Document:

Unassociated Document

     

    Contract
No.: 64720092502010004

     

    
      
        	
                Mortgagor
      (Party A): Zhejiang Changxing Ruilang Electronic Co.,
  Ltd.

              
	 
      	 
      
	
                Location:
      Changxing Economic Development Zone

              	
                Postcode:
      313100

              
	 
      	 
      
	
                Legal
      representative (principal): Xu Keyong

              	 
      
	 
      	 
      
	
                Fax:         6030427

              	
                Telephone:
      6052666

              

      

    

     

    Mortgagee
(Party B): China Construction Bank Changxing Sub-branch

     

    
      
        	
                Location:

              	
                Postcode:
      313100

              
	 
      	 
      
	
                Principal:
      Wang Wei

              	 
      
	 
      	 
      
	
                Fax:

              	
                Telephone:
      6024028

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Whereas,
Party B continues to conduct financing business of the following (1) for Changxing Chisen Electric
Co., Ltd. (herein after referred to as “Borrower”) and, from January 12,
2010 to January 11, 2013 (hereinafter referred to as “definite period of
Lender’s rights”), will conclude or has concluded RMB loan contract, foreign
exchange loan contract, bank acceptance contract, contract for establishment of
L /C, contract for issuance of L/G and/or other legal instruments (the said
contract, agreement and/or other legal instrument concluded during the definite
period of Lender’s rights are hereinafter referred to as “master
contract”).

     

    (1)
Issuing RMB/ foreign currency loan;

     

    (2)
Accepting commercial bill;

     

    (3)
Establishing L/C;

     

    (4)
Issuing L/G;

     

    (5) Other
credit-giving business:                                      .

     

    Party A
is willing to provide mortgage guarantee of maximum amount for the debts of the
Borrower under master contract. In accordance with relevant laws and
regulations, Party A and Party B conclude the contract through negotiation and
promise to abide by and carry out.

     

    Article
1  Collateral

     

    
      	
              1.

            	
              Party
      A set mortgage with the property listed in “List of collateral”
      hereof.

            

    

     

    
      	
              2.

            	
              In
      the event that renewal of ownership or other title certificate of
      collateral of the collateral causes the “List of collateral” hereof or
      other title (right or mortgage) certificate accepted by Party B to be
      inconsistent with new title certificate or relevant records in the
      register of registration authority, Party A may not refuse to undertake
      guarantee liabilities hereby.

            

    

     

    
      	
              3.

            	
              Except
      as otherwise agreed by Party A and Party B or stipulated by law, the
      property newly added to the collateral due to annexing, mixing, processing
      and rebuilding will be taken as the mortgage guarantee of the Lender’s
      rights of Party B, and Party A shall carry out necessary mortgage
      registration as required by Party
B.

            

    

     

    
      	
              4.

            	
              If
      the value of collateral has or may decrease and this will impact the
      realization of Lender’s rights by Party B, Party A shall provide new
      guarantee as required by Party B.

            

    

     

    Article 2  Scope of
mortgage guarantee and the maximum amount of Lender’s rights

     

    
      	
              1.

            	
              The
      guarantee scope of the mortgage of maximum amount includes all debts under
      master contract, including but without limitation all principals,
      interests (including compound interest and penalty interest), liquidated
      damages, compensation, other amounts payable to Party B by the Borrower
      (including but without limitation relevant handling charges,
      telecommunications fees, miscellaneous expenses and relevant banking
      charges repudiated by the beneficiary of L/C which have been paid by Party
      B in advance), expenses accrued to Party B for the realization of Lender’s
      rights and rights to guarantee (including but without limitation
      litigation costs, arbitration fees, property security expenses, travel
      costs, expenses of execution, appraisal costs, auction fees, notary fees,
      delivery fees, charges for announcement and legal
  fees).

            

    

     

    
      	
              2.

            	
              The
      maximum amount of guarantee liabilities under the mortgage herein is
      (currency) RMB (amount) 44,000,000.00.
      If Party A fulfills guarantee liabilities according to this Contract, the
      said maximum amount will be reduced correspondingly by fulfilled
      amount.

            

    

     

    
      	
              3.

            	
              The
      loans, advances, interests, expenses or any other Lender’s rights of Party
      B under master contract will still fall within the guarantee scope of the
      mortgage of maximum amount, even though their actual occurrence time
      exceeds the definite period of Lender’s rights. The deadline of performing
      the debts under master contract will not be subject to the expiration of
      the definite period of Lender’s
rights.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Article
3  Registration of the collateral

     

    Both
parties shall, within
5 working days after the conclusion of this Contract, carry out mortgage
registration before corresponding registration authority. Party A shall, at the
date of completion of mortgage registration, delivery to Party B the originals
of certificate of other rights, mortgage registration document and other right
certificates of the collateral.

     

    Article
4  Alteration of master contract

     

    
      	
              1.

            	
              Party
      A agrees that Party B and the Borrower, while concluding master contract
      or alter it (including but without limitation renewal of the period of
      repaying debts, or increase of the principal of Lender’s rights), need not
      to notify Party A and that Party A shall still undertake guarantee
      liabilities within the maximum amount and guarantee scope as specified
      herein.

            

    

     

    
      	
              2.

            	
              Change
      of party hereto

            

    

     

    The
guarantee liabilities of Party A will not be mitigated due to any one of the
following events:

     

    
      	 	
              (1)

            	
              Restructuring,
      consolidation, merger, division, increase or decrease in capital, joint
      venture, joint operation, change of name of Party B or the
      Borrower;

            

    

     

    
      	 	
              (2)

            	
              Party
      B entrusts a third party to fulfill its obligations under master
      contract;

            

    

     

    
      	
              3.

            	
              In
      case the Lender’s rights under master contract are transferred to a third
      party, the guarantee hereunder will be transferred therewith and Party A
      shall assist Party B and such third party in carrying out the registration
      of changing mortgage as stipulated by
law.

            

    

     

    
      	
              4.

            	
              In
      case the transfer of Lender’s rights or debts under master contract is
      ineffective, invalid, revoked or rescinded, Party A shall still undertake
      guarantee liabilities to Party B as specified
  herein.

            

    

     

    Article
5  Possession and custody of collateral

     

    
      	
              1.

            	
              Party
      A shall possess, maintain and use the collateral properly, keep it in good
      condition and pay all taxes related to it on schedule. Party B has the
      right to inspect the collateral and may require Party A hand over the
      original of its title certificate to Party B for
  custody.

            

    

     

    
      	
              2.

            	
              In
      case Party A entrusts or allows a third party to possess, keep and use the
      collateral, it shall notify such third party of the right to mortgage of
      Party B concerning the collateral, and require it to keep the collateral
      in good condition, accept Party B’s inspection and not to prevent Party B
      to realize the right to mortgage. Party A shall not be exempted from the
      liabilities described in the preceding clause and be liable for the acts
      of such third party.

            

    

     

    
      	
              3.

            	
              The
      personal injury or property damage arising out of the collateral shall be
      undertaken by Party A. If Party B bears liability for the claim therefore
      or pay compensation for Party A, Party B has the right to recover from
      Party A.

            

    

     

    Article 6  Insurance
of collateral

     

    
      	
              1.

            	
              Except
      as otherwise agreed by both parties hereto, Party A shall arrange and
      maintain insurance for the collateral by law and according to insurance
      coverage, period, and amount appointed by Party B. The insurer shall have
      legal qualification and good
reputation.

            

    

     

    
      	
              2.

            	
              The
      content of insurance policy shall conform to the requirements of Party B
      and any restrictive condition that damages Party B’s rights and interests
      may not be added. Insurance policy shall state specially: Party B is the
      preferred indemnified party (the first beneficiary) of insurance
      compensations; the change of insurance policy shall be subject to the
      written consent of Party B; in case of insurance risk, insurer shall
      transfer directly insurance compensations to the account appointed by
      Party B. If the collateral has been insured but the above-mentioned
      contents have not noted thereon, the insurance policy shall be annotated
      or altered correspondingly.

            

    

     

    
      	
              3.

            	
              Party
      A shall ensure insurance remains in force, and may not cause insurance to
      be disrupted, cancelled or invalid with any reason, or not cause insurer
      to mitigate liability for compensation, or not change insurance policy
      without party B’s consent. If the period of insurance expires and if the
      Lender’s rights guaranteed by Party A have not been repaid fully, Party A
      shall renew the period of insurance
  correspondingly.

            

    

     

    
      	
              4.

            	
              Party
      A shall, within 5 working days
      as of the conclusion of this Contract (in case the insurance of the
      collateral is renewed, as of the date of renewal), deliver to Party B the
      original of insurance policy of the collateral and keep in Party B’s
      address the documents related to insurance claim or necessary for the
      transfer of insurance interest.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              5.

            	
              In
      respect of the insurance compensation concerning the collateral, Party B
      has the right to dispose of by the following ways and Party A shall assist
      in carrying out relevant
procedures:

            

    

     

    
      	 	
              (1)

            	
              Using
      to repair the collateral to restore its value with Party B’s
      consent;

            

    

     

    
      	 	
              (2)

            	
              Repaying
      or repaying in advance the principals, interests and relevant expenses of
      the debts under master contract;

            

    

     

    
      	 	
              (3)

            	
              Proving
      pledge guarantee for the debts under master
  contract;

            

    

     

    
      	 	
              (4)

            	
              Disposing
      of by Party A at liberty if Party A provides new guarantee satisfactory to
      Party B.

            

    

     

    Article
7  Limitation on Disposing of the collateral by Party
A

     

    
      	
              1.

            	
              Without
      Party B’s written consent, Party A may not dispose of the collateral by
      any way, including but without limitation waiver, lease (including the
      renewal of previous leasing contract), donation, transfer, contribution,
      repeated guarantee, displacement, change into public use, annex with other
      buildings, rebuilding, partition.

            

    

     

    
      	
              2.

            	
              With
      Party B’s written consent, the prices or other amounts obtained from the
      disposal of the collateral by Party A shall be deposited into the account
      appointed by Party B. Party B has the right to dispose of the collateral
      by any way described in Paragraph (2), (3) and (4) of Clause 5 of Article
      6 hereof, and Party A shall assist in carrying out relevant
      procedures.

            

    

     

    Article
8  Interference from third party

     

    
      	
              1.

            	
              If
      the collateral is levied, expropriated, demolished, confiscated, retaken
      without compensation, or seized, frozen, detained, supervised, created
      with lien, auctioned, occupied forcibly, destructed, or disposed of
      otherwise by a third party, Party A shall notify Party B promptly and take
      measures to prevent, exclude or remedy to prevent further loss; Party A
      shall, at the request of Party B, provide new guarantee satisfactory to
      Party B.

            

    

     

    
      	
              2.

            	
              The
      remaining part of the collateral after the occurrence of the events in
      preceding clause shall still be taken as the mortgage guarantee of the
      Lender’s rights of Party B. The indemnification or compensation Party A
      obtains for the above reasons shall be deposited into the account
      appointed by Party B. Party B has the right to dispose of the collateral
      by any way described in Paragraph (1), (2), (3) and (4) of Clause 5 of
      Article 6 hereof, and Party A shall assist in carrying out relevant
      procedures.

            

    

     

    Article
9  Realization of right to mortgage

     

    
      	
              1.

            	
              If
      the Borrower fails to fulfill the debts due and payable under master
      contract or the debts announced due and payable in advance or violates
      other provisions under master contract, Party B has the right to dispose
      of the collateral.

            

    

     

    
      	
              2.

            	
              The
      value recorded in List
      of collateral hereof or agreed otherwise by both parties
      (hereinafter referred to as “provisional value”), whether recorded in the
      register of registration authority, may not represent the final value of
      the collateral. The final value shall be the net amount of the prices
      obtained from disposal of the collateral by Party B minus all
      taxes.

            

    

     

    If the
collateral is used to set off the Lender’s rights of Party B, the said
provisional value will not be taken as the basis of setting off the Lender’s
rights of Party B with the collateral, and the value of the collateral will be
appraised and confirmed by Party A and Party B through negotiation or fairly by
law.

     

    
      	
              3.

            	
              The
      prices from disposal of the collateral by Party B shall, after paying the
      expenses incurred during realization or auction (including but without
      limitation custody charges, appraisal fees, auction charges, transfer
      fees, taxes, transfer fee of national land use right), be used with
      preference to pay off the debts under master contract, and the remaining
      will be returned to Party A.

            

    

     

    
      	
              4.

            	
              If
      Party A and the Borrower are the same one, Party B may apply for forcible
      execution against the property other than the collateral of Party A,
      provided that Party B may not waive the right to mortgage or dispose of
      the collateral first.

            

    

     

    
      	
              5.

            	
              Party
      A may not prevent Party B from realizing the right to mortgage in any way
      (including acts or omissions).

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              6.

            	
              Whether
      Party B has other guarantee (including but without limitation guarantee,
      mortgage, pledge, L/G, stand-by L/C) for the Lender’s rights under master
      contract, whether the said other guarantee will be established or valid at
      any time and whether Party B lodges claim against other guarantor, whether
      there is a third party willing to undertake the debts under master
      contract in whole or in part, whether other guarantee is provided by the
      Borrower, the guarantee liabilities of Party A hereunder may not be
      mitigated; Party B may require directly Party A to undertake guarantee
      liabilities within its guarantee scope as specified herein and Party A
      will not put forward any objection.

            

    

     

    
      	
              7.

            	
              If
      the maximum amount of the guarantee liabilities hereunder is lower than
      the balance of actual debts under master contract, and if the Lender’s
      rights under master contract have not been paid off fully after Party A
      undertakes guarantee liabilities, Party A undertakes that it will claim
      (including exercise in advance) right of subrogation or right of recourse
      against the Borrower or other guarantors and not cause any damage to Party
      B’s rights and interests and agrees that the discharge of the debts under
      master contact has precedence over the realization of the right of
      subrogation or right of recourse of Party
A.

            

    

     

    Concretely
speaking, before the Lender’s rights of Party B are paid off fully,

     

    
      	
            	
              (1)

            	
              Party
      A agrees not to claim right of subrogation or right of recourse against
      the Borrower or other guarantors; if the prices obtained from any disposal
      of the collateral are settled, Party A shall assist in carrying out
      relevant procedures.

            

    

     

    
      	
            	
              (2)

            	
              If
      the right to mortgage fails to be created effectively or the value of the
      collateral decrease or Party B fails to realize the right to mortgage
      promptly or fully because of Party A, and if Party A and the Borrower are
      not the same one, Party B has the right to require Party A to undertake
      joint and several liabilities to the debts and the Borrower within the
      guarantee scope specified herein.

            

    

     

    Liabilities
for breach of Party B

     

    If Party
B loses the title certificate of the collateral delivered by Party A due to
Party B’s fault; or Party B, after the completion of discharge f the debts under
master contract, fails to return the title certificate of the collateral in time
or, after application of Party A, fails to assist in carrying out the procedures
for nullifying mortgage registration by law, Party A has the right to take one
or more of the following measures:

     

    
      	 	
              (1)

            	
              Requiring
      Party B to bear the expenses of post-registering the title certificate of
      the collateral;

            

    

     

    
      	 	
              (2)

            	
              Requiring
      Party B to postpone returning the title certificate of the collateral or
      assisting Party B in carrying out the procedures for nullifying mortgage
      registration.

            

    

     

    Article
11  Miscellaneous

     

    
      	
              1.

            	
              Assumption
      of fees

            

    

     

    All
expenses related to this Contract and the collateral hereunder (including but
without limitation possession, management, disposal, registration, notarization,
insurance, transportation, storage, custody, appraisal, repair, maintenance,
auction, transfer, etc.) shall be borne by Party A, except as otherwise agreed
by both parties.

     

    
      	
              2.

            	
              Deduction
      of payables

            

    

     

    In
respect of all payables of Party A hereunder, Party B has the right to deduct
relevant payables in RMB or other currency from the account Party A opens in
China Construction Bank without a prior notification to Party A. In case of the
transaction of exchange settlement and sales or foreign exchange trading, Party
A is liable to assist Party B in carrying out and the exchange rate risk shall
be borne by Party A.

     

    
      	
              3.

            	
              Use
      of Party A’s information

            

    

     

    Party A
agrees Party B to inquire Party A’s credit standing before the credit database
authorized by People’s Bank of China and credit consulting competent authority
or other relevant unit or department and to provide Party A’s information to the
credit database authorized by People’s Bank of China and credit consulting
competent authority. Party A also agrees that Party B may use and disclose Party
A’s information reasonably due to business.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              4.

            	
              Announcement
      and collection

            

    

     

    In
respect of Party A’s breach of contract, Party B has the right to report to
relevant department or unit and announce and collect through news
media.

     

    
      	
              5.

            	
              Evidentiary
      effect of Party B’s records

            

    

     

    Unless
there is reliable and affirmatory evidence, Party B’s internal financial records
about principals, interests, expenses and repayment, receipts and vouchers made
or kept by Party B concerning the withdrawal, repayment and interest payment of
the Borrower and the records and vouchers about Party B’s collection of loans
shall consist of the affirmatory evidence to certify effectively the
borrower-lender relationship under master contract. Party A may not lodge any
objection because the above-mentioned records, receipts and vouchers are made or
kept by Party B unilaterally.

     

    
      	
              6.

            	
              Reservation
      of rights

            

    

     

    Party B’s
rights hereunder may not impact or exclude any rights it may have in accordance
with laws and regulations and other contracts. Any tolerance, grace, preference
or postponement of any right hereunder for any default or delay shall not be
deemed as the waiver of the rights and interest hereunder or permit or approval
of any breach of this Contract, not impact, prevent or hamper the further
exercise of such right or the exercise of any other right, and not cause Party B
to undertake any liability and responsibility to Party A.

     

    Even
though Party B fails to exercise or defer exercising any right under master
contract or does not use up ay remedy under master contract, Party A’s guarantee
liabilities hereunder may be not mitigated therefore. However, if Party B
mitigate the debts under master contract, Party A’s guarantee liabilities
hereunder shall be mitigated correspondingly.

     

    
      	
              7.

            	
              If
      Party A is divided or dissolved, or enters into bankruptcy procedures, or
      is revoked or cancelled industry and commerce registration or business
      license, or the collateral is damaged, lost, infringed or out of Party A’s
      control, or the property right of the collateral is disputed or the title
      certificate is written off, Party A shall notify Party B
      promptly.

            

    

     

    
      	
              8.

            	
              Dissolution
      or bankruptcy of the Borrower

            

    

     

    Party A
shall, after knowing the Borrower has entered into dissolution or bankruptcy
procedures, notify promptly Party B of reporting Lender’s rights and participate
in the dissolution or bankruptcy procedures in time to exercise the right of
recourse in advance. If Party A fails to exercise the right of recourse in
advance promptly after it knows or shall know the Borrower has entered into
dissolution or bankruptcy procedures, its loss shall be borne by
itself.

     

    Notwithstanding
the provisions in Paragraph 2 of Clause 6 of this article, if Party B, during
the bankruptcy procedures of the Borrower, reaches a settlement agreement with
the Borrower or agrees to reorganization Plan and if Party B’s rights hereunder
will not be damaged due to such settlement agreement or reorganization plan,
Party A’s guarantee liabilities may not be mitigated. Party A may not oppose
Party B’s claims with such settlement agreement or reorganization plan. If Party
B fails to be paid off for such Lender’s rights as Party B has made concession
for to the Borrower in settlement agreement or reorganization plan, Party B
still has the right to require Party A to undertake guarantee
liabilities.

     

    
      	
              9.

            	
              Dissolution
      or bankruptcy of Party A

            

    

     

    In the
event of the dissolution or bankruptcy of Party A, even though the Lender’s
rights of Party B under master contract have not become due, Party B still has
the right to participate in the liquidation or bankruptcy procedures of Party A
to report rights.

     

    
      	
              10.

            	
              Where
      Party A’s address or contact way is changed, it shall notify Party B
      promptly in written. Any loss due to the failure of Party A to notify
      shall be borne by Party A.

            

    

     

    
      	
              11.

            	
              Other
      provisions

            

    

     

    Within the period of this
Contract, if the contracts and agreement and other legal instruments concluded
for the Lender’s rights and debts between Party B and the Borrower Changxing
Chisen Electric Co., Ltd. are not guaranteed by this Contract, they shall be
explained in such contracts and agreement and other legal
instruments.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              12.

            	
              Settlement
      of dispute

            

    

     

    Any
dispute arising out during the performance of this Contract may be solved
through negotiation. In case no settlement can be reached, the dispute may be
solved by the following 1 way. During
litigation or arbitration, the provisions uninvolved in dispute must be
continued.

     

    
      	 	
              (1)

            	
              Bring
      a lawsuit before the people’s court at Party B’s
  location.

            

    

     

    
      	
            	
              (2)

            	
              Submit
      to           
       Arbitration Commission (the place of arbitration is                
      ) for arbitration in accordance with rules in effect at the time of
      applying for arbitration. The arbitration award shall be final and binding
      upon both parties.

            

    

     

    
      	
              13.

            	
              Effectiveness
      of this Contract

            

    

     

    The
Contract shall come into force as soon as being signed or sealed by Party A’s
legal representative (principal) or authorized agent and Party B’s principal or
authorized agent.

     

    
      	
              14.

            	
              The
      Contract is in
      quadruplicate.

            

    

     

    Article 12  List of
collateral

     

    The list
of collateral hereunder is as follows:

     

    List of
collateral

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Name of

                              collateral

                            	 	
                              No. of

                              ownership

                              certificate

                              and other

                              certificates

                            	 	
                              Location

                            	 	
                              Area or

                              quantity

                            	 	
                              Value of

                              collateral

                              (10,000.00

                              yuan)

                            	 	 	
                              Amount of

                              mortgage set for

                              other Lender’s

                              rights

                            	 	
                              Remark

                            
	 
      	 	 	 	 
      	 	 
      	 	 	 	 	 	 	 
      
	
                              Real
      estate

                            	 	
                              00126627

                              00126762

                            	 	
                              Changxing
      Economic Development Zone

                            	 	
                              30307.92 m2

                            	 	 	3597.5501	 	 	 	0	 	 
      
	 
      	 	 	 	 	 
      	 	 
      	 	 	 	 	 	 	 	 	 
      
	
                              Land
      use right

                            	 	
                              C.T.G.Y
      

                              [2007]
      

                              No.1-1756

                            	 	
                              Changxing
      Economic Development Zone

                            	 	
                              59551.78 m2

                            	 	 	3007.3649	 	 	 	0	 	 
      

                    

                  

                

              

            

          

        

      

    

     

    Article
13  Statement and covenants of Party A

     

    
      	
              1.

            	
              Party
      A has a clear understanding of the business scope and authority of Party
      B.

            

    

     

    
      	
              2.

            	
              Party
      A has read all provisions under this Contract and master contract. At the
      request of Party A, Party B has made corresponding explanations for this
      Contract and master contract. Party A has understood thoroughly the
      meanings of all provisions under this Contract and master contract and
      relevant legal consequences.

            

    

     

    
      	
              3.

            	
              Party
      A is qualified for a guarantor legally. Party A’s guarantee acts hereunder
      comply with laws, administrative regulations, rules and the articles of
      association or internal organization documents of Party A and have also be
      authorized by the competent institution inside Party A and/or competent
      national authority. Party A shall bear all liabilities because Party A has
      no authority to sign this Contract, including but without limitation full
      compensation of the losses sustained by Party B
  therefore.

            

    

     

    
      	
              4.

            	
              Party
      A has full understood the assets, debts, operation, credibility, and
      reputation of the Borrower, the qualification of the Borrower to sign
      master contract and all contents of master
  contract.

            

    

     

    
      	
              5.

            	
              Party
      A has the ownership or right to dispose of the collateral by law. The
      collateral is not a public utility or not forbidden to be traded or
      transferred, and there is no dispute regarding its
    ownership,

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              6.

            	
              The
      collateral has no other co-owner, or although it has other co-owner, the
      mortgage guarantee hereunder has been permitted by such co-owner in
      written.

            

    

     

    
      	
              7.

            	
              The
      collateral has no such defect or encumbrance as has not been notified to
      Party B in written, including but without limitation the collateral is
      limited merchantable thing or is sealed up, detained, supervised, leased,
      kept or mortgaged, or there is any unpaid purchasing prices, maintenance
      fees, construction project prices, national taxes, transfer fees of land
      use right and damages, or the collateral has been created for guarantee by
      a third party.

            

    

     

    
      	
              8.

            	
              All
      data and information provided by Party A to Party B for the collateral are
      all true, valid and accurate.

            

    

     

    
      	
              9.

            	
              The
      provision of the mortgage guarantee hereunder by Party A will neither
      damage the legitimate rights and interest of any third party nor violate
      the legal and agreed obligations of Party
A.

            

    

     

    Party A
(common seal): Zhejiang Changxing Ruilang Electronic Co., Ltd.
(seal)

     

    Legal
representative (principal) or authorized agent (signature): /s/ Xu
Keyong

     

    January
12, 2010

     

    Party B
(common seal): China Construction Bank Changxing Sub-branch (seal)

     

    Principal
or authorized agent (signature): /s/ WangWei

     

    January
12, 2010

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ">Unassociated Document

    Contract
of Guarantee with a Maximum Amount

     

    (Natural
Person as a gurantor)

     

    Contract
No.: Changxing 2009
Ren Bao 032

     

    Guarantor
A: Xu
Kecheng

     

    Type of
the Identity Credential: ID card

     

    Number of
the Credential: 330522196208244514

     

    Domicile:
Changxing    Tel.:
6636111   Zip
Code: 313100

     

    Mobile:
                    
 Facsimile: 6267588

     

    Guarantor
B:                        

     

    Type of
the Identity Credential:                          

     

    Number of
the Credential:                                     

     

    Domicile:
                
 Tel.:                   
 Zip Code:                        

     

    Mobile:
                       
 Facsimile:                          

     

    Lender:
Bank of China Ltd. Changxing County
Sub-branch

     

    Legal
Representative: YAO
Beiyong

     

    Domicile:
No. 51 Jinling South
Road   Zip Code: 313100

     

    Tel.:
6026438                                                
               Facsimile:
6029905

     

    In order
to guarantee the fulfillment of the debt under the Master Contract as specified
in Article 1 hereof, the Guarantor is willing to provide guarantee to Lender.
Both Parties hereby agree as follows through negotiations on the basis of
equality. Unless otherwise stipulated herein, the terms herein shall have the
meanings as ascribed to them in the Master Contract.

     

    Article
1 Master Contract

     

    The
Master Contract of this Contract is:

     

    The
contracts signed by and between Lender and Borrower Changxing Chisen Electric
Co., Ltd. from
July 1, 2008 to May 20, 2012
regarding the loan, trade financing, letter of guarantee, capital business and
other credit business contract (together “Single Contracts) and the amendment or
supplement thereto, which stipulate that they are the Master Contract under this
Contract.

     

    Article
2  Principal Lender’s Right and Its Term

     

    Unless
the term is otherwise stipulated or agreed in accordance with the law, during
the following term, the debt actually occurred under the Master Contract
constitutes the principal Lender’s right hereunder:

     

    July 1, 2008 to May 20, 2012 as
stipulated in Article 1 hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Article
3 The Maximum Amount under the Guarantee

     

    1. The
maximum amount of the principal under the guarantee hereof is:

     

    Currency:
Renminbi

     

    (In
words): Ninety Million
Only

     

    (In
numbers): RMB90,000,000.00

     

    2. On the
date of expiration of the term of the principal Lender’s right as specified in
Article 2 of this Contract, where it is determined to belong to the principal
Lender’s right guaranteed hereunder, the interest on the principal of such
Lender’s right (including the statutory interest, agreed interest, compound
interest, penalty interest), liquidated damages, damage, the fees for the
fulfillment of the Lender’s right (including but not limited to litigation fees,
attorney’s fees, arbitration fees, public notarization fees), enforcement fees,
appraisal fees, auction fees, service fees, public announcement fees), the
losses caused to Lender due to breach of Borrower and all the other payable fees
shall also be the guaranteed Lender’s right. The specific amount shall be
determined when it is settled.

     

    The sum
of the Lender’s right amount determined according to the two paragraphs above is
the maximum Lender’s right amount guaranteed hereunder.

     

    Article
4 Modes of Guarantee

     

    The
guarantee hereunder shall be a guarantee with the joint and several
liabilities.

     

    Article
5 Occurrence of the Guarantee Liability

     

    In the
event that Borrower fails to make the settlement to Lender on any normal
repayment date under the Master Contract or advance repayment date as agreed,
Lender shall be entitled to require the Guarantor to undertake the guarantee
liability.

     

    The
normal repayment date referred to in the previous paragraph refers to the date
of principal repayment, interest payment as stipulated in the Master Contract,
or the date on which Lender shall pay any amount to Lender as agreed in the said
contract. The advance repayment date referred to in the previous paragraph
refers to the date proposed by Borrower and as agreed by Lender to make the
repayment in advance and the date on which Lender makes a request to Borrower in
order to collect the principal and interest of the Lender’s right and/or any
other amount in advance as per the contract.

     

    Where
there is any other real security or guarantee for the principal debts, any right
of the Lender under this Contract and the exercise thereof shall not be affected
and the Guarantor may not defense against the Lender for the existence of such
other real security or guarantee.

     

    Article
6 Term of Guarantee

     

    The Term
of Guarantee hereunder shall be two years as from the expiration of the term as
specified in Article 2 of this Contract.

     

    During
the Term of Guarantee, Lender shall be entitled to require the Guarantor to
undertake the guarantee liability, together or separately, for the whole or
partial, several or single principal Lender’s right.

     

    Article
7 Relationship between this Contract and the Master Contract

     

    Provided
that the Master Contract contains the Credit Line Agreement/the Credit Master
Agreement, where the term for using the credit line/the term of business
cooperation therein is extended, it shall be subject to the written consent of
Guarantor. Without the consent of Guarantor or provided that Guarantor refuses
it, Guarantor shall only undertake the guarantee liability within the maximum
amount of the guaranteed Lender’s right as stipulated in Article 3 hereof for
the principal Lender’s right occurred during the original term for using the
credit line/the term of business cooperation and the term of guarantee is still
the original term.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Change to
another content or issues of the Credit Line Agreement/the Credit Master
Agreement, and to other single agreement thereunder, or to the single Master
Contract has not to be subject to the consent of Guarantor, who shall still
undertake the guarantee liability for the changed Master Contract within the
maximum amount of the guaranteed Lender’s right as stipulated in Article 3
hereof.

     

    Subject
to the agreement between Lender and Guarantor through negotiations, the maximum
amount of the guaranteed Lender’s right as stipulated in Article 3 hereof may be
changed in writing.

     

    Where
Lender entrusts the whole or partial rights and obligations hereunder to other
agency of the Bank of China Limited to fulfill or transfer the principal
Lender’s right to a third party, it has not to obtain the consent of Guarantor
and the guarantee liability of Guarantor shall not be mitigated or exempted
thereby.

     

    Article
8 Representation and Warranty

     

    Guarantor
A makes the following representation and warranty:

     

    1.
Guarantor has the full civil legal capacity and civil conduct
capacity;

     

    2.
Guarantor fully understands the contents of the Master Contract, and execution
and performance of this Contract is based on the true meaning of Guarantor and
will not violate any contract, agreement or other legal documents that is
binding upon Guarantor;

     

    3. Any
and all the documents and materials provided by Guarantor A to Lender are
accurate, authentic, complete and valid;

     

    4.
Guarantor accepts the supervision and examination of Lender on the financial
status of Guarantor and provide assistance and cooperation;

     

    5.
Guarantor fails to conceal the major liability it has undertaken until the date
of execution of this Contract to Lender;

     

    6. In the
event that a situation happens that may probably affect the financial status of
Guarantor and the ability of performing the Contract, including but not limited
to transfer of major assets or share transfer, assumption of major liabilities,
involvement in material litigation or arbitration, or loss of the civil conduct
capacity, Guarantor shall promptly notify Lender.

     

    Article
9 Authorization of Personal Credit Information

     

    Guarantor
hereby authorizes: Lender may inquire about the personal credit report of
Guarantor in the personal credit information basic database of the People’s Bank
of China in the occurrence of any of the following circumstances in relation to
Guarantor.

     

    1. To
review the personal loan application of Guarantor;

     

    2. To
review the personal guarantee application of Guarantor;

     

    3. To
conduct after-loan management of the personal loan or guarantee under the name
of Guarantor;

     

    4. In
order to accept and handle the loan application of a legal person or other
entity or the legal person or other entity as a guarantor, it is required to
inquire about the credit status of Guarantor as a legal representative or
contributor.

     

    Meanwhile,
Guarantor authorizes Lender to submit its personal credit information to the
personal credit information basic database of the People’s Bank of
China.

     

    Article
10 Default Events and Handling

     

    The
occurrence of any of the following situations shall constitute, or be deemed as,
breach of contract by Guarantor under this Contract:

     

    1.
failure to fulfill the guarantee responsibility on time pursuant to this
Contract;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2. the
statement made herein is untrue or violation of the commitments made
herein;

     

    3.
occurrence of the event as specified in paragraph 6 of Article 8 hereof, which
seriously affects Guarantor’s financial status and the ability to perform this
Contract;

     

    4.
Guarantor becoming a person with the restricted civil conduct capacity or
without the civil conduct capacity;

     

    5.
violation of other provisions in relation to the rights and obligations of the
Parties herein;

     

    6.
occurrence of a default event under other contract between Guarantor and Lender
or other agency of the Bank of China Limited.

     

    In the
occurrence of the default event as listed in the above paragraph, Lender shall
be entitled to take the following measures, separately or simultaneously, as the
case may be:

     

    1. to
require Guarantor to correct its breach of contract within the specified time
limit;

     

    2.to
decrease, suspend or terminate the credit line to Guarantor, wholly or
partially;

     

    3.to
suspend or terminate the acceptance and handling the business application of
Guarantor under other contracts, wholly or partially; to suspend or terminate
the grant and handling of the loan, wholly or partially, that has not been
granted;

     

    4. to
announce the whole or partial principal and interest of Guarantor’s loan under
other contract and other payables mature immediately;

     

    5. to
terminate and rescind this Contract, and other contract, wholly or partially,
between Guarantor and Lender;

     

    6. to
require Guarantor to compensate the loss caused to Lender due to its breach of
contract;

     

    7.
subject to prior or post notice, to deduce and allocate the amount in the
account opened by Guarantor with Lender to settle the whole or partial debt that
Guarantor owes to Lender. The outstanding amount in the account shall be deemed
mature in advance. Provided that the currency in the account is different from
that used in the business of Lender, the amount shall be calculated by the
settlement and sale listed foreign exchange rate that Lender applies in the
deduction and collection;

     

    8. other
measures as considered necessary by Lender.

     

    Article
11 Reservations of Rights

     

    Either
Party’s failure to exercise partial or whole right, or failure to require the
other Party to fulfill and undertake partial or whole obligation hereunder shall
not constitute the Party’s waiver of such right or exemption of such obligation
and liability.

     

    Any
tolerance, extension or delay of either Party in exercising the rights hereunder
to the other Party shall not affect any right it shall be entitled in accordance
with the law and regulation, nor shall it be deemed as the waiver of such
right.

     

    Article
12 Modification, Amendment and Termination

     

    This
Contract may be modified or amended in writing subject to the agreement of both
Parties through negotiation. Any modification or amendment shall constitute
integral part of this Contract.

     

    Unless
otherwise stipulated in the law and regulation agreed between the Parties
concerned, this Contract shall not be terminated before the rights and
obligations hereunder are fully implemented.

     

    Unless
otherwise stipulated in the law and regulation agreed between the Parties
concerned, invalidity of any clause of this Contract shall not affect the legal
force of other clauses hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
13 Applicable Law and Settlement of Dispute

     

    This
Contract shall be governed by and construed in accordance with the law of the
People’s Republic of China.

     

    Any
dispute and controversy arising from the performance of this Contract may be
first settled through negotiations, failing which, the Parties agree to resolve
it in the same way identical to the way of settlement of disputes as stipulated
in the Master Contract.

     

    During
the period of settling the dispute, provided that such dispute will not affect
the performance of other provisions hereof, such other provisions shall continue
to be performed.

     

    Article
14 Fees

     

    Unless
otherwise determined in accordance with the law or agreed by the Parties
concerned, any fees arising from the conclusion, performance of this Contract
and the settlement of disputes (including the attorney’s fees) shall be
undertaken by Guarantor.

     

    Article
15 Appendix

     

    The
appendix subject to the mutual confirmation of both Parties is integral part of
this Contract and has the equal legal force to this Contract.

     

    Article
16 Miscellaneous

     

    1.
Without the consent of Lender in writing, Guarantor shall not transfer any right
or obligation hereunder to a third party.

     

    2.
Provided that Lender needs to entrust other agency of the Bank of China Limited
to fulfill the right and obligation hereunder as required for the business
needs, Guarantor shall accept it. The said agency of the Bank of China Limited
entrusted by Lender shall be entitled to exercise all the rights hereunder and
bring a lawsuit to the court with respect to any dispute hereunder or submit it
to the arbitration commission for an arbitral award.

     

    3.
Provided that other provisions hereof will not be affected, this Contract is
legally binding upon the Parties or successor and assignee generated in
accordance with the law.

     

    4. Unless
otherwise agreed, both Parties designate the domiciles as specified herein as
the correspondence and contact addresses and undertakes to promptly notify the
other Party in writing where the correspondence and contact address is
changed.

     

    5. The
headings and name of the business herein are used for the convenience of
reference only and shall not be used to interpret the contents of the clauses
and the rights and obligations of the party concerned.

     

    Article
17 Effectiveness of Contract

     

    This
Contract shall come into effective when it is signed by Guarantor, responsible
person of Lender or its authorized signatory together with the company’s seal
being affixed onto it.

     

    This
Contract is in duplicate, with each
Party and Borrower holding One copy, all of
which shall have the equal legal force.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	
                        Guarantor:

                      	
                        XU Kecheng

                      	 
      	
                        Lender: Bank of China Ltd.
      

                      	
                        Changxing County Sub-branch (seal)

                      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        /s/XU Kecheng

                      	 
      	
                        Authorized
      Signatory:

                      	
                             /s/ Authorized
      Person

                      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                        July
      1, 2008

                      	 
      	
                        July
      1, 2008

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]