Document:

ex1055.htm

 

Exhibit 10.55

 

No. 2010 Yishui S-0103#

CONTRACT OF LOAN

OF

SMALL SCALE ENTEPRISE

(2009 Edition)

 

 

 

 

 

 

 

 

NOTE: The contract is made based on equality and free will under a negotiation pursuant to relevant Laws; any Articles of the contract shall be a true representation of both parties’ Position. To protect the legal equity of Guarantor, the Creditor friendly reminds Guarantor to pay more attention to the text written in bold.

 

 

 

 

 

 

 

 

 

  

  

  

 

	LENDER: 	INDUSTRIAL & COMMERCIAL BANK OF CHINA	 
	 	CO., LTD YISHUI BRANCH	 
	 	 	 
	 	Principal:	LI LIN	 
	 	Business Add:	ZHENGYANG RD. YISHUI COUNTY
	 	Tel:	2251413	Fax: 	2251421	 
	 	Zip:	276400	E-mail:	 

                                             

	BORROWER:	SHANDONG LONGKONG TRAVEL DEVELOPMENT CO., LTD
	 	 	 
	 	Corporate representative:	ZHANG SHANJIU	 
	 	Business Add/Living Add:	YONGFU VILLAGE YAODIANZI TOWN YISHUI COUNTY
	 	Tel:	2553919	Fax: 	 	 
	 	Zip:	276400	E-mail:	 

Through an Equal consultation related to Lender issuing the Loan to Borrower, both parties agree to sign the Contract.

Part I Loan Terms

Article 1: Purpose of Loan

The purpose of the Loan under the Contract is facilities maintenance. Without the consent in writing from Lender, the Borrower shall not change the purpose of the loan, the Lender may supervise on the purpose of the Loan.

Article 2: Amount and Period of the Loan

2.1 The basis currency under the Contract is RMB, amount: 5,000,000.00 Yuan. ( In words: FIVE MILLION YUAN)

2.2 The period of the loan under the Contract is 12 MONTHS, starting from fund drawdown date, (drawing by installments, from the first drawing date). The execution date shall be based on the date written on due bill.

Article 3: Interest Rate, Interest and Expenses.

3.1 The way to determine the RENMINBI loan interest rate

The lending rate shall be determine with option 2

	
(1)  

	
Fixed rate, annual rate _NULL_ %, remaining unchanged during the period of the Loan.

	
(2)  

	
Floating rate, the rate shall be based on basic rate plus Floating range, the basic rate shall be the current basic interest rate announced by POBC on the effective date stipulated in item 2.2 of the Contract, floating range shall be up (up/down/zero) 20 % remaining unchanged during the period of loan. After drawdown, the interest shall be calculated in term which each term contains of 1 month. the interest concluded day of the second term shall be the same day in next month after the first term is expired. If no exact same day in adjustment month, the last day of the month shall be regarded as the interest concluded day. The following terms applies to the method. Drawdown carried out by installments, the lending rate shall be adjusted with item A as following:

 

 

  

  

  

 

	
A.  

	
In any drawdown term, the lending rate shall be the rate that determined in each interest concluded day, and be adjusted in next term.

	
B.  

	
Lending rate shall be determined and adjusted separately.

	
(3)  

	
Other __________NULL_________________________.

3.2 The way to determine the Foreign Currency loan interest rate

	
(1)   

	
Fixed rate, annual rate _NULL %, remaining unchanged during the period of the Loan.

	
  (2)   

	
Floating rate, the lending rate shall be a floating rate that made from interest margin, which calculated by:  Basic rate + basic points

	
  

	
       Basic rate: _NULL  (LINBOR/HIBOR)  in_NULL month(s)

	
  

	
       Basic points: how many points, each point as 0.01%

The interest margin shall be remaining unchanged during the period of the loan. Drawdown by installments, each installment lending rate shall be calculated separately. After drawing, the basic rate shall be adjusted with item NULL as following and interest shall be calculated by term.

	
A.  

	
The basic rate shall be floating in accordance with the term. The adjustment day of the basic rate in second term shall be the Same Day in next month comparing to drawdown day in first term. If no the Same Day in the next months, the last day of the next month shall be regarded as the Same Day.

	
B.  

	
The basic rate shall be adjusted in the first day of each interest term.

(3) Other:              NULL                .

3.3 The lending interest shall be calculated by day from the drawdown date under this Contract, interest shall be paid in every month (month/quarter/six months), the loan due, the interest shall be paid completely. And: Daily Interest Rate = Annual Interest Rate/360.

3.4 overdue penalty interest shall be the Lending interest rate PLUS 50%;

Change purpose penalty interest shall be the Lending interest rate PLUS 100%.

Article 4: Drawdown

The loan fund shall be drawn by Borrower in accordance with actual demand, the first drawdown shall be completed before  the date of 20th October, 2010; the last drawdown shall be completed before   NULL  ; otherwise, the Lender may cancel the total or part loan.

Article 5: Repayment

5.1 The Borrower shall repay the loan under this Contract with Item (2) as following:

(1) Repay in a lump sum when the loan due

(2)Repay by installments scheduled as following:

Date planning to repay               Amount planning to repay

5.2 In such following event, the Borrower shall repay the loan immediately when the certain fund is ready; the Borrower shall not provide Lender compensation in such event.

                   NULL

 

 

  

  

 

  

5.3 With an exception describing in Item 5.2, the borrower repay the loan in advance, shall provide Lender the compensation at a rate of NULL % of the prepaid amount.

Article 6: Guarantee

6.1 The loan under this Contract is a guaranteed loan, the guarantee type shall be Guarantee.

6.2 The loan under this Contract is guarantee of a maximum amount, the contract of guarantee of a maximum amount as following:

  The name of the contract: NULL  (No.:       )

 

 

Guarantor: TIANYUAN TIANCHENG GUARANTEE CO., LTD

& ZHANG SHANJIU

Article 7: Financial Engagement

The Borrower shall follow the financial engagement under the Contract as following: (Optional Clause, □ Applicable □ Non-applicable)

_________________________NULL_____________________________________________________NULL ___________________________

Article 8: Dispute Settlement

The dispute arising shall be resolved by the ways as following: (2)

	
(1)  

	
Submit the dispute to _______NULL_____ arbitration association, at the place of ­____NULL____ under the arbitration regulations. The arbitration award is the final solution with legal force to both parties

	
(2)  

	
Go to court locating where the Lender located in.

Article 9: Other

9.1 The contract is made out in 3 duplicates, each for Lender and Borrower.

9.2 The following attachment and other attachment that accepted by both Parties shall be the inalienable part of this Contract, with the same legal effect:

 Attach 1: Drawdown Notice

 Attach 2: Agreement of engaging payment.

Article 10: Other Matter Accepted by Both Parties

________________________NULL___________________________

Part II

Contract Terms of Small-Scale Enterprise Loan

Article 1: Interest and interest rate

	
1.1  

	
To foreign currency Loan, LIBOR means the foreign currency inter-bank lending interest rate shows on the page of “LIBO=” through Financial Telecommunication Terminal announced by REUTRES on the day that 2 bank business days(London time: 11:00 at noon) prior to the drawdown day or basis rate adjustment day. HIBOR means the Hong Kong Dollar inter-bank lending interest rate shows on the page of “HIBO=” through Financial Telecommunication Terminal announced by REUTRES on the day that 2 bank business days(Hong Kong time: 11:00 at noon) prior to the drawdown day or basis rate adjustment day.

 

 

  

  

  

 

	
1.2  

	
The lending rate under this Contract shall be a Floating Rate, interest rate shall be adjusted following same step when loan due.

	
1.3  

	
Interest repaid by month, the pay day shall be 20th every month; repaid by quarter: on 20th day of the last month of the quarter; repaid by six months: on 20th June and 20th December of the year.

	
1.4  

	
The first interest payment duration shall be starring from the exact drawdown day to the first interest duration pay day; the last interest payment duration shall be starring the previous duration due day to the final interest pay day; the other interest payment duration shall be starring from the date that one day prior to the previous interest payment duration ending to next interest pay day.

	
1.5  

	
If POC adjusts the loan interest basis rate, the lending interest rate under this contract shall be determined or adjusted by relevant regulations, the lender shall not give Borrower another Lender.

Article 2: Drawdown and Repayment

2.1 When and until the following conditions are met, the lending banks will be obliged to make the Loan available to the Borrower except the Borrower agrees to release the loan.

(1) Except Credit Loan, the Borrower shall provide related Guarantee to the Loan as the Lender required, and completed all necessary guarantee procedure; no any change shall be occur to the state of the Guarantee with any influence on Lender.

(2) At the moment of each drawdown, the statement and guarantee provide by Borrower under the Contract shall be remaining true, correct, complete, and without any breaches among the Contract and other contract that signed between the Lender and the Borrower.

(3) The proof document of the Loan purpose provided by the Borrower shall match the loan purpose under this Contract.

2.2 If the Borrower invests the loan under the Contract on fixed asset, the following conditions shall be met beside the pre-conditions pursuant to the item 2.1.

	
  

	
(1) The loan project has been examined and approved, or registry filed by certain state authorities

	
  

	
(2) The capital or other related capital of the loan project has been set as required schedule and ratio.

	
  

	
(3) No cost overrun or it has been settled

	
  

	
(4) The job schedule is accomplished as planned, the exact project schedule goes in phase with investing schedule.

	
  

	
2.3 The Borrower carries out the drawdown, the Drawdown Notice shall be submitted in 5 bank business days advance. The Drawdown shall not be withdrawn without a consent in writing from Lender.

	
  

	
2.4 The drawdown pre-condition provided by the Borrower meets the requirement of the Lender, or Lender agrees to release the loan, the lender transfers the loan to an account appointed by the Borrower; that means the loan has been released by Lender under this Contract.

 

 

 

  

  

  

 

	
  

	
2.5 In accordance with certain supervising regulations or the operating rules of Lender, drawing or using the loan shall be processed in entrusting payment. In such event, the lender shall transfer the loan to a trustee qualified under this Contract according to the entrusting agreement and drawdown notice provided by Borrower. An entrusting payment agreement shall be signed between Lender and Borrower and be attached to the Contract. The Borrower shall open or appoint a sole account to process the entrusting payment.

	
  

	
Article 3: Repayment

	
  

	
3.1 The Borrower shall repay the principle, interest and other payable under this Contract as scheduled. Borrower shall deposit the above items of payment in the Repayment Account opened with Lender on the day prior to schedule pay day or interest concluded day. The Lender may deduct the payment from above mentioned account on the day mentioned with the necessary cooperation provided by Borrower. If the money in account is insufficient to cover all items of payment, the Lender has a right to determine the paying order.

	
  

	
3.2 The Borrower requests for a prepayment for total or part Loan, an application shall be submit to Lender in 10 bank business day advance. The Lender approved, a compensation shall be provide to lender under the contract.

	
  

	
3.4 The Lender has a right to withdraw the loan in advance in accordance with the state of fund repaying.

	
  

	
3.5 The Borrower repaying the loan or the Lender withdrawing in advance under the Contract, which causes the exact loan duration to shorten, in such event, the lending interest rate range shall be remaining unchanged.

	
  

	
Article 4: Guarantee

	
  

	
4.1 Except a credit loan, a legal and valid guarantee shall be provided for the Borrower’s obligation under this contract to Lender. The Guarantee Contract shall be signed separately.

	
  

	
4.2 Such events occur to Guaranty, damage, depreciation, property right dispute, sealed up or detained, disposal by Mortgagor; or Guarantor’s financial situation worsening; the Borrower shall inform the Lender in time, and provide another Guarantee accepted by Lender.

	
  

	
4.3 with Lender’s consent, the Guarantee under this contract is a receivable account, within the period of the Contract, one of such following events happens, the Lender has a right to declare the loan is due, and request Borrower to repay the total or part principal and interest, or request borrower to provide another guarantee which shall be legal, valid and sufficient amount.

	
  

	
(1) The bad debt ratio of receivable account of pledger has been rising up in 2 continuous months.

	
  

	
(2) The un-received account of receivable account is more than 5% on the total balance related to a debtor.

 

 

 

  

  

  

 

	
  

	
(3) The business dispute (including but not limited to, quality, technology, service dispute) or debt dispute rising up among the Pledger and debtor of the receivable account and a third party, which causes the receivable account to be repaid as scheduled.

	
  

	
Article 5: Account management

	
  

	
5.1 The loan under the Contract is to be used for capital circling in business operation, the Borrower shall appoint a sole account opened with Lender to collect the sales or repay the loan as scheduled. Relevant sales settled not in cash, the Borrower shall guarantee that transfer the money to above sole account in time when it is collected.

	
  

	
5.2 The Lender has a right to supervise the above sole account, including but not limited to, acknowledging or watching the money inward or outward, the Borrower shall provide the necessary assistance. If required by Lender, the sole agreement of account supervision shall be signed.

	
  

	
Article 6: Statement and Guarantee

Such following statement and Guarantee shall be made to Lender, which remaining valid within the duration of the Contract.

	
  

	
6.1 The Borrower is duly organized and valid under the law of the People’s Republic of China and has the power and authority to own  its property to consummate the transactions contemplated in this contract and join the litigation, The Borrower has the power to handle it assets used in operation.

	
  

	
6.2The Borrower is at its option to sign and perform this contract. It is the Borrower’s true meaning and has the power to sign this contract  and it is not breach it article of association or regulations or contracts. The procedure for signature and performance or this contract has been gone through and fully effectiveness. The Borrower already obtained or being obtained all permit, approval, file, registration related to the signing and carrying out the Contract.

	
  

	
6.3 Other payable debt has been repaid as scheduled, and no intent loan and interest overdue to bank.

	
  

	
6.4 No material infringement of regulations in business operation ever occurred in a recently year, no any bad record of the present senior staff of borrower’s company.

	
  

	
6.5 All documents, materials, reports and certificates provided to the Lender by the Borrower for consummation of the contract is true, real, complete and effective.

	
  

	
6.6 The Borrower shall not hide any involved lawsuit, arbitration or compensation dispute.

	
  

	
6.7 The loan under the Contract is to be used to invest on fixed asset, the project and the related loan shall apply to laws and regulation.

	
  

	
Article 7: Lender’s commitment

	
  

	
7.1 Drawing and using the loan pursuant to the duration and loan purpose describing under the Contract, the Loan shall not go in any form into security market, futures market or other purpose that prohibited or limited by laws or regulations.

 

 

  

  

  

 

 

	
  

	
7.2 To repay loan principal and interest or other payable expenses under the Contract.

	
  

	
7.3 To accept and assist the Lender to examine and supervise the state of loan using (including using purpose) in such ways: account analysis, bill examination, research on site, etc. To report the state of loan using termly as Lender required.

	
  

	
7.4 To accept the credit check; to provide correct, complete financial situation and other documents that may indicate the ability of debt repaying, including any account bank, account opened with bank, balance of deposit, etc. to assist lender to check, examine and supervise the business operation and financial situation.

	
  

	
7.5 Any share dividend or bonus shall not be issued before the Loan and other payable expense under the Contract is repaid completely.

	
  

	
7.6 A consent in writing shall be obtained when Borrower get involved in such following event:

	
  

	
(1) Merger, splitting, capital reduction, share transfer, join partnership, retirement of a partnership, transfer material asset or creditor’s right, material external investment, debt-add financing activities and other operation may has any influence on Lender.

	
  

	
7.7 Notice shall be provided to Lender in time in such following event occurs:

	
  

	
(1) Such following items get changed: bushiness name, seal, articles of association, business registered address, corporate representative or principal, contact address, etc.

	
  

	
(2) Suspension, dismissed, liquidation, suspending to reform, business license withdrawn, cancellation or applying for bankrupt (or declared bankrupt).

	
  

	
(3)Involved in or being involved in material economic dispute, lawsuit, arbitration; or asset sealed up, seized, ordered for enforcement; or being investigated or punished by judicial authorities, tax authority, industrial and administrative authorities.

	
  

	
(4) Shareholders, directors or present senior staff, promoter or sponsor gets involved into material suitcase or economic dispute.

	
  

	
7.8 To disclose the relation among the related parties and related transaction among them completely, correctly, in time.

	
  

	
7.9 To receive and sign any notice in time which sent by mail or other method from the Lender.

	
  

	
7.10 The Borrower shall not dispose its asset in a way by decreasing the debt repaying ability; the guarantee provided to a third party shall not have any influence on Lender’s equity.

	
  

	
7.11 To bear the cost or expenses caused by signing and carrying out the Contract, and the paid or payable expenses that occurs to Lender for realizing the creditor’s right under the Contract, including but not limited to, lawsuit or arbitration fees, Property preservation expenses, attorney fee, legal enforcement execution expenses, assessment fee, auction expense, announcement expense, etc.

 

 

  

  

  

 

 

	
  

	
7.12 The debt under the Contract repaying order is prior to that of the debt to shareholder, corporate representative or principal, partner, major sponsor or key officers from the management; and the order shall be equal with similar debt to other creditor.

	
  

	
Article 8: Lender’s commitment

	
  

	
8.1 To release the loan under the Contract.

	
  

	
8.2 To keep non-disclosed the information and documents provided by Borrower classified, which related to Borrower’s financial situation and bushiness operation with an exception that stipulated by laws and by another agreement related to this Contract.

	
  

	
Article 9: Breach of Faith

9.1 Any such event shall be regarded as breach of faith under the Contract:

	
(1)  

	
The Borrower fails to accomplish the obligation of repaying under the Contract; or breach any statement, commitment or guarantee.

	
(2)  

	
The state of the Guarantee under the contract get changed which may cause a negative influence on Lender’s equities, and the Borrower fails to provide another guarantee accepted by Lender.

	
(3)  

	
Borrower fails to repay any other due debt (including declared due in advance), or fails to carry out or breaches the obligations under the Contract, which already or may cause Borrower to carry out the obligation under the Contract;

	
(4)  

	
The Borrower’s profitability, debt payback ability, solidity or cash flow, etc. such financial index breaks the standard under engagement; or it worsen enough to affect the obligation being carried out under this Contract.

	
(5)  

	
A material change occurs to Borrower’s business operating, external investment, which already or may cause Borrower to carry out the obligation under the Contract;

	
(6)  

	
Borrower and its directors, corporate representative or principal partner, major sponsor or key officers from the management, such above people get involved or may get involved material economic dispute, lawsuit, arbitration; or asset sealed up, seized, ordered for enforcement; or being investigated or punished by judicial authorities, tax authority, industrial and administrative authorities; or being exposed by public media for breaching State Regulations or policy;  which already or may cause Borrower to carry out the obligation under the Contract;

	
(7)  

	
Such events occurs to Borrower, change of equity, or change of controlling company relation, partnership, joint venture relation, or natural major investor person, key officer from management is transferred unusually, is missing, under an investigation or under a restriction of personal freedom by certain judicial authorities.

	
(8)  

	
Borrower defraud Lender of fund or Credit Line with a false contract with related party or with a blank Contract; or Borrower evades the debt through internal related transaction;

 

 

 

  

  

  

 

	
(9)  

	
Borrower already or may suspend, dismiss, liquid, suspend to reform, business license withdrawn, registry cancellation or applying for a  bankrupt (declared a bankrupt);

	
(10)  

	
Borrower breaches such laws or regulation related to food safety, safety in production, environment protection, or supervising regulations, or industry standard, and  causes an responsible accident , which already or may cause Borrower to carry out the obligation under the Contract;

	
(11)  

	
Corporate representative or principal, partner, natural major investor person or key officer from the management, such people get involved with gangland, drug-taking, gambling, smuggling etc. illegal actions.

	
(12)  

	
Overdue tax, overdue debt, arrears of wage occur to Borrower.

	
(13)  

	
Other events may cause negative influence on realizing the credit’s right under the Contract for Lender.

9.2 Borrower breach the contract, the lender may take one or more actions as following:

(1)  Request Borrower to correct its breaches in a period.

	
  

	
(2) Totally or partly, suspend or terminate the loan fund drawing application under any contract between the Borrower and Lender, unreleased loan fund, not yet applied trade financing activities.

	
  

	
(3) Declare the principal and interest of un-repaid loans/trade financing activities and account payable under the Contract or other contracts, totally or partly due immediately.

	
  

	
(4) Claim a compensation to the Borrower of loss caused by the Borrower’s breaches.

	
  

	
(5) Other actions that Lender may regard that is necessary and possible pursuant to the laws and regulations.

	
  

	
9.3 The Loan is due (including declared due immediately), the Borrower fails to repay under the contract, the Lender may charge a overdue penalty interest under the Contract. To unpaid overdue interest, a compound interest may be charged in accordance with overdue interest rate.

	
  

	
9.4 Borrower changed the purpose of the loan as engaged under the Contract, the lender may charge a penalty interest on the part of the loan that is changed purpose from the date the loan is diverted in accordance with purpose-diverted penalty interest rate. The interest unpaid during the loan diverting shall be charged a compound interest in accordance with purpose-diverted penalty interest.

	
  

	
9.5 The event describing separately in Item 9.3 and Item 9.4 occur together, the penalty interest rate shall be the highest one, but no several counts.

	
  

	
9.6 The Borrower fails to repay the principal and interest (including penalty interest and compound interest) or other payable account, the Lender may publish an announcement on public media.

	
  

	
9.7 The controlling or being controlled relation among the Borrower and related parties changed, or the events describing in Item 9.1 except the (1), (2) occur to the Borrower’s related parties, which already or may cause Borrower to carry out the obligation under the Contract, the Lender may have a right to take any action under the Contract.

 

 

 

  

  

  

 

	
  

	
Article 10: Deduction

	
  

	
10.1 The Borrower fails to repay the due loan (including declared due immediately), the Lend may have a right to deduct the money from any account (RMB or Foreign currency) that the Borrower opened with PBOC or other organizations of PBOC to repay the debt, till the debt is paid up under the Contract.

	
  

	
10.2 The currency of the money deducted from the above mention account is different from the currency under the Contract, it shall be changed according to current foreign exchange rate. The interest and other expenses and the expenses that caused by foreign exchange rate floating rise within the duration from the money deducting day to debt cleared day shall be taken by the Borrower, which “debt cleared day” above mentioned shall be the day on that the Lender changes the currency following the state foreign currency exchange policy and paid the debt up.

	
  

	
10.3 The money that Lender deducts is insufficient to cover the debt, the Lender has a right to determine the repayment order.

	
  

	
Article 11: Transferring of Rights and obligation

	
  

	
11.1 The Lender has a right to transfer the rights under the contract totally or partly to a third party, consent from the Borrow shall not be needed related to the transferring. Without the consent in writing from the Lender, the Borrower shall not transfer any right or any obligation under the contract to any third party.

	
  

	
11.2 The Borrower shall accept that, when it is needed, the Lender relegates carrying on the Contract to other organizations of ICBC, or transfers the loan under the Contract to above organizations. The above organizations authorized by the Lender have a right to carry out all the rights under the Contract, to raise the dispute related to the Contract to a law court, an arbitration authority, to apply for a law enforcement order from a Court.

	
  

	
Article 12: Becomes effective, Alternation and Termination

	
  

	
12.1 The Contract shall be effective from the date it signed and terminated on the date all obligations are fulfilled by Borrower.

	
  

	
12.2 Both parties agreed that the Contract may be altered in writing; any alternation shall be regarded as a non-separated part of the Contract with the same legal effect. Except the alternation, the rest part of the contract is remaining valid; the old clauses and items shall be valid before the alternation becomes effective.

	
  

	
12.3 The alternation and the termination of the contract, shall cause no influence on the right for each party to claim the compensation; the termination shall cause no influence on the effect of the clause or Items to resolve the dispute.

	
  

	
Articles 13: Law applicable and Dispute Settlement

The signing, effect, explanation, being carried out, dispute settlement of the contract applies for the Laws of People’s Republic of China. Any dispute raises out related to the contract shall be resolved by negotiation between two parties; dispute un-negotiable or failing in negotiation shall be resolved pursuant to the relevant Articles under the Contract.

 

 

  

  

  

 

Article 14: Contract Integrality

The part I: loan terms and the Part II: contract terms of the small scale enterprise build a complete Contract, the same word in above part has the same meaning. The loan for the Borrower abides by the two parts.

Article 15: About Notice

15.1 Any notice under the Contract shall be issued in writing. With an exception defined in another agreement, both parties agrees that the Address mention in the contract means communication and contact address. Any party changes it address or contact method, shall inform another party in writing in time.

15.2 Any party under the contract refuse to sign for receival or who is unreachable, in such event, the informing party may chose notarization or public announcement for delivery.

Artical16: Other Provision

16.1 Borrower fails to exercise its part or total rights, or postpones exercising right under the contract, that shall not be regarded as the Borrower waives this right and other rights or exempted from the right. It shall cause no influence on Borrower to exercise this right or the other rights continuously.

16.2 Any clause becomes invalid or un-executive, which shall not cause any influence on effect, execution of the other clause or the entire contract.

16.3 Pursuant to relevant laws, regulations or other rules under certain regulation documents or requirement of Financial Supervision Authority, Lender may provide the information or other relevant information that related to the Contract to the Basic Database of Credit Information of Bank of China or other database set up by laws, such above data may be accessible to qualified organizations and Persons to check up. Also the Lender shall check up the Borrower’s information in above database to preparing the Contract.

16.4 “related party”, “relation among related party”, “related transaction”, “natural major investor person”, “key officer from the management”, such words mentioned in contract shall have the same meaning with the words defined in <<Corporate Accounting Codes-36#>> (Acc[2006] 3#) and its amendments.

16.5 Any bill or certificate made by Borrower and kept under the contract pursuant to general business practice, which shall be the valid proof to evident the debt relation between the Lender and Borrower. The Lender shall abide by it.

16.6 In this contract: (1) anytime mentions Contract means the entire contract including its amendment and supplement; (2) the title of each article is using for preferring only, it shall not be used on explanation of the Contract, and it shall be no any limitation to the content and the scope of the article; (3) during the Contract performing, if any drawdown day or repayment day is not a bank business day, it shall be postponed to the next bank business day.

Confirmed by both parties that: The negotiation related to all articles of the Contract has been made by both parties. The Lender already reminds the Borrower to pay more attention on the articles of both parties’ rights and obligations, and to understand them completely; the Borrower has made sufficient explanation to the articles that pointed out by Borrower. The Borrower has reviewed the Contract and understood any article of the Contract. (Including Part I Loan Terms and Part II Contract Terms of Small-Scale Enterprise Loan), both parties have the comprehension of the clauses of the contract in common without objection to the content of the contract.

 

 

 

  

  

  

Lender: (seal)       Industrial & Commercial Bank of China Co., Ltd Yishui Branch (sealed)

 

Principal/Authorized Proxy:             /s/ LI LIN (signed and sealed)

Borrower: (seal)            Shandong Longkong travel development Co., Ltd(sealed)

 

Corporate Representative/Authorized Proxy:     /s/ Zhang Shangjiu (signed and sealed)

Date:

  

  

  

Attachment 1:

DRAWDOEN NOTICE

To: Industrial and Commercial Bank of China Yishui Branch

In accordance with the Contract of Loan of Small-Scale Enterprise (hereinafter prefers: “Loan Contract” No.:2010 Yishui 0103#) between Borrower and you bank on the date of 19-10-2010. The Borrower has satisfied all conditions precedent to the drawdown stipulated under The Contract, the Borrower hereby notifies you that the Borrower plans to withdraw as following:

	
I.  

	
Borrower plans to withdraw the fund of RMB (currency) 5,000,000.00 Yuan on the date of __________.

	
II.  

	
The term of the Loan is 12 months, expired on the date of 14-10-2011.

	
III.  

	
Please kindly transfer above fund to our sole account as following:

Account Holder: Shandong Longkong Travel Development Co., Ltd

Account:

Account Bank: ICBC Yishui Branch

	
IV.  

	
Pursuant to the stipulation of The Contract and Entrusting Payment Agreement, the fund shall be paid out by Borrower.

If the Lender is entrusted to pay out the fund directly, we hereby authorize and entrust the bank to pay out to the following payee’s ccount after the fund is transferred to Borrower’s sole account:

Account Holder:__________________NULL______________

Account:     ____________________NULL_____________

Account Bank: ____________________NULL_____________

Note: the fund being to paid more payee, the list of payee and account shall be attached.

	
V.  

	
Such Confirmation Provided to Bank

	
1.  

	
The fund shall be used in the purpose that stipulated by The Contract.

	
2.  

	
Any statement, Guarantee, Commitment we provided to The Contract is real, accurate, complete and valid on/before the date that the Notice is delivered.

	
3.  

	
No material change occurs to the business operating and financial situation of Borrower till the date that the Notice is delivered.

	
4.  

	
On the date that the Notice is delivered, no any breach or predictable breach is existing under any loan contract or related to a loan contract. And we further confirm that such above events shall not occur on the drawdown day.

	
5.  

	
The Notice is irrevocable as it is delivered.

  

  

  

Borrower: (seal) Shandong Longkon travel development Co., Ltd (sealed)

Corporate Representative/Authorized proxy: /s/ Zhang Shanjiu (signed and sealed)

 

Date:

 

 

 

 

 

 

 

 

 

 

 

  

  

  

ICBC Loan Note

Date: 2010-10-22                  Refer No.:

Borrower: Shandong Longkong Travel Management Co.,Ltd

Borrowing Account:

Deposit Account:

Loan Amount: RMB Five Million Yuan

Loan Purpose: Facilities Maintenance

Loan Term: 12 Months

Scheduled Due Date: 2011-10-14

Loan Interest Rate: 6.672%

Loan Contract No.: ICBC Loan Yishui 2010-0103#

Note: Above loan fund has been transferred to the account assigned by Borrower.

Industrial and Commercial Bank of China Yishui Branch (sealed)ex1056.htm

 

Exhibit 10.56

 

Renminbi Loan Application (short term)

(Applicable to the Middle & Small Scale Enterprise Renminbi Loan)

No.: 2010 Yishui BOC Jieshen 018#

To: Bank of China Yishui Branch

  To meet the need of business operation, in accordance with the “Middle & Small Scale Enterprise Credit Line Granting Agreement” No.: 2010 Yishui BOC Jieshen 016# and “Attachment 1: Applicable to Renminbi Loan Operations (short term)”, the Applicant hereby applies for Renminbi short term loan. The rights and obligation caused by above action shall apply to the engagement of above agreement, attachment and this application.

Article 1: Loan Amount

	The loan amount is: 	(in words) Renminbi Two Million Yuan
	 	(in number) 2,000,000.00

 

Article 2: Loan Period

The period is 12 months, starting from the loan fund drawdown date; If the fund is drawn by installments, it shall be starting from the first term drawdown date.

The applicant shall drawdown following strictly as scheduled; the actual drawdown date is later than scheduled date, the applicant shall repay the loan as scheduled by the application.

Article 3: Loan Purpose

The loan purpose is: working capital, cost for advertising and promotion

Article 4: Loan interest, interest computation and payment

4.1 Loan Interest rate

Fixed interest rate, in an annual rate of 6.116% remaining unchanged within the valid period of the application.

4.2 Interest computation

The interest shall be calculated from the drawdown date, according to the exact amount of the fund drawn and the exact using days.

4.3 Payment of Interest

The interest shall be paid by:

Paid by quarter, the 20th of the last month of the quarter shall be the interest computation day, the 21st shall be the payment day.

If the payment day of the last term is not on the above mentioned payment day, the last term repaid date shall be regarded as the payment day, on which the applicant pays up the payable interest.

4.4 Penalty Interest

4.4.1 If the applicant fails to carry out the payment on time, the penalty interest shall be charged on the overdue part of the loan in a penalty interest rate, until the loan principal and interest are paid up.

 

 

  

  

  

The penalty interest rate on the overdue loan shall be the rate under the Item 4.1 PLUS 50%.

4.4.2 If the applicant changes the loan purpose as stipulated, the mis-using penalty interest shall be charged on the mis-using part of the loan in a mis-using penalty interest rate from the date the loan is mis-used, until the loan is repaid up.

The mis-using penalty interest rate shall be the rate stipulated under Item 4.1 PLUS 100%.

4.4.3 The loan is overdue and mis-used, the interest shall be calculated based on the mis-using penalty interest rate.

4.4.4 If the applicant fails to pay the interest on time, in accordance with the interest payment stipulated under Item 4.3, the interest shall be calculated in the loan interest rate pursuant to Item 4.1 within the loan period; the loan is overdue, the compound interest shall be calculated in the Penalty interest rate pursuant to this item.

4.4.5 During the penalty interest and compound interest calculation, the loan lending interest incurs a adjustment, the above interest shall be calculated by terms from the date of adjustment.

Article 5: Date and Methods of Drawdown

5.1 The drawdown method and the date as following:

One-off drawdown on the date of 27-10-2010

5.2 The bank has the right to refuse to release the fund after the above drawdown date.

If the bank agrees to release the loan, it may has right to charge a commitment fee on the preferred drawdown in a rage of 0.03%; the part of the loan which the bank refuses to release, on which shall be charged the commitment fee in a rage of 0.03%.

Article 6: Loan Repayment

6.1 Except stipulated under another agreement, the applicant shall repay back the loan as following scheduled:

To repay up the loan in a lump sum at the expiration of the loan.

If the repayment schedule needs to be changed, the applicant shall submit a written application to the bank in 7 bank business days prior to the expiration of the loan, and it shall be confirmed by both parties in writing.

6.2 Except stipulated under another agreement, if the Applicant defaults on the loan principal and interest, the bank has the right to decide the repayment order of the loan principal or the interest; in the event of repaying by installments, there are many due or overdue loans under this application, the bank has the right to decide the repayment order of above loans; if there are many due loan contracts between the Applicant and the bank, the bank has the right to decide the repayment order of these loan contract.

6.3 Except stipulated under another agreement, if the Applicant decides to repay the loan ahead of schedule, shall inform the bank in writing in 7 bank business days advance. The fund shall be repaid to the latest due loan, following a reverse order of repayment.

 

 

  

  

  

The bank has the right to charge the compensation in a rate of 10% of the payment in advance.

6.4 The applicant shall carry out the repayment as following:

The Applicant shall deposit enough money in the repayment account in 2days prior to the due date of each payable term of principal and interest; the bank has the right to draw the above fund from the repayment account on the date of each due term of principal and interest.

 

	 	
The repayment account is: Shandong Longkong Travel Development Co., Ltd

	 	
Account No.:

 

Article 7: Warranties

7.1 The warranties of the debt under this application is:

This application is the Main contract under the “Pledge Contract of Middle & Small Scale Enterprise in a Maximum Amount”, Contract No.: 2010 Yishui BOC Gao e di 016#, signed between the guarantor Yishui Yinhe Tourism Developing Co., Ltd and the bank, which provides the warranties to the main contract.

This application is the Main contract under the “Guarantee Contract of Middle & Small Scale Enterprise in a Maximum Amount”, Contract No.: 2010 Yishui BOC Gao e di 016-1#, signed between the guarantor Mr. Zhang Shanjiu and the bank, which provides the warranties to the main contract.

This application is the Main contract under the “Guarantee Contract of Middle & Small Scale Enterprise in a Maximum Amount”, Contract No.: 2010 Yishui BOC Gao e di 016-2#, signed between the guarantor Junan Tianma Tourism Developing Co., Ltd and the bank.

This application is the Main contract under the “Guarantee Contract of Middle & Small Scale Enterprise in a Maximum Amount”, Contract No.: 2010 Yishui BOC Gao e di 016-3#, signed between the guarantor Yishui Yinhe Tourism Developing Co., Ltd and the bank.

This application is the Main contract under the “Guarantee Contract of Middle & Small Scale Enterprise in a Maximum Amount”, Contract No.: 2010 Yishui BOC Gao e di 016-4#, signed between the guarantor Yishui Underground Fluorescence Lake Tourism Developing Co., Ltd

7.2 If the Applicant or the Guarantors incur such events which the bank believes that may effect their contract performing abilities; or the guarantee contract become invalid, canceled or terminated; or the Applicant or guarantors incur a financial status worsening, or involved into a material lawsuit or arbitration; or other matters may cause the contract performing abilities; or the guarantors breach this Guarantee contract or other contract signed with the bank; or the guaranty incurs depreciation, damage, losses, sealed up, which causes the guarantee value decreasing or loss, in such events, the bank has the right to require the Applicant to provide a new warranty, to change guarantors and other actions to secure the debt under this contract.

 

 

  

  

  

Article 8: Attachment

The following attachment or other attachments which accepted by both parties shall be regarded as the inseparable part of the application, has the same legal effect with the application.

Renminbi Loan Drawdown Application (short term);

Applicant: Shandong Longkong Travel Development Co., Ltd (sealed)

Signed by Authorized Person: /s/ Zhang Shanjiu (signed)

Date: 27-10-2010

Bank Approval:  Approved  (and sealed by: BOC Yishui Branch)

Signed by Authorized Person/manager: /s/ Li Shiming (signed)

Date: 27-10-2010

 

 

  

  

  

CONTRACT

OF

MORTGAGE OF MAXIMUM AMOUNT

FOR MIDDLE & SMALL SCALE ENTERPRISE

Yishui BOC Gao-di 2010-016#

 

 

	MORTGAGOR: 	YISHUI YINHE TOURISM DEVELOPING CO., LTD
	 	 
	BUSINESS LICENCE NO.:  	371323200002487
	 	 
	CORPORATE REPRESENTATIVE: 	CHEN JIASHU
	 	 
	ADD:	WEST TO YIBO RD. YISHUI COUNTY (THE CROSS OF  GREAT YIHE RIVER AND LITTLE YIHE RIVER JOINT)
	 	 
	ZIP:	276400
	 	 
	ACCOUNT BANK AND ACCOUNT:	YISHUI INDUSTRIAL AND COMMECIAL BANK
	 	 
	TEL:   0539-2226899	FAX:    0539-2226899
	 	 
	 	 
	MORTGAGEE: 	BANK OF CHINA YISHUI BRANCH
	 	 
	CORPORATE REPRESENTATIVE: 	YANG ZAIZHI
	 	 
	ADD: 	66# CHANGAN RD. YISHUI COUNTY
	 	 
	ZIP:	276004
	 	 
	TEL:  0539-2252559  	FAX:  0539-2266158

 

To guarantee the Main Debt under the Main Contract describing in Article I in this contract to be carried out, the Mortgagor agreed to provide Mortgage for the Main Debt with the property listed on Guaranty List attached to the Contract; and the Guarantor has the right of disposal to the property. The Contract is made out base on an equal negotiation between Mortgagor and Mortgagee. The words explanation shall be in accordance with the Main Contract with an exception that agreed in another agreement.

I.  Main Contract

 

The main contract of this contract is:

The contracts signed between Mortgagee and the Debtor Shandong Longkong Travel Development Co., Ltd from 29-9-2009 to 29-9-2013. including Loan contract, trade financing contract, guarantee letter, capital business and other credit guarantee contracts (refers in general: single contract), and the amendment and supplement of above contracts, in which the contracts are pointed as the Main Contract under the items of this Contract by all parties.

 

II.  Main Creditor’s Right and Duration.

 

The Main Creditor’s Right means the actual credit’s right occurs in such duration with an exception that stipulated in another agreement or by laws.

 

Date from 29-9-2010 to 29-9-2013, under Article I of the Contract.

 

III.  Maximum Amount of Guarantee.

 

 

  

  

  

 

 

1.  The maximum amount of the Creditor’s Right guaranteed under the contract.

Currency:                             RENMINBI

(In words):                           TWENTY MILLIOM YUAN

(In number):                         20,000,000.00

 

2. The date that the period of Main Debt expires describing in Article II, the debt is regarded as the Main Debt under the Guarantee Contract, such following items based on the Main Debt shall belong to the Main Debt guaranteed. The exact amount shall be confirmed as it is repaid.

 

Interest: including legal interest, contract interest, compound interest, penalty interest.

Liquidated damage;

Compensation;

Cost for realizing creditor’s right: including but not limited to lawsuit expense, attorney service charge, notarial fees, and costs of execution.

The loss caused by breaching contract by Guarantor;

Other expenses payables.

The total amount of above two items shall be regarded as the maximum amount of Guarantee.

 

IV.  Guaranty

 

The Guaranty to see “Guaranty list”

 

Within the period of mortgage, the guaranty is damaged or lost, Any compensation or supplement shall be paid off the debt under Main Contract ahead of schedule. if the period of the guarantee of creditor’s right not expired, the Creditor may draw above funds.

 

V.  Mortgage Registration

 

The mortgage registration is required, Mortgagor and Creditor shall carry out the mortgage registration with registry authorities in 10 days after the Contract is Signed.

 

VI.  The Possession and Keeping

 

The Guaranty shall be possessed and kept by Mortgagor, and the document of rights shall be kept by Mortgagee. The Mortgagor agreed to accept the examination from the Mortgagee, the agent or person that entrusted by Mortgagee. The positive assistance shall be provided by Mortgagor.

The Mortgagor shall take a good care, keeping, maintenance of the Guaranty, to ensure the Guaranty is safe and complete; if any service needed related to the Guaranty, the mortgagor shall carry it out in time and bear the cost.

Without consent in writing from Mortgagee, the Mortgagor shall not partly or totally transfer, rent, lend out, distribute based on asset, rebuild, reconstruct or dispose the Guaranty partly/totally in any other ways; if approved in writing by Mortgagee, the money got from disposal of Guaranty shall be repaid the debt or be drawn from a third party that engaged by Mortgagor in advance.

 

VII.  Settlement of Depreciation of Guaranty

 

Before the Main Debt under the Contract is repaid completely, the actions that Mortgagor takes may decrease the value of the Guaranty, the Mortgagee has the right to request the Mortgagor stopping such actions. The value of Guaranty has decreased, the Mortgagee has the right to require Mortgage to recover the decreased portion or provide another Guarantee that the value equal to the decreased portion and accepted by the Mortgagee. Neither recovering the decreased portion nor providing another Guarantee by Mortgagor, the Mortgagee may request the Debtor to repay the debt in advance, if the debtor fails to repay, the Mortgagee may claims the right of Mortgage.

 

 

  

  

  

Non-accessible or depreciation caused by nature disaster, accident, tortuous act or other matters, the Mortgagor shall take necessary actions to prevent the loss from worsening, and inform the Mortgagee in writing.

 

VIII.  Yield

 

The Debtor failed to fulfill the debt repayment or other events that realizing the mortgage right occurred under the Contract, and cause the Guaranty is sealed up by a people’s court, in such event, the Mortgagee may collect the natural fruits and legal fruits of the sealed up Guaranty from the date when it is sealed up.

The yield that describing in previous paragraph shall be paid to the cost of collecting.

 

IX.  Insurance of Guaranty. (Optional cause, select 2; 1. applicable, 2. non-applicable)

 

The Mortgagor shall provide insurance to the Guaranty with an insurance company accepted by both parties, the insurance code and the period of insurance shall be set by both parties, the insurance amount shall be not less than the estimated value, the content of the Policy shall be accepted by Mortgagee without any restricted articles with influence over Mortgagee.

Before the Main Debt is repaid completely under the Contract, the Mortgagor shall not suspend, terminate, amend or change Policy, and any necessary reasonable action shall be carried out to ensure the Policy remain valid under the Contract. If the Mortgagor doesn’t insure the Guaranty or breaks above agreement, the Mortgagor may decide to insure the Guaranty or renew the insurance, the cost of insurance shall be taken by Mortgagor, and any loss caused by above event shall be debited on Debtor’s Debt account.

In __ days after the Contract signed, the Mortgagor shall deliver the original policy of guaranty, and transfer the claiming right in the event that insurance matter occurs to Mortgagee. The original policy shall be kept by Mortgagee before the Main Debt is repaid completely.

 

X.  Guarantee Obligation

 

The debtor fails to repay on the contract pay day or contract pay day in advance to Mortgagee as scheduled under the Main Contract, the Mortgagee may claim the Mortgage rights under the Contract or by laws, and has the priority of compensation under the maximum amount stipulated in article III of Contract.

The contract pay day mentioned in above paragraph contains of principal repaying date, interest repaying date or the date that the debtor agrees to repay any fund to Mortgagor as schedule under Main Contract. The contract pay day in advance means that the date that Debtor rises up and approved by Mortgagee, and the date that Mortgagee requests Debtor to repay the principal and interest and/or any fund under the Main Contract in advance.

 

XI.  Ways to Realize Mortgage Right and Mortgage Duration

 

The Guarantee obligation becomes effective, the Mortgagee may claim the mortgage right to the due debt partly or totally, one item or more items of fund in accordance with stipulation by laws, regulations.

 

 

  

  

  

To each item of Main Debt, the Mortgagee shall claim the Mortgage right in duration of limits of legal action; if the debt is repaid by installment, the Mortgagee shall claim the Mortgage right before the date that the duration of limits of legal action expires of the last term of the debt.

 

XII.  Realizing the Mortgage Right

 

The Guarantee obligation becomes effective, the Mortgagee may discount the Guaranty by an agreement with Mortgagor or, by auction or sale to repay the Main Debt with a priority. If fails to reach an agreement relate to above matter, the Mortgagee may go to court to get the Guaranty disposed by auction, sales.

The fund got from disposal of the Guaranty, shall be paid to the cost of disposal and the expenses shall be paid or compensated to the Mortgagee with a priority, the rest shall be paid to the Main Debt.

Any other co-existent Mortgage or Guarantee of Security for thing related to the Main Debt besides this contract, shall have no influence to any right and obligation under the Contract, the Mortgagor shall not plead against Mortgagee based on it.

 

XIII. Relation between this Contract and Main Contract

 

If Main Contract contains of the Agreement of Credit Line/General Agreement of Credit Line Business, to extend the period of credit line/business cooperation, a writing consent shall be obtained from the Mortgagee. Without the consent or the Mortgagee rejects, the Mortgagor shall only take the responsibility for the Main Debt occurs during the period of credit line/business cooperation in the maximum amount, the Guarantee period is described in Article III under the Contract.

To modify other contains or Items of the Agreement of Credit Line/General Agreement of Credit Line Business, and a single agreement under certain Item of it, the consent is not needed to get from the Mortgagee, who shall provide the guarantee to the changed Main contract in the maximum amount under Article III of the Contract.

The maximum amount of Debt guaranteed may be adjusted in a writing format, with a prior consent from both Mortgagee and Mortgagor.

Any other co-existent Mortgagee related to the Guaranty under this Contract, without above other Mortgagee’s consent in writing, the modification above mentioned shall not cause any disbennifit influence over them.

Without the consent from the Mortgagor, the Mortgagee may entrust a part/total rights and obligation under the items of Main Contract to other organizations of Bank of China to carry on, or transfer the Main creditor’s right to a third party; and Mortgagor’s guarantee obligation remains unchanged. And the Mortgagor shall provide assistance to Mortgagee or the third party to complete procedure of transferring mortgage right or registering required by laws.

 

XIV.  Statement and Commitment

 

The Mortgagor states and commits as following:

 

 1. The Mortgagor is a corporate duly organized and valid under the law of the People’s Republic of China and has the power and authority to own its property to consummate the transactions contemplated in this contract and join the litigation, The Mortgagor has the power to handle it assets used in business operation

 

 

  

  

  

 

2.  The Mortgagor shall ensure that no co-existent owner related to the Mortgage, otherwise, a writing consent shall be obtained from above co-existent owner. The Mortgagor shall deliver the writing consent to Mortgagee before signing the Contract.

 

3. The Mortgagor is at its option to sign and perform this contract. It is the Mortgagor’s true meaning and has the legal power under the Articles of corporate and bylaws to sign this contract.

The Mortgagor is a corporate, providing Guarantee shall be approved by a resolution through a board meeting, a shareholders meeting, a directors meeting following the Articles of Corporation; if any item of the Articles of Corporation describing the limitation of a Guarantee amount, the Guarantee amount under the Contract shall not be exceed the limitation.

Signing the contract and carrying out it shall not breach its article of corporation or regulations or contracts. The Mortgagor shall obtained or being obtained all necessary approval, permit, filed archive or registration for the Mortgage.

	
  

	
4. All documents, materials, reports and certificates provided to the Mortgagee by the Mortgagor for consummation of the contract is true, real, complete and effective.

 

	
  

	
5. The Mortgagor shall not hide any Security Interest on the Guaranty from the Mortgagee before the Contract is signed.

 

	
  

	
6. If any, new security interest occurs to the Guaranty, the Guaranty is sealed up or involved into a material lawsuit or arbitration, the Mortgagor shall inform the Mortgagee in time.

 

	
  

	
7. If the Guaranty is a project under construction, the Mortgagor shall commit that there is no a third party with a priority of compensation; if any, the Mortgagor shall commit to obtain a writing statement from above third party to give up the priority of compensation. And deliver the writing statement to the Mortgagee.

 

XV. Contracting Fault

 

After the contract signed, the Mortgagor refuses to process or delays the Mortgage registration or other reasons, cause the contract unable to carry out, unable to set the Mortgage, in such event, it shall be concluded a contracting fault. The loss caused to Mortgagee shall be taken by Mortgagor with a compensation responsibility.

 

  XVI. Disclosure of Related Party and Related Transaction to Guarantor in a Group.

 

Both parties agreed to pursuant to item 2 as following:

 

	
1.  

	
The Mortgagor shall not be the Group Client defined in “Commercial Bank Credit Risk Management Group Client Guidance” (refers: Guidance).

 

	
2.  

	
The Mortgagor is a Group Client that defined in Guidance.

 

In accordance with Article XIIV of the Guidance, the Mortgagor shall report the related party transaction of the value exceed 10% of net assets, including relation among related party, purpose of transaction, nature of the transaction, transaction amount and the ratio to the asset, pricing policy (including a transaction with a amount or a symbolistic amount.)

 

XVII. Breach of Faith and Settlement

 

Any such event shall be regarded as breach of faith under the Contract:

 

	
1.  

	
The Mortgagor breach the Contract, presume to transfer, rent, lend out, distribute in kind, rebuild, reconstruct or dispose the Guaranty partly/totally in other ways.

 

	
2.  

	
Any action the Mortgagor takes may cause an influence on Mortgagee to dispose the Guaranty under the article of Contract or by laws.

 

 

  

  

  

 

	
3.  

	
A depreciation of the Guaranty occurs as describing in Article VII of the Contract, and the Mortgagor fails to recover the value of the Guaranty or provide another Guarantee.

 

	
4.  

	
The statements under the Contract from the Mortgagor are not true, or Mortgagor breaks the commits under the Contract.

 

	
5.  

	
The Mortgagor breaks the other obligation of the Contract.

 

	
6.  

	
Such events occur to Mortgagor, business operation terminated, company dismissed, and business registration withdrawn or bankrupt.

 

	
7.  

	
The Mortgagor breaks agreements among Mortgagor and Mortgagee and the other organizations of Bank of China CO., Ltd.

 

In such above events, the Mortgagee may take the following actions separately or together in accordance with the fact.

 

	
1.  

	
Require the Mortgagor to correct their breaches.

 

	
2.  

	
Adjust, suspend or terminate the Mortgagee’s Line of Credit partly or totally;

 

	
3.  

	
Totally or partly, suspend or terminate the loan fund drawing application under any contract between the Mortgagor and Mortgagee, unreleased loan fund, not yet applied trade financing activities.

 

	
4.  

	
Declare the principal and interest of un-repaid loans/trade financing activities and account payable under the Contract or other contracts, totally or partly due immediately.

 

	
5.  

	
Terminate or cancel the Contract or, totally or partly terminate or cancel the other contracts between the Mortgagor and Mortgagee.

 

	
6.  

	
Claim a compensation to the Mortgagor of loss caused by the Mortgagor’s breaches.

 

	
7.  

	
Claim the Mortgage right.

 

	
8.  

	
Other actions that Mortgagee may believe that is necessary

 

XVIII. Reservation of Right

 

One of the parties fails to exercise its part or total rights, or not require another party to take or fulfill the obligation partly or totally, that shall not be regarded as the party waives the right or exempted from the right.

The right of toleration, extension or postpone to exercise the right, that one of the parties carries out to another party, these activities shall not affect any right and obligation under the Contract, and shall not be regarded as a waive of the contract.

 

 

  

  

  

XIX. Amendment, Modification and Termination

 

Both parties agreed that the Contract may be amended, modified in writing, any amendment or modification shall be regarded as a non-separated part of the Contract.

The Contract shall not be terminated before all rights and obligations are fulfilled with an exception that regulated by laws and regulations or other agreement between both parties.

Any invalidation of the items of the Contract shall not affect the legal force of the other items.

XX. Application of Law, Solution of Dispute

 

The contract applies for the Laws of People’s Republic of China.

The Contract becomes effective, any dispute raises out during the signing, carrying on the contract, shall be resolved by negotiation between two parties, furthermore, any party may take such action as following:

Go to Court locating where the Lender or the organizations of Bank of China Co., Ltd business registered.

During the period of resolving dispute, the other Items of Contract that not related to the dispute shall be carried on. And that dispute shall not affect the other Items of Contract to be carrying on.

 

XXI. Expense

 

The Mortgagor shall be responsible for the expense related to signing, carrying out, resolving dispute (including but not limited to, attorney service charge), with an exception that the way both parties settled in another agreement or stipulated by Laws.

 

XXII. Appendixes

 

The following document and all the appendixes agreed by both parties and attached to the Contract for performing the Contract shall be regarded as an integrated part of the Contract, which shall have the same legal effect as the Contract.

 

XXIII. Other provision

 

	
1.  

	
The Mortgagor shall not transfer any right or obligation under the Contract to a third party without a writing consent from the Mortgagee.

 

	
2.  

	
The Mortgagor shall accept that, when it is needed, the Mortgagee relegates carrying on the Contract to other organizations of Bank of China, or transfers the loan under the Contract to above organizations. The above organizations authorized by the Mortgagee have a right to carry out all the rights under the Contract, to raise the dispute related to the Contract to a law court, an arbitration authority, to apply for a law enforcement order from a Court.

 

	
3.  

	
The legal successor or assignee of both (each) parties of Contract, shall be legally bound by the Contract, with an exception that stipulated in another agreement.

 

	
4.  

	
With an exception that agreed in another agreement, the Registration Address of both parties describing in the Contract means living address and contact address, and each party commits that provide a writing notify to another party when above address is changed.

 

	
5.  

	
The title and business name describing in the Contract is being used for convenience, shall not be used in an explanation to the contain of Items, rights and obligations of the Contract.

 

 

  

  

  

 

 

XXIIII. Become effective.

 

The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of each party and sealed by each party. If Mortgage registration is needed, the contract shall be effective from the date when the registration is completed. The Contract is made out in 3 duplicates, one for each party, one for the Debtor, with the same legal effect.

 

 

 

	MORTGAGOR :	(seal)   YISHUI YINHE TOURISM DEVELOPING CO., LTD (sealed) 
	 	 
	Signature:  	CHEN JIASHU (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date:	28-9-2010
	 	 
	 	 
	MORTGAGEE (Seal):   	BANK OF CHINA CO., LTD YISHUI BRANCH (sealed) 
	 	 
	Signature: 	LI SHIMING (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date: 	28-9-2010

 

  

  

  

                                     

Attachment:

Pledge List

2009 BOC Yishui Gao 017#

	
Description of

Pledge

	
Quantity

(m2)

	
Estimated Value/pledge value

(MillionYuan)

	
Ownership/

Certificate No.:

	
Location

	
Registry

	
Tenure

	
19,799

	
16.25/8

	
Yiguoyong:

2009-042#

	
Near the Cross of

Big &small Yihe River

	
Yishui county Land Board

	
Tenure

	
33,000

	
26.66/12

	
Yiguoyong

2009-090#

	
Near the Cross of

Big &small Yihe River

	
Yishui county Land Board

 

 

 

  

  

  

 

CONTRACT

OF

GUARANTEE OF MAXIMUM AMOUNT

FOR MIDDLE &SMALL SCALE ENTERPRISE

2010 Yishui BOC Gao-bao- 016-1#

 

 

	Guarantor: 	ZHANG SHANJIU
	 	 
	Add: 	12# SHUANGCHENG RD. YISHUI COUNTY SHANDONG PROVINCE
	 	 
	Zip:	276400
	 	 
	Tel:     0539-2226899	Fax:     0539-2226899
	 	 
	 	 
	 	 
	Creditor:	BANK OF CHINA CO., LTD YISHUI BRANCH
	 	 
	Corporate Representation:  	YANG ZAIZHI
	 	 
	Add:	66# Changan Rd. Yishui County Shandong province
	 	 
	Zip:              276400	 
	 	 
	Tel:            0539-2252736	 
	 	 
	Fax:           0539-2266158	 

 

To ensure the debt under the Main Contract that describing in Article I of the Contract to be carried out, the Guarantor agreed to provide the Guarantee to Guarantee. Both parties agreed to sign this Contract based on an equal negotiation. With an exception that stipulated by another agreement, the words explanation shall be based on Main Contract.

I.  Main Contract

 

The main contract of this Contract is:

 

The Granting Agreement of Credit Line of Middle & Small Scale Enterprise No.:2010 Yishui BOC E-016#.and certain parts belong to Main Contract among other signed or being signed single agreement item, amendment or supplement based on above agreement; which signed between the Creditor and Debtor Shandong Longkong Development Co., Ltd.

 

II.  Main Creditor’s Right and Duration

 

With an exception that stipulated in another agreement, the Main Creditor’s right means the debt made under Main Contract in following period:

From the date when the Granting Agreement of Credit Line of Middle & Small Scale Enterprise becomes effective till the date that the life of debt stipulated in above agreement and the amendment, supplement of the line of credit expires.

 

III.  Maximum Amount of Guarantee

 

1.  The Maximum amount of the guarantee contract:

 

Base currency: RENMINBI

(In words)    TWENTY MILLION YUAN

(In number)  20,000,000.00 Yuan

 

2.  The date that the period of Main Debt expires describing in Article II, the debt is regarded as the Main Debt under the Guarantee Contract, such following items based on the Main Debt shall belong to the Main Debt guaranteed. The exact amount shall be confirmed as it is repaid.

 

 

  

  

  

 

Interest: including legal interest, contract interest, compound interest, penalty interest.

Liquidated damage;

Compensation;

Cost for realizing creditor’s right: including but not limited to lawsuit expense, attorney service charge, notarial fees, and costs of execution.

The loss caused by breaching contract by debtor;

Other expenses payable.

The total amount of above two items shall be regarded as the maximum amount of Guarantee.

 

IV.  Type of Guarantee.

 

The type of Guarantee of the contract shall be joint guarantee.

V.  Rising up Guarantee Liability

 

The debtor fails to repay on the contract pay day or contract pay day in advance to creditor as scheduled under the Main Contract, the creditor may require the Guarantee to provide the Guarantee obligation.

The contract pay day mentioned in above paragraph contains of principal repaying date, interest repaying date or the date that the debtor agrees to repay any fund to Creditor as schedule under Main Contract. The contract pay day in advance means that the date that Debtor rises up and a writing consent obtained from Creditor, and the date that Creditor requires Debtor to repay the principal and interest and/or any fund under the Main Contract in advance.

Any other co-existent Pledge Agreement or Guarantee related to the Main Debt besides the Guarantee contract, shall have no influence with any right and obligation under the Contract, the Guarantor shall not plead against Creditor based on it.

VI. Period of Guarantee

 

The period of guarantee under the Contract is that: 2 years from the date when the period of Main Debt expires describing in Article II under the Contract.

During the period of Guarantee, the Creditor may require Guarantor to provide the Guarantee for total debt or part of it, single or more fund, separately or totally.

 

VII.  Time for law action of Guaranteed Debt

 

The Main Debt unpaid yet, a relevant joint guarantee existing, the creditor requires the Guarantor to provide the joint guarantee obligation before the period of guarantee expires; the Guarantee obligation and the time for law action shall be started from the date when Creditor claims the joint guarantee obligation to Guarantor.

 

VIII.  Relation between this Contract and Main Contract

 

If Main Contract contains of the GrantingAgreement of Credit Line of Middle & Small Scale Enterprise/General Agreement of Credit Line Business, to extend the period of credit line/business cooperation, a writing consent shall be obtained from the Guarantor. Without the consent or the Guarantor rejects, the Guarantor shall only take the responsibility for the Main Debt occur during the period of credit line/business cooperation in the maximum amount, the Guarantee period is described in Article III under the Contract, that remains unchanged.

 

 

  

  

  

To modify other contains or Items of the Granting Agreement of Credit Line of Middle & Small Scale Enterprise/General Agreement of Credit Line Business, and a single agreement under certain Item of it, the consent is not needed to get from the Guarantor, who shall provide the guarantee to the changed Main contract in the maximum amount under Article III of the Contract.

The maximum amount of Debt guaranteed may be adjusted in a writing format, with an prior consent from both Creditor and Guarantor.

Without the consent from the Guarantor, the Creditor may entrust a part/total rights and obligation under the items of Main Contract to other organizations of Bank of China to carry on, or transfer the Main creditor’s right to a third party; and debtor’s guarantee obligation remains unchanged.

 

IX.  Statement and Commitment

 

The Guarantor states and commits as follow:

 

1. The Guarantor is a corporate duly organized and valid under the law of the People’s Republic of China and has the power and authority to own its property to consummate the transactions contemplated in this contract and join the litigation, The Guarantor has the power to handle it assets used in business operation.

 

2. The guarantor is at its option to sign and perform this contract. It is the Guarantor’s true meaning and has the legal power under the Articles of corporate and bylaws to sign this contract.

The Guarantor is a corporate, providing Guarantee shall be approved by a resolution through a board meeting, a shareholders meeting, a directors meeting following the Articles of Corporation; if any item of the Articles of Corporation describing the limitation of a Guarantee amount, the Guarantee amount under the Contract shall not be exceed the limitation.

Signing the contract and carrying out it shall not breach its article of corporation or regulations or contracts.

 

	
3.  

	
All documents, materials, reports and certificates provided to the Creditor by the Debtor for consummation of the contract is true, real, complete and effective.

 

	
4.  

	
Accept checking and monitoring to operation situation, financial statement from the Creditor with sufficient assistant and co-operation.

 

	
5.  

	
No any material liability hiding from the Creditor as the contract being signed.

 

	
6.  

	
Such events may affect the Guarantor’s financial situation or carrying on the Contract, including, but not limited to any format split, merger, joint venture, cooperation, jointly cooperation, dissolution, closedown, liquidation, transformation; planning to go public, involved into a material lawsuit or arbitration, the Guarantor shall inform the Creditor in writing.

 

X.  Disclosure of Related Party and Related inter Transaction in the Group which Guarantor belongs to.

 

The both parties agreed to the item 2 as following:

 

 

  

  

  

1. The Guarantor is not a Group Client defined in Commercial Bank Credit Risk Management Group Client Guidance (refers: Guidance).

 

2. The Guarantor is a Group Client as described in the Guidance.

 

The Guarantor shall report the status of the related transactions which amount exceeds 10% of the net assets to Creditor in time pursuant to Section 17 of the Guidance. Which contains of the relations among the parties involved into the above transactions, transaction item and purpose, amount of the transaction,relevant ratio or pricing policy (including the transactions with an exact amount or transactions with a symbolic amount).

 

XI.  Breach of Faith and Settlement

 

Any such event shall be regarded as breach of faith under the Contract:

 

	
(1)  

	
The Guarantor fails to accomplish the Guarantee obligation under the Contract.

 

	
(2)  

	
The statement the Guarantor provide to the Contract is not true, or breaking the commitment in the Contract.

 

	
(3)  

	
The event describing in item 6, article IX, it may have a material influence with Guarantor’s financial situation and the ability to carry on the Contract.

 

	
(4)  

	
Such events occur to Guarantor, business operation terminated, company dismissed, and business registration withdrawn or bankrupt.

 

	
(5)  

	
The Guarantor breaks the other obligation of the Contract.

 

	
(6)  

	
The Guarantor breaks agreements among Guarantor and Creditor and the other organizations of Bank of China CO., Ltd.

 

In such above events, the Creditor may take the following actions separately or together in accordance with the fact.

 

	
1.  

	
Require the Guarantor to correct their breaches.

 

	
2.  

	
Adjust, suspend or terminate the Creditor’s Line of Credit partly or totally;

 

	
3.  

	
Totally or partly, suspend or terminate the loan fund drawing application under any contract between the Guarantor and Creditor, unreleased loan fund, not yet applied trade financing activities.

 

	
4.  

	
Declare the principal and interest of un-repaid loans/trade financing activities and account payable under the Contract or other contracts, totally or partly due immediately.

 

 

  

  

  

 

	
5.  

	
Terminate or cancel the Contract or, totally or partly terminate or cancel the other contracts between the Guarantor and Creditor.

 

	
6.  

	
Claim a compensation to the Guarantor of loss caused by the Guarantor’s breaches.

 

	
7.  

	
Inform in advance or after, transfer the money in the account that the Guarantor opened with the Creditor or other organizations of Bank of China to repay the part or total of the debt under the Contract. The undue money in accounts would be regarded as due immediately. The currency in accounts is different from that executed under the Contract, may computed applying with the current foreign exchange rate.

 

	
8.  

	
Other actions that Creditor may believe that is necessary

 

XII. Reservation of Right

 

One of the parties fails to exercise its part or total rights, or not require another party to take or fulfill the obligation partly or totally, that shall not be regarded as the party waives the right or exempted from the right.

The right of toleration, extension or postpone to exercise the right, that one of the parties carries out to another party, these activities shall not affect any right and obligation under the Contract, and shall not be regarded as a waive of the contract.

XIII. Amendment, Modification and Termination

 

Both parties agreed that the Contract may be amended, modified in writing, any amendment or modification shall be regarded as a non-separated part of the Contract.

The Contract shall not be terminated before all rights and obligations are fulfilled with an exception that regulated by laws and regulations or other agreement between both parties.

Any invalidation of the items of the Contract shall not affect the legal force of the other items.

XIIII. Application of Law, Solution of Dispute

 

The contract applies for the Laws of People’s Republic of China.

The Contract becomes effective, any dispute raises out during the signing, carrying on the contract, shall be resolved by negotiation between two parties, furthermore, any party may take such action as following:

Go to Court locating where the Lender or the organizations of Bank of China Co., Ltd business registered.

During the period of resolving dispute, the other Items of Contract that not related to the dispute shall be carried on. And that dispute shall not affect the other Items of Contract to be carrying on.

 

XV. Expense

 

The Guarantor shall be responsible for the expense related to signing, carrying out, resolving dispute (including but not limited to, attorney service charge), with an exception that the way both parties settled in another agreement or stipulated by Laws.

 

 

  

  

  

 

XVI. Appendixes

 

The appendixes agreed by both parties and attached to the Contract for performing the Contract shall be regarded as an integrated part of the Contract, which shall have the same legal effect as the Contract.

 

XVII. Other provision

 

	
1.  

	
The Guarantor shall not transfer any right or obligation under the Contract to a third party without a writing consent from the Creditor.

 

	
2.  

	
The Guarantor shall accept that, when it is needed, the Creditor relegates carrying on the Contract to other organizations of Bank of China, or transfers the loan under the Contract to above organizations. The above organizations authorized by the Creditor have a right to carry out all the rights under the Contract, to raise the dispute related to the Contract to a law court, an arbitration authority, to apply for a law enforcement order from a Court.

 

	
3.  

	
The legal successor or assignee of both (each) parties of Contract, shall be legally bound by the Contract, with an exception that stipulated in another agreement.

 

	
4.  

	
With an exception that agreed in another agreement, the Registration Address of both parties describing in the Contract means living address and contact address, and each party commits that provide a writing notify to another party when above address is changed.

 

	
5.  

	
The title and business name describing in the Contract is being used for convenience, shall not be used in an explanation to the contain of Items, rights and obligations of the Contract.

 

XVIII. Become effective.

 

This contract becomes effective when the following actions is fulfilled:

 

1.  The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of Guarantor and sealed by the Guarantor.

 

2. The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of Creditor and sealed by the Creditor.

 

The Contract is made out in 3 duplicates, one for each party, one for the Debtor, with the same legal enforcement.

 

 

 

	GUARANTOR :(Seal)  	ZHANG SHANJIU
	 	 
	Signature:  	ZHANG SHANJIU (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date:	28-9-2010
	 	 
	 	 
	CREDITOR (Seal): 	BANK OF CHINA CO., LTD YISHUI BRANCH  (Sealed)
	 	 
	Signature:	LI SHIMING (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date: 	29-9-2010

 

                                                                                                  

  

  

  

 

Consent Commitment of Guarantor’s Wife

For Providing the Joint Abilities Guarantee by Guarantor

To: Bank of China Yishui Branch

 

I hereby agree that my husband Zhang shanjiu (Guarantor) may provide the joint abilities guarantee to Bank as to the Guarantee Contrac in A Maximum Amount No.: 2010 Yishui BOC Gao-bao-016-1 signed between the Borrower Shandong Longkong Travel Development Co., Ltd and the Bank. The maximum Guarantee Amount shall not exceed RMB twenty million Yuan and other relevant interest and costs or expenses related to the Guarantee Contract, the Guarantee period shall be 12 months.

This commitment shall be valid until the Borrower repays up the loan including the loan principal and interest.

Signature: Chen Rongxia (signed)

(Signed by Guarantor’s Wife)

Date: 28-9-2010

 

 

  

  

  

 

CONTRACT

OF

GUARANTEE OF MAXIMUM AMOUNT

FOR MIDDLE &SMALL SCALE ENTERPRISE

2010 Yishui BOC Gao-bao- 016-2#

 

	Guarantor: 	JUNAN TIANMA ISLAND TOURISM DEVELOPING CO., LTD
	 	 
	Business License No.:   	371327228013373
	 	 
	Corporate Representative/principal: 	ZHANG SHANJIU
	 	 
	Account Bank and Account: 	Junan ADBC
	 	 
	Add: 	LAOPU TOWN JUNAN COUNTY
	 	 
	Zip:	276400
	 	 
	Tel:     0539-7837382	Fax:              0539-7837382
	 	 
	 	 
	 	 
	Creditor:	BANK OF CHINA CO., LTD YISHUI BRANCH
	 	 
	Corporate Representation:  	YANG ZAIZHI
	 	 
	Add:	66# Changan Rd. Yishui County Shandong province
	 	 
	Zip:              276400	 
	 	 
	Tel:            0539-2252736	 
	 	 
	Fax:           0539-2266158	 

To ensure the debt under the Main Contract that describing in Article I of the Contract to be carried out, the Guarantor agreed to provide the Guarantee to Guarantee. Both parties agreed to sign this Contract based on an equal negotiation. With an exception that stipulated by another agreement, the words explanation shall be based on Main Contract.

I.  Main Contract

 

The main contract of this Contract is:

 

The Granting Agreement of Credit Line of Middle & Small Scale Enterprise No.:2010 Yishui BOC E-016#.and certain parts belong to Main Contract among other signed or being signed single agreement item, amendment or supplement based on above agreement; which signed between the Creditor and Debtor Shandong Longkong Development Co., Ltd.

 

II.  Main Creditor’s Right and Duration

 

With an exception that stipulated in another agreement, the Main Creditor’s right means the debt made under Main Contract in following period:

From the date when the Granting Agreement of Credit Line of Middle & Small Scale Enterprise becomes effective till the date that the life of debt stipulated in above agreement and the amendment, supplement of the line of credit expires.

 

III.  Maximum Amount of Guarantee

 

1.  The Maximum amount of the guarantee contract:

 

 

  

  

  

 

Base currency: RENMINBI

(In words)    TWENTY MILLION YUAN

(In number)  20,000,000.00 Yuan

 

2.  The date that the period of Main Debt expires describing in Article II, the debt is regarded as the Main Debt under the Guarantee Contract, such following items based on the Main Debt shall belong to the Main Debt guaranteed. The exact amount shall be confirmed as it is repaid.

 

Interest: including legal interest, contract interest, compound interest, penalty interest.

Liquidated damage;

Compensation;

Cost for realizing creditor’s right: including but not limited to lawsuit expense, attorney service charge, notarial fees, and costs of execution.

The loss caused by breaching contract by debtor;

Other expenses payable.

The total amount of above two items shall be regarded as the maximum amount of Guarantee.

 

IV.  Type of Guarantee.

 

The type of Guarantee of the contract shall be joint guarantee.

V.  Rising up Guarantee Liability

 

The debtor fails to repay on the contract pay day or contract pay day in advance to creditor as scheduled under the Main Contract, the creditor may require the Guarantee to provide the Guarantee obligation.

The contract pay day mentioned in above paragraph contains of principal repaying date, interest repaying date or the date that the debtor agrees to repay any fund to Creditor as schedule under Main Contract. The contract pay day in advance means that the date that Debtor rises up and a writing consent obtained from Creditor, and the date that Creditor requires Debtor to repay the principal and interest and/or any fund under the Main Contract in advance.

Any other co-existent Pledge Agreement or Guarantee related to the Main Debt besides the Guarantee contract, shall have no influence with any right and obligation under the Contract, the Guarantor shall not plead against Creditor based on it.

VI. Period of Guarantee

 

The period of guarantee under the Contract is that: 2 years from the date when the period of Main Debt expires describing in Article II under the Contract.

During the period of Guarantee, the Creditor may require Guarantor to provide the Guarantee for total debt or part of it, single or more fund, separately or totally.

 

VII.  Time for law action of Guaranteed Debt

 

The Main Debt unpaid yet, a relevant joint guarantee existing, the creditor requires the Guarantor to provide the joint guarantee obligation before the period of guarantee expires; the Guarantee obligation and the time for law action shall be started from the date when Creditor claims the joint guarantee obligation to Guarantor.

 

VIII.  Relation between this Contract and Main Contract

 

 

  

  

  

 

If Main Contract contains of the GrantingAgreement of Credit Line of Middle & Small Scale Enterprise/General Agreement of Credit Line Business, to extend the period of credit line/business cooperation, a writing consent shall be obtained from the Guarantor. Without the consent or the Guarantor rejects, the Guarantor shall only take the responsibility for the Main Debt occur during the period of credit line/business cooperation in the maximum amount, the Guarantee period is described in Article III under the Contract, that remains unchanged.

To modify other contains or Items of the Granting Agreement of Credit Line of Middle & Small Scale Enterprise/General Agreement of Credit Line Business, and a single agreement under certain Item of it, the consent is not needed to get from the Guarantor, who shall provide the guarantee to the changed Main contract in the maximum amount under Article III of the Contract.

The maximum amount of Debt guaranteed may be adjusted in a writing format, with an prior consent from both Creditor and Guarantor.

Without the consent from the Guarantor, the Creditor may entrust a part/total rights and obligation under the items of Main Contract to other organizations of Bank of China to carry on, or transfer the Main creditor’s right to a third party; and debtor’s guarantee obligation remains unchanged.

 

IX.  Statement and Commitment

 

The Guarantor states and commits as follow:

 

1. The Guarantor is a corporate duly organized and valid under the law of the People’s Republic of China and has the power and authority to own its property to consummate the transactions contemplated in this contract and join the litigation, The Guarantor has the power to handle it assets used in business operation.

 

2. The guarantor is at its option to sign and perform this contract. It is the Guarantor’s true meaning and has the legal power under the Articles of corporate and bylaws to sign this contract.

The Guarantor is a corporate, providing Guarantee shall be approved by a resolution through a board meeting, a shareholders meeting, a directors meeting following the Articles of Corporation; if any item of the Articles of Corporation describing the limitation of a Guarantee amount, the Guarantee amount under the Contract shall not be exceed the limitation.

Signing the contract and carrying out it shall not breach its article of corporation or regulations or contracts.

 

	
3.  

	
All documents, materials, reports and certificates provided to the Creditor by the Debtor for consummation of the contract is true, real, complete and effective.

 

	
4.  

	
Accept checking and monitoring to operation situation, financial statement from the Creditor with sufficient assistant and co-operation.

 

	
5.  

	
No any material liability hiding from the Creditor as the contract being signed.

 

	
6.  

	
Such events may affect the Guarantor’s financial situation or carrying on the Contract, including, but not limited to any format split, merger, joint venture, cooperation, jointly cooperation, dissolution, closedown, liquidation, transformation; planning to go public, involved into a material lawsuit or arbitration, the Guarantor shall inform the Creditor in writing.

 

 

  

  

  

 

X.  Disclosure of Related Party and Related inter Transaction in the Group which Guarantor belongs to.

 

The both parties agreed to the item 2 as following:

1. The Guarantor is not a Group Client defined in Commercial Bank Credit Risk Management Group Client Guidance (refers: Guidance).

 

2. The Guarantor is a Group Client as described in the Guidance.

 

The Guarantor shall report the status of the related transactions which amount exceeds 10% of the net assets to Creditor in time pursuant to Section 17 of the Guidance. Which contains of the relations among the parties involved into the above transactions, transaction item and purpose, amount of the transaction,relevant ratio or pricing policy (including the transactions with an exact amount or transactions with a symbolic amount).

 

XI.  Breach of Faith and Settlement

 

Any such event shall be regarded as breach of faith under the Contract:

	
(1)  

	
The Guarantor fails to accomplish the Guarantee obligation under the Contract.

 

	
(2)  

	
The statement the Guarantor provide to the Contract is not true, or breaking the commitment in the Contract.

 

	
(3)  

	
The event describing in item 6, article IX, it may have a material influence with Guarantor’s financial situation and the ability to carry on the Contract.

 

	
(4)  

	
Such events occur to Guarantor, business operation terminated, company dismissed, and business registration withdrawn or bankrupt.

 

	
(5)  

	
The Guarantor breaks the other obligation of the Contract.

 

	
(6)  

	
The Guarantor breaks agreements among Guarantor and Creditor and the other organizations of Bank of China CO., Ltd.

In such above events, the Creditor may take the following actions separately or together in accordance with the fact.

 

	
1.  

	
Require the Guarantor to correct their breaches.

 

	
2.  

	
Adjust, suspend or terminate the Creditor’s Line of Credit partly or totally;

 

	
3.  

	
Totally or partly, suspend or terminate the loan fund drawing application under any contract between the Guarantor and Creditor, unreleased loan fund, not yet applied trade financing activities.

 

	
4.  

	
Declare the principal and interest of un-repaid loans/trade financing activities and account payable under the Contract or other contracts, totally or partly due immediately.

 

 

  

  

  

 

 

	
5.  

	
Terminate or cancel the Contract or, totally or partly terminate or cancel the other contracts between the Guarantor and Creditor.

 

	
6.  

	
Claim a compensation to the Guarantor of loss caused by the Guarantor’s breaches.

 

	
7.  

	
Inform in advance or after, transfer the money in the account that the Guarantor opened with the Creditor or other organizations of Bank of China to repay the part or total of the debt under the Contract. The undue money in accounts would be regarded as due immediately. The currency in accounts is different from that executed under the Contract, may computed applying with the current foreign exchange rate.

 

	
8.  

	
Other actions that Creditor may believe that is necessary

 

XII. Reservation of Right

 

One of the parties fails to exercise its part or total rights, or not require another party to take or fulfill the obligation partly or totally, that shall not be regarded as the party waives the right or exempted from the right.

The right of toleration, extension or postpone to exercise the right, that one of the parties carries out to another party, these activities shall not affect any right and obligation under the Contract, and shall not be regarded as a waive of the contract.

 

XIII. Amendment, Modification and Termination

 

Both parties agreed that the Contract may be amended, modified in writing, any amendment or modification shall be regarded as a non-separated part of the Contract.

The Contract shall not be terminated before all rights and obligations are fulfilled with an exception that regulated by laws and regulations or other agreement between both parties.

Any invalidation of the items of the Contract shall not affect the legal force of the other items.

XIIII. Application of Law, Solution of Dispute

 

The contract applies for the Laws of People’s Republic of China.

The Contract becomes effective, any dispute raises out during the signing, carrying on the contract, shall be resolved by negotiation between two parties, furthermore, any party may take such action as following:

Go to Court locating where the Lender or the organizations of Bank of China Co., Ltd business registered.

During the period of resolving dispute, the other Items of Contract that not related to the dispute shall be carried on. And that dispute shall not affect the other Items of Contract to be carrying on.

 

XV. Expense

 

The Guarantor shall be responsible for the expense related to signing, carrying out, resolving dispute (including but not limited to, attorney service charge), with an exception that the way both parties settled in another agreement or stipulated by Laws.

 

XVI. Appendixes

 

The appendixes agreed by both parties and attached to the Contract for performing the Contract shall be regarded as an integrated part of the Contract, which shall have the same legal effect as the Contract.

 

 

  

  

  

 

XVII. Other provision

 

	
1.  

	
The Guarantor shall not transfer any right or obligation under the Contract to a third party without a writing consent from the Creditor.

 

	
2.  

	
The Guarantor shall accept that, when it is needed, the Creditor relegates carrying on the Contract to other organizations of Bank of China, or transfers the loan under the Contract to above organizations. The above organizations authorized by the Creditor have a right to carry out all the rights under the Contract, to raise the dispute related to the Contract to a law court, an arbitration authority, to apply for a law enforcement order from a Court.

 

	
3.  

	
The legal successor or assignee of both (each) parties of Contract, shall be legally bound by the Contract, with an exception that stipulated in another agreement.

 

	
4.  

	
With an exception that agreed in another agreement, the Registration Address of both parties describing in the Contract means living address and contact address, and each party commits that provide a writing notify to another party when above address is changed.

 

	
5.  

	
The title and business name describing in the Contract is being used for convenience, shall not be used in an explanation to the contain of Items, rights and obligations of the Contract.

 

XVIII. Become effective.

 

This contract becomes effective when the following actions is fulfilled:

 

1.  The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of Guarantor and sealed by the Guarantor.

 

2. The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of Creditor and sealed by the Creditor.

 

The Contract is made out in 3 duplicates, one for each party, one for the Debtor, with the same legal enforcement.

 

 

	GUARANTOR :(Seal)  	JUNAN TIANMA ISLAND TOURISM DEVELOPING CO., LTD (sealed)
	 	 
	Signature:  	ZHANG SHANJIU (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date:	28-9-2010
	 	 
	 	 
	CREDITOR (Seal): 	BANK OF CHINA CO., LTD YISHUI BRANCH  (Sealed)
	 	 
	Signature:	LI SHIMING (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date: 	29-9-2010

  

  

  

 

CONTRACT

OF

GUARANTEE OF MAXIMUM AMOUNT

FOR MIDDLE &SMALL SCALE ENTERPRISE

2010 Yishui BOC Gao-bao- 016-3#

 

	Guarantor: 	YISHUI YINHE TOURISM DEVELOPING CO., LTD
	 	 
	Business License No.:   	371323200002487
	 	 
	Corporate Representative/principal: 	CHEN JIASHU
	 	 
	Account Bank and Account: 	ICBC Yishui Branch
	 	 
	Add: 	WEST TO YIBO RD. YISHUI COUNTY
	 	 
	Zip:	276400
	 	 
	Tel:     0539-2226899	Fax:       0539-2226899
	 	 
	 	 
	 	 
	Creditor:	BANK OF CHINA CO., LTD YISHUI BRANCH
	 	 
	Corporate Representation:  	YANG ZAIZHI
	 	 
	Add:	66# Changan Rd. Yishui County Shandong province
	 	 
	Zip:              276400	 
	 	 
	Tel:            0539-2252736	 
	 	 
	Fax:           0539-2266158	 

To ensure the debt under the Main Contract that describing in Article I of the Contract to be carried out, the Guarantor agreed to provide the Guarantee to Guarantee. Both parties agreed to sign this Contract based on an equal negotiation. With an exception that stipulated by another agreement, the words explanation shall be based on Main Contract.

I.  Main Contract

 

The main contract of this Contract is:

 

The Granting Agreement of Credit Line of Middle & Small Scale Enterprise No.:2010 Yishui BOC E-016#.and certain parts belong to Main Contract among other signed or being signed single agreement item, amendment or supplement based on above agreement; which signed between the Creditor and Debtor Shandong Longkong Development Co., Ltd.

 

II.  Main Creditor’s Right and Duration

 

With an exception that stipulated in another agreement, the Main Creditor’s right means the debt made under Main Contract in following period:

 

From the date when the Granting Agreement of Credit Line of Middle & Small Scale Enterprise becomes effective till the date that the life of debt stipulated in above agreement and the amendment, supplement of the line of credit expires.

 

III.  Maximum Amount of Guarantee

 

1.  The Maximum amount of the guarantee contract:

 

 

  

  

  

 

Base currency: RENMINBI

(In words)    TWENTY MILLION YUAN

(In number)  20,000,000.00 Yuan

 

2.  The date that the period of Main Debt expires describing in Article II, the debt is regarded as the Main Debt under the Guarantee Contract, such following items based on the Main Debt shall belong to the Main Debt guaranteed. The exact amount shall be confirmed as it is repaid.

 

Interest: including legal interest, contract interest, compound interest, penalty interest.

Liquidated damage;

Compensation;

Cost for realizing creditor’s right: including but not limited to lawsuit expense, attorney service charge, notarial fees, and costs of execution.

The loss caused by breaching contract by debtor;

Other expenses payable.

The total amount of above two items shall be regarded as the maximum amount of Guarantee.

 

IV.  Type of Guarantee.

 

The type of Guarantee of the contract shall be joint guarantee.

V.  Rising up Guarantee Liability

 

The debtor fails to repay on the contract pay day or contract pay day in advance to creditor as scheduled under the Main Contract, the creditor may require the Guarantee to provide the Guarantee obligation.

The contract pay day mentioned in above paragraph contains of principal repaying date, interest repaying date or the date that the debtor agrees to repay any fund to Creditor as schedule under Main Contract. The contract pay day in advance means that the date that Debtor rises up and a writing consent obtained from Creditor, and the date that Creditor requires Debtor to repay the principal and interest and/or any fund under the Main Contract in advance.

Any other co-existent Pledge Agreement or Guarantee related to the Main Debt besides the Guarantee contract, shall have no influence with any right and obligation under the Contract, the Guarantor shall not plead against Creditor based on it.

VI. Period of Guarantee

 

The period of guarantee under the Contract is that: 2 years from the date when the period of Main Debt expires describing in Article II under the Contract.

During the period of Guarantee, the Creditor may require Guarantor to provide the Guarantee for total debt or part of it, single or more fund, separately or totally.

 

VII.  Time for law action of Guaranteed Debt

 

The Main Debt unpaid yet, a relevant joint guarantee existing, the creditor requires the Guarantor to provide the joint guarantee obligation before the period of guarantee expires; the Guarantee obligation and the time for law action shall be started from the date when Creditor claims the joint guarantee obligation to Guarantor.

 

 

  

  

  

 

VIII.  Relation between this Contract and Main Contract

 

If Main Contract contains of the GrantingAgreement of Credit Line of Middle & Small Scale Enterprise/General Agreement of Credit Line Business, to extend the period of credit line/business cooperation, a writing consent shall be obtained from the Guarantor. Without the consent or the Guarantor rejects, the Guarantor shall only take the responsibility for the Main Debt occur during the period of credit line/business cooperation in the maximum amount, the Guarantee period is described in Article III under the Contract, that remains unchanged.

To modify other contains or Items of the Granting Agreement of Credit Line of Middle & Small Scale Enterprise/General Agreement of Credit Line Business, and a single agreement under certain Item of it, the consent is not needed to get from the Guarantor, who shall provide the guarantee to the changed Main contract in the maximum amount under Article III of the Contract.

The maximum amount of Debt guaranteed may be adjusted in a writing format, with an prior consent from both Creditor and Guarantor.

Without the consent from the Guarantor, the Creditor may entrust a part/total rights and obligation under the items of Main Contract to other organizations of Bank of China to carry on, or transfer the Main creditor’s right to a third party; and debtor’s guarantee obligation remains unchanged.

 

IX.  Statement and Commitment

 

The Guarantor states and commits as follow:

 

1. The Guarantor is a corporate duly organized and valid under the law of the People’s Republic of China and has the power and authority to own its property to consummate the transactions contemplated in this contract and join the litigation, The Guarantor has the power to handle it assets used in business operation.

 

2. The guarantor is at its option to sign and perform this contract. It is the Guarantor’s true meaning and has the legal power under the Articles of corporate and bylaws to sign this contract.

The Guarantor is a corporate, providing Guarantee shall be approved by a resolution through a board meeting, a shareholders meeting, a directors meeting following the Articles of Corporation; if any item of the Articles of Corporation describing the limitation of a Guarantee amount, the Guarantee amount under the Contract shall not be exceed the limitation.

Signing the contract and carrying out it shall not breach its article of corporation or regulations or contracts.

 

	
3.  

	
All documents, materials, reports and certificates provided to the Creditor by the Debtor for consummation of the contract is true, real, complete and effective.

 

	
4.  

	
Accept checking and monitoring to operation situation, financial statement from the Creditor with sufficient assistant and co-operation.

 

	
5.  

	
No any material liability hiding from the Creditor as the contract being signed.

 

	
6.  

	
Such events may affect the Guarantor’s financial situation or carrying on the Contract, including, but not limited to any format split, merger, joint venture, cooperation, jointly cooperation, dissolution, closedown, liquidation, transformation; planning to go public, involved into a material lawsuit or arbitration, the Guarantor shall inform the Creditor in writing.

 

 

  

  

  

 

X.  Disclosure of Related Party and Related inter Transaction in the Group which Guarantor belongs to.

 

The both parties agreed to the item 2 as following:

1. The Guarantor is not a Group Client defined in Commercial Bank Credit Risk Management Group Client Guidance (refers: Guidance).

 

2. The Guarantor is a Group Client as described in the Guidance.

 

The Guarantor shall report the status of the related transactions which amount exceeds 10% of the net assets to Creditor in time pursuant to Section 17 of the Guidance. Which contains of the relations among the parties involved into the above transactions, transaction item and purpose, amount of the transaction,relevant ratio or pricing policy (including the transactions with an exact amount or transactions with a symbolic amount).

 

XI.  Breach of Faith and Settlement

 

Any such event shall be regarded as breach of faith under the Contract:

 

	
(1)  

	
The Guarantor fails to accomplish the Guarantee obligation under the Contract.

 

	
(2)  

	
The statement the Guarantor provide to the Contract is not true, or breaking the commitment in the Contract.

 

	
(3)  

	
The event describing in item 6, article IX, it may have a material influence with Guarantor’s financial situation and the ability to carry on the Contract.

 

	
(4)  

	
Such events occur to Guarantor, business operation terminated, company dismissed, and business registration withdrawn or bankrupt.

 

	
(5)  

	
The Guarantor breaks the other obligation of the Contract.

 

	
(6)  

	
The Guarantor breaks agreements among Guarantor and Creditor and the other organizations of Bank of China CO., Ltd.

In such above events, the Creditor may take the following actions separately or together in accordance with the fact.

 

	
1.  

	
Require the Guarantor to correct their breaches.

 

	
2.  

	
Adjust, suspend or terminate the Creditor’s Line of Credit partly or totally;

 

	
3.  

	
Totally or partly, suspend or terminate the loan fund drawing application under any contract between the Guarantor and Creditor, unreleased loan fund, not yet applied trade financing activities.

 

	
4.  

	
Declare the principal and interest of un-repaid loans/trade financing activities and account payable under the Contract or other contracts, totally or partly due immediately.

 

 

  

  

  

 

	
5.  

	
Terminate or cancel the Contract or, totally or partly terminate or cancel the other contracts between the Guarantor and Creditor.

 

	
6.  

	
Claim a compensation to the Guarantor of loss caused by the Guarantor’s breaches.

 

	
7.  

	
Inform in advance or after, transfer the money in the account that the Guarantor opened with the Creditor or other organizations of Bank of China to repay the part or total of the debt under the Contract. The undue money in accounts would be regarded as due immediately. The currency in accounts is different from that executed under the Contract, may computed applying with the current foreign exchange rate.

 

	
8.  

	
Other actions that Creditor may believe that is necessary

 

XII. Reservation of Right

 

One of the parties fails to exercise its part or total rights, or not require another party to take or fulfill the obligation partly or totally, that shall not be regarded as the party waives the right or exempted from the right.

The right of toleration, extension or postpone to exercise the right, that one of the parties carries out to another party, these activities shall not affect any right and obligation under the Contract, and shall not be regarded as a waive of the contract.

XIII. Amendment, Modification and Termination

 

Both parties agreed that the Contract may be amended, modified in writing, any amendment or modification shall be regarded as a non-separated part of the Contract.

The Contract shall not be terminated before all rights and obligations are fulfilled with an exception that regulated by laws and regulations or other agreement between both parties.

Any invalidation of the items of the Contract shall not affect the legal force of the other items.

XIIII. Application of Law, Solution of Dispute

 

The contract applies for the Laws of People’s Republic of China.

The Contract becomes effective, any dispute raises out during the signing, carrying on the contract, shall be resolved by negotiation between two parties, furthermore, any party may take such action as following:

Go to Court locating where the Lender or the organizations of Bank of China Co., Ltd business registered.

During the period of resolving dispute, the other Items of Contract that not related to the dispute shall be carried on. And that dispute shall not affect the other Items of Contract to be carrying on.

 

XV. Expense

 

The Guarantor shall be responsible for the expense related to signing, carrying out, resolving dispute (including but not limited to, attorney service charge), with an exception that the way both parties settled in another agreement or stipulated by Laws.

 

XVI. Appendixes

 

The appendixes agreed by both parties and attached to the Contract for performing the Contract shall be regarded as an integrated part of the Contract, which shall have the same legal effect as the Contract.

 

 

  

  

  

 

XVII. Other provision

 

	
1.  

	
The Guarantor shall not transfer any right or obligation under the Contract to a third party without a writing consent from the Creditor.

 

	
2.  

	
The Guarantor shall accept that, when it is needed, the Creditor relegates carrying on the Contract to other organizations of Bank of China, or transfers the loan under the Contract to above organizations. The above organizations authorized by the Creditor have a right to carry out all the rights under the Contract, to raise the dispute related to the Contract to a law court, an arbitration authority, to apply for a law enforcement order from a Court.

 

	
3.  

	
The legal successor or assignee of both (each) parties of Contract, shall be legally bound by the Contract, with an exception that stipulated in another agreement.

 

	
4.  

	
With an exception that agreed in another agreement, the Registration Address of both parties describing in the Contract means living address and contact address, and each party commits that provide a writing notify to another party when above address is changed.

 

	
5.  

	
The title and business name describing in the Contract is being used for convenience, shall not be used in an explanation to the contain of Items, rights and obligations of the Contract.

 

XVIII. Become effective.

 

This contract becomes effective when the following actions is fulfilled:

 

1.  The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of Guarantor and sealed by the Guarantor.

 

2. The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of Creditor and sealed by the Creditor.

 

The Contract is made out in 3 duplicates, one for each party, one for the Debtor, with the same legal enforcement.

 

	GUARANTOR :(Seal)  	YISHUI YINHE TOURISM DEVELOPING CO., LTD (sealed)
	 	 
	Signature:  	CHEN JIASHU (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date:	28-9-2010
	 	 
	 	 
	CREDITOR (Seal): 	BANK OF CHINA CO., LTD YISHUI BRANCH  (Sealed)
	 	 
	Signature:	LI SHIMING (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date: 	29-9-2010

  

  

  

 

CONTRACT

OF

GUARANTEE OF MAXIMUM AMOUNT

FOR MIDDLE &SMALL SCALE ENTERPRISE

2010 Yishui BOC Gao-bao- 016-4#

 

	Guarantor: 	YISHUI UNDERGROUND FLUERESCENCE LAKE TOURISM DEVELOPING CO., LTD
	 	 
	Business License No.:   	371323228005879
	 	 
	Corporate Representative/principal: 	LI HONGWEI
	 	 
	Account Bank and Account: 	YISHUI RCC
	 	 
	Add: 	NORTH TO SIMENDONG VILLAGE
	 	 
	Zip:	276400
	 	 
	Tel:     0539-2226899	Fax:       0539-2226899
	 	 
	 	 
	 	 
	Creditor:	BANK OF CHINA CO., LTD YISHUI BRANCH
	 	 
	Corporate Representation:  	YANG ZAIZHI
	 	 
	Add:	66# Changan Rd. Yishui County Shandong province
	 	 
	Zip:              276400	 
	 	 
	Tel:            0539-2252736	 
	 	 
	Fax:           0539-2266158	 

To ensure the debt under the Main Contract that describing in Article I of the Contract to be carried out, the Guarantor agreed to provide the Guarantee to Guarantee. Both parties agreed to sign this Contract based on an equal negotiation. With an exception that stipulated by another agreement, the words explanation shall be based on Main Contract.

I.  Main Contract

 

The main contract of this Contract is:

 

The Granting Agreement of Credit Line of Middle & Small Scale Enterprise No.:2010 Yishui BOC E-016#.and certain parts belong to Main Contract among other signed or being signed single agreement item, amendment or supplement based on above agreement; which signed between the Creditor and Debtor Shandong Longkong Development Co., Ltd.

 

II.  Main Creditor’s Right and Duration

 

With an exception that stipulated in another agreement, the Main Creditor’s right means the debt made under Main Contract in following period:

From the date when the Granting Agreement of Credit Line of Middle & Small Scale Enterprise becomes effective till the date that the life of debt stipulated in above agreement and the amendment, supplement of the line of credit expires.

 

III.  Maximum Amount of Guarantee

 

1.  The Maximum amount of the guarantee contract:

 

 

  

  

  

 

Base currency: RENMINBI

(In words)    TWENTY MILLION YUAN

(In number)  20,000,000.00 Yuan

 

2.  The date that the period of Main Debt expires describing in Article II, the debt is regarded as the Main Debt under the Guarantee Contract, such following items based on the Main Debt shall belong to the Main Debt guaranteed. The exact amount shall be confirmed as it is repaid.

 

Interest: including legal interest, contract interest, compound interest, penalty interest.

Liquidated damage;

Compensation;

Cost for realizing creditor’s right: including but not limited to lawsuit expense, attorney service charge, notarial fees, and costs of execution.

The loss caused by breaching contract by debtor;

Other expenses payable.

The total amount of above two items shall be regarded as the maximum amount of Guarantee.

 

IV.  Type of Guarantee.

 

The type of Guarantee of the contract shall be joint guarantee.

V.  Rising up Guarantee Liability

 

The debtor fails to repay on the contract pay day or contract pay day in advance to creditor as scheduled under the Main Contract, the creditor may require the Guarantee to provide the Guarantee obligation.

The contract pay day mentioned in above paragraph contains of principal repaying date, interest repaying date or the date that the debtor agrees to repay any fund to Creditor as schedule under Main Contract. The contract pay day in advance means that the date that Debtor rises up and a writing consent obtained from Creditor, and the date that Creditor requires Debtor to repay the principal and interest and/or any fund under the Main Contract in advance.

Any other co-existent Pledge Agreement or Guarantee related to the Main Debt besides the Guarantee contract, shall have no influence with any right and obligation under the Contract, the Guarantor shall not plead against Creditor based on it.

VI. Period of Guarantee

 

The period of guarantee under the Contract is that: 2 years from the date when the period of Main Debt expires describing in Article II under the Contract.

During the period of Guarantee, the Creditor may require Guarantor to provide the Guarantee for total debt or part of it, single or more fund, separately or totally.

 

VII.  Time for law action of Guaranteed Debt

 

The Main Debt unpaid yet, a relevant joint guarantee existing, the creditor requires the Guarantor to provide the joint guarantee obligation before the period of guarantee expires; the Guarantee obligation and the time for law action shall be started from the date when Creditor claims the joint guarantee obligation to Guarantor.

 

 

  

  

  

 

VIII.  Relation between this Contract and Main Contract

 

If Main Contract contains of the GrantingAgreement of Credit Line of Middle & Small Scale Enterprise/General Agreement of Credit Line Business, to extend the period of credit line/business cooperation, a writing consent shall be obtained from the Guarantor. Without the consent or the Guarantor rejects, the Guarantor shall only take the responsibility for the Main Debt occur during the period of credit line/business cooperation in the maximum amount, the Guarantee period is described in Article III under the Contract, that remains unchanged.

To modify other contains or Items of the Granting Agreement of Credit Line of Middle & Small Scale Enterprise/General Agreement of Credit Line Business, and a single agreement under certain Item of it, the consent is not needed to get from the Guarantor, who shall provide the guarantee to the changed Main contract in the maximum amount under Article III of the Contract.

The maximum amount of Debt guaranteed may be adjusted in a writing format, with an prior consent from both Creditor and Guarantor.

Without the consent from the Guarantor, the Creditor may entrust a part/total rights and obligation under the items of Main Contract to other organizations of Bank of China to carry on, or transfer the Main creditor’s right to a third party; and debtor’s guarantee obligation remains unchanged.

 

IX.  Statement and Commitment

 

The Guarantor states and commits as follow:

 

1. The Guarantor is a corporate duly organized and valid under the law of the People’s Republic of China and has the power and authority to own its property to consummate the transactions contemplated in this contract and join the litigation, The Guarantor has the power to handle it assets used in business operation.

 

2. The guarantor is at its option to sign and perform this contract. It is the Guarantor’s true meaning and has the legal power under the Articles of corporate and bylaws to sign this contract.

The Guarantor is a corporate, providing Guarantee shall be approved by a resolution through a board meeting, a shareholders meeting, a directors meeting following the Articles of Corporation; if any item of the Articles of Corporation describing the limitation of a Guarantee amount, the Guarantee amount under the Contract shall not be exceed the limitation.

Signing the contract and carrying out it shall not breach its article of corporation or regulations or contracts.

	
3.  

	
All documents, materials, reports and certificates provided to the Creditor by the Debtor for consummation of the contract is true, real, complete and effective.

 

	
4.  

	
Accept checking and monitoring to operation situation, financial statement from the Creditor with sufficient assistant and co-operation.

 

	
5.  

	
No any material liability hiding from the Creditor as the contract being signed.

 

	
6.  

	
Such events may affect the Guarantor’s financial situation or carrying on the Contract, including, but not limited to any format split, merger, joint venture, cooperation, jointly cooperation, dissolution, closedown, liquidation, transformation; planning to go public, involved into a material lawsuit or arbitration, the Guarantor shall inform the Creditor in writing.

 

 

  

  

  

 

X.  Disclosure of Related Party and Related inter Transaction in the Group which Guarantor belongs to.

 

The both parties agreed to the item 2 as following:

1. The Guarantor is not a Group Client defined in Commercial Bank Credit Risk Management Group Client Guidance (refers: Guidance).

 

2. The Guarantor is a Group Client as described in the Guidance.

 

The Guarantor shall report the status of the related transactions which amount exceeds 10% of the net assets to Creditor in time pursuant to Section 17 of the Guidance. Which contains of the relations among the parties involved into the above transactions, transaction item and purpose, amount of the transaction,relevant ratio or pricing policy (including the transactions with an exact amount or transactions with a symbolic amount).

 

XI.  Breach of Faith and Settlement

 

Any such event shall be regarded as breach of faith under the Contract:

 

	
(1)  

	
The Guarantor fails to accomplish the Guarantee obligation under the Contract.

 

	
(2)  

	
The statement the Guarantor provide to the Contract is not true, or breaking the commitment in the Contract.

 

	
(3)  

	
The event describing in item 6, article IX, it may have a material influence with Guarantor’s financial situation and the ability to carry on the Contract.

 

	
(4)  

	
Such events occur to Guarantor, business operation terminated, company dismissed, and business registration withdrawn or bankrupt.

 

	
(5)  

	
The Guarantor breaks the other obligation of the Contract.

 

	
(6)  

	
The Guarantor breaks agreements among Guarantor and Creditor and the other organizations of Bank of China CO., Ltd.

In such above events, the Creditor may take the following actions separately or together in accordance with the fact.

 

	
1.  

	
Require the Guarantor to correct their breaches.

 

	
2.  

	
Adjust, suspend or terminate the Creditor’s Line of Credit partly or totally;

 

	
3.  

	
Totally or partly, suspend or terminate the loan fund drawing application under any contract between the Guarantor and Creditor, unreleased loan fund, not yet applied trade financing activities.

 

	
4.  

	
Declare the principal and interest of un-repaid loans/trade financing activities and account payable under the Contract or other contracts, totally or partly due immediately.

 

 

  

  

  

 

	
5.  

	
Terminate or cancel the Contract or, totally or partly terminate or cancel the other contracts between the Guarantor and Creditor.

 

	
6.  

	
Claim a compensation to the Guarantor of loss caused by the Guarantor’s breaches.

 

	
7.  

	
Inform in advance or after, transfer the money in the account that the Guarantor opened with the Creditor or other organizations of Bank of China to repay the part or total of the debt under the Contract. The undue money in accounts would be regarded as due immediately. The currency in accounts is different from that executed under the Contract, may computed applying with the current foreign exchange rate.

 

	
8.  

	
Other actions that Creditor may believe that is necessary

 

XII. Reservation of Right

 

One of the parties fails to exercise its part or total rights, or not require another party to take or fulfill the obligation partly or totally, that shall not be regarded as the party waives the right or exempted from the right.

The right of toleration, extension or postpone to exercise the right, that one of the parties carries out to another party, these activities shall not affect any right and obligation under the Contract, and shall not be regarded as a waive of the contract.

XIII. Amendment, Modification and Termination

 

Both parties agreed that the Contract may be amended, modified in writing, any amendment or modification shall be regarded as a non-separated part of the Contract.

The Contract shall not be terminated before all rights and obligations are fulfilled with an exception that regulated by laws and regulations or other agreement between both parties.

Any invalidation of the items of the Contract shall not affect the legal force of the other items.

XIIII. Application of Law, Solution of Dispute

 

The contract applies for the Laws of People’s Republic of China.

The Contract becomes effective, any dispute raises out during the signing, carrying on the contract, shall be resolved by negotiation between two parties, furthermore, any party may take such action as following:

Go to Court locating where the Lender or the organizations of Bank of China Co., Ltd business registered.

During the period of resolving dispute, the other Items of Contract that not related to the dispute shall be carried on. And that dispute shall not affect the other Items of Contract to be carrying on.

 

XV. Expense

 

The Guarantor shall be responsible for the expense related to signing, carrying out, resolving dispute (including but not limited to, attorney service charge), with an exception that the way both parties settled in another agreement or stipulated by Laws.

 

XVI. Appendixes

 

The appendixes agreed by both parties and attached to the Contract for performing the Contract shall be regarded as an integrated part of the Contract, which shall have the same legal effect as the Contract.

 

 

  

  

  

 

XVII. Other provision

 

	
1.  

	
The Guarantor shall not transfer any right or obligation under the Contract to a third party without a writing consent from the Creditor.

 

	
2.  

	
The Guarantor shall accept that, when it is needed, the Creditor relegates carrying on the Contract to other organizations of Bank of China, or transfers the loan under the Contract to above organizations. The above organizations authorized by the Creditor have a right to carry out all the rights under the Contract, to raise the dispute related to the Contract to a law court, an arbitration authority, to apply for a law enforcement order from a Court.

 

	
3.  

	
The legal successor or assignee of both (each) parties of Contract, shall be legally bound by the Contract, with an exception that stipulated in another agreement.

 

	
4.  

	
With an exception that agreed in another agreement, the Registration Address of both parties describing in the Contract means living address and contact address, and each party commits that provide a writing notify to another party when above address is changed.

 

	
5.  

	
The title and business name describing in the Contract is being used for convenience, shall not be used in an explanation to the contain of Items, rights and obligations of the Contract.

 

XVIII. Become effective.

 

This contract becomes effective when the following actions is fulfilled:

 

1.  The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of Guarantor and sealed by the Guarantor.

 

2. The Contract shall be effective from the date when it is signed by corporate representative (or Principal) of Creditor and sealed by the Creditor.

 

The Contract is made out in 3 duplicates, one for each party, one for the Debtor, with the same legal enforcement.

 

 

	GUARANTOR :(Seal)  	YISHUI UNDERGROUND FLUERESCENCE LAKE TOURISM DEVELOPING CO.,LTD (sealed)
	 	 
	Signature:  	LI HONGWEI (signed)
	 	(Signed by corporate representative) 
	 	 
	Date:	28-9-2010
	 	 
	 	 
	CREDITOR (Seal): 	BANK OF CHINA CO., LTD YISHUI BRANCH  (Sealed)
	 	 
	Signature:	LI SHIMING (signed) 
	 	(Signed by corporate representative) 
	 	 
	Date: 	29-9-2010

 

 

 

  

  

  

 

Supplement Agreement

of

Application for Renminbi Loan (short term)

(Applicable to Middle & Small Scale Enterprise Renminbi Loan)

No.: 2010 Yishui Boc Jie-shen-bu-018#

 

 

	Party A: 	Shandong Longkong Travel Management Co., Ltd
	 	 
	Business License No.:   	371323228005080
	 	 
	Legal Representative/Principal:	Zhang Shanjiu
	 	 
	Account Bank and Account: 	BOC Yishui Branch
	 	 
	Add: 	West to Yongfu Village Yaodianzi Town Yishui County
	 	 
	Zip:	276400
	 	 
	 	 
	 	 
	Party B:   	Bank of China Yishui Branch
	 	 
	Legal Representative/Principal:   	Yang Zaizhi
	 	 
	Add:	66# Changan Rd. Yishui County Shandong province
	 	 
	Zip:              276400	 

In accordance with the “working capital Loan temporary regulations” issued by China banking system supervision cooperation, to develop the friendly, multi-benefit cooperation relationship, based on the voluntary, equal, multi-benefit, faithful principal, the both parties reach the supplement agreement of the “Application of Loan (short term)” No.: 2010 Yishui Boc Jie-shen-018#, which shall be the inseparable part of the above application. If any supplement collides with former contract, the clause of the contract shall be regarded as the final resolution.

Article 1:

 

Through consultations, both parties agrees and makes the engagement as to the loan repayment under the “Application of Renminbi Loan (short term)” No.: 2010 Yishui Boc Jie-shen-018# as following:

The agreement amount of above loan shall be paid by lender on consignment. The loan with a confirmed payee and the amount exceed RMB Five Million Yuan, the lender, in accordance with the agreed loan purpose,  shall examine whether the payee and payable amount and etc under the “Application of Rminbi Loan (short term)” (see attachment) are meet the requirement of relevant business contract. After the examination approved by the lender, the loan fund shall be release to the borrower’s payee through the loan releasing account.

The payment of the loan which is not belongs to above mentioned paying on consignment shall be: Paid on borrower’s free will.

During the loan releasing, if the borrower incurs credit status dropping down, main business revenue worsening, loan fund using is out of the way, or the breach events described under the “Application of Renminbi Loan (short term)” and the relevant Credit Line Granting Agreement, in such event, the lender has the right to change the loan fund releasing method with a notice to the borrower.

 

 

  

  

  

Any payment using the loan fund shall be not out of the scope of the loan purpose; and the loan fund shall not be used on the purpose of which the bank fund is prohibited by the requirement of the laws, regulations and supervision regulations.

The lender shall not break above stipulations, and shall not evade the payment on consignment in the way of break up the whole loan fund into parts.

Article 2:

 

2.1 The borrower shall open the following account with borrower as Loan Releasing Account so as to releasing or paying the loan through it.

 

  Account:     Shandong Longkong Travel Development Co., Ltd

  Account No.:

 

2.2 The borrower shall open such following account with borrower as Loan Repayment account as to repay back the loan fund. The borrower shall provide the money transferring status of the account in time. The Lender has the right to require the borrower to provide the explanation of the fund in a large sum or the abnormal flowing through the account, and has the right to supervise the account.

 

  Account:    Shandong Longkong Travel Development Co., Ltd

  Account No.:

 

Article 3: Representations and Warranties

 

3.1 The borrower shall provide the loan using record and documents as required by the lender in time.

 

3.2 The borrower shall cooperate with the Lender to manage the loan fund payment, after-release loan maintenance and relevant examination.

 

3.3 Carrying out investment, exact increasing debt finance and etc material events shall get consent from the Lender.

 

3.4 The Lender has right to draw back the loan ahead of schedule in accordance with the status of the loan fund repayment.

Article 4:

 

During processing of the breach events described under the Clause 10 of the Credit Line Granting Agreement No.: 2010 Yishui Boc-E-016 related to the “Application of Renminbi Loan (short term)”, any additional event as following shall be regarded as the Borrower’s breaches event under the Credit Line Granting Agreement:

 

4.1 Loan fund paying not pursuant to the agreed methods

 

4.2 The material crossing breaches events rising out.

 

4.3 Other events in which breaches the stipulations under the Loan Contract.

 

4.4 The fund in a large sum or the abnormal flowing through the Loan repayment account, and the borrower could not provide the reasonable explanation to that.

 

 

  

  

  

  

Article 5: Becomes Effective

 

This agreement shall be effective on the date when it is signed and sealed by both Parties.

 

This agreement is made out in 3 duplicates, each for both Parties, 1 for Guarantor (if any), has the same legal effect.

 

 

	Party A: (seal)   	Shandong Longkong Travel Development Co., Ltd (sealed)
	 	 
	Authorized Signatory:   	Zhang Shanjiu (signed) 
	 	 
	Date:	27-10-2010 
	 	 
	 	 
	Party B: (seal)   	Bank of China Yishui Branch (sealed) 
	 	 
	Authorized Signatory:   	Yang Zaizhi 
	 	 
	Date:	27-10-2010

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