Document:

STANDBY LETTER OF CREDIT

 

DATE OF ISSUE: August 7, 2013

ADVISING BANK: CHINA MERCHANTS BANK CO.,
LTD., NEW YORK BRANCH

 

STANDBY LETTER OF CREDIT REF.: 110LG1300050

DATE OF EXPIRY: February 7, 2015 

BENEFICIARY (NAME AND ADDRESS): CHINA MERCHANTS
BANK CO., LTD., NEW YORK BRANCH, NY

 

DEAR
SIRS,

AT
THE REQUEST OF SHANDONG TAIBANG BIOLOGICAL PRODUCTS CO., LTD. (APPLICANT), WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER
OF CREDIT NO.110LG1300050 IN YOUR FAVOUR UPTO THE AGGREGATE AMOUNT (INCLUSIVE OF ALL ACCRUED INTERESTS AND CHARGES) OF USD30,200,000.00
(SAY U.S. DOLLARS THIRTY MILLION AND TWO HUNDRED THOUSAND ONLY).

 

THIS
STANDBY LETTER OF CREDIT IS AVAILABLE WITH US BY PAYMENT UPON OUR RECEIPT OF YOUR DEMAND BY AUTHENTICATED SWIFT STATING THAT THE
AMOUNT DRAWN BY YOU REPRESENTS THE UNPAID INDEBTEDNESS (INCLUSIVE OF ACCRUED INTERESTS AND CHARGES) DUE TO YOU BY CHINA BIOLOGIC
PRODUCTS, INC. (BORROWER) UNDER THE CREDIT FACILITIES GRANTED BY YOU TO THE BORROWER.

 

SPECIAL
CONDITIONS:

PARTIAL DRAWING IS ALLOWED.

MULTIPLE DRAWINGS ARE ALLOWED.

ALL BANK CHARGES RELATING TO THIS STANDBY
LETTER OF CREDIT ARE FOR APPLICANT’S ACCOUNT.

 

THIS STANDBY LETTER OF CREDIT IS NON-TRANSFERABLE.

 

THIS STANDBY
LETTER OF CREDIT WILL EXPIRE ON  FEBRUARY 7, 2015 (EXPIRY DATE). THE ABOVE-MENTIONED DEMAND MUST REACH US AT OUR SWIFT ON OR
BEFORE THE EXPIRY DATE. PAYMENT WILL BE EFFECTED WITHIN 5 BUSINESS DAYS UPON OUR RECEIPT OF YOUR DEMAND BY SWIFT

 

WE HEREBY AGREE AND UNDERTAKE THAT YOUR
DEMAND DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS CREDIT WILL BE DULY HONOURED UPON PRESENTATION

 

THIS STANDBY LETTER OF CREDIT IS SUBJECT
TO THE INTERNATIONAL STANDBY PRACTICES (ISP 98).Exhibit 10.3

 

Guarantee Agreement

 

		This Guarantee Agreement (hereinafter referred to as this “Agreement”) is
                                                                               made and entered into as of August 3, 2013 by and between:

 

		1.	Shandong Taibang Biological Products Co., Ltd., as
the principal (hereinafter referred to as the “Principal”); and

 

		2.	China Merchants Bank Co., Ltd., Beijing Shuangyushu
Branch, as the guarantor (hereinafter referred to as the “Guarantor”).

 

		[ ]	The Agreement constitutes an integral part of the
credit agreement No. [N/A] (hereinafter referred to as the “Credit Agreement”) between the Principal and the
Guarantor (if this paragraph is applicable, please tick (“√”) the box “[ ]”).

 

Whereas:

 

		[√]	1. The Principal or the borrower, CHINA BIOLOGIC PRODUCTS,
INC. (the “Borrower”) and China Merchants Bank Co., Ltd., New York Branch, entered
into a credit agreement (No.[__]), pursuant to which China Merchants Bank Co., Ltd., New York Branch agreed to provide the Borrower
with a credit facility of up to US$30,000,000 in principal amount for a term of [__] on [__] (for avoidance of doubt and to differentiate
from the Credit Agreement, such agreement is hereinafter referred to as the “Main Contract”) (if this paragraph
is applicable, please tick (“√”) the box “[ ]”);

 

		2.	The Principal
or the Borrower, [N/A], and [N/A], entered into No. [N/A] contract/bidding document in the aggregate
amount of [N/A] in respect of [N/A], or the Principal or the Borrower tendered an offer for Project [N/A] with Bid Document No. [N/A]
(the “Bid”); and

 

		3.	The Principal applies to the Guarantor for the issuance
of a Letter of Guarantee/Standby Letter of Credit (No.110LG1300050) (the “Letter of Credit”)
in the amount of US$30,200,000 in favor of China Merchants Bank Co., Ltd., New York Branch (the “Beneficiary”)
pursuant to the aforementioned Main Contract or Bid.

 

    	1

    	 

    

 

		The Guarantor agrees to issue the aforementioned Letter of Credit for the Principal or the
                                                                               Borrower in favor of the Beneficiary upon application of the Principal on the following terms and conditions:

 

Article 1Prior
to the issuance of the Letter of Credit by the Guarantor, upon request of the Guarantor, the Principal shall:

 

		1.1	Provide the Guarantor with the following protective
measures (please tick (“√”) the boxes “[ ]” as applicable):

 

		[√]	1.1.1 The Principal shall open a cash collateral account with the Guarantor (the account
                                                                                                                                  number of which is generated automatically by the system of the Guarantor), and shall deposit  HKD235,103,382.99 into such
                                                                                                                                  cash collateral account as collateral to secure the performance of the Principal’s obligations hereunder which may be
                                                                                                                                  used to compensate the Beneficiary in case the Beneficiary claims for damage; and/or

 

		[ ]	1.1.2An irrevocable letter of counter-guarantee
in favor of the Guarantor issued by any corporation, organization or natural person which is acceptable to the Guarantor; and/or

 

		[ ]	1.1.3A collateral acceptable to the Guarantor being mortgaged or pledged to the Guarantor
                                                                                                                                  as the security for repayment, and a mortgage agreement or pledge agreement entered into by both parties hereto.

 

If the Agreement is
an ancillary agreement to the Credit Agreement, this Section 1.1 shall be inapplicable, and the obligations hereunder shall automatically
become secured by the Principal under a capped-amount mortgage agreement or pledge agreement with the Guarantor or a capped-amount
irrevocable letter of guarantee issued to the Guarantor.

 

		1.2	Upon request of the Guarantor, the Principal shall
provide the Guarantor with the original copies of the following documents or their duplicate copies signed by the legal representative
of the Principal and stamped with the official seal as proof of authenticity and completeness of such documents:

 

		1.2.1	The business license of the Principal and/or the Borrower;

 

		1.2.2	The articles of association of the Principal and/or
the Borrower;

 

		1.2.3	The register of directors of the Principal and specimen
signatures of the directors;

 

		1.2.4	The board resolution of the Principal approving the
execution and performance of this Agreement by the Principal;

 

		1.2.5	Any contract entered into between the Principal/Borrower
and the Beneficiary, any tender documents of the Beneficiary and any bidding documents of the Principal/Borrower;

 

    	2

    	 

    

 

		1.2.6	The financial statements and the audit report of the Principal for the previous financial
                                                                                     year, and the financial statements of the Principal for the month prior to the month of the Principal’s
                                                                                     application;

 

		1.2.7	Any title documents in respect of the collateral being
mortgaged or pledged (if any); and

 

		1.2.8	Any other materials as required by the Guarantor.

 

The aforementioned
formalities or materials shall be subject to the actual request of the Guarantor, which is the rights rather than the obligations
of the Guarantor, and the completeness of such formalities or materials shall not impact the legal force of this Agreement.

 

Article 2The
Principal hereby represents, warrants and undertakes to the Guarantor as follows:

 

		2.1	The Principal is a legal entity duly established and
validly existing under the laws of the People’s Republic of China, and has full capacity of conduct to execute and perform
this Agreement;

 

		2.2	The Principal has the legal right to execute and perform
this Agreement, and has the proper authorization from the board of directors or any other competent authority to execute and perform
this Agreement;

 

		2.3	The Principal or the Borrower has the proper authority
to execute the Main Contract with the Beneficiary and has the capacity to perform the Main Contract; and the Principal undertakes
that the Principal or the Borrower shall perform the Main Contract and shall promptly report to the Guarantor the progress and
problems occurred when performing the Main Contract;

 

		2.4	The Principal accepts and acknowledges the contents
of the Letter of Credit issued by the Guarantor  in favor of the Beneficiary;

 

		2.5	The Principal      undertakes to hold the Guarantor harmless from any damage or loss
                                                                                   (including any                                                                                    exchange rate loss
                                                                                   resulting from the difference between the guarantee currency and the indemnity currency) arising out of
                                                                                   the issuance of the Letter of Credit;

 

		2.6	The Principal unconditionally agrees to   handle all the matters under the Letter of Credit
                                                                                   according to applicable laws and/or international practice in case no agreement governs such matters, and bear the
                                                                                   responsibilities thereof;

 

    	3

    	 

    

 

		2.7	The Principal undertakes that it shall unconditionally
bear the payment obligation as the principal payer when the Beneficiary claims for indemnity against the Guarantor;

 

		2.8	The Principal undertakes that the projects (if any)
under the Letter of Credit shall be subject to relevant laws and regulations of the People’s Republic of China, and all
the economic and legal responsibilities arising out of the project shall be borne by the Principal and shall by no means constitute
any responsibility of the Guarantor;

 

		2.9	The Principal agrees to, pursuant to this Agreement,
pay all due and payable fees as required by the Guarantor under the aforementioned Letter of Credit;

 

		2.10	The Principal agrees that the Guarantor shall bear  no obligation  other than the obligation
                                                                                    to examine                                                                                     the
                                                                                    apparent                                                                                                      authenticity of
                                                                                    the claim                                                                                     documents,
                                                                                    vouchers or certificates (the “Claim
                                                                                    Documents”) submitted by the Beneficiary under the Letter of Credit;

 

		2.11	When the cash collateral account falls short due to
any actual or potential exchange rate fluctuation or any amendment to the Letter of Credit, the Principal agrees to deposit adequate
funds from time to time as required by the Guarantor to make up such shortfall, and such funds shall be deemed as designated and
under the possession of the Guarantor from the date on which such funds are deposited into the cash collateral account as collateral
to secure the performance by the Principal of all the obligations hereunder;

 

		2.12	The Principal agrees that the Guarantor bears no responsibility
for any delay, loss, incompleteness or any other mistake occurred during the transfer of the post or telecommunications when processing
the Letter of Credit; and

 

		2.13	The Principal undertakes to report and deliver the
financial statements and any other materials required by the Guarantor to the Guarantor every quarter.

 

Article 3Claims
under the Letter of Credit

 

		3.1	The Principal hereby authorizes the Guarantor with the right to, without notice to or consent
                                                                                   from the Principal, directly transfer the money in the Principal’s cash collateral account or any other deposit account
                                                                                   or to authorize other financial institutions to deduct from the Principal’s deposit and to pay the Beneficiary when the
                                                                                   Beneficiary claims against the Guarantor according to the Letter of Credit (the Guarantor has the right to purchase foreign
                                                                                   currency without notice to or consent from the Principal, when the currency of such cash collateral account or any other
                                                                                   deposit account is different from the currency of payment). If the deposit in the Principal’s cash collateral account
                                                                                   is insufficient for such payment, the Principal undertakes to deposit an amount equal to the outstanding payment
                                                                                   obligations into an account designated by the Guarantor within three (3) business days after the receipt of the notice from
                                                                                   the Guarantor.

 

    	4

    	 

    

 

		3.2	If the aggregate amount of the balances in the cash
collateral account and all other deposit accounts of the Principal with the Guarantor is insufficient to satisfy the Beneficiary’s
claims against the Guarantor according to the Letter of Credit, the Principal fails to deposit additional fund as set forth in
the notice by the Guarantor, and the Guarantor henceforth advances payment for the Principal to perform its guarantee obligations
in favor of the Beneficiary, then the Guarantor shall have recourse against the Principal, its successor and assignee in respect
of such advance payment.

 

		3.3	When the Guarantor makes the advance payment as set
forth above, the Guarantor shall have the right to receive a liquidated damage from the Principal calculated as follows:

 

		If the advance was made in RMB, the liquidated damage = the advance × Interbank
                                                                               Benchmark Interest Rates for RMB Loans published by the People’s Bank of China on the date applicable to such advance
                                                                               × [N/A] × the actual dates of the advance period; if the advance was in foreign currency, the liquidated damage =
                                                                               the advance × (6-month LIBOR as of two (2) business days prior to such advance for the same currency as that of the
                                                                               advance + 300 Base Point) × the actual dates of the advance period.

 

		The Principal shall unconditionally repay all the advance and liquidated damages to the
                                                                               Guarantor immediately upon receipt of the notice of recovery from the Guarantor.

 

		3.4	The Guarantor shall have the right to demand payment
from the Principal by all reasonable means, including but not limited to facsimile transmission, mail, personal delivery, and
public notice through mass media.

 

Article 4Amendments
to the Letter of Credit

 

		The Principal shall submit a written application for the amendment to the Letter of Credit
                                                                               when the Principal requests the Guarantor to amend the Letter of Credit. When the amount of the Letter of Credit is increased
                                                                               and/or its term is extended, the Principal shall also increase the amount of cash collateral and/or extend the term of the
                                                                               letter of counter-guarantee, or otherwise the Guarantor shall have the right to decline the Principal’s application for
                                                                               amendment. The amendment to the Letter of Credit shall come into effect upon  written confirmation of the
                                                                               Beneficiary.

 

    	5

    	 

    

 

Article 5Fees

 

		The Principal shall pay fees to the Guarantor according to the following provisions. The
                                                                               Principal hereby authorizes the Guarantor to, when any of the following fees become payable, directly deduct and collect such
                                                                               fees from the Principal’s deposit account with the Guarantor. If the balance of such account is insufficient, the
                                                                               Principal undertakes to deposit the shortfall of the payment into an account designated by the Guarantor within seven (7)
                                                                               business days after receipt of the Guarantor’s notice.

 

		5.1	Guarantee Fee (Please tick “√” in
the “[ ]” immediately before the applicable provision below)

 

		[√]	1‰ quarterly fee rate multiplying the amount
of the Letter of Credit. The first payment shall be made by the Principal on the date of issuance of the Letter of Credit, and
afterwards to be paid by the Principal quarterly as calculated based on the outstanding balance under the Letter of Credit (if
any change in the amount under the Letter of Credit, the highest amount of the balance during the relevant quarter applies) multiplying
the quarterly fee rate (on the applicable dates) until the expiration of the Letter of Credit.

 

		[ ]	The Guarantor collects all the guarantee fee from
the Principal on the date of issuance of the Letter of Credit equal to the amount of the Letter of Credit multiplied by [___]%.

 

		5.2	Other Fees

 

		5.2.1	All other fees in relation to notarization (excluding
the compulsory notarization) or other third-party services shall be borne by the party that incurred such fees. If both parties
hereof incurred such fees jointly, each party shall pay 50% of such fees.

 

		5.2.2	If the Principal fails to pay off all the obligations (including the advance) in a timely
                                                                                     manner, the Principal shall  be responsible for all the fees the Guarantor incurred to enforce its rights as  creditor
                                                                                     including                                                                                      legal fees,
                                                                                     litigation fees, travel                                                                                      expenses,
                                                                                     announcement fees and  service fees.

 

    	6

    	 

    

 

Article 6Notices

 

All the notices, requirements
and the like in relation to this Agreement from either the Principal or the Guarantor shall be in writing.

If to the Principal,
to:

 

[___]

If to the Guarantor,
to:

 

No.9 South Avenue,
Zhongguancun

Haidian District,
Beijing

 

If delivered by person,
such notice, requirement or the like shall be deemed given on the date of the recipient’s signature (if the recipient refuses
acceptance of such notice, requirement or the like, on the date of such refusal); and

 

If delivered by post,
such notice, requirement or the like shall be deemed given seven (7) days after being delivered; and if delivered by facsimile
transmission, on the date of receipt by the recipient’s facsimile system; and if the Guarantor demands payment from the Principal
through public announcement, on the date of such announcement.

 

Each party hereto shall
promptly inform the other party of any change in its contact address, otherwise the party whose contact address has changed shall
be responsible for any loss arising out of such change.

 

Article 7Applicable
Laws

 

This Agreement is governed
by the laws of the People’s Republic of China. Any dispute or conflict arising out of the Agreement shall be settled by negotiation
by the parties hereto. If such negotiation fails in arriving at a settlement, either party may (please tick “√”
in the “[ ]” referring to the applicable provision):

 

		[√]	7.1 file a lawsuit with the people’s court at
of place of the Guarantor; or

 

		[ ]	7.2 submit an arbitration request before the [___]
arbitration committee; or

 

		[ ]	7.3 file with (if this provision is elected, tick
“√” in the “[ ]” below referring to the provision of choice):

 

		[ ]	the China International Economic and Trade Arbitration
Commission; or

 

		[ ]	the China International Economic and Trade Arbitration
Commission [___] Sub-Commission

 

to be settled by arbitration
according to the arbitration rules of financial disputes.

 

    	7

    	 

    

 

Article 8Miscellaneous

 

		8.1	N/A

 

		8.2	N/A

 

		8.3	N/A

 

Article 9Effectiveness
of the Agreement

 

This Agreement is made
in two counterparts, and shall come into effect upon the signatures/seals of the legal representatives/persons in charge or the
authorized representatives and the official seals/the contract seals of both parties hereto.

 

Special Notes:

 

All the provisions
hereof have been negotiated thoroughly by the relevant parties. The Guarantor hereby reminds other relevant parties to pay special
attention to provisions hereof regarding the waiver or restriction on the responsibilities of the Guarantor, certain unilateral
rights of the Guarantor, increase in the responsibilities or restriction on rights of such other relevant parties, and to understand
such provisions completely and accurately. The Guarantor has provided relevant explanations regarding the foregoing provisions
as required by other relevant parties. All the signatories hereof share the same understanding of this Agreement as the Guarantor.

 

    	8

    	 

    

 

(The signature
page.)

 

 

 

	Principal:	(Seal)

	Person in Charge or Authorized	 

	Representative (Signature/Seal):	

 

 

	Guarantor:	(Seal)

	Legal Representative/Person in Charge	

	or Authorized Representative	
	(Signature/Seal):	 

 

 

Date of Signature:
August 3, 2013

 

    	9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]