Loan Agreement
Exhibit
99.1
Party
A: Xinyang
Hongchang Pipeline Gas Co. Ltd
Party
B: Henan
Jinding Chemical Co., Ltd
In
order
to support Party B’s development of and solve the problem of financing shortage
from the stock market, Part A and Party B have come to an agreement after the
friendly negotiation.
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1.
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Party
A agreed to lend RMB14million to Party B. The fund will be transferred
to
Party B’s bank account when this agreement has been signed and goes into
effect.
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2.
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The
maturity of the loan is one year. Party B will need to repay it on
August
8, 2009. During the borrowing period, if Party B could have the Project
loan which the Bank of China has made the commitment in place, Party
B
could repay the loan to Party A in advance.
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3.
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The
annual interest rate for this loan should be based on the current
one year
period bank loan interest rate and with 20% premium. As current one
year
period bank loan rate is 7.29% and after the 20% premium, the annual
interest rate for this loan will be 8.748%. The interest will be
counted
from the date when the fund is transferred by Party A, and the interest
settlement date will be the 15th of each
month.
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4.
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The
loan will be used for the construction of the 200,000 tons Methanol
project and shall not be appropriated for other purposes. Party A
should
have the right to supervise on the usage of this loan. The source
of
repayment should be the project loan borrowed or to be borrowed by
Party
B.
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5.
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This
agreement shall be made in two original copies, and will be effective
when
the contact has been stamped and signed by both Parties.
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Party
B:
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Representative:
Chen Siqiang
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Representative:
Zhou Dianchang
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