Exhibit 10.2 

English translation for convenience purposes only

RMB Working Capital Loan Contract
    

Borrower:Wuhan Kingold Jewelry CO., Limited
(Hereinafter Party A)
Address: 15# Huangpu Science and Technology Park, Jiang’an District, Wuhan,
Hubei Province, PRC
Postal code: 430000
Tel:
Fax:
Legal representative: Zhihong Jia
Deposit bank & Account number:

Lender: Wuhan Branch China CITIC Bank Corporation Limited
(Hereinafter Party B)
Address: No.747 Jianshe Road, Hankou District, Wuhan, Hubei Province
Postal code: 430015
Tel:
Fax:
Legal representative/Principal: Xuemin Xu

Place of Contract: Wuhan
Date of signature: ___11___ (Month)____28____(Day)_____2012___(Year)

In accordance with Contract Law of the People’s Republic of China and Interim
Measures on Management of Working Capital Loans and other relevant laws,
regulations and rules and based on the principles of equality and friendly
consultation, Party A and Party B agree to enter into this Contract.

 
 

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Article 1 Loan type
 
1.1
In accordance with this Contract, Party B agrees to provide working capital
loans for Party B.

Article 2 Allocated loan amount (Principal, similarly hereafter) & loan term
 
2.1 The Currency under this Contract is RMB
(Amount in words): Thirteen Million RMB
(Amount in figures): _13,000,000￥.
 
2.2 The loan term under this Contract is ONE YEAR(in capital form)
from__11__(Month)___28__(Day)__2012___(Year) to
__11___(Month)___28__(Day)__2013___(Year).
 
2.3 The payment actual term, withdrawal actual date and allocated loan amount
shall follow the term, date and loan specified on this Contract. A certificate
of indebtedness is an integral part of this Contract. The certificate and this
Contract are equally valid.

Article 3 Purpose of loan
 
3.1 The loan under this Contract is to be used for capital turnover. Party A
shall not change the purpose of loan without the written permission from Party
B. Party A shall not invest the mentioned loan into fixed assets and securities,
nor use the loan for any banned production and operation, nor misuse the loan at
will.

Article 4 Interest rate and Interest on loan
 
4.1 In case that the time interval between the first withdrawal actual date and
date of signature is within six months, the interest rate under this Contract
shall be determined in line with __(1)___of the following:
 
(1) The interest rate shall _raise__ (raise/cut) by __10____(%/BPs) based on the
benchmark interest rate announced by the People’s Bank of China for loans of the
same term and priority as the withdrawal actual date.

 
 

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(2) The interest rate shall _/_ (raise/cut) by ___/_(%/BPs) based on the
benchmark interest rate announced by the People’s Bank of China for loans of the
same term and priority as the date of signature, namely the interest rate under
this Contract shall be ___/____%.
 
In case that the time interval between the first withdrawal actual date and date
of signature is beyond six months, Party B shall have the right to adjust the
interest rate of this loan based on Party B’s relevant interest rate policy at
the appointed time. But Party A shall need the written notification from Party
B.
 
4.2 The interest rate under this Contract shall apply the __(1)__mode of the
following to be readjusted:
 
(1) Fixed interest rate. The interest rate shall remain unchanged within the
term of loan.
 
(2) Floating interest rate. The interest rate under this Contract shall be
determined according to the__/__ mode of the following items. The interest rate
of this loan after readjustment shall be the benchmark interest rate announced
by the People’s Bank of China for loans of the same term and priority as the
adjustment date in accordance with the definite interest rate after readjustment
via the way specified in 4.1 under this Contract.
 
①The interest rate shall be readjusted for every __/__ month/quarter/year (in
capital form) from the withdrawal actual date. The readjustment date shall be
that in the readjustment month corresponding to the withdrawal actual date. If
there is no date in the readjustment month corresponding to the withdrawal
actual date, the readjustment date shall be the last date in the readjustment
month.
 
②The initial interest rate shall be on __/___(Month)__ /___(Day)__ /___(Year)
from the withdrawal actual date and for every ___/____ month/quarter/year (in
capital form) from the readjustment date. The readjustment date shall be that in
the readjustment month corresponding to the initial readjustment date. If there
is no date in the readjustment month corresponding to the initial readjustment
date, the readjustment date shall be the last date in the readjustment month.

 
 

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③The readjustment date of the interest rate under this Contract shall be the
readjustment date of the benchmark interest rate announced by the People’s Bank
of China for loans from the withdrawal actual date.
 
4.3 The interests shall be calculated from the withdrawal actual date. The
interest calculating formula shall be as: interests= actual balance of loan ×
actual days within interest period × annual interest rate/ 360 days.
 
4.4 In case that the loans and the accrued interest outright shall not be once
repaid, the initial expiry date for interest shall be on
___12__(Month)__20___(Day)___2012___(Year) based on __(1)__ of the following
settlement:
 
(1) The interests shall be settled on a monthly basis. The 20th day of each
month shall be the date of interest settlement.
 
(2) The interests shall be settled on a quarterly basis. The 20th day of the
last month in each quarter shall be the date of interest settlement.
 
(3) Other date as agreed by both parties shall be: __________________________.

4.5 Party A, no later than each interest settlement date, deposit adequate funds
into the account opened by Party B (account number: ______) for Party B to
deduct interest timely from this account. Party A shall make it sure to repay
the interests in time if choosing other repayment method. If the interest
settlement date is non-banking days, the interests shall be deposited a banking
day in advance. If Party A fails to repay the agreed interests within the
interest settlement date, Party B shall have the right to regard it as overdue
interests.
 
4.6 The loan in full with any interest accrued shall be repaid on the maturity
date. If the maturity date is on official holidays or public holidays, the loan
shall be repaid on the last banking day before official holidays or public
holidays. The interests shall be calculated by the interest rate specified in
this Contract and it shall deduct the interests within the days between the
repayment date and maturity date calculated by the interest rate specified in
this Contract. In case of repaying the loan on the first banking day after
official holidays or public holidays, the interests for the overdue loan shall
be charged according to the interests between maturity date and actual repayment
date calculated by the interest rate specified in this Contract. If the loan is
failed to be repaid on the first banking day after official holidays or public
holidays, the interests for the overdue loan shall be charged from this date.

 
 

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Article 5 Drawing and payment of the loan
 
5.1 Conditions precedent for the initial drawing
 
Party A shall meet the following conditions before drawing loan for the first
time:
 
___________________________________________________________________________________________________
 
___________________________________________________________________________________________________
 
5.2 Conditions precedent for each drawing
 
For each drawing (including initial drawing) under this Contract, Party A shall
meet the following conditions except conditions precedent for the initial
drawing as agreed in 5.1:
 
 
(1)
Party A shall have no violation against the duty and responsibility under this
Contract and guaranty documents.
               

 
(2)
No event of default takes place under this Contract.

               
 
(3)
Guaranty documents shall be persistently valid.
               

 
(4)
After the fair assessment of Party B, the financial position of Party A has no
changes that are likely to harm, delay or hinder the performance of duty and
responsibility under this Contract and guaranty documents.
         

     
 
(5)
Party A has signed or provided the documents as agreed or required by Party B.
               

 
(6)
Party A has opened relevant account in accordance with this Contract or Party
B’s requirements.
         

     
 
(7)
Other conditions required by Party B:
         

 
__________________/___________________________________________________________________________

 
 

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  5.3 Plan of drawing
 
 Party A shall draw based on the following plan, and the withdrawal due date
shall be on the banking days.
 

Withdrawing date   Amount of withdrawing 28/12/2012   13,000,000

 

5.4 If Party A or guaranty party fails to perform the duties as agreed in this
Contract or the laws and regulations, including but being not constrained by
that Party A fails to provide complete documents for loans with the time permit
as agreed by Party B, and that guaranty party fails to check in for guaranty
within the fixed date and other situations, Party A shall agree that Party B has
the right to change the mentioned plan. In case that the change of plan of
drawing results in the change of the term of loan, it shall be settled based on
2.3 under this Contract.
 
5.5 Party A shall draw in accordance with plan of drawing under this Contract.
Without the written permission of Party B, Party A shall not change the plan of
drawing. If it needs to change withdrawal date and/or amount of drawing, Party A
shall notify Party B by written form in advance ___SEVEN__ banking days prior to
the withdrawal date as agreed in this Contract. Party B agrees that Party A
shall have __THREE__ banking days of grace period for drawing. If Party A fails
to draw the loan within the due grace period, Party B shall regard that Party A
automatically cancels this loan and has no right to draw this loan. And Party A
shall undertake the violation responsibility as agreed in 13.2 under this
Contract.
 
5.6 In case that Party A automatically cancels the loan which cause the change
of actual principal from Party B, the principal under this Contract shall follow
the certificate of indebtedness produced under this Contract.

 
 

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5.7 Drawing and paying of the loan
 
5.7.1 Application for drawing
 
Party A shall, _____ banking days prior to each drawing, submit to Party B a
written application for drawing, the certificate of the loan and the relevant
documents for drawing as agreed in this Contract and required by Party B. Party
A can retain the specimen seal impression that it authorizes the staff to use
for drawing (Appendix I). The staff of Party A shall issue and retain the seal
impression corresponding to specimen seal impression when they put up with
application for business. Party B shall be responsible for auditing in form the
seal impression provided by the staff of Party A through contrasting with
specimen seal impression. Party B can approve the application for business of
Party A after checking. In case of changing the specimen seal impression, Party
A shall submit to Party B a written notification under the original specimen
seal impression on the date of changing. In case of Party B’s loss resulting
from the overdue notification, Party A shall undertake relevant liability for
compensation.
 
If there is no specimen seal impression from Party A, the staff of Party A shall
use official seal for business or submit a separate application for the use of
their company’s other seal impressions (special financial seal and other seals).
 
Party A shall not withdraw the application for drawing. With the approval of
Party B, Party has obligation to draw in accordance with the mentioned
application for drawing.
 
Party B shall transfer the loan funds to the account of Party A that opens
within Party B (account number: ) within the time permit on the application for
drawing or to the counter party of Party A by entrusted payment as agreed, after
Party B checks and considers the conditions precedent for drawing to be in
accordance with that as agreed in this Contract.
 
5.7.2 Method of loan payment
 
Methods of loan payment can be divided into direct payment and entrusted
payment. The conditions for entrusted payment as agreed by Party A and Party B
shall be as follows:

 
 

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When single amount of foreign payment is ≧ 5 million RMB, we should adopt
entrusted payment as the payment method, and the proportion of the entrusted
payment should not smaller than 20% of the total loan.

In case of the entrusted payment by the lender, Party B shall check that whether
the payment counterpart, amount of payment and other information within the
application for payment provided by Party A is in accordance with relevant
business contract and other certificates prior to transferring the loan funds.
After the approval, Party B shall transfer the loan funds to the account of
Party A’s counterpart as listed in Party A’s payment order via the account that
opens within Party B (account number: ).
 
5.7.3 Payment management
 
(1) After the drawing of loan, Party B shall have the right to check whether the
use of loan funds by Party A is in accordance with the agreement in this
Contract through periodical or non-periodical inspection and monitoring, and
Party A has obligations to be fully cooperated. In case that the use of loan
funds is not in accordance with the agreement in this Contract with the
inspection, Party B shall have the right to require Party A to correct within a
time limit. If Party A refuses to correct, Party B shall have the right to
regard the plot to settle in accordance with 13.3 and 13.6 in this Contract.
 
(2) In case of the direct payment by Party A, Party A shall submit to Party B
the business contract related with the payment of loan funds corresponding to
the last quarter and other business documents for the evidence of loan funds,
and give a report of the payment of loan funds no later than the 10th day of the
next month in each quarter. Party B shall have the right to check whether the
payment of loan is in accordance with the purpose as specified in this Contract
and whether the payment for program keeps pace with the program via making
account analysis, voucher verification, on-site investigation and other methods.

 
 

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(3) During the drawing and payment of loan under this Contract, Party B shall
have the right to negotiate with Party A to add conditions for drawing and
payment of loan, or regard the plot to stop the drawing and payment of loan
funds in following cases:
 
① Credit standing deteriorates, and business profitability becomes weak.
 
② The use of loan funds does not follow the purpose under this Contract.
 
③ Split the payment of loan into smaller amount to avoid entrusted payment as
authorized by Bank in violation of this Contract.
 
5.8 Other agreements
 
_______________________________________________________________________________________________
 
_______________________________________________________________________________________________

Article 6 Repayment
 
6.1 The loan under this Contract shall be repaid by __(1)__ of the following:
 
(1) Repay interests on the fixed term and the principal on the maturity date.
 
(2) Repay the loan in full with the accrued interests outright.
 
(3) Other Payment methods: __________________________________________
 
6.2 Party A shall the principal pursuant to the following repayment schedule:
 

Order of repayment   Repayment date   Amount of repayment 1   28/11/2013  
13,000,000                                        

  
6.3 For the repayment of the principal, Party A shall, _____ prior to the
repayment date, deposit no less than the principal and interests into the
account that opens within Party B (account number: ) to be Party B’s repayment
account. Herein Party A authorizes Party B to deduct the principal and interests
for the loan from the mentioned account. In case of non-banking day, the
repayment date shall be advanced by one banking day. If Party B fails to receive
the due amount of repayment within the repayment date, Party B shall regard it
as overdue repayment.

 
 

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6.4 In case that Party A’s repayment or payment fund is insufficient to repay or
pay the sum of fund for this period, the repayment fund shall be settled as
follows:
 
(1) Pay for various accrued charge, default fine, compensatory payment in
relation with this Contract and relevant laws and regulations;
 
(2) Pay for penalty interests payable, compound interests;
 
(3) Pay for interests payable;
 
(4) Pay for principal payable.
 
 In case that the repayment fund is insufficient to repay or pay all the funds
according to this sequence, the fund shall be repaid for the funds following
priority order of their due date.
 
6.5 Voluntary prepayment
 
6.5.1 Party A shall meet any following condition to repay the loan in full or by
part in advance:
 
(1) Party A shall pay all the matured funds payable prior to the prepayment
date.
 
(2) Party A shall, at least twenty banking days prior to the planed date for
prepayment, submit to Party B a written application for prepayment date and
receive the written approval of Party B.
 
(3) The amount of prepayment fund shall be the integral multiple of ________ ten
thousand RMB, and each amount of prepayment fund shall be not less than _______
ten thousand RMB in addition to the prepayment of total loan under this
Contract.
 
(4) Party A shall repay Party B the relevant interests and other expenses
payable in advance with the amount of repayment.
 
(5) Party B shall have the right to charge the default fine at the rate of
__20.00_% from Party A’s prepayment date based on the interest rate according to
the amount of prepayment fund, the rest term of loan, this Contract and
prepayment date. The default fine calculating formula: default fine = the amount
of prepayment fund × the rest term of loan (by year) × the interest rate of loan
corresponding to the prepayment date as agreed in this Contract × rate.

 
 

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6.5.2 Except for the written approval of Party B, the times of prepayment shall
be more than _____ times within the term of loan. The principal of prepayment
shall be repaid by the inverted order, namely, the principal shall be repaid by
the reverse order of repayment schedule as agreed in this Contract.
 
6.5.3 The application for prepayment shall not be withdrew, and Party A shall
repay the loan under this Contract follow the amount and date as listed in the
application for prepayment.
 
6.5.4 In case of the written approval of application for prepayment, Party B
shall calculate the interest rate of loan based on the actual using days of part
of the loan involved in the prepayment fund.

Article 7 Loan Restructuring
 
7.1 In case Party A fails to return due loan on schedule, it shall put forward
written application of loan restructuring to Party B one month before due date
of loan. If Party B agrees on Party A’s application, both parties shall sign
agreement of loan restructuring. In case Party B does not agree, Party A shall
repay due loan by the time agreed in this agreement. Otherwise, Party B has
right to deal with this loan as past due loan.

Article 8 Guarantee of loan
 
8.1 Loan under the contract adopts __(1)___guarantee type:
 
(1) Security guarantee
  
(2) Pledge guarantee
 
(3) Guarantee warranty
 
(4) Other types of guarantee:       
 
The above guarantee contract is signed by Party B and guarantor under the
specific guarantee matters of this contract:

 
 

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(1) 2011鄂银最抵第301号(2011 e yin zui di No.301) (5) /_ (2) /_ (6) /_ (3) /_ (7) /_
(4) /_ (8) /_

Article 9 Representations and Warranties of Party A
 
9.1 Party A is Chinese corporate body or other organization legally founded
according to law of the People’s Republic of China, which has civil right and
civil capacity to sign and fulfill this contract and can bear civil liabilities
independently. Party has gained all necessary and legal internal and external
approval and authorization to sign this agreement.
 
9.2 All documents, reports and statements provided by Party A according to law
and requirement of Party B are valid, lawful, true, correct and complete.

Article 10 Commitment of Party A
 
10.1 Party A should provide Party B with reports and other documents really
reflecting its operational and financial states regularly or according to Party
B’s requirement. Party A guarantees that provided materials are all valid, true
and complete.
 
10.2 In loan term, in terms of great changes about Party A’s managerial
decisions, including but not limited to share transfer, reorganization,
amalgamation, discrete, shareholding reform, joint venture, cooperation, joint
operation, contracting lease, investments abroad, substantial increase of debt
financing and scope of business and alteration of registered capital as well as
other situations that may affect Party B’s rights and interest, Party A shall
provide Party B with a written notice at least thirty days in advance and get
written consent from Party B, practice liability for satisfaction of loan or pay
off loan in advance or provide warranty approved by Party B.

 
 

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10.3 Party A shall positively coordinate with Party B to make management on
business condition and payment of loan and management after loan, including the
understanding and supervision on fundamental state of enterprise, service
condition of loan, major items of operating management, financial operation
condition, condition of balancing accounts and contacting, etc. Any expense
arising from obstruction of Party A shall be paid by Party A.
 
10.4 Without prior written permission of Party B, Party A is not allowed to
transfer or covertly transfer debts under this contract in any way.
 
10.5 In case Party A’s transfers, hires or deals with complete or major part of
significant property or operation revenue in the way of setting warranty for
debts outside of debts under this contract, Party A shall provide Party B with
written notice at least thirty days in advance and get written consent from
Party B.
 
10.6 In the case of any event harmful to fulfillment of debts in this contract,
including but not limited to litigation, arbitration, criminal investigation,
administrative penalty, termination of business, close of a business,
dissolution, adjudication of bankruptcy, revoking license, revocation,
deterioration of financial conditions, etc, Party A shall notice Party B in
written form within three days since the date when this matter happens or
possibly happen.
 
10.7 In case Warrantor encounters situations including but not limited to
termination of business, close of a business, dissolution, adjudication of
bankruptcy, revoking license, revocation and loss of business, partly or
completely losing guarantee ability corresponding to this loan or decrease of
value of pledge, hostage and pledge right as loan guarantee under this
agreement, Party A shall provide Party B with new guarantee approved by Party B.
 
10.8 In loan term, in case Party A changes title of corporate body, legal
representative, principal, address, telephone, fax, etc, Party A shall notice
Party B in written form within seven days after alternation.
 
10.9 Party A shall timely notice Party B in written report the related
transactions which already happened or going to happen have 10% above (including
10%) of Party A's net assets, including but not limited to both parties'
relavent connections, trading programes and trading nature, the amount of
trading or relavent proportion, pricing policy ( including none-cash or symbolic
money transactions).
 
10.10  Party B has right to collect part or complete loan in advance according
to condition of funds withdrawal of Party A.

 
 

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Article 11 Rights and obligations of both parties
 
11.1 Party A has the right to draw and use loan according to the deadline and
purpose agreed in this contract.
 
11.2 Party A shall pay off the capital and interest of loan according to
agreement in this contract.
 
11.3 Party B has the right to investigate and understand operational condition
and service condition of loan of Party A.
 
11.4 In case pledge and collateral security of Party B are insufficient to pay
off all creditor’s rights within scope of guarantee of this contract, Party B
has right to retrieve the insufficient part according to law.
 
11.5 Under the premise that Party A fulfills obligations agreed in contract and
satisfies terms of loan of Party B, Party B shall issue full loan to Party A on
schedule.
 
11.6 Party B has right to require Party A to provide relevant documents
according to the investigation requirement of issuing loan and keep secret for
data, document and information related to Party A, except for that shall be
queried or announced according to laws and regulations.

Article 12 Account
 
Party A will open the No. ②___account in Party B (multi-choices available)
 
①
Issue loan to special account, account number is:_ /______________________,
capital issue and payment of this loan should be transacted via this account.

Both parties make the following agreement on this account:
 
_______________________________________________________________________________
 
____/__________________________________________________________________________
 
②
Balance account, account number is: ______________________________________,

Both parties make the following agreement on this account:
 
________________________________________________________________________________
 
________________________________________________________________________________

 
 

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③
Funds withdrawal account, account number is
/____________________________________,

Both parties make the following agreement on this account:
_____/__________________________________________________________________________
 
_______________________________________________________________________________
 
④
__________account, account number is: _/__________________________

Both parties make the following agreement on this account:
____/_____________________________________________________________________________
 
_______________________________________________________________________________

Article 13 Liability for breach of contract
 
13.1 After execution of contract, both parties shall fulfill the obligations
agreed in this contract. Either party violating any agreement, commitment or
guarantee of this contract shall bear corresponding responsibility for breach of
contract.
 
13.2 Without Party B’s written consent, in case Party A fails to draw loan in
date of draft agreed in contract, Party B has the right to take default fine by
overdue days according to rate agreed in contract.
 
13.3 In case one of the following situations happens, Party has right to stop or
end any term of loan has not been drawn and require Party A to immediately repay
all drawn loan, interest in red and other expense as well as take corresponding
measures. The date when Party B requires Party A to repay the above mentioned
term of loan is the day of acceleration of maturity of debts under this
contract. Party B has the right to directly deduct money from any account of
Party A opened in Party B and its affiliated agency to compensate for debts of
Party A under this contract.

 
 

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13.3.1 Party A fails to pay off the capital and interest of loan under the
contract on schedule.
 
13.3.2 Party A fails to fulfill any obligation agreed in the contract.
 
13.3.3 Certification and documents as well as representations and warranties of
article 9 related to this loan submitted by Party A to Party B are demonstrated
inauthentic, inaccurate, and imperfect or intentionally lead to others’
misunderstanding.
 

13.3.4 Party A hides material operational finance facts from Party B.

 

13.3.5 Party A uses false contracts happened between controlling shareholders
and other relavent companies to extract loan.

 
13.3.6 Party A stops to pay off due debt or disable to pay off debt.
 
13.3.7 Party A encounters termination of business, close of a business,
dissolution, adjudication of bankruptcy, revoking license, revocation,
deterioration of financial conditions or any litigation, arbitration or criminal
and administrative punishment that are harmful to state of operation or property
condition of Party A.
 
13.3.8 The matters of industrial and commercial registration such as Party A’s
address, business scope and legal representative change or produce great
investments and other situations, which lead to serious influence or threat on
Party B’s creditor’s rights.
 
13.3.9 Party A encounters great financial loss, loss of assets or other capital
loss caused by foreign guarantee or other financial crisis and Party B considers
that it may or has affected or harmed Party B’s interest under this contract.
 
13.3.10 There is great crisis on operation or finance of Party A controlling
shareholder and other affiliated companies or Party A has greatly related
transaction with controlling shareholder and other affiliated companies,
affecting normal operation of Party A.
 

13.3.11 Party A has important mergers, acquisitions which make Party B believes
these activities will threat the achievement of Party B’s creditor’s right.

 
13.3.12 The business Party A is in suffers unfavorable changes, which seriously
affects or threats the achievement of creditor’s rights of Party B, the
situation in this clause does not belong to force majeure events.
 
13.3.13 Party A fails to transact settlement of account or deposit and other
relevant business in Party B according to agreement.
 
13.3.14 Party A fails to use loan according to agreed purpose.
    
13.3.15 Party A fails to pay the capital of loan according to article 5.7
agreements of this contract.

 
 

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13.3.16 Party A violates commitments of article 10 of the contract.
 
13.3.17 Party A violates Party B’s supervision requirement on funds withdrawal
account.
 
13.3.18 Cross default: if Party A defaults under other debt documents and has
not corrected within grace period and lead to any one of the following cases, it
is also a kind of default, i.e. cross default.
 
① debts under other debt documents are announced or may be announced
acceleration of maturity and the amount of accumulative capital of this kind of
debt exceeds threshold amount of cross default.
 
② Though debts under other debt documents are not announced or may not be
announced acceleration of maturity, there is payment default and the amount of
accumulative capital of this kind of debt exceeds original amount of cross
default.
 
Other debt documents refer to loan contract, bond and guarantee agreement.
Threshold amount of cross default refers to the lowest amount triggering cross
default. The threshold amount of cross default of this contract is RMB
_______Ten Thousand Yuan.
 

13.3.19 Party A refuses to accept Party B’s supervision and examination on Party
A’s loan utilization and corresponding operation financial activities.

 
13.3.20 Higher-level management personnel of Party A is suspected of being
involved in significant corruption, bribe-taking, fraudulent practices or
illegal business cases and Party B considers that it may or has affected or
harmed its rights and interests under the contract.
 
13.3.21 Warrantor of Party A violates agreement of warranty contract or cause
default matters under the warranty contract.
 
13.3.22 Party A causes other matters endangering and damaging or may endanger
and damage Party B’s rights and interests.
 

13.3.23 Party A does not supply a new qualified warrant when collateral is
seized, impounded, lost, stopped being paid or forced by mandatory measures,
ownership diputes, be invaded from or might from a third party, the situation of
security be impacted.

 
13.3.24 Other cases: _/_________________________________________
 
13.4 In case Party A fails to pay off capital agreed in the contract, besides
the rights agreed in Article 13.4, Party B has right to surcharge 50.00  % of
default interest rate to take interest by loan rate at the appointed time
according to actual overdue days.

 
 

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13.5 In terms of interest cannot be paid by Party A, Party B has right to take
compound interest by default interest rate agreed in Article 13.4 according to
actual overdue days.
 
13.6 In case Party A fails to use loan according to the agreed purpose in
contract, besides the rights agreed in Article 13.3, Party B has right to
surcharge 100.00 % of default interest rate to take interest on the part used in
default by loan rate at appointed time according to used days since the date of
diverting.
 
13.7 In case Party A repays in advance, Party B has right to collect default
fine for once by 20.00  % of rate according to prepayment amount, residual
maturity of loan and loan rate agreed in this contract since the date when Party
A repays in advance. The computational formula of default fine is: default
fine=prepayment amount x residual maturity of loan (by year) x loan rate agreed
in this contract x rate.
 
13.9 Various expenses arising from achievement of creditor’s rights of Party B
(including but not limited to costs, travel expense, 20.00  % counsel fee of
total amount of primary creditor’s rights, property preservation expense,
certification and authorization expense, translation charge, assessment and
auction expenses, etc) are all paid by Party A.
 
Article 14 Continuity of obligations
 
14.1 All obligations of Party A under this contract has continuity, which have
force of constraint on successor, receiver, assignee and main body after
amalgamation, reorganization and change of title, regardless of influences of
any dispute, claim and legal procedure, command of superior unit and any
contract and document signed by and between main debtor of contract and any
natural person or legal person nor change with bankruptcy of main debtor of
contract, disability of paying debt, loss of qualification of enterprise and
alternation of articles of association as well as any change in essence.

 
 

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Article 15 Notarization
  
15.1 In case either party puts forward requirement of notarization, this
contract shall be notarized in notary organs regulated by state and the expense
is paid by Party A.
 
15.2 In case Party B requires transacting notarization that has force of
compulsory execution, with the permission of Party A, Party B can apply notary
organ to issue notarization that has force of compulsory execution with this
contract. If capital and interest of loan and relevant expense of Party B cannot
be fully paid in repayment duration agreed in the contract, Party B can apply
compulsory execution in local people’s court with this notarization. All
expenses arising from this are paid by Party A. Party agrees local law court of
Party B to compulsorily execute by law without preconditions.

Article 16 Other agreed items
 
The two parties agree the agreement hereof will become effective when Party A
withdrawal the capital.
 
In case of conflicts between agreement of this article and other provisions,
this article shall prevail.

Article 17 Application of law and arbitration
 
17.1 This contract is suitable for law of People’s Republic of China.
 
17.2 All disputes arising from this contract and related, both parties shall
negotiate in a friendly manner; if failed, both parties agree to adopt the
No.____(2)____method to solve.
 
(1) Submit to __ /__________________arbitration committee to apply for
arbitration.
 
(2) Institute legal proceedings or apply for compulsory execution to local
people’s court of Party B.

Article 18 Force majeure events
 

18.1 The force majeure events under this contract means any objective
circumstances which unpredictable or unavoidable including war, strike, curfew,
flood, storm earthquake and any other force majeure events recognized by the two
parties causing any side of the party unable to normally fulfill the
obiligations of the contract.

 

18.2 If any side of the party can not fulfill obligations of the contract
because of force majeure events, the party can partially or fully dissolute the
obligations or responsibilities under the contract according to the impact of
force majeure events, but the party be impacted by the events mentioned above
shall notice the other party by written report, in order to reduce the loss of
the other party, and shall provide the proper evidence in reasonable time.
Meanwhile, the party be impacted by force majeure events shall do the best to
reduce the influence of the other party.

 

18.3 When force majeure events occurred, two parties shall immediately have a
discussion to find a fair and reasonable solution and do their best to reduce
the consequences.

 

Article 19 Accumulation of Party B’s rights

 
19.1 Party B’s rights under this contract are accumulative, without affecting
and rejecting any rights from Party A according to laws and other contracts.
Only if Party B indicates in written form that it does not use, partly use or
postpone using its rights, none compose the surrender or part surrender of the
right nor affect, stop and obstruct Party B to continue to use this right or use
any other rights.

 
 

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Article 20 Execution, alternation and dissolution of the contract
 
20.1 This contract comes into force after legal representative or authorized
agent of Party A and legal representative or principal or authorized agent of
Party B signs or seals their name and stamp official seal special seal of
contract.
 
20.2 After execution of contract, apart from existing agreements of this
contract, either party is not allowed alternating or terminating the contract;
in case need to alternate or terminate this contract, both parties shall
negotiate and reach written agreement.
 
20.3 After execution of contract, Party B completely or partly transfers the
creditor’s rights under the contract to the third man, dispense with Party A’s
permission but shall notice Party A in written form.
 
20.4 After execution of contract, in case Party A completely or partly transfers
the creditor’s rights under the contract to the third man, it shall provide
written document indicating that warrantor agrees to transfer and continue to
bear the obligation of warranty or provide new warranty and get written consent
from Party B.

Article 21 Others
 

21.1 For the purpose of this contract, “ Banking day” refers to the dates of
banks provide general services, not including national holidays and legal
holidays.

 

21.2 “Relevant party” mentioned in this contract is the same meaning as
“Accounting System for Business Enterprises No. 36---Relevant Party Disclosure”
(Accounting [2006] No. 3) which published by the Ministry of Finance (Party A
and target enterprises are listed companies, also apply to public companies
relevant laws and trading rules).

 
21.3 If the contract remains the unperfected parts, both parties shall reach
written agreement separately as the attachment of the contract. Any attachment,
modification or supplements compose an indivisible part of the contract, with
same legal force as the contract.
 
21.4 In case some provision of the contract or part content of some provision is
approved invalid, this invalid provision or invalid part does not affect the
availability of this contract, other provisions of the contract or other
contents of the provision.
 
21.5 In terms of any notice, requirement or other communications given to Party
A by Party B, including but not limited to telex, telegram and fax, etc, once
sent, are regarded as having been sent to Party A. In terms of postal letters,
the third day from the date of posting is regarded that it has been submitted to
Party A.

 
 

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21.6 This contract is made in triplicate: Party A holds TWO copy (copies) and
Party B holds      /____ copy (copies) and the department concerned
retains     /____ copy (copies).
 
21.7 Party B has adopted reasonable method to submit Party A to pay attention to
provisions about preventing or limiting its responsibilities under this contract
and provided full illustration about relevant provisions according to the
requirement of Party A. Both parties have no objection on comprehension of all
provision contents of this contract.

 

Party A (official seal or special seal of contract)   Party B (official seal or
special seal of contract)            
Legal representative:
 
Legal representative/principal:
 
(or authorized agent)
   
(or authorized agent)
   

 
 

 
 

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