Document:

Exhibit 10.24

 

This is an English Translation

 

2009 Version

 

	
 
    	
Contract Number: Bo   Jing Fen Guarantee (2010) No. 9
    

 

China Bohai Bank Co., Ltd.

 

Guarantee Contract

 

(Legal Person)

 

China Bohai Bank Co., Ltd.

 

 

TABLE OF CONTENTS

 

	
ARTICLE 1
    	
GUARANTEE
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE 2
    	
SCOPE OF   GUARANTEE
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE 3
    	
TERM OF   GUARANTEE
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE 4
    	
NATURE AND   EFFECT OF GUARANTEE
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE 5
    	
DOCUMENTS   THAT GUARANTOR SHALL SUBMIT
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE 6
    	
GUARANTOR’S   REPRESENTATIONS AND WARRANTIES
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE 7
    	
GUARANTOR’S   UNDERTAKINGS
    	
3
    
	
 
    	
 
    	
 
    
	
ARTICLE 8
    	
COSTS AND   INDEMNIFICATION
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE 9
    	
DEFAULT   LIABILITIES
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE 10
    	
NOTICE
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE 11
    	
APPLICABLE   LAW AND DISPUTE RESOLUTION
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE 12
    	
EFFECTIVENESS,   AMENDMENT AND TERMINATION
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE 13
    	
MISCELLANEOUS
    	
6
    

 

 

This Guarantee Agreement (this “Agreement”) is entered into by and between the following two parties on December 8, 2010:

 

	
Guarantor: 
    	
Legend Holdings Limited
    
	
Creditor: 
    	
China Bohai Bank Co., Ltd., Beijing   Branch
    

 

Whereas:

 

1.                                       The Creditor agrees to provide loans / credit facilities with a total amount not exceeding (Currency) RMB (Amount) Two Hundred Million (the “Loans”) in accordance with the Fixed Assets Loan Contract (the “Principal Contract”) (contract number: Bo Jing Fen Fixed Assets (2010) No. 3) entered into with Beijing China Auto Rental Co., Ltd. (“Debtor”).

 

2.                                       The Guarantor agrees to provide guarantee for unconditional and irrevocable joint and several liabilities to ensure the Debtor shall timely and fully repay all debts arising from the Principal Contract.

 

The Guarantor and the Creditor hereby reach the following agreement in terms of guarantee through consultation:

 

ARTICLE 1    GUARANTEE

 

1.1                       The Guarantor agrees to provide guarantee for unconditional and irrevocable joint and several liabilities, and the Creditor agrees to accept such guarantee as a security for the Debtor to settle all the debts under the Principal Contract. If the Debtor fails to repay any due payable debts under the Principal Contract (including the debts of which the Debtor have applied for early repayment and the debts for which the Creditor have declared maturity ), the Creditor shall be entitled to exercise its security rights under this Agreement, and the Guarantor shall promptly and unconditionally repay all such payables to the Creditor in full.

 

1.2                       If there is more than one guarantor under this Agreement, each guarantor shall collectively assume joint and several liabilities against the Creditor.

 

ARTICLE 2    SCOPE OF GUARANTEE

 

2.1                       The scope of the guarantee under this Agreement shall cover:

 

(1)          all the debt principals, interests (including but not limited to statutory interest, agreed interest, overdue interest, penalty interest and compound interest), handling fees and other fees, liquidated damages, costs for realization of the creditor’s rights (including but not limited to litigation fees, legal fees, notary fees and enforcement fees) and other payables (regardless whether such amount becomes payable on the debt expiration date under the Principal Contract or under other circumstances) that the Debtor shall repay or pay to the Creditor under the Principal Contract;

 

(2)          all the costs and fees that incurred by the Creditor to realize its security rights under this Agreement (including but not limited to litigation fees, legal fees, notary fees and enforcement fees, etc.);

 

(3)          liquidated damages and any other payables that the Guarantor shall pay to the Creditor under this Agreement,

 

the above collectively referred to as the Guaranteed Debts.

 

1

 

ARTICLE 3    TERM OF GUARANTEE

 

The term of guarantee under this Agreement shall be until two years after the expiration of the Debtor’s debt performance term under the Principal Contract. If there are several different expiration dates in relation to the debt performance term under the Principal Contract, the Guarantor’s term of guarantee shall be calculated according to the respective expiration dates.

 

ARTICLE 4    NATURE AND EFFECT OF GUARANTEE

 

4.1                       This Agreement shall be independent of the Principal Contract. The invalidity or cancellation of the Principal Contract for any reason shall not affect the effectiveness of this Agreement. The joint and several liabilities of the Guarantor under this Agreement shall extend to cover the Debtor’s legal liabilities after the Principal Contract becomes null and void (including but not limited to the repayment of debts and compensation for losses).

 

4.2                     The guarantee established under this Agreement shall be independent of any other security the Creditor has obtained for the Guaranteed Debts. It is not necessary for the Creditor to effect any other security held by it (whether it is security in property guarantee or personal guarantee), nor is it necessary for the Creditor to undertake any other remedies for the Debtor or any other third party before the Creditor exercises its rights under this Agreement.

 

ARTICLE 5    DOCUMENTS THAT GUARANTOR SHALL SUBMIT

 

The Guarantor shall provide the following documents to the Creditor (which may be exempted upon the Creditor’s review and consent):

 

(1)          the original copy of this Agreement duly signed by the legal representative or authorized representative of the Guarantor;

 

(2)          the Guarantor’s currently effective articles of association and the latest enterprise business license completed with annual inspection or the legal person certificate for public welfare institutions, or other documents certifying the lawful existence of the Guarantor;

 

(3)          the resolution of the Guarantor’s board of directors or other internal commission having the power to approve such guarantee matters where the Guarantor may provide guarantee in accordance with this Agreement;

 

(4)          other documents that the Creditor reasonably requests the Guarantor to provide.

 

If any of the foregoing documents is a photocopy, the Guarantor shall affix the photocopy with a company seal to confirm the truthfulness, completeness and effectiveness of such photocopy.

 

ARTICLE 6    GUARANTOR’S REPRESENTATIONS AND WARRANTIES

 

6.1                       The Guarantor represents and warrants to the Creditor that:

 

(1)          the Guarantor is established and duly existing in accordance with the PRC laws, and has an independent capacity for civil conduct, and sufficient power, authorization and rights to assume civil liabilities with all its assets and to engage in business activities.

 

(2)          the Guarantor has completed all the necessary internal authorization procedures to execute this Agreement and perform the obligations under this Agreement; the signatory of this Agreement is the duly authorized representative of the Guarantor; the Guarantor has properly obtained and completed all the necessary approvals, licenses, consents, notarizations, registrations and filings in a complete, legitimate and valid manner from the government authorities and any other parties for the Guarantor to

 

2

 

execute this Agreement and effect the guarantee under this Agreement. The Guarantor’s execution and performance of this Agreement does not violate the organizational documents / approval documents (if any) of the Guarantor or any other contracts or agreements to which the Guarantor is a party, nor does it violate any laws and regulations that apply to the Guarantor.

 

(3)          all the documents, information, statements and certificates that the Guarantor provides to the Creditor are correct, true, complete and valid, and all photocopies of such documents are consistent with the original.

 

(4)          there are no pending or potential lawsuits, arbitration or administrative proceedings against the Guarantor or its assets that may have material adverse effect on its operation, business, assets or its ability to perform any of its obligations under this Agreement.

 

(5)          the Guarantor is not in violation of any laws, regulations, verdicts, rulings, authorizations, agreements or obligations that apply to the Guarantor or its assets and may have material adverse effect on its operational or financial position or its ability to perform any of its obligations under this Agreement.

 

(6)          there is no liquidation or bankruptcy proceedings that are voluntarily filed by the Guarantor or by a third party against the Guarantor.

 

(7)          the Guarantor’s latest audited financial statements (including the audited profit and loss account and balance sheet) are prepared in accordance with the PRC laws and regulations and the normally applied accounting principles and standards, and have truthfully and properly reflected the Guarantor’s financial position and operational status within the financial period specified in such statements or upon the expiration of such period. Upon the expiration of such period, the Guarantor does not have any material liabilities (contingent or non-contingent) or any unrealized or expected losses that have not been disclosed or not recorded in the relevant financial statements, and the Guarantor’s operational or financial position has not incur any material adverse changes as of the date of such financial statements.

 

6.2                     The Guarantor’s representations and warranties set out above shall remain accurate and correct within the term of this Agreement, and the Guarantor shall provide additional documents as requested by the Creditor at any time.

 

ARTICLE 7    GUARANTOR’S UNDERTAKINGS

 

The Guarantor hereby undertakes to the Creditor that:

 

7.1                       The Guarantor shall promptly notify the Creditor of the occurrence of any of the following situations:

 

(1)          the Guarantor is involved in any major lawsuit, arbitration or administrative proceedings;

 

(2)          the Guarantor disposes of its major assets or enters into any contracts or agreements that may have material adverse impact on its financial position or its ability to perform;

 

(3)          close-down of business, suspension of business, bankruptcy petition, dissolution, revocation of enterprise business license / legal person certificate for public welfare institutions, or deregistration;

 

3

 

(4)          there are changes to the Guarantor’s way of operation or shareholding structure through joint operation, contract operation, merger, division, joint-stock reform, etc.

 

7.2                     The Guarantor shall keep its financial positions and business operations in good conditions by taking appropriate and effective measures. Without written approval of the Creditor, the Guarantor shall not make any disposal of its assets that may have material adverse impact on its financial positions, business operations or other conditions (except for the disposal required for daily operation), neither shall the Guarantor enter into any agreements or assume any obligations that may have material adverse impact on its financial positions and business operations.

 

7.3                     During the course of the term of this Agreement, if the Guarantor makes any alteration to the registration with the Administration for Industrial and Commerce, it shall provide the Creditor with copies of the relevant registration documents within ten (10) banking days after the alteration.

 

7.4                     During the course of the term of this Agreement, as long as the Guaranteed Debts or any portion thereof have not been settled, the Guarantor shall provide the Creditor with the financial or other materials reasonably requested by the Creditor at any time.

 

7.5                     If the Debtor fails to repay any Guaranteed Debts that is due or matured in accordance with the Principal Contract, the Guarantor shall unconditionally repay such debts to the Creditor on behalf of the Debtor as required by the Creditor within seven (7) banking days upon the receipt of written debit note from the Creditor.

 

7.6                     If the Guarantor fails to make any payment under this Agreement as required by the Creditor in a timely manner, the Creditor shall be entitled to directly deduct such amount from any account opened with the Creditor or any other branch within the Creditor’s system. The Guarantor hereby grants the Creditor unconditional and irrevocable authorization to make such deduction.

 

7.7                     Upon the request of the Creditor, the Guarantor shall promptly pay or compensate for the following costs and losses to the Creditor as requested:

 

(1)          all the costs and fees incurred by the Creditor to realize the rights under this Agreement (including legal fees, litigation fees, enforcement fees and any other out-of-pocket expenses); and

 

(2)          any other losses incurred to the Creditor as a result of the Guarantor’s violation of this Agreement.

 

ARTICLE 8    COSTS AND INDEMNIFICATION

 

8.1                       All taxes and fees arising out of the entry of this Agreement, the handling of the necessary registration or notarization formalities, the performance or enforcement of this Agreement (including but not limited to legal fees, litigation fees, notary fees and enforcement fees paid by the Creditor) shall be assumed by the Guarantor.

 

8.2                       The Guarantor shall indemnify the Creditor for all the losses and costs incurred as a result of the Guarantor’s failure to perform the obligations and undertakings under this Agreement.

 

ARTICLE 9    DEFAULT LIABILITIES

 

9.1                       The Guarantor shall be deemed to be in default under any of the following situations:

 

(1)          the representations and warranties made by the Guarantor are not truthful;

 

4

 

(2)          the Guarantor breaches any of it undertakings herein;

 

(3)          the Guarantor defaults in any other obligations or liabilities in connection with the Guarantor under this Agreement;

 

(4)          the occurrence of situations as set out in Section 7.1 hereof has substantially affected the Guarantor’s financial position and ability to perform.

 

9.2                     Upon the occurrence of any default set out under Section 9.1, the Creditor shall be entitled to take one or more of the following remedies:

 

(1)          To declare maturity of the debts under the Principal Contract between the Debtor and the Creditor, and to request the Guarantor to assume the liabilities of guarantee;

 

(2)          To request the Guarantor to compensate for all the direct or indirect losses (including but not limited to the losses incurred to the Creditor under the Principal Contract) incurred to the Creditor as a result of the Guarantor’s default;

 

(3)          Upon notice, to offset the Guarantor’s debts owed to the Creditor due to the Guarantor’s default with the funds in the Guarantor’s account opened with the Creditor or any creditor’s rights of the Creditor;

 

(4)          To reduce or terminate the credit facilities granted by the Creditor to the Guarantor under other credit facility agreements, or to declare immediate maturity of all or part of the principal and interests of outstanding debts and other payables under other contracts.

 

ARTICLE 10    NOTICE

 

10.1                 Any notices, requests, instructions or other documents under this Agreement or in connection with this Agreement shall be made in written form and be sent to the following addresses or numbers, or any alternative address notified by one party to the other party at least five (5) banking days in advance:

 

	
To the Guarantor:
    	
Legend Holdings Limited
    
	
Recipient:
    	
Fu Yao
    
	
Address:
    	
10F, Tower A, Raycom InfoTech Park, No.2 Ke Xue Yuan Nan Lu, Haidian District, Beijing
    
	
Zip Code:
    	
100190
    
	
 
    	
 
    
	
To the Creditor:
    	
China Bohai Bank Co., Ltd., Beijing   Branch
    
	
Recipient:
    	
Zhou Hang
    
	
Address:
    	
F1, East Wing,   Chemsunny World Trade Center, No. 28 Fuxingmennei Street, Beijing
    
	
Zip Code:
    	
100031
    

 

10.2               Any notices, requests, instructions or other documents sent by one party to the other party under this Agreement or in connection with this Agreement shall be deemed as delivered:

 

(1)          If sent by hand or courier, during the actual receipt; or

 

(2)          If sent by fax, when the sender receives the definite fax response report; or

 

5

 

(3)          If sent by mail, five (5) banking days after the letter is placed in an envelope marked with the correct address of the other party and posted with postage prepaid.

 

ARTICLE 11    APPLICABLE LAW AND DISPUTE RESOLUTION

 

11.1                 This Agreement and the rights and obligations of both parties hereunder shall be governed by and construed in accordance with the PRC laws.

 

11.2               Within the term of this Agreement, any dispute or controversy arising out of or in connection with this Agreement shall be resolved through consultation first. If such disputes cannot be resolved through consultation, either party may refer such dispute to the court with competent jurisdiction in the locality of the Creditor. During the proceedings, any part of this Agreement that is not involved in such dispute shall still be performed.

 

11.3               The aforementioned provisions shall not affect the Creditor’s right to choose to refer any dispute and controversy arising out of or in connection with this Agreement to any other court with jurisdiction.

 

ARTICLE 12    EFFECTIVENESS, AMENDMENT AND TERMINATION

 

12.1                 This Agreement shall only take effect the day on which after the legal representatives or authorized representatives of both the Guarantor and the Creditor have signed or seal this Agreement with the company seal.

 

12.2               When any amendment or termination is required for this Agreement, both parties shall reach a written agreement in this regard through mutual consultation. Each provision under this Agreement shall remain effective before such written agreement is reached.

 

ARTICLE 13    MISCELLANEOUS

 

13.1                 The Creditor’s failure to exercise, or delay in exercising, or partial exercise of any right under this Agreement shall not constitute a waiver or partial waiver of such right, nor does it affect the further exercise of such right or the exercise of any other right by the Creditor. The illegitimacy, invalidity or unenforceability of any provisions herein under any law shall not affect the legitimacy, validity or enforceability of such provisions under any other law, nor shall it affect the legitimacy, validity or enforceability of any other provisions herein.

 

13.2               The Creditor shall be entitled to transfer all of its rights under this Agreement to a third party without any need to obtain the Guarantor’s consent. The Guarantor shall not transfer any of its rights or obligations under this Agreement to any third party.

 

13.3               Under this Agreement, the Guarantor shall pay the Guaranteed Debts in full, and shall not unilaterally make any claim to offset, nor shall it attach any conditions.

 

13.4               This Agreement shall have four original copies, with the Creditor holding 2 copies, and the Guarantor and the Debtor each holding 1 copy. Each copy shall be equally authentic.

 

13.5               Special Agreement

 

None

 

 

6

 

IN WITNESS WHEREOF, the authorized signatories of both parties have executed this Agreement on the date first set out above.

 

[No Text Below]

 

7

 

(Signature Page)

 

 

	
Guarantor:
    	
 
    
	
 
    	
 
    
	
Legal Representative /Authorized Representative (Signature)
    	
/s/ Chuanzhi Liu
    
	
 
    	
 
    
	
 
    	
 
    
	
(Company Seal)
    	
 
    
	
 
    	
 
    
	
[Company’s seal affixed]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Creditor: China Bohai Bank   Co., Ltd., Beijing Branch
    	
 
    
	
 
    	
 
    
	
Legal Representative /Authorized Representative (Signature)
    	
/s/ Dan Tong
    
	
 
    	
 
    
	
 
    	
 
    
	
(Company Seal)
    	
 
    
	
 
    	
 
    
	
[Company’s seal affixed]
    	
 
    

 

8Exhibit 10.25

 

This is an English Translation

 

Guarantee Contract

 

	
Contract No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Guarantor (Party   A):
    	
 
    	
Legend Holdings   Limited
    
	
Address:
    	
 
    	
10/F, Tower A,   Raycom Info Tech Park, No. 2 Ke Xue Yuan Nan Lu, Haidian District,   Beijing
    
	
Zip Code:
    	
 
    	
100085
    
	
Legal   Representative (Officer in Charge):
    	
 
    	
Chuanzhi Liu 
    
	
Fax:
    	
 
    	
62509165
    	
Telephone:
    	
62509315
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Creditor (Party   B):
    	
 
    	
Beijing Haidian   District Management Center for Buildings & Land Operations
    
	
Address:
    	
 
    	
No. 21   Building, Gan Jia Kou, Haidian District, Beijing
    
	
Zip Code:
    	
 
    	
100037
    
	
Officer in Charge:
    	
 
    	
Xu Li
    
	
Fax:
    	
 
    	
68359763
    	
Telephone:
    	
68359763
    

 

In order to ensure the implementation of Entrusted Loan Contract of China Construction Bank entered into by and between Beijing China Auto Rental Co., Ltd. (“Debtor”) and Party B on February 2011 (Contract No.:                                   ) (“Principal Contract”) and guarantee the realization of Party B’s creditor’s rights, Party A agrees to provide joint and several guarantee for the debts of Debtor under the Principal Contract. Party A and Party B hereby enter into this Contract through consultation for mutual compliance.

 

Clause 1.                                                Coverage of Guarantee

 

The coverage of guarantee under this Contract shall follow the first provisions as below:

 

1.                                       All debts under the Principal Contract, including but not limited to all the principal (Currency) RMB (Amount) One Hundred Million, interest (including compound interest and penalty interest), liquidated damages, compensations, other amount that is payable by the Debtor to Party B (including but not limited to the relevant formality fees, telecommunication fees, incidental expenses, relevant banking charges that foreign beneficiaries refuse to assume), costs incurred by Party B to realize its creditor’s rights and security rights (including but not limited to litigation fees, arbitration fees, property preservation fees, travelling expenses, enforcement fees, appraisal fees, auction fees, notary fees, service fees, announcement fees, legal fees, etc.).

 

2.                                       The principal (Currency)                    (Amount)                      under the Principal Contract and interest (including compound interest and penalty interest), liquidated damages, compensations, other amount that is payable by the Debtor to Party B (including but not limited to the relevant formality fees, telecommunication fees, incidental expenses, relevant banking charges that foreign beneficiaries refuse to assume), costs incurred by Party B to realize its creditor’s rights and security rights (including but not limited to litigation fees, arbitration fees, property preservation fees, travelling expenses, enforcement fees, appraisal fees, auction fees, notary fees, service fees, announcement fees, legal fees, etc.).

 

1

 

Clause 2.                                                Way of Guarantee

 

The guarantee provided by Party A under this Contract shall be joint and several.

 

Clause 3.                                                Term of Guarantee

 

The term of guarantee shall start from the effectiveness date of this Contract until two years after the expiration of debt performance term under the Principal Contract. If Party A agrees to extend the debt performance term, the term of guarantee shall accordingly extend to two years after the expiration of such new debt performance term as provided by an extension agreement. If Party B declares an early performance of debts according to the provisions of Principal Contract, the term of guarantee shall end at two years after such early debt performance date as declared by Party B. If the debts under the Principal Contract are performed by installments, in term of each installment of debts, the term of guarantee shall end at two years after the expiration of debt performance term for the last installment of debts.

 

Clause 4.                                                Independence of Guarantee Contract

 

The effectiveness of this Contract is independent to the Principal Contract. The non-establishment, ineffectiveness, invalidity, partial invalidity or cancellation and termination of the Principal Contract shall not affect the effectiveness of this Contract. If the Principal Contract is affirmed to be non-established, ineffective, invalid, partially invalid or cancelled and terminated, Party A shall take joint and several liabilities for the debts of the Debtor arising from the return of properties or the compensation for losses.

 

Clause 5.                                                Amendment of Principal Contract

 

1.                                       If Party B and the Debtor reach an agreement to amend the terms of Principal Contract (including but not limited to the amendment to repayment currency, way of repayment, loan account, repayment account, loan use schedule, repayment schedule, interest commencement date, interest settlement date, and the first date or last date for debt performance term while not being extended), Party A agrees to assume joint and several liabilities for the debts under the amended Principal Contract.

 

However, if Party B and the Debtor reach an agreement to extend the debt performance term or increase the principal amount of debts without Party A’s prior consent, Party A shall only take joint and several liabilities for the debts under the Principal Contract before amendment in accordance with the provisions of this Contract.

 

2.                                       Party A’s liabilities for guarantee shall not be alleviated or exempted under the occurrence of any of the following situations:

 

(1)                                  Party B or the Debtor is under system reform, consolidation, merger, division, capital increase/decrease, equity joint venture, joint operation, name alteration, etc.;

 

(2)                                  Party B assigns the performance of its obligations under the Principal Contract to a third party.

 

3.                                       If the transfer of creditor’s rights or debts under the Principal Contract is ineffective, invalid, cancelled or terminated, Party A shall still take joint and several liabilities for guarantee to Party B in accordance with this Contract.

 

Clause 6.                                                Liabilities for Guarantee

 

1.                                       If the Debtor fails to fully and timely perform its debts or the Debtor breaches other provisions of the Principal Contract when the debts under the Principal Contract become due or Party B declares early performance of debts in accordance with the provisions of the Principal Contract or the relevant laws, Party A shall promptly assume the liabilities for guarantee within the coverage of guarantee.

 

2.                                       No matter whether Party B enjoys any other security for the creditor’s rights under the Principal Contract (including but not limited to guarantee, mortgage, pledge, letter of guarantee, standby letter of credits, etc.), no matter when such other security is established and whether such other security is effective, no matter whether Party B makes any claims to other guarantors, no matter whether there is any third party who agrees to assume all or part of the debts under the Principal Contract, and no matter whether other security is provided by the Debtor itself, Party A’s liabilities for guarantee under this Contract shall not be alleviated or exempted to any extent, and Party B may directly require Party A to assume the liabilities for guarantee within the coverage of guarantee according to the provisions of this Contract, as to which Party A shall not raise any objection.

 

2

 

3.                                       If Party A only provides guarantee for part of the debts under the Principal Contract, Party A agrees that even if the debts under the Principal Contract are partially extinguished as a result of the discharge of debts by the Debtor, the realization of other security rights of Party B or any other reasons, Party A shall still take the guarantee liabilities for the non-extinguished debts within the coverage of guarantee in accordance with the provisions of this Contract.

 

4.                                       If Party A only provides guarantee for part of the debts under the Principal Contract and the debts under the Principal Contract fail to be fully discharged after Party A has performed its liabilities for guarantee, Party A undertakes to claim for subrogation rights against the Debtor or other guarantors (including the pre-exercise thereof)  in order to hold Party B’s interests harmless, and agrees that the discharge of debts under the Principal Contract will take priority over the realization of Party A’s subrogation rights.

 

Specifically, prior to the full realization of Party B’s creditor’s rights:

 

(1)                                  Party A agrees not to claim for subrogation rights against the Debtor or other guarantors; if Party A realize such rights due to any reasons, the amount obtained as a result of the realization of such rights shall be used to realize the non-repaid creditor’s rights of Party B in priority;

 

(2)                                  If there is real security over the debts under the Principal Contract, Party A agrees not to make any claims against such collaterals or the proceeds generated from the disposal thereof with the excuse of exercising subrogation rights or any other reasons, such collaterals or proceeds shall be used to realize the non-repaid creditor’s rights of Party B in priority;

 

(3)                                  If the Debtor or other guarantor has provided counter-guarantee for Party A, the amount obtained by Party A based on such counter-guarantee shall be used to realized the non-repaid creditor’s rights of Party B in priority.

 

5.                                       Party A has been fully aware of the interest risks. If Party B adjusts the interest rate and the way of interest accruement or settlement in accordance with the provisions of the Principal Contract or the changes of state policies on interest rate, which results in an increase in the payable interest, penalty interest and compound interest of the Debtor, then Party A shall also assume joint and several liabilities for such increment.

 

6.                                       If in addition to the debts under the Principal Contract, the Debtor owes other due debts against Party B, Party B shall be entitled to require the Debtor to repay any due debts first, in which case Party A’s liabilities for guarantee shall not be alleviated or exempted to any extent.

 

Clause 7.                                                Other Obligations of Party A

 

1.                                       Party A shall supervise the use of loans by the Debtor (including the purpose thereof) and accept the supervision of Party B over the capital, assets and operational status of Party A, provide financial statements and other relevant information, documents, materials as Party B requires, and guarantee the accuracy, truthfulness, completeness and effectiveness thereof; without Party B’s written consent, Party A shall not provide any security beyond its own capacity for any third party;

 

2.                                       If under contract operation, custody (administration), lease, joint-stock reform, registered capital decrease, investment, joint operation, consolidation, merger, acquisition and restructuring, division, equity joint venture, (being filed or) filing for winding-up, filing for dissolution, being revoked, (being filed or) filing for bankruptcy, change of controlling shareholder/actual controller, or major asset transfer, production stoppage, operation suspension, huge penalty imposed by the competent authority, being cancelled from registration, revocation of business license, involvement in material legal disputes, serious difficulty in production and operation or deterioration of financial position, inability of the legal representative or the principal in charge to normally perform its duties, or loss or possible loss of ability to provide security due to any reasons, Party A shall promptly notify Party B of the same in writing and make sure the guarantee liabilities under this Contract are properly assumed, transferred or succeeded pursuant to Party B’s requirements or provide new guarantee which is accepted by Party B for the implementation of the Principal Contract;

 

3.                                       Upon the alteration of any matters of Party A registered with the Administration for Industry and Commerce, such as its name, legal representative (principal in charge), residence, scope of business, registered capital or company’s articles of association, Party A shall, within three working days after such alteration, give Party B a written notice attached with the relevant altered materials.

 

3

 

Clause 8.                                                Miscellaneous

 

1.                                       Use of Party A’s Information

 

Party A agrees that Party B may make inquiries on Party A’s status of credit to the credit database established under the approval of the People’s Bank of China and the competent credit reporting authority or the relevant unit or department, and agrees that Party B may provide Party A’s information for the credit database established under the approval of the People’s Bank of China and the competent credit reporting authority. Party A also agrees that Party B may reasonably use and disclose Party A’s information to meet the needs of business.

 

2.                                       Announcement to Chase for Overdue Debts

 

In case of Party A’s breach of contract, Party B shall be entitled to report such breach of contract to the relevant department or unit and make an announcement through press media to chase for the overdue debts.

 

3.                                       Evidence Effect of Party B’s Records

 

Unless there is any reliable and definite evidence to the contrary, Party B’s internal account records in relation to principal, interest, costs and debt repayment records, the vouchers and proofs for the Debtor’s withdrawal of loans, repayment of loans and payment of interest which are prepared and retained by Party B, and Party B’s records and proofs for chasing for overdue debts shall all constitute the definite evidence to effectively prove the creditor’s rights under the Principal Contract. Party A shall not raise any objections only because such records, vouchers and proofs are unilaterally prepared or retained by Party B.

 

4.                                       Retention of Rights

 

Party B’s rights under this Contract shall not affect and eliminate any of its rights under the laws, regulations and other contracts. Any tolerance, grace period or favorable treatment granted to the breach of contract or delay of performance, or any delay in performing any rights under this Contract shall not be deemed as a waiver of the rights and interests under this Contract or consent or acceptance of any breaching behaviors, nor shall it affect, prevent or impede the continuous exercise of such rights or the exercise of any other rights, or incur any obligations and responsibilities of Party B to Party A.

 

If Party B does not exercise or delays in exercising any rights under the Principal Contract or does not fully resort to the reliefs under the Principal Contract, Party A’s liabilities for guarantee under this Contract shall not be alleviated or exempted to any extent, provided that, however, if Party B alleviates or exempts the debts under the Principal Contract, Party A’s liabilities for guarantee under this Contract shall be alleviated or exempted accordingly.

 

5.                                       Dissolution or Bankruptcy of Debtor

 

After Party A is aware that the Debtor has entered the dissolution or bankruptcy proceedings, it shall promptly notify Party B to claim its creditor’s rights and it shall also timely join in the dissolution or bankruptcy proceedings and pre-exercise the subrogation rights. Where Party A is or should be aware that the Debtor has entered the dissolution or bankruptcy proceedings, but fails to timely pre-exercise the subrogation rights, its losses incurred thereby shall be borne by Party A by itself.

 

Notwithstanding the provisions of this Sub-Clause 5, if Party B and the Debtor reach a settlement agreement or agree to a restructuring plan during the Debtor’s bankruptcy proceedings, Party B’s rights under this Contract shall not be jeopardized due to the settlement agreement or restructuring plan, and Party A’s liabilities for guarantee shall not reduced and exempted. Party A shall not counter Party B’s claims with the conditions provided by the settlement agreement or restructuring plan. Party B shall still be entitled to require Party A to continue discharging the debts which are not repaid due to the compromise made to the Debtor in the settlement agreement or restructuring plan.

 

6.                                       Dissolution or Bankruptcy of Party A

 

Where Party A is under dissolution or bankruptcy, even if Party B’s creditor’s rights under the Principal Contract have not become due yet, Party B shall still be entitled to join in the dissolution or bankruptcy proceedings of Party A and claim its creditor’s rights.

 

7.                                       If there are any changes to the mailing address or way of contact of Party A, it shall promptly notify Party B of the same in writing. Any losses arising from failing to notify promptly shall be borne by Party A on its own.

 

4

 

8.                                       Dispute Resolution

 

Any dispute arising out of the implementation of this Contract may be resolved through consultation. If no resolution can be reached through consultation, the dispute shall be resolved through the following first way:

 

1.                                       Filing a lawsuit with the people’s court in the locality of Party B.

 

2.                                       Referring the dispute to Arbitration Commission (with the arbitration venue at          ) for arbitration in accordance with the arbitration rules of such Commission in effect at the time of referral. The arbitration awards shall be final and binding upon both parties.

 

During the period of litigation or arbitration, the terms of this Contract which are not involved in disputes shall still be implemented.

 

9.                                       Conditions to Effectiveness

 

This Contract shall only take effect after being signed or sealed with company seal by Party A’s legal representative (principal in charge) or authorized agent and by Party B’s principal in charge or authorized agent.

 

10.                                 This Contract shall have four copies, with Party A and Party B each holding two copies.

 

11.                                 Other Agreed Matters

 

None.

 

Clause 9.                                                Party A’s Representations and Warranties

 

1.                                       Party A is clearly aware of Party B’s scope of business and limit of authorization.

 

2.                                       Party A has read this Contract and all the terms of the Principal Contract. Party B has explained the relevant terms of this Contract and the Principal Contract as requested by Party A. Party A has been fully aware of and understood the meaning of the terms of this Contract and the Principal Contract as well as the corresponding legal consequences.

 

3.                                       Party A has the legal qualification to act a as a guarantor. The guarantee provided by Party A under this Contract complies with the laws, administrative regulations, rules and Party A’s articles of association or internal constitutional documents and has obtained the approval of the company’s internal power organ and/or the state authorities. All the liabilities resulting from Party A having no power to execute this Contract shall be borne by Party A, including but not limited to making full compensation for the losses caused to Party B thereby.

 

4.                                       Party A confirms that it has fully understood the assets, liabilities, operations, credit and reputation of the Debtor, whether it has the capacity and authority to sign the Principal Contract and the entire Principal Contract.

 

 

	
Party A (Company   Seal):  
    	
 
    	
Party B (Company   Seal):  
    
	
[Company’s   seal affixed]
    	
 
    	
[Company’s   seal affixed]
    
	
 
    	
 
    	
 
    
	
Legal   Representative (Signature):  
    	
 
    	
Legal   Representative (Signature):  
    
	
/s/ Chuanzhi Liu
    	
 
    	
/s/ Li Xu
    
	
 
    	
 
    	
 
    
	
Date: February 2011
    	
 
    	
Date: February 2011
    

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]