Document:

smsapal8kex1022082310.htm

Exhibit 10.22

 

Maximum Guarantee Contract

No. 2010 Nan Zui Gao Bao Zi No. YD10-003

Between

Guarantor: Songxi Yasheng Food Co., Ltd

Business License No. 350700400003194

Legal Representative/Person-in-charge: Fan Zhenglin

Address: Shuinan Industrial Park, Songxi County , Nanping     Post Code: 353500

Financial Institution and A/C No.: Rural Credit Cooperatives, Songxi County

Tel: 0599-2323688   Fax: 0599-2332598

and

Creditor: Bank of China Limited Nanping Branch

Legal Representative/Person-in-charge: Wang Heng  Authorized Signatory: Zhu Mangui

Address: Bank of China Tower, 459 Middle Binjiang Road, Nanping  Post Code: 353000

Tel: 0599-8856381   Fax: 0599-8822091

In order to guarantee the performance of the debts under the Main Contract referred to in Article 1 hereof, the Guarantor is willing to provide the guarantee to the Creditor. Both parties enter into this Contract after negotiation on the basis of equality. Unless otherwise provided herein, the interpretation to the words and expressions herein shall be defined in accordance with the Main Contract.

	
Article 1

	
Main Contract

The Main Contract of this Contract is:

The Domestic Commercial Invoice Discount Agreement (No. 2010 Nan Shang Tie Zi No.YD10-001) between the Creditor and the Debtor Fujian Yada Group Co., Ltd., and the individual agreements which have been signed and will be signed on the basis thereof, and amendments or supplements thereto, which are specified to be the Main Contract guaranteed hereunder.

 

 

  

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Article 2

	
Principal Creditor's Rights and the Effective Period

Unless otherwise provided by laws or agreed by the parties, the principal creditor's rights actually occurred under the Main Contract during the following period shall constitute the principal creditor's rights hereunder:

From the effective date of the Domestic Commercial Invoice Discount Agreement referred to in Article 1 hereof to the expiration date of the available period of facility amount set forth in such Agreement and amendments or supplements thereto.

	
Article 3

	
Maximum Amount of the Guaranteed Creditor's Rights

	
3.1  

	
The maximum balance of the principal of the creditor's rights guaranteed hereunder shall be:

Currency: RMB.

(In words) Say Renminbi Twenty Million Yuan Only.

(In figures) RMB 20,000,000.00 yuan.

	
3.2  

	
On the expiration date of the effective period of the principal creditor's rights as defined in Article 2 hereof, the debts defined to be the principal creditor's rights guaranteed hereunder, and the interests incurred on the basis of the principal of such principal creditor's rights (including statutory interest, agreed interest, compound interest, penalty interest), penalty, damages, costs for realizing the creditor's rights (including but not limited to litigation costs, attorney fees, notary fees, enforcement fees, etc.), the Creditor's losses and all other payable expenses attributable to the default of the Debtor, shall be deemed as guaranteed creditor's rights, with the specific amount to be determined at the time of settlement.

The sum of the amount of creditor's rights determined in accordance with the preceding two paragraphs shall be the maximum amount of the creditor's rights guaranteed hereunder.

 

 

 

  

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Article 4

	
Guarantee

The method of guarantee hereunder shall be the first guarantee below:

1. The joint liability guaranty.

2. The general guaranty.

	
Article 5

	
Occurrence of Guarantee Liability

If the Debtor fails to make repayment to the Creditor on any date of regular repayment or date of prepayment under the Main Contract as agreed upon, the Creditor shall have the right to require the Guarantor to assume the guarantee liability.

The date of regular repayment referred to in the preceding paragraph is the principal repayment date and interest payment date set forth in the Main Contract or the date on which the Debtor shall make any payments to the Creditor pursuant to such contract. The date of prepayment referred to in the preceding paragraph is the date of prepayment proposed by the Debtor and consented by the Creditor, and the date of prepayment of the principal and interests of the creditor's rights and/or any other amounts to be made by the Debtor as required by the Creditor pursuant to the Contract, etc.

Surety or guarantee with other assets for the principal debts existing simultaneously beyond the Contract, shall not affect any rights of the Creditor hereunder and the exercise thereof, and the Guarantor shall not raise a plea against the Creditor on this ground.

	
Article 6

	
Guarantee Period

The guarantee period hereunder shall be two years from the expiration date of the effective period of the principal creditor's rights as defined in Article 2 hereof.

Within the guarantee period, the Creditor shall have the right to jointly or severally require the Guarantor to assume the guarantee liability for all or part of, multiple or single principal creditor's rights.

	
Article 7

	
Limitation of Action for the Guaranteed Debts

 

 

  

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If the principal creditor's rights is not settled, in case of joint liability guaranty, and the Creditor requires the Guarantor to assume the guarantee liability prior to the expiration date of the guarantee period as set forth in Article 6 hereof, limitation of action for the guaranteed debts shall be calculated and applicable from the date when the Creditor requires the Guarantor to assume the guarantee liability.

In case of the general guaranty, if the Creditor brings a lawsuit against the Debtor or applies for arbitration prior to the expiration date of the guarantee period as set forth in Article 6 hereof, limitation of action for the guaranteed debts shall be calculated and applicable from the effective date of the judgment or arbitral award.

	
Article 8

	
Relationship between the Contract and the Main Contract

If the Main Contract includes the Credit Line Agreement/ General Agreement on Credit Facility, extension of the term of facility amount/the period of business cooperation therein shall be subject to written consent of the Guarantor. Without the Guarantor’s consent, the Guarantor shall assume the guarantee liability only to the extent of the maximum amount of the guaranteed creditor's rights as set forth in Article 3 hereof in respect of the principal creditor's rights occurred within the original available period of facility amount/business cooperation period. The guarantee period shall remain the original period.

Changes in other contents or matters in the Credit Line Agreement/General Agreement on Credit Facility, single agreements thereunder or in single Main Contract will not be subject to the consent of the Guarantor, the Guarantor shall also assume the guarantee liability for the amended Main Contract to the extent of the maximum amount of the guaranteed creditor’s rights specified in Article 3 hereof.

The Creditor and the Guarantor may change the guaranteed maximum creditor’s rights amount specified in Article 3 hereof after consultations.

 

 

  

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Appointment of other branches of Bank of China Limited by the Creditor to perform all or partial rights and obligations hereunder or assignment of the principal creditor’s rights to the third party will not be subject to the consent of the Guarantor, and the guarantee liability of the Guarantor will not be released or exempted.

	
Article 9

	
Representations and Warrants

The Guarantor represents and warrants that:

	
(1)  

	
It is duly organized, validly existing and in good standing under the laws, and has full legal capacity for civil rights and conducts to enter into and perform this Contract;

	
(2)  

	
It fully understands the contents of the Main Contract, entry into and performance of this Contract represent the true intent of the Guarantor, it has obtained legal and effective authorization according to the requirements of its articles of association or other internal management documents.

If it is a company, the Guarantor shall provide such warrants according to resolutions of the board of directors or general meeting, shareholders’ meeting according to the requirements of the articles of association; if the articles of association specify the limit of the guarantee amount and individual guarantee amount, guaranteed amount hereunder does not exceed the specified limit.

Execution and performance of this Contract will not violate any contracts, agreements or other legal documents that are binding upon the Guarantor.

	
(3)  

	
All documents and materials provided by the Guarantor to the Creditor are accurate, true, complete and effective;

	
(4)  

	
The Guarantor accepts the supervision and examination by the Creditor on the production and operation and financial position of the Guarantor, and will give assistance and cooperation;

 

 

 

  

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(5)  

	
The Guarantor does not conceal to the Creditor its material liabilities as of the date of signing;

	
(6)  

	
In case of the circumstances which may affect the financial position and performance ability of the Guarantor, including without limitation, changes of any form in the modes of business such as division, merger, joint management, joint venture with foreigners, cooperation, contracting, reorganization, reform, planned listing, reduction of registered capital, transfer of significant assets or stocks, material liabilities, dissolution, cancellation, appliication for bankrupt, or involvement in material litigation or arbitration cases, the Guarantor shall notify the Creditor in a timely manner.

	
Article 10

	
Related Parties inside the Group of the Guarantor and Disclosure of Related Transaction

The Parties agree to apply the following first item:

	
(1)  

	
The Guarantor is not a group client of the Creditor defined in the Guidelines on the Management of Risks of Credits Granted by Commercial Banks to Group Clients (“Guidelines”).

	
(2)  

	
The Guarantor is a group client determined by the Creditor in accordance with the Guidelines. The Guarantor shall timely report to the Creditor the related transactions involving 10% net assets in accordance with Article 17 of the Guidelines, including the relationship between the transaction parties, transaction purpose and nature, amount or proportion, pricing policies (including transactions of no amount or nominal amount).

	
 Article 11

	
Events of Default and Settlement

Any of the following circumstances will constitute or be deemed as an event of default by the Guarantor hereunder:

	
(1)  

	
failure to timely assume the guarantee liability in accordance with this Contract;

 

 

  

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(2)  

	
false representations in this Contract or breach of its warrants made in this Contract;

	
(3)  

	
occurrence of the events described in Article 9.6 hereof, seriously affecting the Guarantor’s financial position and performance ability;

	
(4)  

	
winding up, dissolution, cancellation or bankrupt of the Guarantor;

	
(5)  

	
breach of other provisions of this Contract on the rights and obligations of the parties;

	
(6)  

	
events of default by the Guarantor under other contracts with the Creditor or other branches of Bank of China Limited.

In case of the events of default specified in the preceding paragraph, the Creditor shall have the right to separately or simultaneously take the following measures as the case may be:

	
(1)  

	
require the Guarantor to correct its breaches within the time limit specified;

	
(2)  

	
wholly or partially reduce, suspend or terminate the credit facility amount granted to the Guarantor;

	
(3)  

	
wholly or partially suspend or terminate acceptance of the Guarantor’s business application under other contracts; wholly or partially suspend or terminate release and handling the unreleased loan, and unhandled trading financing;

	
(4)  

	
declare the principal and interests of the Guarantor on the outstanding loan/trading financing amounts under other contracts as well as other accounts payable are wholly or partially due with immediate effect;

	
(5)  

	
terminate or cancel this Contract, wholly or partially terminate or cancel other contracts between the Guarantor and the Creditor;

	
(6)  

	
require the Guarantor to indemnify for the losses of the Creditor arising from its breach;

	
(7)  

	
deduct the amounts in the account opened by the Guarantor with the Creditor with a prior or post notice, to discharge all or partial debts owed by the Guarantor to the Creditor. Undue amounts in the account shall be deemed to be due in advance. If the account currency is different from the currency used by the Creditor for business pricing, conversion shall be made at the rate of exchange settlement and sales applied by the Creditor at the time of deduction.

	
(8)  

	
other measures as the Creditor considers necessary.

 

 

 

  

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Article 12

	
Reservation of Right

Failure by a party to exercise all or partial rights hereunder or to require the other party to perform and assume all or partial obligations and responsibilities will not constitute waiver by such party of such rights or exemption from such obligations and responsibilities.

Any indulgence, extension or postponement in exercising the rights hereunder granted by a party to the other party will not affect any rights it shall have under this Contract and laws and regulations, nor be construed as waiver by it of such rights.

	
Article 13

	
Amendment, Modification and Termination

Amendment or modification may be made to this Contract in writing by mutual agreement of the parties, which shall constitute an integral part of this Contract.

Unless otherwise provided by laws and regulations or agreed by the parties, this Contract may not be terminated prior to completion of performance of their rights and obligations hereunder.

Unless otherwise provided by laws and regulations or agreed by the parties, legal validity of the remaining provisions will not be affected by the invalidity of any provision of this Contract.

	
Article 14

	
Applicable Law and Dispute Resolution

This Contract shall be governed by the laws of the People’s Republic of China.

Any and all disputes and controversies arising from performance of this Contract shall be settled by the parties through negotiation. In case no settlement can be reached through negotiation, the parties agree to apply the dispute resolution method as same as specified in the Main Contract.

 

 

  

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During the period of settlement of disputes, if such disputes will not affect the performance of the remaining provisions of this Contract, such provisions shall continue to be performed.

	
Article 15

	
Expenses

Unless otherwise provided by laws or agreed by the parties, the expenses (including attorney fee) incurred for conclusion, performance of this Contract and dispute resolution shall be borne by the Guarantor.

	
Article 16

	
Appendices

The appendices confirmed by the parties constitute an integral part of this Contract, with equal effect in law as this Contract.

	
Article 17

	
Miscellaneous

	
  

	
17.1

	
The Guarantor shall not assign any rights and obligations hereunder to the third party without the written consent of the Creditor.

	
  

	
17.2

	
The Guarantor hereby approves if the Creditor must entrust other branches of Bank of China Limited to perform the rights and obligations hereunder due to the business need,. Other branches of Bank of China Limited authorized by the Creditor shall have the right to exercise all rights hereunder, and to lodge a lawsuit or refer to the arbitration commission in respect of the disputes hereunder.

	
  

	
17.3

	
With prejudice to other provisions of this Contract, this Contract shall be binding upon the parties and the successors and assigns of the parties duly existing.

	
  

	
17.4

	
Unless otherwise specified, the parties specify the domicile recorded herein to be the contact address, and undertake to timely notify the other party in writing of any change in contact address.

	
  

	
17.5

	
The headings and business name in the Contract are for convenience only, and shall not be used to interpret the provisions of the Contract and rights and obligations of the parties.

 

 

  

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Article 18

	
Effectiveness

This Contract shall become effective from the date when it is signed and sealed by the legal representatives, persons-in-charge or authorized signatories of the parties.

This Contract is executed in three copies, each party and the Debtor shall hold one copy respectively, each of which shall have equal effect in law.

For and on behalf of the Guarantor

Songxi Yasheng Food Co., Ltd.

By: Fan Zhenglin

July 21, 2010

For and on behalf of the Creditor

Bank of China Limited Nanping Branch

By: Zhu Mangui

July 21, 2010

 

 

 

  

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Exhibit 10.23

 

Personal Guarantee Contract

  

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Fujian Branch of China Construction Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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The contract is entered into by the following parties:

Guarantor (Party A): Please see Article 10 of the contract for details.

Creditor (Party B): Please see Article 10 of the contract for details.

	
Article 1

	
Scope of Guarantee

	 

Please see Article 11 of the contract for details.

	
Article 2

	
Method of Guarantee

Party A shall provide joint responsibility guaranty under the contract.

	
Article 3

	
Guarantee Period

The guarantee period is from the effective date of this Contract and ends two years from the expiration of the debt performance term of the under the Main Contract. In case Party A agrees to extent the debt performance term, the guarantee period ends two years the expiration of the extended debt performance term of the under the Main Contract. If Party B announces advanced maturity of debts according to the Main Contract, the guarantee periods ends two years from the advanced maturity date of debts announced by Party B. In case that the debts under the Main Contract are performed by installment, the guarantee period of each installment is two years from the expiration date of debt performance term of the last installment.

	
Article 4

	
Independence of the guarantee contract

The validity of the guarantee contract is independent from that of the Main Contract. The failure, invalidation, partial invalidation, or cancellation of the Main Contract does not affect the validity of the guarantee contract. Once the Main Contract becomes failed, invalidated, partially invalidated, canceled or void, Party A shall be jointly responsible for the debtor’s debts due to return of properties or compensation of losses.

	
Article 5

	
Change of Main Contract

 

 

  

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I.  

	
Party A agrees to be jointly and severally responsible for the debts under the amended Main Contract, in the event that Party B and the debtor agree to amend the Main Contract provisions through agreement (including but not limited to the repayment currency, repayment method, loan account No., repayment account No., expense utilization plan, repayment plan, value date and settlement date, startup date or expiration date of debts performance term if the term is not extended). However, if Party B and the debtor have extended the debt performance date or increased credit principal through agreement without Party A’s consent in advance, Party A shall only be jointly and severally liable for the debts according to the provisions of the Main Contract before the amendment.

	
II.  

	
Party A’s liability as a guarantor is not reduced or exempted due to any of the following conditions:

	
(I)  

	
Party B or the debtor has undergone change of formality, merging, integration, separation, capital increase/reduction, joint venture, joint business operation and name change;

	
(II)  

	
Party B has entrusted a third party to fulfill its due obligations under the Main Contract.

	
III.  

	
In case of invalidation, cancellation or voidance of any transfer of debts or credits under the Main Contract, Party A shall continue to be jointly and severally responsible as a guarantor for Party B according to this Contract.

 

 

	
Article 6

	
Guarantors’ Liabilities

	
I.  

	
Party A shall be jointly and severally liable within the scope of guarantee, if the debts under the Main Contract are due or Party B announces advanced maturity of debts according to the Main Contract or laws, and that the debtor fails to fulfill in full amount and in a timely manner, or that the debtor breaches other provisions of the Main Contract.

 

 

  

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II.  

	
No matter whether Party B has other guarantee of credits under the Main Contract (including but not limited to various guaranty methods such as guaranty, mortgage, pledge, guaranty letter and standby L/C), whether the guarantees are valid and established, whether Party B claims its right to other guarantors, whether any third party agrees to be liable for total or partial debts under the Main Contract, and whether other guarantees are provided by the debtor, Party A’s liabilities as a guarantor under this Contract will not be reduced or exempted. Party B can directly require Party A to be liable within the scope of its guarantee according to this Contract; and Party A can not raise any objections.

	
III.  

	
If Party A only provides guarantee for part of the debts under the Main Contract, Party A agrees that even the debtor repays part of the debt, or Party B partially exercises its right under other guarantees, or the debt was partially paid by other means, Party A will be responsible within the scope of the guarantee for the unpaid debt.

	
IV.  

	
If Party A only provides guarantee for part of the debts under the Main Contract, and if that the debts under the Main Contract are not fully paid after Party A performs its obligation as a guarantor, Party A agrees not to cause any damage to Party B when it claims its subrogation right (including in-advance) against the debtor or other guarantors. Party A agrees that the right to receive repayment of debts under the Main Contract has priority over Party A’s subrogation right.

Before total repayment of Party B’s credits:

	
(I)  

	
Party A agrees not to claim subrogation right against the debtor or other guarantors; once Party A has exercised the above right due to any reason, it shall use the payment from the claim to first repay the unpaid debt owned to Party B’s ;

	
(II)  

	
If the debts under the Main Contract have collateral, Party A agrees not to declare rights to the secured articles or the proceeds of sale of such articles for any reason including but not limited to subrogation rights. The secured articles or the proceeds of sale of such articles shall be fist used to repay the unpaid debts owed to Party B.

 

 

  

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(III)  

	
If the debtor or other guarantor has provided counter-guarantee to Party A, Party A shall use the proceeds from the above counter-guarantees to first repay unpaid debt owed to Party B.

	
V.  

	
Party A fully understands the interest rate risks. Party A agrees to be jointly and severally responsible for the increased part due to the increase of the interest rate, the default interest or the compound interest, if Party B adjusts the interest rate according to the Main Contract, or the government adjusts the interest rate, calculation method or the settlement method.

	
VI.  

	
If the debtor has other loans from Party B other than the loans under the Main Contract, Party B has the right to receive the debtor’s RMB or other currency expenses in the account established in the system of China Construction Bank to satisfy any expired debt. Party A’s guaranty responsibilities are not reduced or exempted.

	
Article 7

	
Party A’s other obligations

	
I.  

	
Party A shall supervise how the debtor uses the loans (including its purpose) .

	
II.  

	
Party A shall provide Party B with its financial conditions and individual credit information, and guarantee that all materials provided are correct, true, complete and valid. Without written consent of Party B, Party A cannot provide to any Third Party with guarantee that is out of its capacity. .

	
III.  

	
In case that any change to Party A’ s nationality, address or marriage status occurred , or Party A is suffered from serious sick, administrative or criminal punishment, or involved in major civil dispute, financial state deterioration, or loses or is likely to lose guarantee capability for any reason, Party A shall inform Party B immediately in writing, and perform undertaking, transferring or inheritance of guarantee liabilities herein as Party B required, or provide new guarantee for fulfillment of main contract.

 

 

  

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IV.  

	
In case that the company, of which Party A is in the position of controlling shareholder or actual controller, is in the event of merge, division, changes in entities, increase/decrease of capital, joint-funded or joint-operated, Party A shall inform Party B such condition immediately.

	
Article 8

	
Miscellaneous

	
I.  

	
Allocation and charging of payable expense

As for Party A’s amount payable under the contract, Party B has the right to charge RMB or other currency expense from Party A’s account established in the system of China Construction Bank—it is not necessary to notify Party A in advance. Once it needs to handle the sales and purchasing of foreign exchange or exchange settlement, Party A is obliged to assist Party B; Party A shall bear the exchange rate risks.

	
II.  

	
Use of Party A’s information

Party A allows Party B to inquire Party A’s credit status from individual credit information database of People's bank of China or any other individual credit information database approved by credit rating authority or other relevant work unit, department and person. All credit report obtained are limited to be used on purposes stipulated in Provisional Rules on Management of Individual Credit Information Database issued by People’s bank of China. Party A allows Party B to provide its credit information for individual credit information database of People's bank of China or any other individual credit information database approved by credit rating authority. Party A also agrees that Party B may use and disclose its information reasonably for the necessary of business.

	
III.  

	
Collection by Public Notice

As for Party A’s breach of contract, Party B has the right to report to relevant government agency and make an announcement through news media to collect the debt.

 

 

  

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IV.  

	
Effect as Evidence of Party B’s record

Except for reliable and confirmed contrary evidence, Party B’s following documents constitute the evidence to prove the credit relationship under the Main Contract: internal account record of Party B’s principal, interest, expense and repayment record; receipt and voucher during debtor’s handling withdrawal, repayment and interest payment made or reserved by Party B; loan collection record and voucher by Party B. Party A can not raise any objection to Party B’s personal fabrication or reservation of above records, receipts and vouchers.

	
V.  

	
Reservation of Right

Party B’s rights under the contract do not affect or eliminate any rights enjoyed according to relevant laws, stipulations and other contracts. Any grace, forgiving, preference or postponed exercising of any contract rights aimed at the breach or delay can not be taken as the abandonment of rights and interests under the contract or permission or approval of any breach of contract; besides, they do not affect, block or hinder the continuous exercising of the rights or exercising of any other rights and do not ask Party B to bear any responsibilities and obligations for Party A.

Even if Party B fails to exercise or delays exercising of any rights under the main contract or fails to completely utilize any rescue operation under the main contract, Party A’s guaranty responsibilities under the contract can not be reduced or exempted; however, once Party B reduces or exempts the debts under the main contract, Party A’s guaranty responsibilities under the contract are reduced and exempted accordingly.

	
VI.  

	
Debtor’s dissolution or bankruptcy

In the event that Party A knows that the debtor has entered into dissolution or bankruptcy procedure, it shall immediately notify Party B to report the debts; at the same time, it shall participate in the dissolution or bankruptcy procedure in a timely manner and exercise the claim right in advance. If Party A knows or should have known that the debtor has entered into dissolution or bankruptcy procedure but fails to exercise the claim right in advance, Party A shall be responsible the incurred losses.

 

 

  

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In spite of Article 5 (2), if Party B and debtor reach a reconciliation agreement in the debtor’s bankruptcy procedure or a restructuring plan, Party B’s rights under the contract are not affect by reconciliation agreement or restructuring plan; Party A’s guarantee responsibilities are not reduced or exempted. Party A can not defend against Party B’s claim of right through the conditions stipulated in the reconciliation agreement and restructuring plan. As for the credits compromised by Party B in the reconciliation agreement and restructuring plan to the debtor without repayment, it still has the right to require Party A for continuous repayment.

	
VII.  

	
In case of any changes in Party A’s communication address or contact method, it shall immediately notify Party B in written form; in case of any losses arising from timely notification failure, Party A shall bear relevant losses by itself.

	
VIII.  

	
If Party A or debtor fails to strictly comply with relevant laws, stipulations or regulations concerning environmental protection, energy saving, discharge reduction and pollution reduction or in case of any possible energy consumption and pollution risks, Party B has the right to exercise the guaranty rights under this Contract in advance and adopt other remedial measures permitted by the contract or law.

	
IX.  

	
Conditions for the effectiveness of the Contract

This Contract becomes effective upon signature or official seal by Party A’s legal representative (responsible person) or authorized agent and signature or official seal by Party B’s responsible person or authorized agent.

 

 

  

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Article 9

	
Party A’s Representations and Guarantees

	
I.  

	
Party A fully understands Party B’s business scope and authorized power.

	
II.  

	
Party A has read all the provisions of the contract and main contract. In response to Party A’s requirements, Party B has specified relevant provisions of this contract and main contract. Party A has known and adequately understood the meaning provisions in this contract and main contract and its legal consequence.

	
III.  

	
Party A has the legal qualification of a guarantor.

	
IV.  

	
Party A has confirmed it has adequately known the debtor’s assets, debts, business, credits and reputation, whether it has the main qualification and power of signing the main contract as well as all the contents of main contract.

 

 

 

  

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Particular signing provisions

Guaranty Contract of Nature Person No. is 2010 Jian Ping Song Dui Bao Zi No. 3—3

	
Article 10

	
Information of Contractors

Guarantor (Party A): Zhan Youdai, Zhou Liufeng

Certificate Name and No: ID number: 352128196909072016, 352128197111071529

Address: Room 302, Unit 3, Building 11, Lailongyujing, No 75, Chengbei Road, Songxi County

Post Code: 353500

Tel: 2325688

Creditor: No 121 Jiefang Street, Songyuan Town, Songxi County

Post Code: 353500

Principal: Ou Wenbin

Fax: 0599-2322644

Tel: 0599-2322670

To ensure the performance of the Bank’s Acceptance Agreement (hereinafter referred to as the Main Contract, No.: (2010) Jian Ping Song Dai Zi Bao Zi No.03) entered into by and between Fujian Yada Group Co., Ltd (hereinafter referred to as Debtor) and Party B, Party A agrees to assume the jointly guarantee liability for the debt under this contract. The Parties hereby agree to enter into this contract based on the mutual consent of consultation and comply with the terms hereof.

	
Article 11

	
Agreement to Article 1

The contract guaranty scope includes the following Type II:

	
I.  

	
All the debts under the main contract include (but not limited to) total principal, interest (including compound interest and penalty interest), breach penalty, compensation, other expense paid by debtor to Party B (including but not limited to relevant handling fee, telecom expense, sundry expense and relevant bank expense rejected by foreign beneficiary), Party B’s expense in realizing credits and guaranty rights (including but not limited to lawsuit expense, arbitration expense, property safeguard expense, travel expense, implementation expense, evaluation expense, auction expense, notarization expense, transportation expense, announcement expense and lawyer’s expense).

 

 

  

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II.  

	
The principal under the main contract (currency: RMB) (In Words: RMB Five million eight hundred thousand yuan) and interest

(including compound interest and penalty interest), breach penalty, compensation, other expense paid by debtor to Party B (including but not limited to relevant handling fee, telecom expense, sundry expense and relevant bank expense rejected by foreign beneficiary), Party B’s expense in realizing credits and guaranty rights (including but not limited to lawsuit expense, arbitration expense, property safeguard expense, travel expense, implementation expense, evaluation expense, auction expense, notarization expense, transportation expense, announcement expense and lawyer’s expense).

	
Article 12

	
Dispute Settlement

Any and all disputes arising in the performance of the Contract shall be settled through negotiation. In case that no settlement can be reached through negotiation, the disputes shall be settled by the first method as follows.

	
(1)  

	
Instituting legal proceedings in the People’s Court of competent jurisdiction at Party B’s domicile.

	
(2)  

	
Submitting to (left blank) Arbitration Commission (place of arbitration:  (left blank) ) for arbitration in accordance with the arbitration rules of the Arbitration Commission in force at the time of application. The arbitration award shall be final, and binding upon both parties.

During the process of litigation or arbitration, the Parties shall continue to implement this contract, except for the matters in dispute.

	
Article 13

	
This contract shall be prepared in duplicate.

	
Article 14

	
Other agreed items

This filed is left blank.

 

 

  

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Party A (Official seal):

Legal representative (responsible person) or authorized agent (Signature): Zhan Youdai, Zhou Liufeng (Signature)

Date: August 11th, 2010

Party B Official seal): Songxi Branch of China Construction Bank Co., Ltd. (Seal affixed)

Responsible person or authorized agent (Signature): Ou Wenbin (Signature)

Date: August 11th, 2010

 

 

 

  

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