hasn’t breached any provision stipulated in the
    Agreement;

            

    

     

    
      	
               
      

            	
              F.

            	
              Others:
      ___________________/__________________________________.

            

    

     

    4.2      When
applying for withdrawal, Party B must submit a Notice on Withdrawal to Party A
with 3 working days in advance. Once submitted, the Notice on Withdrawal may not
be revoked without Party A’s written consent.

     

    4.3      After
Party B meets all the preconditions of withdrawal, Party A pays the loan to the
following account opened or specified by Party B in Party A, which shall be
deemed as Party A’s fulfillment of its loan obligation:

     

    
      	
               
      

            	
              Account
      Name: Henan
      Shuncheng Group Coal Coke Co.
Ltd.

            

    

     

    
      	
               
      

            	
              Account
      No.: 

            

    

     

    
      	
               
      

            	
              Bank
      of Deposit: [illegible]

            

    

     

    
      Article
5  Repayment

    

     

    5.1      Party
B shall pay the interest in full amount and on due time as stipulated in the
Agreement, and repay the principal under the Agreement according to
B  as follows:

     

    
      	
               
      

            	
              A.

            	
              One-time
      repayment upon maturity;

            

    

     

    
      	
               
      

            	
              B.

            	
              Repayment
      of the loan according to the following dates and
  amounts:

            

    

     

    (a) The 4th month repay RMB 10,000,000;
the 5th month repay RMB 10,000,000
and the 6th month repay RMB
10,000,000.

     

    (b)
____/___

     

    (c)
____/___

     

    (d)
____/___

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (If
necessary, separate sheets may be added.)

     

    5.2      Party
B shall deposit sufficient money for the payable principal, interest and other
expenses in the account opened in Party A on the banking date just before the
stipulated repayment date and interest settlement date, and Party B shall
authorize Party A to take the initiative to deduct the corresponding amount on
the repayment date and the interest settlement date.

     

    5.3       If
the money within Party B’s repayment account is insufficient to pay off the
matured principal, interest and other fees, Party A is entitled to decide on the
deduction sequences.

     

    5.4       If
Party B requests to prepay all or part of the loan, Party B shall give a written
notice to Party A at least 10 banking days in advance.

     

    5.5       When
prepaying the loan, Party B shall also pay compensation equal to __/_ % of the
prepaid amount to Party A, together with the payment of payable interest and
principal on the prepayment date.

     

    5.6       When
prepaying the loan, Party B shall also pay off the due principal, interest and
all other expenses payable as stipulated in the Agreement up to the prepayment
date. The prepayment of loan shall not be withdrawn once again.

     

    5.7       Party
B shall use the same currency with the balance under the Agreement for repayment
or prepayment.

     

    
      Article
6  Realization
of the Right of Pledge

    

     

    6.1       Party
B fails to pay off the matured debt in the performance period or debt declared
maturity ahead of time, then Party A is entitled to enforce the right of
directly and take priority to be repaid with the amount from the disposal of the
pledge;

     

    6.2       Party
B shall assist Party A to dispose the pledge in accordance with provisions
hereof;

     

    6.3       The
loan is mature but Party B fails to repay the Principal, interest and other
fees, then Party A is entitled to dispose the pledge hereunder;

     

    6.4       If
any circumstance under section 3.4.3 occurs, then Party A is entitled to dispose
the pledge hereunder;

     

    6.5       In
case any circumstance below occurs, Party A is entitled to dispose the pledge
ahead of time and take priority to be repaid:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              6.5.1

            	
              Provided
      that debt hereunder has occurred partly or wholly but not yet fully
      performed, the Agreement is
terminated;

            

    

     

    
      	
               
      

            	
              6.5.2

            	
              The
      loan is withdrawn ahead of time in accordance with other circumstances
      stipulated hereof without the creditor’s right realized or fully
      realized.

            

    

     

    
      	
               
      

            	
              6.5.3

            	
              If
      occurrence of any circumstance stipulated in section 8.11, 8.12, Party B
      fails to provide additional
guaranty.

            

    

     

    
      	
               
      

            	
              6.5.4

            	
              Any
      other circumstances stipulated hereof where Party A may realize the right
      of pledge ahead of time.

            

    

     

       6.6         The
right of pledge shall be applicable to the fruits arising from the pledge and
compensation amount, insurance benefit, damages resulting from the destroy, loss
or requisition.

     

    
      Article
7  Party
B’s Representations and Warrants

    

     

    Party B
makes the following representations and warrants to Party A, which shall remain
in effect throughout the valid term of the Agreement:

     

       7.1         Party
B has legal qualifications to be the borrower and the civil legal capacity to
execute and perform the Agreement;

     

       7.2         All
the documents and materials provided by Party B to Party A are true, accurate,
complete and effective in all aspects, without any false record, misleading
statement or gross omission;

     

       7.3         Party
B has obtained all required authorizations or approvals, and the execution as
well as performance of the Agreement will not violate Party B’s articles of
association, related laws and regulations, or any other contracts which have
been signed or are being performed by Party B;

     

       7.4         Party
B does not conceal any litigation, arbitration or claim in which Party B is
involved;

     

      
7.5        Party B makes the following
representations and warrants as for the guaranty of pledge under the
Agreement:

     

    
      
        	  
    	
                 7.5.1

              	
                Party
      B is the full, valid and lawful owner of the pledged property under the
      Agreement and the pledged property is free of disputes over ownership or
      management rights.

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
              	
                7.5.2

              	
                The
      provision of guaranty of pledge by Party B is of its own accord and all
      declarations of intention under the Agreement are
  true.

              

      

    

     

    
      
        	
              	
                7.5.3

              	
                The
      pledged property under the Agreement can be pledged without any
      restriction in accordance with
law;

              

      

    

     

    
      
        	
              	
                7.5.4

              	
                Party
      B has already made an adequate and reasonable written statement of the
      defects of the pledged property under the
  Agreement;

              

      

    

     

    
      
        	
              	
                7.5.5

              	
                No
      disposal, including but not limited to mortgage, pledge, donation or
      transfer, has been set for the pledged property under the Agreement before
      the Agreement is signed.

              

      

    

     

    
      
        	
              	
                7.5.6

              	
                When
      Party B fails to perform its obligations under the Agreement as agreed,
      whether Party A has any other guaranties (including, but not limited to,
      guarantee, mortgage, pledge, letter of guarantee, standby L/C, etc) as for
      the creditor’s rights under the Agreement, Party A is entitled to directly
      request Party B to undertake the guaranty liability within its guaranty
      scope, and Party B waives the right of defense in connection
      therewith.

              

      

    

     

    
      Article
8  Party
B’s Undertakings

    

     

    Party B
hereby undertakes to Party A that:

     

    8.1       Party
B shall withdraw and use the loan in accordance with the term and usage set
forth in the Agreement, and the loan shall not in whatever forms flow to the
stock market or the futures market, neither shall it be used for equity
investment or any other purposes prohibited or restricted by relevant laws and
regulations;

     

    8.2       Party
B shall pay off the loan principal, interest and other payables in accordance
with the provisions stipulated in the Agreement;

     

    8.3       Party
B shall provide financial accounting materials such as the financial statement,
the income statement and the statement of cash flow etc, and actively coordinate
with Party A to check its production, management and financial
conditions;

     

    8.4       For
any contract, lease, alteration in stock system, joint venture, merger,
separation, decrease of registered capital, transfer of substantial assets or
creditor’s rights, important external investment, or any other activities of
Party B which may adversely affect Party A’s rights and interests, Party B shall
give Party A 30 days prior notice and obtain Party A’s prior written consent or
make proper arrangement for the realization of Party A’s debt to the
satisfaction of Party A. Otherwise, the implementation of the above actions is
not allowed.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.5       Party
B shall inform Party A timely if any of the following circumstances
occurs:

     

    
      	
               
      

            	
               A.

            	
              Any
      changes in Party B’s articles of association, business scope, registered
      capital, legal representative, address and
  telephone;

            

    

     

    
      	
               
      

            	
               B.

            	
              Being
      out of business, dissolution, liquidation, stopping business for internal
      rectification, revocation of business license, being revoked or being
      applied for bankruptcy;

            

    

     

    
      	
               
      

            	
               C.

            	
              Having
      been involved in or may be involved in material economic disputes,
      litigation or arbitration, or with properties legally confiscated, seized
      or controlled;

            

    

     

    
      	
               
      

            	
               D.

            	
              Being
      engaged in suspected gross cases or economic disputes by members of broad
      of directors or incumbent senior
managers;

            

    

     

    
      	
               
      

            	
               E.

            	
              Disputes
      over the ownership of the pledged
property.

            

    

     

    8.6       Party
B shall timely disclose the related party transactions to Party A;

     

    8.7       Party
B shall timely sign for the collection notices sent or delivered in various ways
by Party A;

     

    8.8       Within
the valid term of the Agreement, if Party B provides guaranty in whatever forms
to a third party, Party A’s rights and interests shall not be damaged in any
way;

     

    8.9       Within
the valid term of the Agreement, Party B shall not donate, transfer or otherwise
dispose of the pledged property under the Agreement;

     

    8.10     Party
B shall assume the relevant expenses under the Agreement, including, but not
limited to, lawyer’s service, identification, inspection, evaluation,
warehousing, supervision, transaction and legal expenses;

     

    8.11     If
Party B’s behaviors are sufficient to devaluate the pledged property, Party B
shall stop such behaviors. If the pledged property has been devaluated, Party B
is obliged to restore the value of the pledged property, or to provide a
guaranty corresponding to the reduced value.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.12     Within
the duration of right of pledge, if the pledged property is devaluated, damaged
or lost due to the behavior of a third party, the compensation thus obtained
shall be deposited into the account designated by Party A. In the event that
Party B fails to provide the new guaranty acceptable to Party A, Party B agrees
that Party A may use such compensation to guarantee the performance of the right
of credit under the Agreement. Meanwhile, the portion of the pledged property
not devaluated is still used as the guaranty for the creditor’s rights. If Party
B provides a new guaranty acceptable to Party A, Party A shall refund the
compensation to Party B.

     

    8.13     If
Party A’s right of pledge is infringed or likely to be infringed by any third
party, Party B is obliged to forthwith inform Party A and to assist Party A in
being free from such infringement.

     

    8.14     After
the Agreement becomes effective, if Party A transfers the principal creditor’s
right to any third person in accordance with law, Party B shall undertake the
guaranty responsibility within the original scope of guaranty of
pledge.

     

    8.15     After
Party B liquidates all its debts under the Agreement, Party B will not undertake
the guaranty responsibility any more. If the liquidation by Party B is held to
be invalid by the judicial body, Party B shall continue to undertake the
guaranty responsibility within the original scope of guaranty of
pledge.

     

    8.16     Without
Party A’s written consent, Party B shall not transfer all or part of its rights
or obligations under the Agreement.

     

    
      Article
9  Party
A’s Undertakings

    

     

    Party A
makes the following Undertakings to Party B:

     

    9.1       Party
A will grant the loan to Party B in accordance with the provisions of the
Agreement;

     

    9.2       Party
A shall keep confidential the materials and information on Party B’s debts,
finance, production and operations etc. provided by Party B, unless otherwise
agreed upon by the Agreement or stipulated by laws and regulations.

     

    9.3      
Party A is obliged to keep the pledged property in good custody. The agreement
on the custody of the pledged property is specified in the “Supervision
Agreement on Commodity Financing Pledge” signed by and among Party A, Party B
and the Supervisor.

     

    9.4       Within
the valid term of the Agreement, if Party A transfers the principal creditor’s
rights legally, it shall inform Party B in time.

     

    9.5       After
the proceeds from disposal of the pledged property under the Agreement are used
to repay all the debts within the scope of guaranty of pledge under the
Agreement, the remaining portion, if any, shall be refunded to Party
B.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Article
10  Breach
of the Agreement

    

     

    10.1    Party
B shall be deemed as breach of the Agreement under any of the following
circumstances:

     

    
      	
               
      

            	
              A.

            	
              Party
      B fails to repay principal, interest or any other payables under the
      Agreement, fails to use the loan for the stipulated purpose, fails to
      perform any other obligations under the Agreement, or violates any
      presentation, warranty or promise made under the
  Agreement;

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      guaranty under the Agreement undergoes changes to the disadvantage of
      Party A’s creditor’s rights, and Party B fails to provide other pledges
      accepted by Party A;

            

    

     

    
      	
               
      

            	
              C.

            	
              Party
      B fails to pay off any of other matured debts (including declared maturity
      ahead of time), or non-performance or violation of the obligations under
      other contracts have affected or may affect the performance of its
      obligations under the Agreement;

            

    

     

    
      	
               
      

            	
              D.

            	
              Party
      B encounters serious business difficulties, which have adversely affected
      or may adversely affect the performance of its obligations under the
      Agreement;

            

    

     

    
      	
               
      

            	
              E.

            	
              Party
      B’s assets are legally confiscated, seized or enforced compulsorily, which
      has affected or may affect the performance of its obligations under the
      Agreement;

            

    

     

    
      	
               
      

            	
              F.

            	
              Party
      B is involved in or may be involved in any significant economic dispute,
      litigation or arbitration, which has affected or may affect the
      performance of its obligations under the
  Agreement;

            

    

     

    
      	
               
      

            	
              G.

            	
              Party
      B is legally put on file for investigation or adopted coercive measures
      upon by judicial authorities, or administrative law enforcement organs and
      administration authorities such as industrial and commerce departments and
      tax bureaus etc, which has affected or may affect the performance of its
      obligations under the Agreement;

            

    

     

    
      	
               
      

            	
              H.

            	
              Unusual
      changes take place in Party B’s main individual investors or main mangers,
      or they are legally investigated or their personal freedom is restricted
      for illegal or criminal activities, which have affected or may affect
      Party B’s performance of its obligations under the
    Agreement;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              I.

            	
              Party
      B is out of business, dissolved, liquidated, stopped business for
      rectification, revoked of business license, revoked or applied for
      bankruptcy;

            

    

     

    
      	
               
      

            	
              J.

            	
              Party
      B makes untrue representation or statements in Article 7 of the
      Agreement;

            

    

     

    
      	
               
      

            	
              K.

            	
              The
      contract becomes invalid due to Party B’s
fault;

            

    

     

    
      	
               
      

            	
              L.

            	
              Any
      other circumstances which may adversely affect Party A’s rights and
      interests under the Agreement.

            

    

     

    10.2    If
Party B breaches the Agreement, Party A is entitled to require Party B to
rectify the breach within a specified time limit if necessary; or, Party A is
entitled to adopt any of the following measures:

     

    
      	
               
      

            	
              A.

            	
              Stop
      granting the loan to Party B, and cancel all or part of the amount not
      withdrawn yet;

            

    

     

    
      	
               
      

            	
              B.

            	
              Declare
      that all or part of the loan under the Agreement shall become due
      immediately and require Party B to repay
  immediately;

            

    

     

    
      	
               
      

            	
              C.

            	
              Directly
      dispose of the pledged property under the Agreement, and use the amount
      thus obtained to first liquidate the creditor’s rights as stipulated in
      the Agreement;

            

    

     

    
      	
               
      

            	
              D.

            	
              Require
      Party B to compensate Party A for Party A’s direct loss caused by Party
      B’s breach of contract, including, but not limited to, the expenses on the
      realization of the creditor’s rights such as attorney fees and legal
      expenses etc.

            

    

     

    
      	
               
      

            	
              E.

            	
              Other
      measures as stipulated in laws and regulations or agreed upon in the
      Agreement.

            

    

     

    10.3    If
Party B fails to repay the matured loan (including declared maturity ahead of
time) in accordance with the stipulated time herein, Party A is entitled to
charge a default interest for the overdue loan from the overdue date, which is
calculated by rising 30 % on the basis of
the interest rate specified in this contract. For the interests not paid in due
time, the default interest rate herein shall be adopted to calculate the
compound interest.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    10.4     If
Party B fails to comply with the usage of the loan stipulated herein, Party A is
entitled to charge a default interest for the amount in default from the breach
date, which is calculated by rising 100% on the basis of
the interest rate specified in the Agreement. For the interests not paid in due
time within the misappropriation period, the default interest rate herein shall
be adopted to calculate the compound interest.

     

    10.5     In
case that the circumstances listed in Article 10.3 and Article 10.4 happen to
Party B concurrently, instead of simultaneous application, the higher default
interest shall be applied.

     

    10.6     If
Party B fails to repay the matured principal, interest, default interest or
other payables (including declared maturity ahead of time) in accordance with
the stipulated time herein, Party A is entitled to deduct the corresponding
amount from all the domestic currency accounts and foreign currency accounts of
Party B which are opened in Party A or other branches or sub-branches of
Industrial and Commercial Bank of China. If any currency of deduction is
different from that under the Agreement, it shall be converted in accordance
with Party A’s applicable sales exchange rate at the date of deduction. Party B
shall assume the interest and other expenses accrued within the period from the
date of deduction to the date of liquidation (the date when Party A converts the
deducted amount to the currency of the loan and actually liquidates Party B’s
debt in accordance with the state administrative policies on foreign exchanges),
as well as any balance arising from the exchange rate fluctuation during this
period.

     

    
      Article
11  Effectiveness,
Alteration, Dissolution and Termination

    

     

    11.1     The
contract is formed on the date when it is signed by legal representative or
authorized representative of each party and stamped by both parties’ company
seal; and the contract shall take effective on the date that the pledge property
is delivered to the Supervisor and the Supervisor issues related acceptance
certificate.

     

    11.2     Any
alteration or amendment to the Agreement shall be made in written form through
negotiation of two parties. The alternation clauses or agreements shall be
deemed as an integral part of the Agreement, which shall have the same legal
effect. Excluding the altered or amended part, the remaining part remains in
effect and the altered or amended part shall be applicable until the alteration
and amendment take effects.

     

    11.3     After
Party B fulfills all its obligations under the Agreement, Party A shall inform
the supervisor to release the pledge.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.4     The
alteration or dissolution of the Agreement shall not affect the rights of
parties to claim for damages. The dissolution of the Agreement shall not affect
the validity of the dispute settlement clause.

     

    
      Article
12  Dispute
Settlement

    

     

    12.1     The
formation, validity, construction, performance and dispute settlement shall be
governed by law of the People’s Republic of China. Any dispute or controversy
arising out of or in connection with the Agreement shall be settled through
negotiation. In case no settlement can be reached, the dispute or controversy
shall then be settled according to Item B of the
following:

     

    A.
Arbitration, which shall be conducted in_______/_____ (the full name of the
arbitration committee) in ______/_____ (the place of arbitration) according to
the commission’s arbitration rules in effect; the arbitration award rendered
shall be final and binding upon both parties.

     

    B.  Litigation,
which is governed by the people's court at Party A’s place of
domicile.

     

    
      Article
13  Miscellaneous

    

     

    13.1     No
failure on the part of Party A to exercise, partial exercise of or delay in
exercising any right under the Agreement shall constitute as a waiver or change
thereof or of any other rights or preclude its further exercise thereof or of
any other rights.

     

    13.2     The
invalidity or unenforceability of any provision of the Agreement shall not in
any way affect the validity or enforceability of the remaining provisions or the
validity of the whole contract.

     

    13.3     The
terms “Related Parties”, “Related Parties Relationship” “Related Party
Transactions”, “Main Individual Investors” and “Key Managers” referred to in the
Agreement shall be constructed to have the same meaning with those in Accounting Standards for Business
Enterprises - Disclosure of Related Party Relationships and
Transactions and
its subsequent amendments.

     

    13.4     This
contract is executed in duplicate, and each party holds one which has the same
legal effect.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Article
14  Other
Terms

    

     

    14.1    
Where Party B causes liability accidents by violation of relevant laws and
regulations, regulatory rules or industrial standards in the fields of food
safety, production security and environment protection etc, which have
materially affected or may materially affect the performance of its obligations
under the Agreement, Party B shall notify Party A in a timely manner; Party A,
based on the effects to what degree that the above circumstances may impose on
Party B’s credit status and performance capability, adopts one or more remedies
below: cease to release loan in progress; declare loan mature ahead of time,
recover part or the entire loan ahead of time; terminate this Agreement; other
necessary remedies as considered by Party A..

     

    14.2     other

     

    
       14.2.1
___/___

    

     

     14.2.2
___/___

     

    
      Article
15  Appendices

    

     

    15.1     The
appendices hereto are an integral part of the Agreement, which shall have the
same legal effect.

     

    15.2     The
appendices hereto include:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Party A:
(Seal) Industrial and Commercial Bank of China

     

    Officer
(Authorized Representative):  /s/ Xiaohua Liu

     

    Party B:
(Seal)

     

    Legal
Representative (Authorized Representative): (Signature or Stamp)

     

                            Date of
contract:Unassociated Document

    Exhibit
10.36 

      
        

      

    

    

    Trade
Financing 001

    
    

    Letter
of Credit Issuance Contract

     

    (“this Contract”)

     

    Contract
No.: Jian An Xin Zheng [2009] Shun Cheng 001

    

    Party
A:

      

    Henan
Shuncheng Group Coal Coke Co., Ltd

    

    Legal
Address: Southern Industrial Road, Tongye Town

    

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

    

    Tel:
2959988

    Fax:
2959988

    Zip Code:
455141

    

    Party
B:

       

    Henan
Province Branch of China Construction Bank

    Legal
Address: Garden Road No. 80, Zhengzhou City

    

    The
Principal: Huibin Xu (许会斌)

    

    Tel:

    Fax:

    Zip Code:
455003

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

    

    

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

    

    
      	
              1.

            	
              Credit
      Amount

            

    

    Upon
Party A’s application, Party B shall issue the credit to Party A in an amount of
USD 808,500
(“Credit Amount”), and
the amount of over shipment shall not exceed 0% of the Credit
Amount of the irrevocable documentary credit (“Over-shipment
Amount”).

    

    
      	
              2.

            	
              Earnest
      Money

            

    

    Party A
commits that it shall deposit earnest money in a special account for the earnest
money it opened in Party B within 1 working day after
signing this Contract according to Party B’s requirement, which serves as a
pledge to secure Party B’s creditor’s right under this Contract.  The
earnest money for issuing the credit is equal to 105% of the Credit Amount plus
the Over-shipment Amount (if any) as defined in Article 1 above, that is, RMB 6 million
(“Earnest
Money”).

    

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

    Account
No.:

    Interest
for the Earnest Money: interest on three-month
fixed deposit. If withdrawing money earlier, interest on current
account

    

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

    

    
      	
              3.

            	
              Cost
      for Credit Issuance

            

    

    The cost
for credit issuance shall be collected in an amount of 1.5% of the Credit
Amount.

    

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

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

    

    
    

    
      	
              4.

            	
              Preconditions
      for Party B to Issue the Credit to Party
A

            

    

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

    
      	
            	
              4.1

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

            

    

    

    
      	
            	
              4.2

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

            

    

    

    
      	
            	
              4.3

            	
              Party
      A does not breach any provisions of this
  Contract.

            

    

    

    
      	
            	
              4.4

            	
              Other
      conditions.

            

    

    ____________________________

    ____________________________

    

    
      	
              5.

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

            

    

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

    

    
      	
              6.

            	
              Issuance
      and Modification of the Credit

            

    

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

    

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

    

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

    

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

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
 

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

    

    
      	
              7.

            	
              Payment
      under the Credit

            

    

    
      	
            	
              7.1

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

            

    

    

    
      	
            	
              7.2

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

            

    

    

    
      	
            	
              7.3

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

            

    

    

    
      	
            	
              7.4

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

            

    

    

    
      	
            	
              7.5

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

            

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
  

    
      	
            	
              7.6

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

            

    

    

    
      	
              8.

            	
              Disclaimer
      on Transmission and Translation

            

    

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

    

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

    

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

    

    
      	
              9.

            	
              Disclaimer
      for Acts of an Instructed Party

            

    

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

    

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

    

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

    

    
      	
              10.

            	
              Underlying
      Contract Dispute or Credit Fraud

            

    

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

    

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

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
 

    
      	
              11.

            	
              Other
      Rights and Obligations of the
Parties

            

    

    
      	
            	
              11.1

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

            

    

    

    
      	
            	
              11.2

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

            

    

    
      	
            	
              11.3

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

            

    

    

    
      	
            	
              11.4

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

            

    

    

    
      	
            	
              11.5

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

            

    

    

    
      	
            	
              11.6

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

            

    

    

    
      	
            	
              11.7

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

            

    

    

    
      	
            	
              11.8

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

            

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

    

    
    

    
      	
              12.

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

            

    

    

    
      	
            	
              12.1

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

            

    

    

    
      	
               
      

            	
              (1)

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

            

    

    

    
      	
               
      

            	
              (2)

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

            

    

    

    
      	
            	
              12.2

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

            

    

    

    
      	
               
      

            	
              (1)

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

            

    

    

    
      	
               
      

            	
              (2)

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

            

    

    

    
      	
               
      

            	
              (3)

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

            

    

    

    
      	
               
      

            	
              (4)

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

            

    

    

    
      	
               
      

            	
              (i)

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

            

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

    

    
    

    
      	
               
      

            	
              (ii)

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

            

    

    

    
      	
               
      

            	
              (iii)

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

            

    

    

    
      	
               
      

            	
              (5)

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

            

    

    

    
      	
               
      

            	
              (i)

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

            

    

    

    
      	
               
      

            	
              (ii)

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

            

    

    

    
      	
               
      

            	
              (iii)

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

            

    

    

    
      	
               
      

            	
              (iv)

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

            

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

    

     

    
      	
               
      

            	
              (6)

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

            

    

    

    
      	
               
      

            	
              (7)

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

            

    

    

    
      	
            	
              12.3

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

            

    

    

    
      	
               
      

            	
              (1)

            	
              Where
      Party B make any prepayment for Party A, Party B has the right to collect
      the interest on overdue payments according to the overdue loan rate since
      Party B’s prepayment date; and the overdue loan rate is (1+50%)×normal loan
      rate.

            

    

    

    
      	
               
      

            	
              (2)

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

            

    

    

    
      	
               
      

            	
              (3)

            	
              Dispose
      of the documents or the goods under the
credit.

            

    

    

    
      	
               
      

            	
              (4)

            	
              Exercise
      its security rights;

            

    

    

    
      	
               
      

            	
              (5)

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

            

    

    

    
      	
               
      

            	
              (6)

            	
              Other
      available measures according to the
law.

            

    

    

    
      	
              13.

            	
              Miscellaneous

            

    

    
      	
            	
              13.1

            	
              Expenses

            

    

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

    

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

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
  

    
      	
            	
              13.2

            	
              Transfer
      of the Payables

            

    

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

    

    
      	
            	
              13.3

            	
              Usage
      of Party A’s Information

            

    

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

    

    
      	
            	
              13.4

            	
              Collection
      by Announcement

            

    

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

    

    
      	
            	
              13.5

            	
              Evidential
      Effect of Party B’s Record

            

    

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

    

    
      	
            	
              13.6

            	
              Non-waiver

            

    

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

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
  

    
      	
            	
              13.7

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

            

    

    

    
      	
            	
              13.8

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

            

    

    

    
      	
            	
              13.9

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

            

    

    

    
      	
            	
              13.10

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

            

    

    

    
      	
            	
              13.11

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

            

    

    

    
      	
            	
              13.12

            	
              Dispute
      Settlement

            

    

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

    
      	
               
      

            	
              (1)

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

            

    

    

    
      	
               
      

            	
              (2)

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

            

    

    

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

    

    
      	
            	
              13.13

            	
              Effectiveness

            

    

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

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

    

    

    
      	
               
      

            	
              (1)

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

            

    

    

    
      	
               
      

            	
              (2)

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

            

    

    

    
      	
              14.

            	
              This
      Contract has three original copies.

            

    

    

    
      	
              15.

            	
              Other
      Provisions

            

    

    

    
      	
               
      

            	
              (1)

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

            

    

    

    
      	
               
      

            	
              (2)

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

            

    

    

    
      	
               
      

            	
              (3)

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

            

    

    

    
      	
               
      

            	
              (4)

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

            

    

    

    
      	
              16.

            	
              Representation

            

    

    
      	
            	
              16.1

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

            

    

    

    
      	
            	
              16.2

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

            

    

    

    
      	
            	
              16.3

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

            

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

    

    
 

    Party A
(Stamp):

    Henan
Shuncheng Group Coal Coke Co., Ltd

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

    Date: 17
November 2009

    Party B
(Stamp):

    Anyang
Branch of China Construction Bank

    Signed by
the Principal or Authorized Representative:_________

    Date: 17
November 2009

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]