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Silvan Technologies: Exhibit 10.1 - Filed by newsfilecorp.com

	Exhibit 10.1 
	Loan Contract 
	(English Translation) 
	No.: 2011 Ying 1011200625 

This contract is the specific contract under the Credit
Agreement of No.___ (Please check the box if this applies.).

Money Lender: China Merchant Bank Co., Ltd., Guiyang Branch
(hereinafter referred to as Party A)

Principal: Zhang Qingdian

Borrower: Qian Xi Nan Aosen Forestry Company, Limited
(hereinafter referred to as Party B)

Legal Representative/Principal: Bai Yulu

Party B applies to Party A for working capital loans because of
production and management needs. Party A agrees to issue the loan upon checking.
Now both parties enter into this contract and reach agreement on the following
articles through full consultation in accordance with relevant laws.

Article 1 Loan currency and amount

RMB (Capitalized) SAY RMB TWENTY-FIVE MILLION ONLY.(RMB
25,000,000)

Article 2 Loan purpose

This loan is defined as working capital loan, and shall be only
used for working capital turnover. And Party B shall not use it for any other
purpose without the written approval of Party A.

Article 3 Loan term

The term of the loan is one year, from March
(month) 8 (date) 2011 (year) to March (month) 7
(date) 2012 (year). If the actual loan issuing date is not the same
as the above start date, the loan issuing date shall be subject to the date on
the receipt for the loan, and the repayment date shall also be extended
correspondingly, subject to the receipt for the loan.

[  ] During the loan term, Party A shall issue the loan step by
step according to the actual needs of Party B, and the amount and start date of
the loan issued each time should be subject to the receipt for the loan (Please
check the box if this article applies.).

[  ] During the loan term, Party A may have the right to ask
Party B to make equal installment repayment according to the following plan
((Please check the box if this article applies.).

Article 4 Loan prerequisites

The issuing of the loan (including each loan issued by stage)
under this agreement is on the premise that Party B shall fulfill the following
requirements. Party A has the right to refuse the loan issuing if Party B fails
to fulfill any of these requirements: 

4.1 Party B has provided relevant materials according to this
agreement; 

4.2 Party B shall cooperate with Party A in supervision and
inspection; 

4.3 Party B has made full repayment on time for the issued
loan; 

4.4 Party B hasn’t caused any event of default stipulated in
the agreement; 

4.5 Party B hasn’t violated any other stipulation in this
agreement.

The loan prerequisites are concluded for protecting the
rights and interests of Party A, and Party A has the right to lower the
requirements for the loan prerequisites.

Article 5 The interest rate and interest of the loan

5.1 Interest rate

5.1.1 This loan adopts (choose one from the two items below,
checking the box):

	[x] fixed rate 	[  ] floating rate 

5.1.2 Determination of the interest rate during the contract
period:

For RMB loan, the base rate should be subject to the __
month/one year RMB loan base rate of the financial institution announced
by the People’s Bank of China on the pricing date, [x] floating upward/[  ]
floating downward (Choose one from the two, checking the box) 40%.

For foreign currency loan, the base rate should be subject to
the __ month(s)/___day(s) (Choose one from the two, checking the box) base rate
of the corresponding foreign currency loan on the pricing date or one working
day before or two working days before: [[ ] plus/[ ] minus (Choose one from the
two, checking the box) __ basic point(s) (BPs). It’s decided by Party A to
choose the pricing date, one working day before or two working days before as
the interest rate determination day. The pricing date means the reference day
for determining the loan term or the basic rate during the floating period. If
this loan adopts the fixed rate, the pricing date shall be the actual loan
issuing date; if this loan adopts the floating rate, the determination of
pricing date shall conform to the stipulation in Article 5.1.3.

The stipulations in the above article, that is “[ ] floating
upward/[ ] floating downward __%” (hereinafter referred to as floating
proportion), or “[ ] plus/[ ] minus __ (basic point)”(hereinafter referred to as
basic point), refer to the floating proportion and/or the basic point determined
when this contracts is signed. Party A has the right to adjust this floating
proportion and/or the basic point regularly or irregularly in combination with
the change of state policy, the price change of the domestic credit market, or
the change of its own credit policy. Once Party A decides to adjust, it should
notify Party B in writing five working days in advance. Such adjustment shall
come into force when Party B receives the notification from Party A. The
specific floating proportion and /or the basic point of the relevant new loan
Party B has just drawn and the loan Party B has drawn before the notification
comes into force and still hasn’t repaid shall be subject to the determination
in Party A’s notification, and the base rate and floating period shall still
subject to this agreement.

5.1.3 If this loan adopts floating interest rate, the floating
period shall be _/_ month(s)/__ day(s). The base interest applied in each
floating period shall be determined according to article 5.1.2. The actual loan
issuing date is the pricing date of the first floating period. And the first day
of each floating period followed is considered as the pricing date of this
floating period.

5.1.4 In the case that Party B hasn’t used the loan according
to this agreement, additional 100% interest rate shall be collected on the basis
of the original rate for the loan that hasn’t used in accordance with the
purpose stipulated in this agreement from the day of changing the loan
purpose.

In the case that Party B hasn’t repaid the loan on time,
additional 50% interest rate shall be collected on the basis of the original
rate for the loan that Party B hasn’t repaid on time from the day when the time
limit expires.

The original interest rate refers to the interest rate applied
(For floating rates, this refers to the last floating period before the
maturity, including the maturity in advance) before the maturity (including the
due date in advance).

If the loan is overdue or hasn’t been used for purpose
stipulated in this contract, the interest shall be collected according to the
above-mentioned ways, and adopt the way in whichever the interest is higher.

5.1.5 During the loan term, if the People’s Bank of China
adjusts the regulation of loan interest rate, such regulation of the People’s
Bank of China shall be performed.

5.2 Interest accrual: the interest rate should be calculated
from the date when the loan is entered into Party B’s account and based on the
actual loan amount and actual number of days. Interest is calculate once a
season, interest accrual day is the 20th of the last month of each season. The
conversion way of daily interest rate shall conform to the relevant regulations
of the People’s Bank of China or the international practice.

5.3 Payment of interest: Party B should pay interest just on
each interest accrual day. Party A may withhold directly from Party B’s deposit
account. If Party B hasn’t paid the interest on time, as for the unpaid
interest, Party A shall have the right to collect compound interest based on the
loan interest over the same period. 

Article 6 Guarantee clause (For the following items,
please check the box according to the real situation.)

[  ]6.1 __ is designated by Party B as the guarantor of the
principals and interests and all the other relevant expenses under this
contract, and he/she must provide Party A with the irrevocable guaranty
and/or

[x]6.2 Guizhou Huacheng Real Estate Co., LTD uses the commercial
buildings and the land-use right that they own or for which they have legal
right to handle as the mortgage/pledge for the loan under this contract, and
both parties shall sign separate mortgage contract.

[  ]6.3 Other guarantee methods:

If this contract is the specific contract under the Credit
Agreement, this article shall not apply. The debt under this contract shall
automatically enter into the guarantee scope of the guarantor who has signed the
a contract of mortgage/pledge of the maximum amount with Party A or has provided
the irrevocable guaranty of the maximum amount.

If the guarantor hasn’t signed the guarantee document or gone
through the guarantee procedure according to the stipulations, Party A may have
the right to refuse to issue the loan to Party B.

Article 7 Rights and obligations of Party B

7.1 Party B enjoys the following rights:

7.1.1 Has the right to draw and use the whole loan according to
this contract; 7.1.2 Has the right transfer the debt to the third party upon
approval of Party A. 7.2 Party B shall fulfill the following obligations:

7.2.1 Shall truthfully provide the files and materials, all the
account-opening banks, account Numbers and the condition of the deposits and the
loans demanded by Party A, and cooperate with Party A in investigation, review
and check; 

7.2.2 Shall accept Party A’s supervision on its use of credit
funds, production and management, and financial activities. And shall take
reasonable processing measures based on Party A’s suggestions and requirements;

7.2.3 Shall use the loan in accordance with the purpose
stipulated in this contract, and conform to Party A’s requirements on the
payment and management of the loan funds; 

7.2.4 Shall fully repay the principal and the interest on time
according to this contract; 

7.2.5 Shall get approval from Party A if transfer the whole or
part of the debt under this contract to the third party; 

7.2.6 Shall notify Party A immediately if the following
conditions happen, and on Party A ‘s request to cooperate with Party A in
carrying out the protective measures for repay fully the principals, the
interests and all the other expenses under this contract on time: 

7.2.6.1 Essential financial loss, capital loss or other
financial crisis arises; 

7.2.6.2 Provide loan or guarantee for the benefit of the third
party or for protecting the third party from loss, or to provide mortgage or
pledge by using the property owned by itself; 

7.2.6.3 Credit status reduces, and main business profitability
goes down; 

7.2.6.4 Conditions arise, such as termination of business,
business license being revoked or cancelled, applying for or being applied for
bankruptcy, dismiss and so on; 

7.2.6.5 Party B’s controlling shareholders, actual controller
and other affiliated companies suffer crucial management or financial crisis,
which influence its normal operation; 

7.2.6.6 Party B has connected transactions with its controlling
shareholder and other affiliated companies, which influences its normal
operation; 

7.2.6.7 Any litigation, arbitration, or criminal and
administrative penalties occur, which have much bad effect on its management or
financial status;

7.2.2.8 The borrower’s legal representative, directors or
important high-level managers experience personnel change, or their personal
freedom is restricted by the state authorized organizations due to illegal and
disciplinary events, which may influence its normal operation; 

7.2.6.9 Other important events occur that may influence its
ability to repay the debt; 

7.2.7 Shall not delay in managing and claiming the creditor's
right, or handle the main current property for free or in other inappropriate
ways.

7.2.8 Part B shall get approval from Party A before carries out
the important events, such as merger, division, restructuring, equity transfer,
joint venture (cooperation), the transfer of property rights, the shareholding
system reform, foreign investment, the actual increase in debt financing, and so
on; 

7.2.9 According to Party A’s requirements, Party B shall (For
the following items, please check the box according to the real situation.): [
]insure its core assets and designate Party A as the first beneficiary; [ ]not
sell or mortgage the _/__ asset designated by Party A before settlement of the
loan; [ ]make the following limit on the profit-sharing ratio of its
shareholders according to Party A’s requirement during the existence of the
loan:

	 	 
	[ ]Others: 	 

Article 8 Rights and Obligations of Party A

8.1 Party A enjoys the following rights:

8.1.1 Has the right to ask Party B to fully repay the principal
and the interest of the loan; 

8.1.2 Has the right to ask Party B to provide materials related
to the loan; 

8.1.3 Has the right to know about Party B’s production and
management and financial activities; 

8.1.4 Has the right to supervise Party B to use the loan
according to the purpose stipulated in this contract; 

8.1.5 Has the right to supervise the account Party B opened at
Party A, entrust other organizations of China Merchants Bank outside Party A to
supervise Party B’s account, and control the payment of loan funds in accordance
with the loan usage and payment scope agreed on between both parties; 

8.1.6 Has the right to withdraw the principal, the interest and
other relevant expenses of the loan directly from Party B’s account; 

8.1.7 Has the right to transfer the creditor’s right it owns
for Party B, and has the right to adopt the methods that it deems appropriate
(including but not limited to by fax, mail, personal delivery, notification on
the public media and so on) to inform Party B of the transfer and urge Party B
to pay back the debt; 

8.1.8 In the business of buyer credit and interest
seller-bearing, and seller credit and interest buyer-bearing, Party A has the
right to refuse to issue the loan to Party B before receives the Commitment
Letter of Interest-bearing provided by the seller/the buyer; 

8.1.9 Has the right to call in the loan in advance according to
the status of funds withdrawal; 

8.1.10 Has the right to take measures in accordance with this
contract if Party B fails to fulfill the obligations under this contract; 

8.1.11 Has other rights stipulated in this contract; 

8.2 Party A shall fulfill the following obligations: 

8.2.1 Shall issue the loan according to the requirements
stipulated in this contract; 

8.2.2 Shall keep confidential of Party B’s financial,
production and management status, except otherwise stipulated by laws and
regulations and the regulatory organizations.

Article 9 Party B particularly guarantee the following
matters

9.1 Party B is the kind of entity which is established formally
based on the Chinese law, exists legally, possesses the status of a legal
person, and has full civil capacity to sign and execute this contract; 

9.2 Party B has got the full authorization of the board of
directors or any other competent authority in signing and executing this contract. This contract has the legal and
effective binding to Party B from the contract date; 

9.3 The loan item and loan events conform to the laws and
regulations. The loan won’t be used in the investment of fixed assets and
equity; in the speculation on securities, futures and real estate illegally; in
seeking illegal income by lending to each other; in the fields and usages
prohibited by the state; and in other usages outside this contract; 

9.4 If the loan borrowers makes the payment of the loan by
themselves, Party B should regularly (at least quarterly) make summary report to
Party A the payment of the loan funds. Party A has the right to check whether
the loan payment conforms to the stipulated usage by account analysis,
certificate inspection, field survey and other methods; The loan borrowers makes
the payment of the loan by themselves means that Party A issue the loan funds to
Party B’s account upon Party B’s withdrawal request, and then Party B may pay
the loan to the its counterparty who is subject to the stipulated loan usage at
its own will; 

9.5 After approval of Party A, if Party B needs to use online
banking to make loan payment, Party B shall accept the limit measures taken by
Party on the online banking, including presetting the list of payment objects,
single payment limit, periodical payment limit and so on; 

9.6 The documents, materials and certifications on Party B, the
guarantor, the mortgagor (pledger) object given as a mortgage/pledge provide by
Party B are all truth, correct, complete and effective, There is no crucial
mistake contradictory with the truth or important fact is omitted in such
documents, materials and certifications; 

9.7 When both parties sign this contract, no litigation,
arbitration, or criminal and administrative penalties occurs which have serious
bad effect on Party B or the main assets of Party B, and such litigation,
arbitration, or criminal and administrative penalties won’t occur during the
execution of this contract. If happens, Party B shall notify Party A
immediately; 

9.8 Party B shall strictly conform to the national laws and
regulations in management, develop all businesses strictly based on the business
scope stipulated in the “Business License for Legal Person” of Party B, and go
through the registration procedures of annual inspection of the enterprise
(legal person) in due time; 

9.9 Maintain or improve the current management level, ensure
the assets to keep and increase its value, shall not give up any matured claim,
and shall not handle the main current property for free or in other
inappropriate ways; 

9.10 Party B should ensure that its financial indicators shall
not lower than the following requirement during the loan term:

9.11 When both parties sign this contract, Party B hasn’t
caused any crucial events that influence Party B’s fulfillment of the
obligations under this contract.

Article 10 Withdrawal and use of the loan

10.1 The way of using the loan by Party B under this contract
is (Please check the box according to the real situation. Only one box can be
checked, and if not choose anyone, 10.1.2 will automatically be applied.).

[  ] 10.1.1 Self Payment

Self payment means that Party A issues the loan funds to Party
B’s account upon Party B’s withdrawal request, and then Party B may pay the loan
to the its counterparty who is subject to the stipulated loan usage at its own
will; 

[  ] 10.1.2 Entrusted payment 

Entrusted payment means that Party A pay the loan funds to
Party B’s counterparty who is subject to the stipulated loan usage through Party
B’s account an based on the loan withdrawal request an payment entrustment.

In the case of adopting entrusted payment, after the loan issuing, Party B shall get Party A’s approval when pay the loan to external parties and Party B shall not evade the supervision of Party A by using the methods of online banking, the
check for transfer to transfer funds at the bank issuing the check, breaking down into elements and so on.

[ ]10.1.3 Combination of self payment and entrusted payment

In the case of adopting this item, if at the time of loan withdrawal by Party B, the single payment amount Party B plans to make to the same beneficiary is over or equal to RMB 10,000,000 (or foreign currency of the same value), the entrusted
payment must be adopted according to the stipulation in 10.1.2; if at the time of loan withdrawal by Party B, the single payment amount Party B plans to make to the same beneficiary is less than the above amount, the self payment stipulated in
10.1.1 shall be automatically applies.

10.2 Party B should submit Party A the “Withdrawal Application”, receipt for the loan and the materials that Party A asks Party B to provide depends on the different requirements of self payment and entrusted payment. Or else, Party A
has the right to refuse the request of loan withdrawal of Party B.

10.3 After receiving the above-mentioned documents, if Party A agrees to issue the loan after auditing, issues such as the actual issuing date, term, amount, etc. of each loan funds that has been withdrawn shall be recorded in detail on the receipt
for the loan.

If entrusted payment is adopted, Party B shall authorize Party A to make the payment to the counterparty of Party B through Party B’s account on the very day of loan issuing (or the first working day after the loan issuing day).

Article 11 Paying off in advance

11.1 Party B may apply for paying off the loan in advance, but should get approval from Party A;

11.2 If Party B repay the loan in advance, the interest rate shall also be calculated according to the method stipulated in this contract.

Article 12 Loan extension

If Party B fails to repay the loan under this contract and asks for loan extension, it should submit a written application to Party A one month before the expiration of this contract. If Party A agrees to the loan extension, both parties shall sign
the loan extension agreement separately. If Party A doesn’t agree to the loan extension, this contract shall still be in force. Party B shall repay the loan funds it has already taken up and the interest payable according to the stipulations
in this contract. 

Article 13 Expenses

13.1 Loan processing fee: Within _/_ day(s) from the contract date, Party B shall pay Party A at one time the loan processing fee, which is _/_% of the loan amount stipulated in Article 2 (including the total of local and foreign currency).

13.2 Party B shall make payment for the expenses incurred due to credit investigation, examination and notarization, etc. related to this contract, and make payment for the attorney fee, litigation cost and travel cost, etc. Party A paid for
realizing the creditor’s right in the case that Party B fails to repay on time the principal and the interest of the loan under this contract and repay the accrued expenses. And Party B authorizes Party A to deduct such repayment directly from
its bank account. If there is not enough amount of funds in its bank account, Party B promises to pay off in full after receives Party A’s notification, without the need of any certification provided by Party A.

[  ]Article 14 Dedicated account of the loan (Please check the box to indicate the stipulation in this article is applicable.).

14.1 The issuing and external payment of all the loan funds under this contract must be performed through the following account.

Specific information of this account is as follows:

Account Name: ______________/____________________; 
Account
No.: ______________________/______________; 
Account-opening Bank:
_____________/_______________.

14.2 If entrusted payment is adopted, when necessary Party A
may have the right to limit the off-counter payments (such as the online
banking, phone banking, etc.) and exchange through the above account.

Article 15 Supervision of the status of capital-returning of
Party B

15.1 After this contract comes into force and before Party B
pays off all the financing debt, both partied agree to designate the following
accounts as the capital-returning bank for Party B: 
Account Name: Qian Xi
Nan Aosen Forestry Company, Limited 
Account No.: 851900004010306

Account-opening Bank: China Merchant Bank Co., Ltd. Guiyang Branch

15.2 The supervision requirement of this account is as follows:
__________________
Party A has the right to call in the loan in advance based
on the capital-returning status of Party B, that is when this account has
returned capital, the loan which is correspondingly of the same amount as this
sum of returned capital may be regarded as expires in advance, and Party A has
the right to deduct directly this sum of returned capital from this account to
repay the loan; 

15.3 If entrusted payment is adopted, when necessary Party A may
  have the right to limit the off-counter payments (such as the online banking,
  phone banking, etc.) and exchange through the above account.

15.4 Party B should provide quarterly the status of capital in
and off the above account, and cooperate Party A in supervise the relevant
accounts and returned capital.

Article 16 Event of Default and measures taken

16.1 If one of the following circumstances exists, Party B
shall be deemed as breaching the contract: 

16.1.1 Party B violates the stipulations in 7.2.1 of this
contract, provides false information for Party A or conceals the important
truth, doesn’t cooperate with Party A in investigation, review and check, and
still doesn’t make the corrections within the time limit even if Party A asks it
to; 

16.1.2 Party B violates the stipulations in 7.2.2 of this
contract, doesn’t accept or avoid Party A’s supervision of its credit fund and
relevant production and management and financial activities; 

16.1.3 Party B violates the stipulations in 7.2.3 of this
contract, fails to use the loan according to the purpose stipulated in this
contract, or fails to conform to the Party A’s requirements on fund payment
management and report; 

16.1.4 Party B violates the stipulations in 7.2.4 of this
contract, fails to repay fully the principal and the interest of the loan on
time according to the stipulations in this contract; 

16.1.5 Party B violates the stipulations in 7.2.5 of this
contract, arbitrarily transfer the debt under this contract to the third party;
or violates the stipulations in 7.2.7 of this contract, delays in managing and
claiming the matured claim, or handle the main current property for free or in
other inappropriate ways; 

16.1.6 Party violates the stipulations in 7.2.6 of this
contract, and doesn’t inform Party A timely in the events referred to in 7.2.6;
or doesn’t cooperate when Party A is informed of such event happens and asks
Party B to strengthen the protective measures of loan repayment under this
contract; or Party A believes such behavior influence the safe calling in of the
loan; 

16.1.7 Party violates the stipulations in 7.2.8 of this
contract, and doesn’t get Party A’s approval in the case of the crucial events
referred to in 7.2.8; 

16.1.8 Party violates the stipulations in 9.1, 9.2, 9.6 or 9.3,
9.4, 9.5, 9.7, 9.8, 9.9, 9.10 and 9.11 of this contract, and doesn’t make timely
corrections according to Party A’s requirements; 

16.1.9 Party B fails to withdraw or use the loan according to
Article 10 of this contract, or Party B violates the stipulations in Article 15
of this contract, failing to use the funds in capital-returning account
according to Party A’s requirement, or doesn’t accept Party A’s supervision, or
doesn’t make corrections timely in accordance with Party A’s request.

16.1.10 Party B caused significant events of default under the
legal and effective contract with its other creditor, and such events fail to be
solved successfully within three months from the day of breach of the
contract.

The above significant events of default means Party B’s breach
of contract causes that its creditor has the right to claim reimbursement of
over RBM _______ 10,000 yuan.

16.1.11 Party B violated other obligations stipulated in this
contract, or based on Party A’s reasonable judgment, the credit status of Party
B goes down or other conditions occur which may influence Party A realize the
creditor’s right; 

16.1.12 Party B caused the conditions which may influence the
lawful rights and interests of Party A, and for which Party A can reasonably
believe so.

16.2 If one of the following circumstances exists, and Party A
thinks this may influence the guarantee ability of the guarantor, asks the
guarantor to eliminate the bad influence caused by this, or asks Party B to
increase or change guarantee conditions, the guarantor and Party B don’t
cooperate, and then such behavior shall be deemed as breach of contract: 

16.2.1 If any of the events referred to in 7.2.6, 7.2.7 and
7.2.8 of this contract happens; 

16.2.2 Conceal the actual guarantee ability or hasn’t got the
authorization of the competent authorities when issuing the irrevocable
guaranty; 

16.2.3 Hasn’t gone through the registration procedures of the
annual inspection on time; 

16.2.4 Delay in managing and claiming the matured claim, or
handle the main current property for free or in other inappropriate ways.

16.3 If the mortgagor (pledger) has one of the following
situations, and Party A thinks this may violate the establishment of mortgage
(pledge) or make mortgage object (pledge) short of value, asks the mortgagor
(pledger) to eliminate the bad influence caused by this, or asks Party B to
increase or change guarantee conditions, the guarantor and Party B don’t agree:

16.3.1 Hasn’t the ownership of or the disposing right to
mortgage object (pledge), or the ownership dispute exists; 

16.3.2 Conceal the fact that mortgage object (pledge) is in
common, rent, sealed up and supervised, or is subject to legal priority over the
mortgage; 

16.3.3 The mortgagor arbitrarily transfer, rent, remortgage or
deal with mortgage object in other ways without getting Party A’s approval; 

16.3.4 The mortgagor doesn’t properly keep, maintain or repair
mortgage object, causing its value going down obviously; or the mortgagor’s
behavior directly influence mortgage object, causing its value decreasing; or
the mortgagor doesn’t insure mortgage object according to Party A’s requirement
during the mortgage period; 

16.3.5 The mortgage object is or may be collected or removed;
or other events exist which may influence the value of the mortgage object or
influence the mortgage right of Party A.

16.4 If any of the events of default referred to in 16.1, 16.2,
and 16.3 happens, Party A has the right to take the following measures at the
same time or separately: 

16.4.1 Change the entrusted payment condition of the loan fund,
and cancel Party B’s right to use the loan by “self payment”; 

16.4.2 Stop issuing the loan which Party B hasn’t used; 

16.4.3 Call in the issued principal and interest of the loan
and relevant expenses; 

16.4.4 Directly deduct the deposit in the settlement account or
other account of Party B, an entrust the other organizations of China Merchants
Bank to deduct Party B’s deposit there, in order to pay off the whole debt of
Party B under this contract;

16.4.5 Claim according to Article 19 of this contract.

Article 17 Modification and cancellation of the
contract

This contract can be modified or cancelled through mutual
agreement and concluded written agreement between Party A and Party B. This
contract is still effective before reaching the written agreement. Neither party
shall modify, alter or cancel this contract alone.

Article 18 Miscellaneous

18.1 Situation change and force majeure

18.1.1 If changes of the applicable laws and policies cause
that the lending activity of Party A under this contract becomes illegal, Party
A has the right to terminate this contract, announce all the issued loan expire
in advance and Party B should immediately repay the loan according to Party A’s
requirement.

18.1.2 If changes of the applicable law and policy requirements
cause new added cost to Party A to fulfill the loan obligation under this
contract, Party B shall compensate the new added cost in accordance with Party
A’s request.

18.1.3 In the course of executing this agreement, one party or
both party who suffer from force majeure shall not bear any responsibility for
the other party’s damage, but the affected party shall inform the other party at
once and take reasonable steps to prevent further loss, or the party shall bear
responsibility for the other party on the extending damage.

18.2 Non-waiver Agreement

Failure or delay on the part of Party A to exercise any right,
power or privilege under this agreement shall not operate as a waiver thertof,
nor shall any single or partial exercise of any right, power or privilege
further exercise thereof or exercise of any other right, power or privilege. A
waiver by Party A at any time of a breach of any term or provision of this
agreement committed by Party B shall not be construed as a waiver by such party
of any subsequent breach to be committed by Party B, nor shall it be construed
as a waiver by such party of its rights under such provision or any of its other
rights under this agreement.

18.3 Severability

If any portion, term or provision of this agreement shall be
held illegal, void or ineffective, Party B shall still fulfill its obligations.
If the abovementioned case occurs, party A has the right to terminate the
contract, and repay the principal and the interest of the loan and all the other
relevant expenses at once.

18.4 Notice

For both Party A and Party B, all the notices, demands and
other documents which are related with this contract shall be in written form.
If delivered personally, it is regarded as the personal service only when the
recipient sign (if refused by the recipient, it’s regarded as service on the
refusing day); if delivered by mail, it is regarded as service after 7 days from
the date of postage; if delivered by fax, it is regarded as service when the fax
system of the recipient receive it. If Party A informs Party B of transferring
the creditor’s right or urges party B to repay the loan by notification through
the public media, it’s regarded as service from the day of notifying. 

Address of Party A 
Address of Party B

If either party changes the contact address, it shall inform
the other party timely, or else shall be responsible for possible lose due to
this.

18.5 The receipt for the loan and the written supplementary
agreement that are concluded between Party A and Party B through consensus on
the unaccomplished matters and changed issued under this contract shall be
regarded as the attachment of this contract, and shall be an integral part of
this contract.

	18.6 	 
	 	 
	18.7 	 
	 	 
	18.8 	 

Article 19 Applicable laws and settlement of
disputes

19.1 The law of the People's Republic of China applies to the
conclusion and interpretation of this contract and settlement of the disputes.
The interests of both Party A and B are protected by the law of the People's
Republic of China.

19.2 Both parties will solve the disputes arising from
execution of the contract through friendly consultation. In case the agreement
cannot be reached, either party may (Choose one from three items below, checking
the box):

	[x]19.2.1 submit the dispute to the people’s court at where
      Party A is located. Or 
	 
	[  ]19.2.2 submit for arbitration to ______________
      arbitration committee. 
	 
	[  ]19.2.3 submit to (If choose this item, choose one from
      the two options below, checking the box): 
	 
	               
         [  ]China International Economic and Trade Arbitration
      Commission 
	 
	               
         [  ]____ Branch of China International Economic and Trade
      Arbitration Commission 

Arbitration shall be performed according to the arbitration
rules of financial dispute.

19.3 After both parties have gone through the formalities to
have this contract rendered enforceable by the notary public, Party A may apply
to the people’s court that has the jurisdiction for compulsory execution, in
order to claim the matured debt of Party B under this contract.

Article 20 Effectiveness of the contract

This contract shall come into force when signed (sealed with
name) and affixed with the company seal/contract seal by the legal
representatives (principals) or authorized agents of both parties. And shall
become ineffective automatically from the day when the entire principal and the
interest of the loan and all other related costs are paid off.

Article 21 Annexes

This contract shall be made in 3 triplicates, which have
the same legal effect. Party A, Party B and mortgage institution
will hold one each.

Special Instructions:

All articles in this contract are fully consulted by the
parties. Party A has informed Party B to specially notice the articles that are
relevant with cancelling or limiting Party A’s liability, Party A having some
one-sided rights, increasing Party B’s liability or limiting Party B’s right,
and has asked Party B to have full and accurate understanding of such articles.
On demand of Party B, Party A has made corresponding explanations to the above
articles. Both contracting parties have the same understanding of
the articles in this contract.

 

	Party A: China Merchant Bank Co., Ltd.,
      Guiyang Branch (seal) 
Principal or authorized agent (signature or seal
      with name): Zhang Qingdian	  
Feb.
      25, 2011

	Party B: Qian Xi Nan Aosen Forestry Company, Limited (seal)
    
	Legal representative / principal or authorized agent
      (signature or seal with name): Bai Yulu 
	  
	Date of Signature: Feb. 25, 2011Silvan Industries Ltd.: Exhibit 10.2 - Filed by newsfilecorp.com

Guizhou Xingyi Rural Cooperative Bank  

No.: XNHY (2011) LDZi No. 055 

Exhibit 10.2 

Working Capital Loan Contract

 (English Translation) 

 

between 

Borrower: Qian Xi Nan Aosen Forestry Company, Limited 

and

 Lender: Guizhou Xingyi Rural Cooperative Bank 

 

 

 

Prepared by Guizhou Xingyi Rural Cooperative Bank 

1 

Guizhou Xingyi Rural Cooperative Bank

Working Capital Loan Contract 

This Contract is entered into by and between the Borrower:
Qian Xi Nan Aosen Forestry Company, Limited (organization code:
76608081-7) (“Party A”), having its address at Hexing Village,
Dingxiao Development Zone, Guizhou Province, and the Lender:
Guizhou Xingyi Rural Cooperative Bank (“Party B”) (referred to as
the Parties collectively and the Party individually). 

WHEREAS Party A applies to Party B for a loan and Party B
agrees to offer such loan, THEREFORE, after friendly negotiations, the Parties
agree to reach the following terms and conditions for mutual observance, in
accordance with applicable laws and regulations. IT IS AGREED AS FOLLOWS: 

Article 1 Amount of the Loan 

Party A hereby applies to Party B a loan amounting to
RMB24,000,000 (in words: twenty four million) (in case of any
conflict between the number in figures and in words, the number in words shall
control, the same below) (the “Loan”). 

Article 2 Purpose of the Loan 

The Loan is used for the purpose of working capital (used to
purchase the raw materials like wood, paraffin wax, etc. and equipment
components and spares). 

Article 3 Term of the Loan 

The term of the Loan contemplated hereunder is 12
months, commencing from April 30, 2011 and ending on April 29,
2012. 

During the term of this Contract, the actual granting day and
due day hereunder shall be subject to the Loan Receipt. The Loan Receipt and the
Withdrawal Evidence shall be an integral part of this Contract and legally
authentic to this Contract. 

Article 4 Loan Interest Rate, Default Interest Rate and
Calculation & Settlement of Interests 

1. Loan Interest Rate 

The interest rate of the Loan hereunder is 0.8715 % (on a
yearly/monthly basis), which is i) detailed below: 

(1) fixed interest rate, i.e. the interest rate hereunder
remains unchanged even in case of adjustment of state interest rate within the
effective term of this Contract; 

(2) floating interest rate, i.e. increase/decrease by ___%
based on the benchmark rate, from the value day, in case of change of benchmark
interest rate, Party B will make corresponding adjustment according to the
regulations of the People’s Bank of China and it is not necessary to sign a
contract or obtain Party A’s consent otherwise for such purpose. 

2. Default Interest Rate 

(1) If Party A fails to use the Loan for the purpose as
specified herein, the default interest rate shall be increased by 100%
based on the interest rate as stated in this Contract; 

(2) If Party A’s Loan hereunder is overdue, the default
interest rate is increased by 50% based on the interest rate as stated in
this Contract; 

3. The “value day” hereof shall mean such day when the Loan
granted initially hereunder is deposited into Party A’s account. 

When the Loan is granted for the first time, the benchmark
interest rate is defined as the interest rate of the loan at the same level as
issued by the People’s Bank of China on the value day; thereafter, when the
interest rate of the loan or default interest rate is adjusted according to
abovementioned provisions, the benchmark interest rate shall mean the interest
rate of the loan at the same level as issued by the People’s Bank of China on
the adjustment day; if no interest rate of the loan at the same level is issued
by the People’s Bank of China, the benchmark interest rate is the interest rate
of the loan generally accepted in the banking industry or at the same level,
except otherwise stated by the Parties. 

2 

4. The interest rate of the Loan shall be calculated from the
day when the Loan is deposited into Party A’s account. The Loan hereunder is
calculated the interest rate on a daily basis. The daily interest rate = monthly
interest rate/30 = annual interest rate / 360. If Party A fails to pay the
interests in schedule, the compound interest will be collected from the next
day. 

5. Settlement of Interests 

(1) As for the Loan subject to the fixed interest rate, upon
settlement of interests, the interests shall be calculated as per the specified
interest rate. As for the Loan subject to the floating interest rate, the
interests shall be calculated according to the interest rate determined
according to the floating period; If there are several floating interest rates
in a single settlement period, it is required to first calculate the interests
of each floating period, and then calculate the interests during the interest
settlement period based on the sum of the interest rates in different floating
periods on the interest settlement day. 

(2) The Loan hereunder will be settled the interests on a
quarterly basis. The interest settlement day is generally the
20th day of (each month/the last month of a quarter). 

Article 5 Granting and Payment of the Loan 

1. Prior Conditions for Granting of the Loan 

(1) Except entire or partial waiving by Party B, Party B is
obliged to grant the Loan, provided, however, that: 

a) Party A has completed the legal formalities for approval,
registration, delivery and others relating to the Loan hereunder, in accordance
with the applicable regulations. 

b) If any guaranty is set up hereunder, the guaranty contract
to the satisfaction of Party B or other guaranty mode has become effective; 

c) In the course of application for the Loan, the Loanee has
provided the Loaner with all documents and materials as requested by the Loaner
and the documents and materials remain effective; 

d) Party A doesn’t fall within any of breaches as specified in
this Contract; 

e) If Party A adopts the trusted payment, Party A shall have
the formalities for application for withdrawal and trusted payment done and
provide relevant transaction materials consistent with the Loan purpose; if
Party A adopts the payment by itself, Party A shall handle the withdrawal
application and provide relevant materials and fund use plan consistent with the
Loan purpose; 

f) The competent authority fails to set up any restrictions on
or prohibits granting of the Loan hereunder; 

g) Party A shall open a settlement account as the fund custody
account at Party B; 

h) The prior conditions for granting of the Loan as specified
by the Parties: 

_______________________________________________________________________________________________________________________________________________ .

(2) Party B will, within seven legal working days after
satisfaction of said prior conditions, issue the Loan. 

2. Mode of Payment, Payment Amount and Payment Counterparty of
the Loan 

As for the single payment amounting to more than RMB300,000,
Party A adopts the payment by means of trusted payment. The Loanee irrevocably
authorizes or trusts the Loaner to pay the Loan to the Loanee’s counterparty
consistent with the specified purpose hereunder according to the withdrawal
application and payment trustment after the guaranty becomes effective (or is
filed). 

As for the single payment amounting to not more than RMB300,000
and with an undefined counterparty, Party A adopts the payment by itself. The
Loaner will directly deposit the Loan to the Loanee’s account according to the
withdrawal application and the Loanee will pay the Loan to the counterparty
consistent with the specified purpose hereunder. 

The specific amount of the Loan and the counterparty shall be
the payment amount and counterparty as designated in the Loanee’s withdrawal
application. The Loanee’s withdrawal application and the Letter of Authorization
for Payment are an integral part of this Contract and shall be equally authentic
to this Contract. 

3. Withdrawal Plan 

(1) On ________________, amount: ______________
(2) On
________________, amount: ______________

(3) On ________________, amount: ______________

3 

If Party A indeed delays the withdrawal date, Party A is
required to get consent of Party B ___ days before withdrawal and pay Party B
the loss of interests caused thereby (the interests for the period of delayed
withdrawal – interests for current deposit at the same period = loss of
interests incurred to the Loaner). 

Article 6 Repayment 

1. Repayment Principle 

The repayment amount of Party A hereunder shall be repaid
according to the following principles: 

(1) As for the Loan with the principal overdue for 90 day that
is not recovered, the Loan with the interests overdue for 90 days that is not
recovered, the Loan that is not due or that is overdue not exceeding 90 days,
but for which Party A has stopped its operations or production or the projects
are stopped, or the Loan for which the laws or regulations have otherwise
specified, it is subject to the principle of “first repaying the principal and
then repaying the interests thereof”. 

(2) As for the Loan other than those specified in item i), it
is subject to the principle of “first repaying the interests and then repaying
the principal and the interests to be cleared with the principal”. 

2. Payment of Interests 

Party A shall pay the interests due to Party B on the interest
settlement day. The initial interest repayment day shall be the first interest
settlement day after granting of the Loan. Upon the last repayment, the
interests shall be cleared with the principal. 

3. Repayment Plan 

Party A shall repay the principal of the Loan according to the
following schedule: 

(1) On April 29, 2012, amount: RMB24,000,000

(2) On ________________, amount: ______________
(3) On ________________,
amount: ______________
(4) On ________________, amount: ______________

4. Repayment Mode 

(1) Party A shall, before the repayment day as contemplated
hereunder, deposit adequate amount payable at that period into the account
opened at Party B and repay the Loan by transfer, or on the repayment day as
specified herein, transfer the amount from any other account for repayment of
the Loan; if Party A fails to make repayment in schedule, Party B is entitled to
deduct the amount out of the deposit account opened at Party B and any of its
branches. This Article shall be deemed such irrevocable authorization by Party A
to Party B to directly deduct the principal and the interests thereof. 

(2) If Party A’s repayment account is registered for loss,
frozen, stopped payment, settled, or Party A needs to change the repayment
account, Party A shall go to Party B’s premises to handle the formalities for
repayment change. 

Before the change formalities are valid, if the original
repayment account has no adequate amount for transfer, Party A shall go to Party
B’s premises to handle the counter repayment procedures. Where Party A fails to
handle the formalities for change of repayment account in a timely manner or
fails to handle the counter repayment formalities in a timely manner, thereby
causing that the principal of the Loan and the interests thereof and other fees
incurred are not settled in schedule, Party A shall bear the liabilities for
breach of contract. 

5. Advanced Repayment 

(1) When Party A repays the interests of the Loan, it just
notifies Party B of the same in advance. 

(2) When Party A repays the principal of the Loan, it shall
file written application ___ legal working days in advance and after consent of
Party B, may repay all or part of the principal of the Loan in advance. 

If Party A repays the principal of the Loan in advance, Party A
agrees to pay Party B the penalties amounting to (advanced repayment amount x
__% x days in advance). 

If Party A repays the Loan by installments, in the event of
repayment of part of the principal of the Loan, Party A shall repay the amount
according to the sequence opposite to the repayment plan. After advanced
repayment, the Loan that is not repaid yet shall be subject to the interest rate
as specified in this Contract. 

4 

6. Extension or Delay of the Loan 

(1) Party A shall make repayment in schedule. If Party A needs
to extend or delay the repayment schedule, Party A shall file an application for
such purpose within 30 days before the Loan is due. Party B will carry out the
credit extension review of Party A according to Party A’s application and after
consent of Party B, handle the formalities for extension or delay. 

(2) After Party B agrees to handle the formalities for
extension or delay, the term of the Loan and the term of guaranty shall remain
effective until the principal of the Loan and the interests thereof are cleared
or postponed accordingly. 

(3) If Party B objects extension, Party A
shall repay the principal of the Loan and the interests thereof pursuant to this
Contract. 

Article 7 Loan Guaranty 

The guaranty mode of the Loan hereunder is SURETY. 

Article 8 Party A’s Rights and Obligations 

1. Party A’s Rights 

(1) Request Party B to grant the Loan under the terms of this
Contract; 

(2) Use the Loan for such purpose as specified in this
Contract; 

(3) Under such conditions as required by Party B, apply to
Party B for extension or delay of the Loan; 

(4) Request Party B to keep confidential relevant financial
documents and commercial secrets relating to the production and operation as
provided by Party A, except otherwise regulated by the laws and regulations;

2. Party A’s Obligations 

(1) As requested by Party B, provide such materials relating to
the financial and accounting and production and operation; being liable for
authenticity, completeness and effectiveness of the materials as provided; 

(2) Use the Loan for the purpose as specified in this Contract;
being prohibited from occupying, embezzling or using them for such investment
like fixed assets and equities; being prohibited from using them in the field or
for such purpose as prohibited for production and operation by the state; 

(3) In case of trusted payment, handle the formalities for
withdrawal application and payment trustment at Party B and, under such
circumstance, Party B shall pay the Loan to the Loanee’s counterparty consistent
with the purpose as specified in this Contract; 

(4) The Loanee shall designate a special fund recovery account
and provide the outflow and inflow of the funds in such account in a timely
manner; 

(5) Party A undertakes to cooperate Party B with the management
of the payment of the Loan and post-loan management and relevant check and in
case of any major adverse matter that affects repayment ability, shall inform
Party B of the same in a timely manner; 

(6) In case of repayment by the Loanee, Party A shall regularly
summarize and report the payment of the Loan and shall, as requested by Party B,
provide the fund use records and materials in a timely manner; 

(7) Take initiative to cooperate with Party B and actively
accept Party B’s check and supervision of its operation and production,
financial activities and use of the Loan hereunder; 

(8) Has the consistent operating ability and legal repayment
sources and repay the principal of the Loan and the interests thereof in
schedule under the terms of this Contract; 

(9) Party A and its investors shall not draw or escape or
transfer their assets to avoid the debts to Party B; 

(10) Before repayment of the principal of the Loan and the
interests thereof, without consent of Party B, being prohibited from providing
any guaranty to any third parties by using the assets generating from the Loan
hereunder; 

(11) Within the effective term, if Party A provides guaranty
for others’ debts, which may affect the repayment ability hereunder, it is
required to inform in writing Party B of the same in advance and obtain Party
B’s consent; 

(12) If the guarantor hereunder is shut down, goes out of
business, is cancelled registration, is revoked the Business License, is
bankrupt, is cancelled the operation qualification, or is in the red, thus
losing the guaranty ability corresponding to the Loan entirely or partially, or resulting
in reduction of the value of the pledged properties, accidental damage or loss,
Party A shall provide other guaranty as recognized by Party B in a timely
manner; 

5 

(13) Within the effective term of this Contract, Party A shall
inform Party B of any change of Party A’s name, legal representative or person
in charge, address, operation scope or registered capital, etc. in a timely
manner; 

(14) Within the effective term of this Contract, if Party A
falls within such acts as external investment, substantial increase of debt
financing, contracting, leasing, transfer of equities, reforming of stock
system, joint operation, M&A, separation, joint venture, application for
shutdown, application for dissolution, application for bankruptcy, which
adequately affect realization of Party B’s creditor’s rights, Party A shall,
upon a prior 15-day written notice to Party B, inform Party B of the same and
obtain Party B’s consent and shall, as requested by Party B, exercise the
settlement and guaranty of the debts hereunder; 

(15) Within the effective term of this Contract, if Party A is
shut down, goes out of business, is revoked registration, is revoked the
Business License, or its legal representative or person n charge is involved in
the illegal activities or relates to any gross lawsuit activity, or Party A has
difficulty in production and operation and Party A’s financial status is
aggravating, thus substantially affecting its repayment obligations adversely,
Party A shall immediately notify Party B of the same and shall, as requested by
Party B, exercise the settlement and guaranty of the debts hereunder; 

(16) Bear the fees for attorney’s service, insurances,
evaluation, registration, custody, verification, notarization, etc. in
connection with this Contract and/or the guaranty hereunder. 

Article 9 Party B’s Rights and Obligations 

1. Party B’s Rights 

(1) Know Party A’s production and operation and financial
activities and request Party A to provide relevant plan & statistics and
financial statements, etc.; 

(2) As for the payables to Party B hereunder, deduct such
payables out of the account opened at Party B and any of its branches; 

(3) Designate a dedicated fund recovery account and if
necessary, monitor such account and take back the Loan in advance according to
the fund recovery situations; 

(4) In the course of payment of the Loan, if Party A’s credit
declines, Party A’s main business ability is weak or Party A’s use of the Loan
is abnormal, supplement the conditions for granting and payment of the Loan,
change the mode of payment of the Load and stop the granting and payment of the
Loan. 

2. Party B’s Obligations 

(1) Grant the Loan in full amount and in a timely manner under
the terms of this Contract, except for delay for any reason attributable to
Party A; 

(2) Keep confidential the financial materials and production
& operation information as provided by Party A, unless otherwise specified
by the laws and regulations. 

Article 10 Liabilities for Breach of Contract 

1. Breach Circumstances (1) Party A’s Breach of Contract 

In case of any or more of the following circumstances
hereunder, Party A is deemed breach of this Contract: 

a) Fail to follow or perform any of its commitments,
warranties, obligations or responsibilities hereunder fully or adequately; 

b) Fail to provide, as requested by Party B, true, complete and
effective financial statements and operation & production situations, etc.
or hide any critical facts; 

c) Fail to use the Loan as agreed upon by the Parties; 

d) Fail to pay the Loan in such matter as specified in this
Contract; 

e) Break through the restrictions on the financial indices as
specified; 

f) Fall within any gross cross breach event; 

6 

g) Fail to repay the principal of the Loan and the interests
thereof in schedule; 

h) Decline or hamper Party B’s supervision and check of the use
of the Loan; 

i) Transfer the assets, draw and escape the funds, in order to
escape from the debts; 

j) The operations and financial status are aggravating, thus
failing to clear the due debts, or involving or being about to involving any
lawsuit or arbitration proceedings and other legal disputes, in Party B’s
opinion, they may affect or have affected Party B’s rights and interests
hereunder; 

k) Any other debt burden by Party A may affect or has affected
Party B’s performance of its obligations hereunder; 

l) Party A is in the red or behind in payment of the principal
of any loan and the interests thereof of any other institution; 

m) Party A’s legal representative or person in charge is dead
or declared dead, missing, or becoming the person whose civil acts are limited
or lost, in Party B’s opinion, which may affect or damage or have affected or
damaged Party B’s rights and interests hereunder; 

n) The Loanee or its legal representative, shareholder or
contributor, etc. is suspected of involvement in any illegal activity or
criminal case; 

o) Within the effective term of this Contract, in case of any
act of changing the operation mode or transferring the operation system like
contracting, leasing, M&A, joint venture, separation, joint operation,
reforming of stock system, etc., in Party B’s opinion, which may affect or have
affected Party B’s rights and interests hereunder; 

p) Other circumstances, in Party B’s opinion, affecting
realization of Party B’s creditor’s rights; 

q) Breach of other obligations as specified in this Contract.

(2) If the guarantor falls within any of the following
circumstances and Party A fails to provide any new guaranty to the satisfaction
of Party B, it will be deemed breach of contract: 

a) The guarantor falls within contracting, leasing, M&A,
joint venture, separation, joint operation, reforming of stock system,
bankruptcy, revocation, etc., which affect the joint and several guaranty
liabilities of the guarantor; 

b) The guarantor provides such guaranty exceeding its burden
ability to any third party;

c) The guarantor loses or may lose the guaranty ability;

d) Other breach circumstances as specified in the guaranty
contract.

(3) If the mortgagor falls within any of the following
circumstances and Party A fails to provide any new guaranty to the satisfaction
of Party B, it will be deemed breach of contract: 

a) The mortgagor fails to handle the insurances for the
mortgaged properties, or after occurrence of any insurance accident, fails to
handle the insurance compensations in accordance with the terms of the mortgage
contract concerned; 

b) In case of damage to, loss or devaluation of the mortgaged
property for any reason attributable to any third party, the mortgagor fails to
handle the insurance compensations in accordance with the terms of the mortgage
contract concerned; 

c) Without written consent of Party B, the mortgagor donates,
transfer, leases or repeats the mortgage of, transfers or otherwise disposes of
the mortgaged properties; 

d) After consent of Party B, the mortgagor disposes of the
mortgaged properties; however, the amount from disposal of the mortgaged
properties is not handled according to the mortgage contract concerned; 

e) In case of damage to or loss or devaluation of the mortgaged
properties, which affects the clearance of the debts hereunder, the mortgagor
fails to recover the value of the mortgaged properties in a timely manner or
fails to provide other guaranties as recognized by Party B; 

f) Other breach circumstances as specified in the mortgage
contract concerned. 

(4) If the pledgor falls within any of the following
circumstances and Party A fails to provide any new guaranty to the satisfaction
of Party B, it will be deemed breach of contract:

a) The pledgor fails to handle the insurances for the pledged
properties, or after occurrence of any insurance accident, fails to handle the
insurance compensations in accordance with the terms of the pledge contract
concerned; 

7 

b) In case of damage to, loss or devaluation of the pledged
property for any reason attributable to any third party, the pledgor fails to
handle the insurance compensations in accordance with the terms of the pledge
contract concerned; 

c) After consent of Party B, the pledgor disposes of the
pledged properties; however, the amount from disposal of the pledged properties
is not handled according to the pledge contract concerned; 

d) In case of damage to or loss or devaluation of the pledged
properties, which affects the clearance of the principal of the Loan and the
interests thereof hereunder, the mortgagor fails to recover the value of the
pledged properties in a timely manner or fails to provide other guaranties as
recognized by Party B; 

e) Other breach circumstances as specified in the pledge
contract concerned. 

(5) If the guaranty contract or other guaranty is not effected,
is invalid or is cancelled, or the guarantor falls within other circumstances of
loss of all or part of its guaranty ability or rejects to perform the guaranty
obligations, Party A fails to exercise any new guaranty to the satisfaction of
Party B, it is deemed breach by Party A of this Contract. 

2. Remedies In case of any of breach events as described in
items (1) ~ (5), Party B is entitled to exercise one or more of the following
rights: 

1) Terminate this Contract in advance, stop the Loan not
granted yet, stop the granting and payment of the Loan, announce that the Loan
is immediately terminated and request Party A to immediately repay the principal
of the debts due and not due and the interests thereof and other fees incurred
caused thereby. 

2) Collect the penalties as per ___‰ of the principal of the
Loan. 

3) If Party A fails to use the Loan for such purpose as
specified in this Contract, as for the part embezzled by Party A, collect the
interests and compound interests as per the default interest rate and interest
settlement mode hereunder from the day upon use of the Loan for such purpose as
specified in this Contract to the day upon clearance of the principal of the
Loan and the interests thereof. 

4) Before the Loan is mature, the interests not repaid in a
timely manner are subject to the compound interests according to the interest
rate of the Loan and interest settlement mode as specified in Article 4 hereof.

5) After the Loan is overdue, as for the principal of the Loan
and the interests thereof not cleared by Party A in schedule (including the
principal of the Loan and the interests thereof mature in advance as declared by
Party B), the interests and compound interests will be collected according to
the interest settlement mode as specified in this Contract, from the overdue day
to the day upon clearance of the principal of the Loan and the interests
thereof. The term “overdue” hereof shall mean such act that Party A fails to
repay the Loan in schedule or according to the installments as specified in this
Contract. 

6) If the Loaner needs to realize its creditor’s rights by
means of lawsuit or arbitration due to Party A’s breach of contract, Party A
shall pay Party B such fees for realization of the creditor’s rights incurred by
Party B like legal costs, arbitration fees, public notification fees, demanding
fees, attorney’s fees, inquiry fees, traveling fees, etc. 

7) Deduct the amount out of the account opened by Party A at
Party B and any of its branches to repay the principal of the Loan and the
interests thereof and other fees to be borne by Party A under the terms of this
Contract. 

8) Request Party A to provide any new guaranty to the
satisfaction of Party B for all of the debts hereunder. 

9) Perform the guaranty rights and exercise the security
interest. 

10) Terminate this Contract. 

Article 11 Custody of Funds in the Account 

Party A hereby designates the account (account name: Qian Xi
Nan Aosen Forestry Company, Limited, account number:
2881010001201100024254, bank: the Operation Department of Guizhou
Xingyi Rural Cooperative Bank) opened at Party B as the custody account.
Party B is responsible for supervising the use of the Loan by Party A pursuant
to this Contract. Party A shall report in time the outflow and inflow of the
fund in this account. It is required to first use the Loan in respect of the use
of the fund in the custody account, after completion of the Loan, the remaining
funds shall be paid and settled in accordance with the Measures for the
Administration of the Payment and Settlement of the People’s Bank of China. 

8 

Article 12 Special Provisions on Trusted Payment by the
Loanee 

In the case of trusted payment by the Loanee as specified by
the Parties, Party A will irrevocably authorize or trust the trusted payment to
Party B. Party A shall be liable for authenticity, accuracy and legality of the
name, account number and bank information of the counterparty as provided by
Party B. 

Party B is entitled to review the Loanee’s conditions according
to the requirements for trusted payment, and has the right to request the Loanee
to provide corresponding documentation and to provide the inflow and outflow of
the current fund custody account. 

Article 13 Miscellaneous 

(1) In case of trusted payment, Party B shall make payment
according to Party A’s withdrawal application and the Letter of
Authorization for Payment of Loan. Party B assumes no liabilities for payment
error attributable to Party A or economic dispute between Party A and any
third party; Party A shall undertake any and all of legal liabilities
caused thereby. 

(2)
_______________________________________________________________________________________________________________________________-.

Article 14 Dispute Resolution 

Any disputes arising out of or in connection with this
Agreement shall be settled through mutual consultations between the Parties, if
no agreement is reached through consultations, such disputes will be settled by
means of 1 below: 1. To file a suit in the Party B’s local people’s
court; 2. To be submitted for arbitration to ____________Arbitration Commission.

During the litigation or arbitration, the terms that don’t
involve disputes still need to be performed. 

Article 15 Validity 

This Contract shall become effective after signature and seal
of the Parties. 

Article 16 This Contract is prepared in three
copies, each of which shall be held by Party A, Party B and the Guarantor
respectively and shall have the same legal effects. 

	THE LOANEE HAS CAREFULLY READ ALL OF THE TERMS AND
      CONDITIONS ABOVEMENTIONED. THE LOANER HAS EXPLAINED THE TERMS AND
      CONDITIONS HEREIN CONTAINED, AS REQUESTED BY THE LOANEE, HAS
      PERFORMED THE OBLIGATIONS OF REASONABLE PROMPTING AND INSTRUCTIONS.
      THE LOANEE HAS FULLY KNOWN THEIR MEANING AND FILED NO OBJECTION
      AGAINST THE CONTENTS OF THIS CONTRACT. 

	Loanee (seal): Qian Xi Nan Aosen Forestry
      Company, 	Loaner (seal): Guizhou Xingyi Rural
      Cooperative Bank 
	Limited 	  
	  	Legal Representative (Person in Charge) 
	Legal Representative (Person in Charge) 	or Authorized Person (signature or seal):

	or Authorized Person (signature or seal):
    	 
    
	  	Handled by: Feng Lijiang 
	  	  
	April 30, 2011 	April 30, 2011 

9

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