Document:

Exhibit 4.3

 

Contract No.: 23060500-2014 Qingying (Charging) 0014

 

Floating Mortgage Contract

 

Agricultural Development Bank of China

 

 

Chargor (full name): Daqing Borun Biotechnology Co. Ltd.

Business license No.: 230606100002956

Legal representative (major person in charge): Wang Jinmiao

Domicile (address): Jubao Village, Zusan Town, Datong District, Daqing City, Heilongjiang Province

Postal code: 163515

Bank of basic deposit account and account No.: Daqing Datong Sub-branch of Longjiang Bank Corporation, 020120218000105.

Contact telephone and fax: 0459- 6989708

 

Chargee (full name): Agricultural Development Bank of China, Daqing Branch, Business Department

Legal representative (major person in charge): Chu Yongjia

Domicile (address): No. 131, Jianshe Road, Daqing Hi-tech Industrial Development Zone, Heilongjiang Province

Postal code: 163316

Contact telephone and fax: 0459-6297122

 

To make sure that the obligations of Daqing Borun Biotechnology Co. Ltd. (hereinafter referred to as Debtor) under the Loan Contract (hereinafter referred to as Master Contract) between the Debtor and the Chargee as agreed in the Article 1 hereof would be properly fulfilled, and to ensure the Chargee’s creditor rights, the Chargor is willing to provide security to the Chargee. To specify the rights and obligations by either Party, pursuant to the Contract Law of the Peoples’ Republic of China (hereinafter referred to as PRC), PRC Security Law, PRC Property Law and other relevant laws and regulations, based on equity and free will as well as consensus, both Party hereby conclude and shall be bound by this Contract.

 

Article 1                                               Category and Amount of the Secured Master Debt

 

The Master Debt secured by this Contract shall be the debt arising from the agreed business under the Master Contract by and between the Debtor and the Chargee. The category of the business agreed under the Master Contract is the loan for leading industrialization enterprise’s corn purchase, in which the principal is Renminbi Two Hundred Millions (in words). The details of the debt are as follows:

 

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Loan Contract No.
    	
 
    	
Principal
    	
 
    	
Life
    	
 
    	
Start date
    	
 
    	
Expiration date
    	
 
    
	
23060500-2014   (Qingying) 0022
    	
 
    	
190,000,000.00
    	
 
    	
1 year
    	
 
    	
20141016
    	
 
    	
20150930
    	
 
    
	
23060500-2014   (Qingying) 0023
    	
 
    	
10,000,000.00
    	
 
    	
1 year
    	
 
    	
20141016
    	
 
    	
20150930
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
200,000,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Where there is any discrepancy between the Master Contract and this Article in the terms of amount and life of the loan, the Master Contract shall prevail.

 

Article 2                                               Scope of Security

 

The scope of the security hereunder shall include: the principal of the master debt under the Master contract, interest, compound interest, default interest, liquidated damages, damages, creditor’s expenses for fulfilling its creditor rights and any other payable expenses, including without limitation the litigation fee, arbitration fee, property preservation fee, evaluation fee, auction fee, enforcement fee, transfer fee and agency fee, etc.

 

Article 3                                               Charged Property

 

3.1                     The Chargor is willing to use its own production equipment / raw materials / semi-finished product / finished product as Charged Property and establish on them a floating charge. The Charged Property includes existing production equipment / raw materials / semi-finished product / finished product and the same acquired in the future production and business activities.

 

3.1.1                  Production equipment shall mean various equipment used for the production of     /    , such as the machinery, equipment, production line, etc.

 

3.1.2                  Raw materials shall mean various raw materials and auxiliary materials used for production of alcohol product.

 

3.1.3                  Semi-finished product shall mean the manufactured product of    /    , the process of which is not yet fully completed.

 

3.1.4                  Finished product shall mean the manufactured product of      /   , the process of which is fully completed.

 

3.2                     The Chargor and Chargeee shall, when concluding the Floating Charge Contract, mutually sort out the Charged Property, and make a Category List of the Charged Property as an appendix hereof, which shall specify the property category, amount, status and value of the Charged Property at the point in time of the conclusion of the Floating Charge Contract, provided that the category, amount and status shall be subject to those at the time of fulfilment of the floating charge, and that the final value shall be the net income from the actual disposal of the Charged Property at the time of fulfilment of the floating charge.

 

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Article 4                                               Effectiveness of Charge Right

 

The effect of the charge hereunder covers the accessory things, accessory rights, subrogation rights, apposition things, mixture, processed things and fruits, of the Charged Property, and the insurance premium, damages or compensation, etc., in case of the destruction, loss or expropriation.

 

Article 5                                               Charge Registration

 

5.1                     The charge registration shall be made for this Contract. The Chargor shall, within 15 days upon the execution of this contract, together with the Chargee, take the charge registration with local Administration for Industry and Commerce where the Chargor’s domicile is located.

 

5.2                     Where the charge registration items change and such change shall be registered pursuant to laws, the Chargor shall, within 15 days upon the execution of this contract, together with the Chargee, take the charge registration with local Administration for Industry and Commerce where the Chargor’s domicile is located.

 

5.3                     The expenses of charge registration and change registration shall be solely borne by the Chargor.

 

Article 6                                               Possession and Management of the Charged Property

 

6.1                     The originals of the encumbrances certificate and of the charge registration documents of the Charged Property, and other documents related to the Charged Property, after confirmed by both the Chargor and the Charge, shall be kept in custody of the Chargee. The Chargee shall duly take care of the rights certificates of the Charged Property, and shall bear the reissuance expenses where any of such rights certificates of the Charged Property is lost due to improper care.

 

6.2                     The Chargor shall take good care of the Charged Property, keep the Charged Property intact, and receive the supervision and inspection by the Chargee.

 

6.3                     The Chargor may, out of normal business need, sell, transfer or otherwise legally dispose the finished product / semi-finished product / raw materials / production equipment, provided that it shall notify the Chargee in writing 10 days in advance, and shall timely deposit the deposal income into the deposit account opened by the Chargor in the bank of the Chargee for the purpose of continuing secure the obligations under the Master Contract. The Chargee shall be entitled to recover the debt under the Master Contract and related expenses.

 

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6.4                     The Chargor shall establish a pledge on the receivables arising from disposal of the finished product / semi-finished product / raw materials / production equipment with the Chargee; such receivable pledge contract shall be separately made.

 

6.5                     The sale or transfer of the finished product / semi-finished product / raw materials / production equipment with below market price or free of charge, shall be deemed as non-normal operation and sale, in which case the Chargee shall be entitled to a chasing right against the Charged Property.

 

6.6                     Where the total value of the floating Charged Property is below Renminbi 200 millions due to market prices of the production equipment /  finished product / semi-finished product / raw materials or due to other reasons, and there is no applicable disposal income cash, which prejudice the fulfilment of the Chargee’s charge rights, the Chargee shall be entitled to require that the Chargor timely provide legal and valid supplementary security which meets the requirements of the Chargee; where the Chargor fails to provide supplementary security as required, Article 8.1 hereunder shall be applied.

 

6.7                     Where the Charged Property is destroyed or lost, the Chargor shall promptly take effective measures to prevent enlarged loss and, at the same time, promptly notify the Chargee. The insurance premium and damages such obtained by the Chargor shall satisfy the debt under the Master Contract first, or shall be deposited into the account designated by the Chargee to continue to secure the debt under the Master Contract.

 

6.8                     Where the Charged Property hereof is expropriated due to public interest or emergency such as rescue and relief work, the Chargor shall early satisfy the debt under the Master Contract with the expropriation compensation or shall deposit the expropriation compensation into the account designated by the Chargee to continue to secure the debt under the Master Contract.

 

Article 7                                               Insurance for the Charged Property

 

7.1                     For the Charged Property for which the Chargee deems shall be insured, the Chargor shall, within 15 days upon conclusion hereof, underwrite a property insurance together with the Chargee at relevant insurer, with the insurance type and insured amount as required by the Chargee and with the Chargee as the beneficiary of first priority. The insurance term shall not be shorter than the debt performance term agreed in the Master Contract, and the insured amount shall not be less than the principal and interest of the debt under the Master Contract.

 

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7.2                     The Chargor shall provide the original of the policy for the Charged Property to the Chargee for its custody. The policy shall include no term which would limit the rights and interests of the Chargee.

 

7.3                    Within the validity of this Contract, the Chargor shall not suspend or terminate the insurance. In case of suspension of the insurance, the Chargee shall be entitled to process the insurance formalities on the Chargor’s behalf and the expenses shall be borne by the Chargor.

 

7.4                     Within the validity of this Contract, where the Charged Property incur any insurance accident, the insurance premium shall first be used to satisfy Master Contract Debt, or shall be deposited into the account designated by the Chargee, or be used for recover the value of the Charged Property upon consent by the Chargee in order for continuing secure the Master Contract Debt.

 

Article 8                                               Fulfilment of the Charge

 

8.1                     In any of the following cases, the Chargee shall notify in writing the Chargor that the floating charge converts into a fixed charge. Upon receiving such written notice, the Chargor shall not, at its own discretion, transfer, sell or lease the production equipment / raw materials / semi-finished product / finished product. The Chargee shall be entitled to inventory, at its own discretion, all of the Chargor’s production equipment / raw materials / semi-finished product / finished product, and to consult with the Chargor to legally auction or sell the total property under the floating charge and get paid off in priority with the sale value or to take the Charged Property in compensation for the Master Contract Debt.

 

8.1.1                  where the Debtor fails to repay the principal and interest and other expenses at the time when the performance term of the Master Contract Debt is due, or when the Chargee claims for early repayment of the Master Contract Debt in accordance with the agreement under the Master Contract;

 

8.1.2                  the Chargor, in accordance with the agreement under the Master Contract or laws and regulations, terminates the Master Contract and has not be repaid;

 

8.1.3                  the market price of the Chargor’s product falls by 30% or above on a year-on-year basis;

 

8.1.4                  the Chargor experiences seriously deteriorated operation status and credit standing, waive due creditor rights, conceal or transfer property for the purpose of welshing on the debt, transfer for free the Charged Property under floating charge or dispose the same against the arm’s length principle in the course of business and operation, or has other action which seriously prejudice the value of the Charged Property and the fulfilment of the debt;

 

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8.1.5                  the Chargor is out of business, apply or is applied bankruptcy, under dissolution, under business suspension for rectification or is revoked, or its business license is revoked, etc.;

 

8.1.6                  any of the legal representative, major shareholder, senior management incurs serious diseases, death, missing, declared death or missing, administrative or criminal penalty, material civil legal dispute, or serious financial deterioration;

 

8.1.7                  the Chargor fails to use the loan as agreed hereunder in case the Chargor is the Debtor;

 

8.1.8                  violation of Article 6.3;

 

8.1.9                  violation of Article 6.4;

 

8.1.10           violation of Article 9.3;

 

8.1.11           violation of Article 9.4;

 

8.1.12           violation of Article 9.5, prejudicing the fulfilment of the charge rights of the Chargee;

 

8.1.13           any other events which might prejudice the fulfilment of the charge rights of the Chargee.

 

8.2                     The disposal income of the Charged Property hereunder in excess of the principal and interest of the debt and of all relevant expenses, shall be vested with the Chargor.

 

8.3                     The Chargor shall cooperate and make no hindrance where the Chargee inventory and dispose the Charged Property.

 

Article 9                                               Representation and Undertaking by the Chargor

 

9.1                     The Chargor have knowledge of and agree to all the terms of the Master Contract, and voluntarily provide security for the Debtor; all the Chargor’s will hereunder is genuine.

 

9.2                     The Chargor is the entire, valid and legal owner or authorized operator of the Charged Property hereunder; the Charged Property is involved in no dispute with regard to ownership or management right; the Charged Property is no joint property and even it is joint property, the written consent by other joint owner(s) has been procured with regard to the floating charge. The Charge Property can be encumbered with security with no limitations, no seal-up, detention, custody, lease, tax in default, engineering price in default or other events which might prejudice the fulfilment of the charge rights of the Chargee. The Chargor has made full and reasonable explanation to the Chargee regarding the defect of the Chargee.

 

9.3                     After execution hereof, the Chargor, without the Chargee’s consent, shall not establish, for a third party other than the Chargee, other security upon the Chargor’s existing production equipment / raw materials / semi-finished product / finished product and the same acquired in the future production and business activities.

 

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9.4                     The Chargor shall monthly provide the Chargee with accounting details list of relevant production equipment / raw materials / semi-finished product / finished product in order to timely and precisely reflect the property change status, and shall cooperate with the Chargee’s inventorying and inspection work from time to time.

 

9.5                     Where any of the events has occurred to the Chargor, it shall notify the Chargee in writing:

 

9.5.1                  Business mechanism change, including but not limited to adopting contracting, lease, joint operation, merge, split, shareholding reform, or joint venture with foreign enterprises, business scope or registered capital change or share transfer, in which case the Chargor shall notify the Chargee 30 days in advance.

 

9.5.2                  Involved in material economic dispute, ownership disputes about or preservation measures against the Charged Property, out of business, apply or is applied bankruptcy, under dissolution, under business suspension for rectification or is revoked, or its business license is revoked, or its address, phone or legal representative change, etc., in which case the Chargor shall notify the Chargee within 5 days upon the occurrence of the events.

 

9.6                     Within the validity of this Contract, where any of the events listed in Article 9.5 or other events occurred to the Chargor, the Chargor shall continue to undertake the security liability hereunder.

 

9.7                     Within the validity of this Contract, where the Chargee legally transfer the master creditor’s right, the Chargor shall continue to undertake the security liability within the original security scope.

 

9.8                     Where the Chargor fails to satisfy the debt, the Chargee shall be entitled to require the Chargor to undertake the security liability within its security scope, regardless of wheher the Chargee has other security for the Master Contract Debt.

 

9.9                     Where the charge is infringed or might be infringed by any other third party, the Chargor shall promptly notify and assist the Chargee against any infringement.

 

9.10              Except for term extension, amount increase of the master debt, loan interest increase or currency change, the Chargee can modify the Master Contract in agreement with the Debtor without the Chargor’s consent, in which case the Chargor shall continue to undertake the security liability within the security scope agreed hereunder.

 

9.11              The expenses under this Contract shall be borne by the Chargor, including but not limited to the expenses for attorney services, appraisal, notarization, evaluation, registration, transfer registration, storage and litigation fees, etc., unless otherwise provided under relevant laws and regulations.

 

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Article 10                                        Liabilities for Breach

 

10.1              After this Contract takes effect, the Chargor and Chargee shall perform the obligations hereunder; either Party that fails to perform or properly perform the obligations hereunder shall undertake applicable liabilities and indemnify the other Party for all the loss caused.

 

10.2              Where the Chargor makes misrepresentations under the Article 9 of this Contract, or fails to fulfil the undertaking under Article 6.3, 6.4 and Article 9, or dispose of the Charged Property without the Chargee’s written consent, or refuses or delays to process the insurance or charge registration for the Charged Property in violation of this Contract, or has other action which is in violation of this Contract, prejudices the fulfilment of the charge rights of the Chargee, and causes economic loss for the Chargee, the Chargor shall bear all the liabilities of compensation.

 

10.3              Where this Contract is rendered void due to other causes than the Chargee’s mistake, the Chargor shall, within the security scope agreed hereunder, indemnify the Chargee against all loss. The Chargee shall be entitled to dispose the Charged Property, and get repayment in priority within the economic loss scope.

 

Article 11                                        Effectiveness, Modification and Termination

 

11.1              This Contract shall be effective upon being signed by both the Chargor and Chargee and affixed with company chop. The floating charge right shall be established upon registration with the Administration for Industry and Commerce where the Chargor’s domicile is located.

 

11.2              The invalidity or unenforceability of any term or condition shall not prejudice the validity and enforceability of any other terms or the entire contract.

 

11.3              After this Contract takes effect, either the Chargor or the Chargee shall not modify or terminate this Contract unless otherwise agreed in this Contract; modification or termination of this Contract, if any, shall be notified in writing to the other Party and be subject to mutual consultation and written agreement.

 

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Article 12                                        Dispute Resolution

 

12.1              Any dispute arising from the performance of this Contract can be resolved through mutual consultation by both the Chargor and the Chargee; where the consultation fails, the following clause 12.1.1 shall be adopted to resolve the dispute:

 

12.1.1           File a lawsuit with the court where the Chargee is located.

 

12.1.2           File an application with the       /        Arbitration Commission (in   /   ) for the arbitration in accordance with the arbitration rules of such arbitration commission at the time of application.

 

12.2              Within the litigation or arbitration, the terms not involved in the dispute shall continue to be performed.

 

Article 13                                        Other Matters Mutually Agreed

 

13.1                 /                .

 

13.2                 /                .

 

13.3                 /                .

 

Article 14                                        Miscellaneous

 

14.1              Unless otherwise agreed herein, any documents, notification and legal instruments shall be made in writing, delivered by special messenger, postage prepaid registered mail (with receipt), express mail service or via fax to the address first above written herein. Where the foregoing correspondence address of either Party changes and such Party fails to timely notify the other Party which results delivery failure of the documents, notification or legal instruments,etc., the changing Party shall bear the loss such incurred.

 

14.2              The Annex of this Contract shall be an integral part of this Contract and have the same effect with the main body of this Contract.

 

14.3              This Contract is made in duplicate with same legal effect; each of the Chargor and Chargee shall keep one.

 

Article 15                                        SPECIAL REMINDING

 

THE CHARGEE HAS REMINDED THE CHARGOR OF FULL AND PRECISE UNDERSTANDING ABOUT THE MEANING AND LEGAL CONSEQUENCES OF ALL THE TERMS OF THIS CONTRACT, AND MAKE EXPLANATIONS FOR RELEVANT TERMS AS REQUIRED BY THE CHARGOR. BOTH PARTIES HAVE NO DISAGREEMENT ON THE UNDERSTANDING OF EACH TERM OF THIS CONTRACT.

 

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Chargor (company chop)
    	
Chargee(company chop)
    
	
 
    	
 
    
	
 
    	
 
    
	
Legal representative (major person in charge)
    	
Legal representative (major person in charge)
    
	
 
    	
 
    
	
Or authorized agent:
    	
Or authorized agent:
    
	
 
    	
 
    
	
 
    	
 
    
	
December 1st, 2014
    	
December 1st, 2014
    
	
 

    	

    

 

10Exhibit 4.6

 

Mortgage Contract

 

Contract No.: Jian Hei Qing Liu Dai Di Ya (2014) 104-1

 

Mortgagor (Party A): Daqing BoRun Biotechnology Co., Ltd.

 

Domicile: Jubao Village, Zhusan Township, Datong District, Daqing City

 

Post Code: 163515

 

Legal Representative (Person in Charge): WANG Jinmiao

 

	
Fax:   0459-6989708
    	
Telephone:   0459-6989708
    

 

Mortgagee (Party B): China Construction Bank Daqing Branch

 

Domicile: No.10 Jianhang Street, Dongfeng New Village, Saertu District, Daqing City

 

Post Code: 163311

 

Person in Charge: HAO Guoyin

 

	
Fax:   0459-6381287
    	
Telephone:   0459-6615788
    

 

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Whereas, Party B will conclude and sign (and/or have concluded and signed )RMB loan contracts, foreign currency loan contracts, bank acceptance agreements, contracts on issuance of letters of credit, agreements on issuance of bank guarantees and/or other legal documents with Daqing BoRun Biotechnology Co., Ltd. (hereinafter referred to as “the Debtor”) during the period from December 11th, 2014 to December 11th, 2016 (hereinafter referred to as “the Period for Determination of the Creditor’s Rights”) (the aforesaid contracts, agreement and/or other legal documents concluded and signed during the Period for Determination of the Creditor’s Rights are hereinafter referred to as “the Main Contracts”) for the Debtor to obtain the credit business in Item (1) as follows:

 

(1)         Granting loans in RMB/foreign currencies;

(2)         Acceptance of trade bills;

(3)         Issuance of letters of credit;

(4)         Issuance of bank guarantee; or

(5)         Other credit businesses: intentionally left blank.

 

Party A is willing to provide a maximum amount mortgage for a series of debts of the Debtor under the Main Contracts. In accordance with relevant laws and regulations, Party A and Party B hereby conclude and sign the Contract through mutual agreement, by which both parties shall abide.

 

Article I                         The Mortgaged Properties

 

1.                          Party A uses the properties listed in “the List of the Mortgaged Properties” to create the mortgage hereunder.

 

2.                          If any renewal of the ownership or other certificates (deeds) for the mortgaged properties results in any inconsistency between “the List of the Mortgaged Properties” in the Contract or the encumbrance (mortgage) certificates or the mortgage documentations received by Party B and the aforesaid new ownership certificates (deeds) or relevant records in the register book of the registration authority, Party A may not refuse to assume the liability to guarantee on that ground.

 

3.                          Unless otherwise agreed upon by both parties or otherwise stipulated by the law, any addition to the mortgaged properties due to accretion, mixture, processing, reconstruction and other reasons shall also be utilized to provide mortgage for Party B’s creditor’s rights. Party A shall accomplish necessary mortgage registration procedures in accordance with Party B’s requirements.

 

4.                         If the values of the mortgaged properties have been or may be reduced, affecting the realization of Party B’s creditor’s rights, Party A shall provide new guarantees in accordance with Party B’s requirements.

 

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Article II                    Scope of Guarantee and Maximum Limit of the Creditor’s Rights

 

1.                          The scope of guarantee under the maximum amount mortgage covers any and all debts under the Main Contracts, including but not limited to all principals, interests (including compound interests and default interests), liquidated damages, compensations, other amounts payable by the Debtor to Party B (including but not limited to relevant handling charges, telecommunication charges, incidentals and relevant bank charges refused to be assumed by the beneficiaries under letters of credits paid by Party B in advance), the expenses incurred by Party B for realization of the creditor’s rights and the mortgage rights (including but not limited to any and all legal costs, arbitration fees, property reservation costs, travel expenses, execution fees, valuation fees, auction fees, notarization fees, delivery fees, announcement fees and attorney fees etc.)

 

2.                          The maximum limit of the liability to guarantee under the maximum amount mortgage shall be (Currency) RMB (Amount in Words) Fifty-three Million Three Hundred Thousand only. If Party A has performed its liability to guarantee under the Contract, the maximum amount shall be reduced accordingly.

 

3.                            Even if the loans, moneys paid in advance, interests, expenses or Party B’s any other creditor’s right under the Main Contracts are actually formed at any time exceeding the Period for Determination of the Creditor’s Rights, they still fall into the scope of guarantee under the maximum amount mortgage. The expiry dates for the performance of debts under the Main Contracts shall not be restricted by the expiry date of the Period for Determination of the Creditor’s Rights.

 

Article III               Registration of the Mortgaged Properties

 

Both parties shall go through the mortgage registration formalities at the competent registration authority within thirty working days after the signature of the Contract. On the date when the mortgage registration is accomplished, Party A shall submit the encumbrance certificate, the original mortgage registration documents and other title certificates in respect of the mortgaged properties to Party B who will in turn hold such certificates and documents.

 

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Article IV                Changes to the Main Contracts

 

1.                          Party A agrees that Party B may conclude and sign the Main Contract with the Debtor or make any change to the Main Contracts (including but not limited to any extension of the period for the performance of debts or any increase of the principal of the creditor’s right) without giving a notice to Party A, and Party A shall still assume the liability to guarantee within the maximum amount and the scope of guarantee.

 

2.                          Changes of the Parties

 

Party A’s liability to guarantee under the Contract shall not be reduced or exempted due to any of the following circumstances:

 

(1)                       Party B and/or the Debtor encounter such circumstances as restructure, consolidation, merger, division, capital increase or decrease, joint venture, joint of operation or change of name etc.; or

 

(2)                       Party B entrusts any third party to perform its obligations under the Main Contracts.

 

3.                          If the creditor’s rights under the Main Contract are transferred to any third party, the guarantee under the Contract shall be transferred along with it. Party A shall assist Party B and the third party in going through the change of mortgage registration formalities required by the law.

 

4.                          If any transfer of the creditor’s rights or debts under the Main Contracts is not effective, invalid, cancelled or dissolved, Party A shall still assume the liability to guarantee to Party B in accordance with the Contract.

 

Article V                     Possession and Safeguard of the Mortgaged Properties

 

1.                          Party A shall possess, safeguard and maintain the mortgaged properties properly, utilize the mortgaged properties reasonably, keep the mortgaged properties intact, and pay various taxes and dues in connection with the mortgaged properties in a timely manner. Party B shall be entitled to inspect the mortgaged properties and to require Party A to submit the originals ownership certificates of the mortgaged properties to Party B for custody.

 

2.                          If Party A entrusts or agrees any third party to possess, safeguard and utilize the mortgaged properties, Party A shall notify the third party of the existence of Party B’s mortgage right and require the third party to keep the mortgaged properties intact, to accept Party B’s inspection on the mortgaged properties and not to impede Party B from realizing its mortgage right. Party A shall not be exempted from its obligations under the preceding paragraph. Meanwhile, Party A shall be liable for the actions of the third party.

 

3.                          If the mortgaged properties cause any personal or property damage, Party A shall assume relevant compensation liability. If Party B assumes any liability due to any claim or pays any compensation on behalf of Party A in advance, Party B shall be entitled to file a claim of recovery against Party A.

 

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Article VI                Insurances for the Mortgaged Properties

 

1.                          Unless otherwise agreed upon by both parties, Party A shall insure the mortgaged properties in accordance with relevant laws and the types, periods and insured amounts designated by Party B. The insurers shall have statutory qualifications and well-reserved reputations.

 

2.                          The contents of the insurance policies shall be satisfactory to Party B, without any restriction that may cause damages to Party B’s rights and interests. It shall be expressly shown in the insurance policies that: Party B is the payee of priority for the insurance compensation (the first beneficiary); any change to the insurance policy shall be approved by Party B in writing; and once an insurance accident occurs, the insurer shall remit the insurance compensation to the account designated by Party B directly. If any insurance policy for the mortgaged properties in which the aforesaid contents are not shown, relevant notes or changes shall be made accordingly.

 

3.                          Party A shall ensure that the insurances are effective continuously. Party A may not disrupt, cancel or invalidate the insurances for any reason, or result in any reduction and/or exemption of compensation liability assumed by the insurers, or change the insurance policies without consent of Party B. If upon the expiry of the insurance periods the creditor’s rights guaranteed by Party A are not paid off in full, Party A shall renew the insurances to extend the insurance periods accordingly.

 

4.                          Party A shall submit the original insurance policies for the mortgaged properties to Party B within five working days after the signature of the Contract (or if the insurances for the mortgaged properties are renewed, after the date of completing the renewal of the insurances), and reserve at Party B the documents required for insurance claims or transfer of the insurance interests.

 

5.                          With respect to the insurance compensations acquired in respect of the mortgaged properties, Party B shall be entitled to choose any of the following methods and Party A shall assist Party B in handling relevant formalities:

 

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(1)                       With the consent of Party B, the insurance compensations may be utilized to repair the mortgaged properties and restore the values thereof;

 

(2)                       The insurance compensations may be utilized to pay off or to pay off in advance the principals and interests of the debts and relevant expenses under the Main Contracts;

 

(3)                       The insurance compensations may be utilized to repair the mortgaged properties and restore the values thereof; or

 

(4)                       The insurance compensations may be disposed of by Party A freely after Party A provides Party B with new guarantees satisfactory to Party B.

 

Article VII           Restrictions on Party A’s Disposal of the Mortgaged Properties

 

1.                          Without Party B’s written consent, Party A may not dispose of the mortgaged properties in any way, including but not limited to abandonment, lease (including renewal upon the expiry of the original lease contract), donation, transfer, capital contribution, repeated guarantee, assignment, usage changed to public welfare purpose, addition to other objects, reconstruction or division.

 

2.                          With Party B’s written consent, the proceeds or other amounts acquired by Party A from disposing of the mortgaged properties shall be deposited into the account designated by Party B. Party B shall be entitled to choose any of the methods stipulated in Article VI 5 (2) to Article VI 5 (4) to deal with the aforesaid proceeds or other amounts, and Party A shall assist Party B in handling relevant formalities.

 

Article VIII      Third Party Interferences

 

1.                          If the mortgaged properties are expropriated, taken over, demolished, confiscated or taken back without compensation by the state, or the mortgaged properties are attached, frozen, detained, supervised, retained, auctioned, forcibly occupied, damaged or otherwise disposed of by any third party, Party A shall notify Party B immediately and take measures to stop, eliminate or remedy it in a timely manner to prevent further loss; at the request of Party B, Party A shall provide Party B with new guarantees satisfactory to Party B.

 

2.                          The remaining mortgaged properties after the aforesaid circumstances shall still be utilized to provide mortgage for Party B’s creditor’s rights. Any and all compensations or indemnities acquired by Party A for any reason mentioned above shall be deposited into the account designated by Party B. Party B shall be entitled to choose any of the methods stipulated in Article VI 5 (1) to Article VI 5 (4) to deal with the aforesaid proceeds or other amounts, and Party A shall assist Party B in handling relevant formalities.

 

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Article IX               Realization of the Mortgage Right

 

1.                          If the Debtor fails to perform any matured debt under the Main Contracts or any debt announced to be matured ahead of schedule or the Debtor violates any other provision of the Contract, Party B shall be entitled to dispose of the mortgaged properties.

 

2.                          The values of the mortgaged properties recorded in the List of the Mortgaged Properties herein or otherwise agreed upon by both parties, whether recorded in the register book of the registration authority or not, will not indicate the final values of the mortgaged properties. The final values of the mortgaged properties are net amounts by deducting various taxes and dues from the proceeds acquired by Party B through disposal of the mortgaged properties.

 

If the mortgaged properties are utilized to offset Party B’s creditor’s rights, the aforesaid provisional values shall not serve as the basis on which the mortgaged properties are utilized to offset Party B’s creditor’s rights. At that time, the values of the mortgaged properties shall be determined by both parties through mutual agreement or evaluated fairly according to law.

 

3.                          The proceeds acquired by Party B through disposal of the mortgaged properties, after payment of the expenses incurred in the course of sale or auction (including but not limited to the storage charges, evaluation fees, auction fees, transfer fees and charges for transfer of the state-owned land-use right etc.), shall be first utilized to pay off the debts under the Main Contracts and the balance (if any) shall be returned to Party A.

 

4.                          If Party A and the Debtor are the same, Party B may apply for enforcement of Party A’s other properties in addition to the mortgaged properties, without giving up the mortgage right hereunder or disposal of the mortgaged properties first.

 

5.                          Party A may not impede Party B from realizing the mortgage in any way (including acts and omissions).

 

6.                          No matter whether there is any other security (including but not limited to guarantee, mortgage, pledge, letter of indemnity, stand-by LC etc.) for Party B’s creditor’s rights under the Main Contracts, no matter when such other security is established and whether it is effective, no matter whether Party B lodges claims against other guarantors or not, no matter whether any third party has agreed to assume the debts under the Main Contracts in full or in part, and no matter such other securities are provided by the Debtor or not, Party A’s liability to guarantee under the Contract may not be reduced or exempted for such reasons. Party B may directly require Party A to assume its liability to guarantee within the scope of guarantee stipulated in the Contract and Party A may raise no objection.

 

7

 

7.                          If the maximum amount of the liability to guarantee agreed upon in the Contract is lower than the balance of the creditor’s rights actually occurred under the Contract, and the creditor’s rights under the Contract after Party A assumes its liability to guarantee has not been paid off yet, Party A hereby promises that, its exercising (or exercising in advance) of subrogation right or right of recourse against the Debtor or other guarantors shall not cause any damage to Party B’s interests. Meanwhile, Party A agrees that the repayment of the debts under the Main Contracts shall take precedence over the realization of Party A’s subrogation right or right of recourse.

 

Specifically speaking, before Party B’s creditor’s rights are paid off in full:

 

(1)                       Party A agrees not to claim its subrogation right or right of recourse against the Debtor or other guarantors; if for any reason Party A realizes the aforesaid rights, the proceeds acquired shall be firstly utilized to pay off Party B’s outstanding creditor’s rights;

 

(2)                       If there is any guarantee by material objects for the debts under the Main Contracts, Party A agrees not to lodge any claim against such material objects or any proceeds from disposing of such material objects either by exercising its subrogation right or for any other reason. Such material objects and any proceeds from disposing of such material objects shall be firstly utilized to pay off Party B outstanding creditor’s rights; and

 

(3)                       If the Debtor or other guarantors provide Party A with any counter guarantee, any proceeds acquired by Party A from such counter guarantee shall be firstly utilized to pay off Party B outstanding creditor’s rights.

 

8.                          If the Main Contracts is not established, ineffective, null and void, partially invalid, cancelled or dissolved, and Party A and the Debtor are not the same, Party A shall be jointly and severally liable for the debts of the Debtor generating from return of properties or compensation for losses within the scope of guarantee agreed upon in the Contract.

 

9.                          Party A has fully understood the interest rate risks. If Party B adjusts the interest rate level, interest accrual method and mode of interest settlement in accordance with the Main Contracts or according to any changes in national interest rate polices, resulting in any additional interests, default interests and compound interests repayable by the Debtor, Party A shall also assume liability to guarantee for such additional amount.

 

8

 

10.                   If apart from the debts under the Main Contracts, the Debtor owes other matured debts to Party B, Party B shall be entitled to deduct amount from any account opened by the Debtor in the system of China Construction Bank either in RMB or in any other currency to firstly pay off any matured debt, Party A’s liability to guarantee hereunder shall not be reduced or exempted in any way.

 

Article X                    Liabilities for Breach of Contract

 

1.                            Party A’s Liabilities for Breach of Contract

 

(1)                             If Party A breaches any provision of the Contract or if there is any false, mistake or omission with respect to any of Party A’s representations or warranties, Party B shall be entitled to any one or more of the following measures:

 

A.            Requiring Party A to rectify the breach within a stipulated time limit;

 

B.            Requiring Party A to provide new guarantees;

 

C.            Requiring Party A to compensate for losses;

 

D.            Disposing of the mortgaged properties; and

 

E.             Any other remedy permitted by law.

 

(2)                            Party B shall be entitled to choose any method from those agreed upon from Article VI 5 (2) to Article VI 5 (4) to treat with the proceeds from the disposal of the mortgaged properties and Party A shall assist Party B in handling relevant procedures.

 

(3)                            If due to any reason attributable to Party A, the mortgage has not been established effectively or the values of the mortgaged properties are diminished or the mortgage has not been realized by Party B in a timely manner or on a full basis, and Party A and the Debtor are not the same, Party B shall be entitled to require Party A to undertake joint and several liability for the guaranteed debts together with the Debtor within the scope of guarantee agreed upon in the Contract.

 

9

 

2.                            Party B’s Liabilities for Breach of Contract

 

If due to Party B’s fault the ownership certificates of the mortgaged properties delivered by Party A are missing, or Party B fails to return the ownership certificates of the mortgaged properties in a timely manner after the debts under the Main Contracts are paid off, or Party B fails to assist Party A in accomplishing the cancellation procedures for mortgage registration at the request of Party A, Party A shall be entitled to take any one or more of the following measures:

 

(1)                       Requiring Party B to assume the relevant expenses for re-application for ownership certificates of the mortgaged properties;

 

(2)                       Requiring Party B to return the ownership certificates of the mortgaged properties within a stipulated time limit or to assist Party A in accomplishing the cancellation procedures for mortgage registration.

 

Article XI               Miscellaneous

 

1.                            Expenses

 

(1)                       Any and all expenses incurred due to Party A’s breach of any provision under the Contract (including but not limited to any and all legal costs, arbitration fees, property reservation costs, travel expenses, execution fees, valuation fees, auction fees, notarization fees, delivery fees, announcement fees and attorney fees etc. actually incurred by Party B due to Party A’s breach) shall be borne by Party A; and

 

(2)                       With respect to other expenses, Party A and Party B hereby agree that:

 

Unless otherwise agreed by both parties, any and all expenses in connection with the Contract and the mortgaged properties under the Contract (including but not limited to any and all expenses in connection with possession, management, disposal, registration, notarization, insurance, transportation, warehouse, storage, evaluation, repair, maintenance, auction and ownership transfer) shall be borne by Party A.

 

2.                            Deductions of Accounts Payable

 

With respect to any and all accounts payable by Party A under the Contract, Party B shall be entitled to deduct the corresponding amount from any account opened by Party A in the system of China Construction Bank either in RMB or in any other currency, without any need of giving notice to Party A in advance. If any procedure shall be handled for exchange settlement and sale or foreign exchange trading, Party A shall be obliged to assist Party B in accomplishing such procedures and relevant exchange rate risks shall be borne by Party A.

 

10

 

3.                            Usage of Party A’s Information

 

Party A hereby agrees that Party B may inquire Party A’s credit status in the credit database approved by People’s Bank of China and the competent department of credit investigation or relevant organization and department and Party B may also provide Party A’s information into the credit database approved by People’s Bank of China and the competent department of credit investigation. Meanwhile, Party A agrees that Party B may reasonably use and disclose Party A’s information as required by Party B’s business.

 

4.                            Announcement of Collection

 

In case of any default on the part of Party A, Party B shall be entitled to report such default to relevant department or organization and /or to collect the debt through announcement in news media.

 

5.                            Evidentiary Effect of Party B’s Records

 

Unless there is reliable and conclusive proof to the contrary, Party B’s internal accounting records relating to the contents such as the principal, interests, expenses and repayment records etc., the documents and vouchers made or retained by Party B in the business process during which the Debtor handles the withdrawal, repayment of the principal and payment of interests, and the notes and certificates through which Party B collects the loan constitute conclusive evidence effectively proving the debtor-creditor relationship under the Main Contract. Party A may not raise any objection against the aforesaid notes, records, documents, certificates and vouchers merely because they are made or retained by Party B unilaterally.

 

6.                            Reservation of Rights

 

Party B’s rights under the Contract shall not affect and/or exclude any other right enjoyed by Party B in accordance with the laws, regulations and other contracts. No tolerance, grace or concession granted to any breach or default, nor any delay in exercising any right under the Contract shall operate as a waiver of any right or interests under the Contract, or constitute an approval or consent on any breach hereof. No such tolerance, grace, concession or delay shall affect, prevent and/or impede any further or other exercise or the exercise of any other right. Likewise, Party B will not assume any obligation or liability to Party A for such circumstances.

 

11

 

Even if Party B fails to exercise or delays in exercising any right under the Main Contracts or Party B has not exhausted any and all remedies under the Main Contracts, Party A’s liability to guarantee under the Contract shall not be reduced or exempted. However, if Party B reduces or exempts the debts under the Main Contracts, Party A’s liability to guarantee under the Contract shall be reduced or exempted accordingly.

 

7.                            Party A shall notify Party B immediately if (1) Party A is divided; (2) Party A is dissolved; (3) Party A goes into the bankruptcy proceedings; (4) Party A is revoked; (5) Party A’s industrial and commercial registration is cancelled; (6) Party A’s business license is revoked; (7) the mortgaged properties is damaged, missing, infringed upon or go out of Party A’s control due to natural factors or any behavior of third party; (8) there is any dispute over the ownership of the mortgaged properties; or (9) the ownership certificates (deeds) are cancelled.

 

8.                            Dissolution or Bankruptcy of the Debtor

 

If Party A knows that the Debtor goes into the dissolution or insolvency proceedings, Party A shall immediately notify Party B of reporting its claims for creditor’s rights. Meanwhile, Party A shall participate in the dissolution or bankruptcy proceedings in a timely manner and exercise its right of recourse in advance. If Party A knows or should have known that the Debtor goes into the dissolution or insolvency proceedings, but Party A fails to exercise its right of recourse in advance in a timely manner, any and all losses caused thereby shall be borne by Party A.

 

Notwithstanding the provisions in paragraph 2 of Article XI 6, during the bankruptcy proceedings of the Debtor, if Party B reaches a settlement agreement with the Debtor or agrees with a reorganization plan, Party B’s right under the Contract shall not be prejudiced by the settlement agreement or the reorganization plan, and the liability to guarantee of Party A under the Contract will not be impaired or reduced in any way. Party A may not defend against Party B’s claims for rights by using the conditions stipulated in the settlement agreement or the reorganization plan. With respect to the part of Party B’s creditor’s rights which have not been paid off in the settlement agreement or the reorganization plan due to Party B’s compromise to the Debtor, Party B shall be still entitled to require Party A to assume the liability to guarantee.

 

12

 

9.                            Dissolution or Bankruptcy of Party A

 

If Party A is dissolved or goes bankrupt, regardless of whether Party B’s creditor’s rights under the Main Contracts have become mature or not, Party B shall be entitled to participate in Party A’s liquidation or insolvency proceedings and to declare its rights.

 

10.                     If there is any change with respect to Party A’s mailing address or contact information, Party A shall notify Party B of such changes in writing. If Party A fails to notify Party B of such changes in a timely manner, any and all losses caused thereby shall be borne by Party A.

 

11.                     Other Provisions

 

The Contract will become enforceable once it is notarized and the Mortgagor shall voluntarily accept the enforcement hereof. If there is any conflict between other provisions hereof and Article XI.11 here, Article XI.11 shall prevail.

 

If there is any change with respect to any item in mortgage registration and a change of registration shall be accomplished according to law, upon Party B’s request, Party A shall accomplish such change of registration jointly with Party B and assume any and all relevant expenses in connection therewith.

 

12.                     Dispute Settlement

 

Any dispute in connection with or arising from the Contract during the performance thereof shall be settled through consultations by both parties. In case no agreement can be reached through consultations, either party is entitled to settle the dispute in the way stipulated in Item (1) as follows. During the process of litigation or arbitration, the undisputed parts of the Contract shall still be performed.

 

(1)                       Filing a lawsuit at the competent people’s court where Party A’s domicile is located;

 

(2)                       Submitting the dispute to intentionally left blank Arbitration Commission (the seat of arbitration is intentionally left blank) for arbitration which shall be conducted in accordance with its rules of arbitration in effect at the time of application for arbitration. The arbitral award is final and binding upon both parties.

 

13.                     Validation of the Contract

 

The Contract shall become effective upon: (1) it is signed by Party A’s legal representative (person in charge) or authorized representative or affixed with Party A’s common seal; and (2) it is signed by Party B’s person in charge or authorized representative or affixed with Party B’s special seal for contractual uses.

 

13

 

14.                     The Contract is executed in sextuplicate.

 

Article XII          List of the Mortgaged Properties

 

The list of the mortgaged properties under this Contract is as follows:

 

List of the Mortgaged Properties

 

	
Name of the
   Mortgaged
   Property
    	
 
    	
Ownership Certificate or
   Other Relevant Certificate
   No.
    	
 
    	
Location
    	
 
    	
Area or
   Quantity
    	
 
    	
Value of the
   Mortgaged
   Property (Yuan)
    	
 
    	
Amount Mortgaged
   for Other Creditor’s
   Rights (Yuan)
    	
 
    	
Note
    
	
Crushing Building
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533532
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
323.29
    	
 
    	
570930
    	
 
    	
0
    	
 
    	
 
    
	
Ash Silo
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533516
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
264.61
    	
 
    	
493233
    	
 
    	
0
    	
 
    	
 
    
	
Leaching Plant
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533500
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
956.16
    	
 
    	
2158053
    	
 
    	
0
    	
 
    	
 
    
	
Distilling Plant
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA539722
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
1984.92
    	
 
    	
4674487
    	
 
    	
0
    	
 
    	
 
    
	
Fermentation Plant
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533504
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
356.24
    	
 
    	
734211
    	
 
    	
0
    	
 
    	
 
    
	
Pump House
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533495
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
876.56
    	
 
    	
1678612
    	
 
    	
0
    	
 
    	
 
    
	
Boiler House
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533494
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
2564.7
    	
 
    	
5539752
    	
 
    	
0
    	
 
    	
 
    
	
Comprehensive Pump Station
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533488
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
165.1
    	
 
    	
348361
    	
 
    	
0
    	
 
    	
 
    
	
Newly-built Steam Room
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533482
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
967.78
    	
 
    	
1862977
    	
 
    	
0
    	
 
    	
 
    
	
Chemical Water Plant
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533478
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
1392.97
    	
 
    	
3951856
    	
 
    	
0
    	
 
    	
 
    
	
Multi-use Building
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533477
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
3933.15
    	
 
    	
9490691
    	
 
    	
0
    	
 
    	
 
    
	
Main Building
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533475
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
5428.75
    	
 
    	
12051825
    	
 
    	
0
    	
 
    	
 
    
	
Apartment Block
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533468
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
7830.83
    	
 
    	
18386789
    	
 
    	
0
    	
 
    	
 
    
	
DDGS Warehouse
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533459
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
3785.94
    	
 
    	
5678910
    	
 
    	
0
    	
 
    	
 
    
	
Ventilator Room
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533454
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
244.6
    	
 
    	
623975
    	
 
    	
0
    	
 
    	
 
    
	
DDGS Plants
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533446
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
7124.36
    	
 
    	
16295698
    	
 
    	
0
    	
 
    	
 
    
	
Liquefaction and Saccharification Fermentation Plant
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533445
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
4482.98
    	
 
    	
12754078
    	
 
    	
0
    	
 
    	
 
    
	
Circulating Water Pump House
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533429
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
85.56
    	
 
    	
172147
    	
 
    	
0
    	
 
    	
 
    
	
Sewage Treatment Station
    	
 
    	
Qing Fang Quan Zheng Da Tong Qu Zi No. NA533413
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
516.95
    	
 
    	
1142460
    	
 
    	
0
    	
 
    	
 
    
	
Land
    	
 
    	
Da Qing Guo Yong (2008) No.06-33620
    	
 
    	
Zhusan Township, Jubao Village
    	
 
    	
139319
    	
 
    	
0
    	
 
    	
0
    	
 
    	
 
    

 

14

 

Article XIII     Party A’s Representations and Warranties

 

1.                            Party A clearly knows Party B’s business scope and scope of authorization.

 

2.                            Party A has already read the Contract and all terms and conditions of the Main Contracts. At Party A’s request, Party B has already made relevant explanations with respect to the Contract and the Main Contracts. Party A has fully known and understood the meanings of the Contract and all terms and conditions of the Main Contracts as well as relevant legal consequences.

 

3.                            Party A has legal qualifications to serve as a guarantor. The guarantee provided by Party A under the Contract complies with the laws, administrative regulations, rules and the provisions of Party A’s articles of association or its internal constitutional documents, and has been approved by the internal competent corporate organ and/or the competent authority of the state. Any and all liabilities arising from Party A’s lack of authority to execute the Contract shall be borne by Party A, including but not limited to compensation for any and all losses incurred by Party B on a full basis.

 

4.                            Party A hereby acknowledges that it has fully known the assets, indebtedness, operation, credit and reputation of the Debtor, whether the Debtor has qualifications and authority to execute the Main Contracts as well as all contents of the Main Contracts.

 

5.                            Party A has legitimate ownership and right to dispose of the mortgaged properties; the mortgaged properties are neither public utilities nor the properties which are prohibited from transactions and transfer; and there is no dispute over the ownership of the mortgaged properties.

 

6.                            There is not any other co-owner of the mortgaged properties, or although there are other co-owners, the mortgage has been approved by such co-owners in writing.

 

7.                            There is not any defect or encumbrance over the mortgaged properties which has not been notified Party B of in writing, including but not limited to the circumstances that: (1) the transactions of the mortgaged properties are restricted; (2) the mortgaged properties are attached, seized, supervised, leased or retained; (3) the purchase price, maintenance costs, construction project costs, national taxes, charges for transfer of the land-use right and the compensation for damages with respect to the mortgaged properties have been in arrears; or (4) any security has been created over the mortgaged properties for third parties.

 

15

 

8.                            Any and all materials and information in connection with the mortgaged properties provided by Party A to Party B are authentic, legitimate, accurate and complete.

 

9.                            Party A’s provision of the mortgage hereunder will neither impair any legitimate interests of any third party nor violate any of Party A’s legal and/or contractual obligations.

 

10.                     If Party A or the Debtor fails to comply with relevant laws, regulations or rules on the environment or social risk management, or the construction, production and operations of Party A or the Debtor may cause harm and relevant risks to the environment and the society (including but not limited to any environmental and social problems relating to energy consumption, pollution, land, health, safety, resettlement of inhabitants, ecological conservation, energy saving and emission reduction and climate change etc.), Party B shall be entitled to exercise the mortgage under the Contract ahead of schedule and take any other remedy available to it as agreed upon in the Contract or permitted by law.

 

 

	
Party   A (Common Seal):

 

Legal   Representative (Person in Charge) or Authorized Representative (Signature):

 

 

 

 

 
    	

    
	
 
    	
 
    
	
 
    	
Date: December 11th, 2014
    

 

 

	
Party B (Special Seal for Contractual Uses):

 

Person in Charge or Authorized Representative   (Signature):

 

 

 

 

 
    	

    
	
 
    	
 
    
	
 
    	
Date: December 11th, 2014
    

 

16

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