Document:

EMPLOYMENT
AGREEMENT

      

      THIS
EMPLOYMENT AGREEMENT (“Agreement”) shall be effective as of the 24th day of
January, 2011 by and between ROBERT B. STURGES (“Employee”) and NEVADA GOLD
& CASINOS, INC., a Nevada corporation with headquarters in Houston, Texas
(“Employer” or “the Company”).

      

      WHEREAS, Employer is in the business of
developing, owning, and operating gaming facilities and lodging and
entertainment facilities in the United States; and

      

      WHEREAS, the Employer and Employee are
parties to that certain Employment Agreement dated November 27, 2006, as amended
on August 30, 2007, October 30, 2007 and January 23, 2008. (the “Original
Employment Agreement”).

      

      WHEREAS, the Original Employment
Agreement expires, on January 23, 2011 and shall be of no further force and
effect after such date.

      

      WHEREAS, the Employer and Employee have
agreed to enter into a new Employment Agreement on the terms and conditions
hereinafter set forth.

      

      NOW, THEREFORE, in consideration of the
mutual covenants and promises contained herein, the parties agree as
follows:

      

      1.   EMPLOYMENT.
Employee agrees to continue as the Chief Executive officer of Nevada Gold and
Casino Inc., under the terms and conditions of this Agreement.

      

      2.   TERM.
This Agreement is effective on January 24, 2011, and shall continue as set forth
herein.

      

      3.   DUTIES
AND TITLE. Employee’s title shall be that of Chief Executive Officer.
Employee shall have such powers and perform such duties as are customarily
performed by a Chief Executive Officer, including management responsibility for
all of the day to day operations of Employer. Employee shall report to the Board
of Directors of the Company. Employee shall perform his duties to the best of
his abilities and shall devote substantially all of his working time to such
duties.

      

      4.   COMPENSATION.
Employer hereby agrees to provide Employee with the following
compensation package which shall be reviewed annually by Employer’s Compensation
Committee:

      

      (a).
Salary.
Employer shall pay Employee an annual salary in the amount of Four Hundred and
Twelve Thousand Dollars ($412,000) payable in the same manner as Employer pays
its other executive employees, less required state and federal withholdings (the
“Annual Salary”).

      

      (b) Auto
Allowance. Employer shall provide Employee with a monthly auto allowance
of Seven Hundred Fifty Dollars ($750.00).

      

      (c) Vacation
and Fringe Benefits. Employee shall be entitled to one (1) month paid
vacation each year. In addition, and subject to the terms of any plans or
policies governing such matters, Employee shall be entitled to receive (i)
contributions to Employer’s 401(k) and other retirement plans at a rate at least
as great as Employer contributes for its other senior executive employees; (ii)
major medical and health insurance; (iii) customary reimbursement for travel and
entertainment; (iv) actual reimbursement of Employee’s moving and relocation
expenses back to Miami, Florida upon the termination of Employee’s employment;
(v) housing in Employer’s furnished corporate apartment in Houston,
Texas.

      

      (d) Flight
Reimbursement. Employee shall be provided a monthly allowance of $1,200
for airline tickets for himself and his spouse in order to assist Employee in
maintaining contact with his family during his employment.

       

      
        
          
          

        

        
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      (e) Performance
Bonuses. Employee shall be eligible for yearly bonuses equal to 50% of
his annual salary for achieving reasonable goals related to profitability
established in the first 30 days of the fiscal year by the Board of Directors
and/or the Compensation Committee.

      

      (f) Stock
Options. All Stock Options previously granted to Employee are subject to
the terms and conditions of Employer’s stock option
plan.  

      

      5.   TERMINATION
AND COMPENSATION UPON TERMINATION.

      

      (a) Termination without Cause by
Employer. Employer may terminate Employee’s employment at any time
without Cause (as defined in Section 5(c) below) by giving prior, written notice
to Employee. In such case, Employer shall pay the Annual Salary to Employee for
a twelve month period following termination of employment plus pro rata
performance bonus, accrued vacation and fringe benefits. Employer shall pay
Employee, on the same pay dates on which and in the same manner by which it pays
its current employees. All stock options granted but not vested at such time
shall immediately become fully vested in Employee. For purposes of calculating
the performance bonus, if same is due to Employee in the event of such
termination, Employer shall apply the same percentage of performance bonus paid
in the fiscal year preceding the fiscal year during which the termination
becomes effective, prorated for the portion of the fiscal year that transpired
prior to the termination.

      

      (b) Change of Control.
Employee may terminate Employee’s employment in the event of a “Change of
Control” defined as the sale of substantially all of the Employer’s assets,
acquisition by a third party of more than 50% of Employer’s stock, merger, or
other business combination with an unaffiliated entity or person. In the event
of such a termination, Employer shall pay to Employee in a lump sum an amount
equal to twelve months Annual Salary plus pro rata performance bonus, accrued
vacation, and fringe benefits. In addition, all stock options granted but not
yet vested shall immediately become fully vested in Employee. Employee must give
notice of any termination under this subsection within thirty (30) days of the
occurrence of the event he believes gives rise to a Change of Control. For
purposes of calculating the performance bonus, if same is due to Employee in the
event of such termination, Employer shall apply the same percentage of
performance bonus paid in the fiscal year preceding the fiscal year during which
the termination becomes effective, prorated for the portion of the fiscal year
that transpired prior to the termination.

      

      (c) Termination for
Cause. Employer may terminate Employee’s employment for “Cause” at any
time. Such a termination shall be effective as specified by Employer. In the
event of a termination by Employer for “Cause,” Employee shall be entitled only
to his salary, accrued vacation, and fringe benefits through the effective date
of termination. Any unvested stock options shall be forfeited. All stock options
granted which have vested will be treated as prescribed under Employer’s Stock
Option Plan and the Stock Option Agreement. “Cause” means: (i) the Employee’s
conviction of, or entry of a plea agreement or consent degree or similar
arrangement with respect to, a felony, other serious criminal offense or offense
involving moral turpitude, or any violation of federal or state securities law;
(ii) Employee’s material violation of Employer’s written policies; (iii)
Employee’s material breach of this Agreement, (iv) the final revocation,
suspension, or impairment (after all applicable appeals) of Employee’s gaming
license in any jurisdiction in which Employer is required to have a gaming
license, or a finding (after all applicable appeals) by any authority in any
such jurisdiction that Employee is unsuitable to hold a gaming license; or (v)
Employee’s gross misconduct in the performance of Employee’s duties hereunder.
Any termination of the Employee’s employment by Employer pursuant to this
Section 5 (c) shall be communicated by a notice of termination which shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Employee’s employment under the provision invoked.
To exercise its right to terminate the Employee pursuant to provisions (ii),
(iii) or (v) of the definition of Cause, Employer must first provide the
Employee with 30 days’ time to correct the circumstances or events that Employer
contends give rise to the existence of Cause under those provisions. The 30-day
time period shall not begin to run until the Board of Directors of Employer has
given the Employee the opportunity to meet with the Board (at which meeting at
least a quorum of the Board is present either personally or telephonically) to
hear a specific explanation for the Board of the circumstances or events the
Board believes may fall within provisions (ii), (iii) or (v) of the definitions
of Cause.

       

      
        
          
          

        

        
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      (d) Termination due to Inability
to Perform Essential Functions. Employer may terminate Employee’s
employment if Employee becomes unable to perform the essential functions of his
position due to disability for a period greater than six months despite any
reasonable accommodation required by law. In the event of a termination under
this subsection, Employee shall be entitled only to his salary, accrued
vacation, and fringe benefits for a period of one (1) year following the
effective date of termination and thereafter to any benefits to which Employee
is entitled under the Company’s disability policy. In the case of granted but
unvested stock options, those unvested stock options which would become vested
within such one (1) year period shall become vested and the remaining granted
but unvested stock options shall be forfeited. Otherwise, the stock options will
be treated as prescribed under Employer’s Stock Option Plan and the Stock Option
Agreement.

      

      6.  CONFIDENTIALITY, PROPERTY,
COMPETITION, SOLICITATION.

      

      (a) 
Ownership.
Employee agrees that all inventions, copyrightable material, business and/or
technical information, marketing plans, customer lists and trade secrets which
arise out of the performance of this Agreement are the property of
Employer.

      

      (b)  Confidentiality.
Except as is consistent with Employee’s duties and responsibilities within the
scope of his employment with Employer, Employee agrees to keep confidential
indefinitely, and not to use or disclose to any unauthorized person, information
which is not generally known and which is proprietary to Employer, including all
information that Employer treats as confidential, (“Confidential Information”).
Upon termination of Employee’s Employment, Employee will promptly turn over to
Employer all software, records, manuals, books, forms, documents, notes,
letters, memoranda, reports, data, tables, compositions, articles, devise,
apparatus, marketing plans, customer lists and other items that disclose,
describe or embody Confidential Information including all copies of the
Confidential Information in his possession, regardless of who prepared
them.

      

      (c)  Non-competition.
If Employee’s employment hereunder is terminated as a result of the application
of paragraph 5(c), then for a period of one (1) year after the effective date of
termination. Employee agrees not to compete, directly or indirectly (including
as an officer, director, partner, employee, consultant, independent contractor,
or more than 5% equity holder of any equity) with Employer in any way concerning
the ownership, development or management of any gaming operations or facility
within a 75-mile radius of any gaming operations or facility with respect to
which Employer (or any of its affiliates) owns or renders substantial, paid,
consulting or management services at the time of termination. Notwithstanding
the foregoing, this provision will not apply to the metropolitan area of Las
Vegas, Nevada.

      

      (d)  Non-solicitation.
Employee agrees not to solicit or recruit, directly or indirectly, any
management employee of Employer for employment during the one (1) year period
after termination of his employment relationship with Employer.

      

      7.   NOTICES.
All notices and communications shall be sent by certified mail, return receipt
requested, or by hand delivery, to the following parties:

      

      If to
Employee:     Robert B. Sturges

      9550
Journey’s End Road

      Coral
Gables, Florida 33156

      With a
copy to:

      

      If to
Employer:      William J. Sherlock

      Chairman
of the Board

      50 Briar
Hollow Lane

      Suite
500W

      Houston,
Texas 77027

      

      With a
copy to:     Ernest E. East

      Chief
Compliance Officer

      Nevada
Gold & Casinos, Inc

      50 Briar
Hollow Lane

      Suite
500W

      Houston,
Texas 77027

       

      
        
          
          

        

        
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      8.   Compliance
with code section 409A. Any provision of this Agreement to the contrary
notwithstanding, all compensation payable pursuant to this Agreement that is
determined by Employer in its sole but reasonable judgment to be subject to
Section 409A of the Code shall be paid in a manner that Employer in its sole but
reasonable judgment determines meets the requirements of Section 409A of the
Code and any related rules, regulations or other guidance, even if meeting much
requirements would result in a delay in the time of payment of such
compensation. Any payments to Section 4 and Section 5(a), (b), (c), or (d) of
this agreement shall be made no later than two and one-half months after the
year in which the right to receive such amounts vest.

      

      9.   GOVERNING
LAW AND VENUE. This Agreement herein shall be construed, regulated and
administered under the laws of the State of Texas and of the United States of
America. Any lawsuit or other civil action brought arising from or related to
Employee’s employment with Employer or this Agreement shall be brought and
maintained in a state or federal court in Harris County, Texas, Except that this
provision does not preclude Employer from removing to federal court any action
filed by Employee and, to the extent permissible, Employee hereby consents to
such removal.

      

      10. BINDING
EFFECT AND ASSIGNMENT. This Agreement shall be binding on and inure to
the benefit of the respective parties hereto, their heirs, successors and
assigns. Subject to the provisions of Section 5(d), Employer may assign this
Agreement in connection with a merger, consolidation, assignment, sale or other
disposition of substantially all of its assets or business. This Agreement may
not be assigned by Employee.

      

      11. MODIFICATION.
This Agreement may not be amended in any manner without the express, written
consent of the parties hereto.

      

      12. ENTIRE
AGREEMENT. This Agreement supersedes all previous and contemporaneous
oral negotiations, commitments, writings and understandings between the parties
concerning the matters herein or therein.

      

      IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement
on this 21st day of
January, 2011.

      

      
        
          
            	
                    EMPLOYER

                  	 
      	
                    EMPLOYEE

                  
	 	 	 
	
                    By:
      /s/ William J. Sherlock

                  	 
      	
                    /s/
      Robert B. Sturges

                  
	
                    William
      J. Sherlock

                  	 
      	
                    Robert
      Sturges

                  
	
                    Chairman,
      Nevada Gold & Casinos, Inc

                  	 
      	 
      

          

        

      

      
        
           

        

        
          - 4
-Contract
No: 9381349102010027

      Type of
loan:  Working Capital Loan

      Borrower
(Party A): Shanghai Vomart Auto Parts Co., Ltd.

      Address:
Room B014, No. 7 Liantang Town Road, Qingpu District, Postal Code:
201716

      Legal
Representative (Person in charge):  YU Anming

      

      Fax:                        
Tel: 59815555

       

      Lender
(Party B): China Construction Bank Corporation, Shanghai Qingpu
Sub-branch

       

      Address:
No. 550, East Chengzhong Road, Qingpu District, Post Code: 201700

       

      Person in
Charge: SHEN  Yongqing

       

      Fax:
59727777          Tel:
59725555

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Party A
applies for loan to Party B, Party B agrees to provide loan to Party A. In
accordance with related laws and regulations, Party A and Party B, through
consultations, have entered this contract (“Contract”) as follows.

       

      Article
I Loan amount

       

      Party A
borrows RMB ten million ( in words) from Party B

       

      Article
II  Usage of the loan

       

      Party A
shall use the loan for working capital turnover, Party A shall not change usage
of the loan without written consent of Party B.

       

      Article
III. Term of Loan

       

      The Term
of Loan in this contract is 12 months, that is: from May 31, 2010 to May 30,
2011.

       

      When the
commencing date in this loan under this contract is inconsistent with the date
of loan redeposit voucher (receipt of loans, the same below), it shall be
subject to the actual loan date written in loan redeposit voucher when first
lending is done, the due date set forth in the first paragraph of this article
shall be adjusted accordingly.

       

      Loan
redeposit voucher is an integral part of this contract and it shall have equal
legal force and effect as this contract.

       

      Article
IV Loan interest rate, penalty rates of interest, interest accrual and interest
settlement.

       

      I  Loan
interest rate

       

      Loan
interest rate under this contract is annual interest rate in the following second
one:

       

      (I) Fixed
rate, this column is
blank, this interest rate remains the same within term of
loan;

       

      (II)
Fixed interest rate, i.e. benchmark interest rate of the value date is upward (“upward” or
“downward”) 1%,
this interest rate remains the same within the term of loan;

       

      (III)
Floating interest rate, i.e. benchmark interest rate of the value date, this column is blank
(choose “upward” or “downward”) %. From the value date to the date of principal
and interest totally paid off under this contract this column is blank,
each month floating interest rate shall be adjusted one time according to
current benchmark interest rate of adjustment date and up/down ratio. The
adjustment date of interest rate is the corresponding day of the value date in
the current month, if there is no corresponding day, the last day of this month
shall be the adjustment day of interest rate.

       

      II.
Penalty interest rate

       

      (I) If
Party A does not use loan in accordance with the usage of loan stipulated in the
Contract, penalty interest rate shall be upward by 100% of loan
interest rate, if loan interest rate is adjusted according to the item (III) in
the above Section 1 of this article, penalty interest rate shall be adjusted in
accordance with the adjusted loan interest rate and the above proportion of
floating rate.

       

      (II) The
penalty interest rate of overdue loan under this contract shall be upward by
50% of loan
interest rate, if loan interest rate is adjusted according to the item (III) in
the above Section 1 of this article, penalty interest rate shall be adjusted in
accordance with the adjusted loan interest rate and the above proportion of
floating rate.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (III) For
the overdue loan and the embezzled loan by Party A, penalty interest rate or
compound interest shall be imposed subject to the severity.

       

      III. The
value date in this article is the date that the first issued loan is
re-deposited to the account designated by Party A under this
contract.

       

      When the
first loan is issued under this contract, benchmark interest rate is the loan
interest rate with the same period and same level as announced by the People's
Bank of China on the day of value date; after that, when loan interest rate is
adjusted with the foregoing covenant, benchmark interest rate is the loan
interest rate with the same period and level as announced by the People's Bank
of China on the adjustment day; if the People's Bank of China no longer
announces loan interest rate with the same period and level, benchmark interest
rate is loan interest rate acknowledged by inter-banks or loan interest rate
with the same period and level, except for otherwise agreed by both
parties.

       

      IV. Loan
interest is accounted from the date that the loan re-deposited to the account
designated by Party A. Loan interest accrual is calculated per day, daily
interest rate = annual interest rate /360. If Party A can not pay the interest
according to interest settlement date stipulated in this contract, the compound
interest shall be charged from next day.

       

      V.
Interest settlement

       

      (I) For
loan with fixed interest rate, interest shall be calculated on interest
settlement date by the stipulated interest rate. For loan with floating interest
rate, interest shall be calculated by the interest rate confirmed on current
period of each float period; for loan with many floating interesting rates
within a single settlement interest date, interest in each floating period shall
be calculated first, the interest in this interest settlement date shall be
accounted by interest in expiration date of interest plus the total interest
within each floating period.

       

      (II)
Interest of loan under this contract shall be settled by the following first
method;

       

      1., the
date of monthly settlement is fixed to be 20th of each
month;

       

      2. the
date of quarterly settlement is fixed to be 20th of the
end month of each quarter;

       

      3. Other
methods  this column is
blank.

       

      Article
V  Issue and usage of loans

       

      I.
Preconditions of issuing loans

       

      Unless
the following preconditions constantly are satisfied,  Party B has the
obligation to issue loans except abandoning totally or partly by Party
B,

       

      1. Party
A has completed the related approval, registration, delivery, insurance and
other statutory procedures under this contract;

       

      2. For
the guaranteed loan, guarantees, which meet the requirements of Party B in this
contract, has come into effect continuously;

       

      3. Party
A has opened accounts for withdrawing and repaying in accordance with Party B’s
requirements;

       

      4.  Party
A does not violate the terms stipulated in the Contract or does not have any act
possibly jeopardizing the creditor’s rights of Party B stipulated in this
contract;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      5. Laws,
regulations or relevant authorities do not forbid or limit Party B issuing loan
under this contract;

       

      6. Other
conditions:

       

      The following is
blank

       

      II. Loan
use scheme

      Loan use
scheme is confirmed in accordance with the following first
method:

       

      (I) Loan
use scheme is as follows:

       

      
        	
                1.
      May 31, 2010

              	
                Amount
      10,000,000.00;

              
	 
      	 
      
	
                2.
      Date

              	
                Amount
      the following is
      blank

              
	 
      	 
      
	
                3.
      Date

              	
                Amount
      the following is
      blank

              
	 
      	 
      
	
                4.
      Date

              	
                Amount  the following is
      blank

              
	 
      	 
      
	
                5.
      Date

              	
                Amount  the following is
      blank

              
	 
      	 
      
	
                6.
      Date

              	
                Amount  the following is
      blank

              

      

       

      (II) This
column is blank

       

      III.
Party A shall use loan in accordance with the loan use scheme stipulated in the
paragraph II and Party A shall not withdraw capital ahead of schedule, delay or
cancel withdrawing unless approved by Party B.

       

      IV. If
Party A uses loan in several times, the mature date of loan shall be agreed in
Article 3 of this contract.

       

      Article
VI. Repayment

       

      I.
Repayment principle

       

      Party A
shall repay loan in accordance with the following principles under this
contract:

       

      Party B
has the right to use Party A’s repayment to repay the costs that are undertaken
by Party A but prepaid by Party B, and the cost for Party B to realize
creditor’s rights, as stipulated in this contract. The remaining funds shall be
repaid interest first and then principal, and interest shall be paid off with
principal. However, for loans in which principal or interest is overdue for more
than 90 days, or loans in accordance with laws or regulations, Party A shall
repay the principal first and then interest, after repaying the above
costs.

       

      II.
Payment of interest

       

      Party A
shall pay the due interest on the interest settlement date. The first paying
interest date is the first interest settlement date after loan is issued.
Interest shall be paid off with principal at last payment.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      III.
Principal repayment plan

       

      Principal
repayment plan shall be settled according to the first method
below;

       

      (I)
Principal repayment plan is as follows:

       

      
        	
                1.
      May 31, 2011

              	
                Amount
      10,000,000;

              
	 
      	 
      
	
                2.
      Date

              	
                Amount  the following is
      blank

              
	 
      	 
      
	
                3.
      Date

              	
                Amount  the following is
      blank

              
	 
      	 
      
	
                4.
      Date

              	
                Amount  the following is
      blank

              
	 
      	 
      
	
                5.
      Date

              	
                Amount  the following is
      blank

              
	 
      	 
      
	
                6.
      Date

              	
                Amount  the following is
      blank

              

      

       

      (II) This
column is blank

       

      IV.
Repayment method

       

      Party A
shall prepare sufficient amount payable on the Party B’s account prior to the
repayment date as stipulated in this contract and transfer fund to repay loans
(Party B also has the right to transfer fund from this account to pay loans), or
transfer fund from other accounts to repay loans prior to the repayment date as
stipulated in this contract.

       

      V.
Prepayment

       

      When
Party A repays the principal in advance, Party A shall propose a written
application to Party B 30 work days in
advance. Upon approval by Party B, Party A can repay partial or the full
principal in advance.

       

      If Party
A repays principal in advance, interest shall be calculated according to actual
loan-using days and loan interest rate as stipulated in this
contract.

       

      If Party
B agrees Party A to repay the loan in advance, Party B has the right to charge
compensation according to the first standard below:

       

      1.
Compensation amount = the prepaid principal amount × pre-repayment months ×
1%. If less
than one month, it shall be accounted as one month.

       

      2. This column is
blank

       

      If Party
A repays the loan in installments, and partial principal is repaid in advance,
Party A shall repay the amount of loan in accordance with reverse repayment
plan. Upon repaying partial amount of loan in advance, the remaining amount of
loan shall still be executed by the loan interest rate as stipulated in this
contract.

       

      Article
VII Rights and obligations of Party A

       

      I. Party
A’s rights

       

      (I) right
to require Party B to issue the loan according to this contract;

       

      (II)
right to use the loan according to this contract;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (III)
right to extend term of loan upon satisfying the requirement of Party
B;

       

      (IV)
right to require Party B to keep business secret related to its financial data,
production and management provided by Party A, excluding other situations
formulated by laws and regulations, required by corresponding authorities or
stipulated by both parties;

       

      (V) right
to reject such behaviors as solicit bribe by Party B and its staff. Party A has
right to report to the department concerned for the above behaviors or behaviors
that Party B breaches the state’s laws and regulations with respect to credit
rate, service charge, etc..

       

      II. Party
A’s obligations

       

      
        	
                (1)

              	
                Party
      A shall withdraw the capital, and repay the loan principal and interest in
      full amount, and shall bear various costs as stipulated in this
      contract;

              

      

       

      (II)
Party A shall provide documents related to its financial accounting, production
and operations required by Party B, including but not limited to, providing
balance sheet as of the end of last quarter within the first 20 work days in the
first month of the following quarter, profit and loss statement as of the end of
last quarter (statement of revenues and expenditures for public institution),
and cash flow statement at the end of the fiscal year. Party A shall be
responsible for the authenticity, validity and effectiveness of the supplied
materials without providing false information or concealing important operations
of financial facts.

       

      (III) In
the event that Party A changes its business registration items, such as name,
legal representative (person-in-charge), address, business scope, registered
capital or articles of association (enterprise), Party A shall notify Party B in
writing within 30 work days along with relevant materials.

       

      (IV)
Party A shall use loans as stipulated in this contract without unauthorized
diversion of fund or engaging in illegal or rule-breaking trading; Party A shall
coordinate with Party B to inspect and supervise its production and operation,
financial activities and loan usage under this contract; Party A shall not
surreptitiously withdraw funds, transform capitals or use affiliated transaction
to evade debts to Party B; Party A shall not use false contract entered with
related parties to cash in bank funds or credit, pledged to the bank debt using
receivable notes without actual trade.

       

      (V) If
Party A conducts manufacturing and engineering construction with the loan under
this contract, it shall comply with provisions in state’s environmental
protection regulations.

       

      (VI)
Prior to paying off Party B’s loan principal and interest, unless approved by
Party B, Party A shall not provide guarantee for third party with asserts
accumulated by the loan under this contract.

       

      (VII) If
Party A is a group of clients, Party A shall timely report related transaction
over 10% of Party A’s net asset to Party B, including: a. relationship among the
parties; b. items and nature of the transaction; c. transaction amount or
corresponding ratio; d. pricing policy (including transaction without amount or
only nominal amounts);

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (VIII) If
the loan issued under this contract is for fixed asset or project. Party A shall
guarantee the planned project be approved by government authority concerned
without any illegal practice. Capital funds or other raised capitals shall be
allocated according to set time and ratio; Party A shall guarantee to finish
project on schedule.

       

      Article
VIII Rights and obligations of Party B

       

      I. Party
B has the right to require Party A to repay principal, interest and costs on
schedule; to exert other rights as stipulated in this contract; and to require
Party A perform other obligations under this contract;

       

      II. Party
B shall issue loans as stipulated in this contract, excluding delays due to
Party A or other reasons beyond Party B;

       

      III.
Party B shall keep business secrets related to the financial data, production
and management provided by Party A, excluding situations formulated by laws and
regulations, required by corresponding authorities or as stipulated by both
parties;

       

      IV. Party
B shall not provide bribery to, or extort and accept bribery from Party
A;

       

      V. Party
B shall behave with integrity, not damaging Party A’s legitimate
interests.

       

      Article
IX  Liability of breaching contract and remedial measures for Party
B

       

      I.  Default
situation for Party B and its liability of breaching contract

       

      (I) If
Party B does not issue loan as stipulated in this contract without
justification, Party A is entitled to require Party B to continue issuing loan
under this contract;

       

      (II) If
Party B charges interest and service cost in violation of provisions of national
laws and regulations, Party A has the right to require Party B for
return.

       

      II.
Default situation of Party A

       

      (I) Party
A breaches any stipulation or legal obligation under this contract;

       

      (II)
Party A expressly states or implies by its action that it will not perform any
of the obligations under this contract.

       

      III.  Situations
endangering Party B’s creditor right

       

      (I) Party
B believes one of the following situations occurred on Party A may endanger the
security of its creditor rights under this contract: contracting, taking over,
leasing, shareholding reform, reducing registered capital, investment, joint
operation, merging, acquisition and reconstruction, separating, joint venture,
being applied to stop business for rectification, applying for dissolving, being
suspended, being applied for bankruptcy, changing controlling shareholder /
actual controller or transferring major asset, suspension and termination of
business, criminal prosecution and high amount of administrative penalties by
relevant authority, cancellation of registration, suspension of business
license, and involvement in major litigation, difficulty of operation, or
financial condition deterioration, legal representative or executive officer
being unable to perform responsibilities, etc.

       

      (II)
Party B believes one of the following situations may endanger the security of
its creditor right under this contract: Party A does not perform other due debts
(including the due debts to China Construction Bank at all levels or to other
third party), transfers property at a low price or for free, abates the debts of
third party, delays exercising creditor rights or other rights or provides
guarantee for the third party;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (III)
Party B believes the following conditions may endanger the security of its
creditor rights under this contract: Party A’s shareholder(s) abuses its
independent legal status and the limited liabilities of the shareholder to avoid
debts;

       

      (IV) Any
of preconditions of issuing loan as stipulated in this contract is not
continuously met;

       

      (V) Party
B believes one of the following situations occur on the guarantor may endanger
the security of its creditor rights under this contract:

       

      1. the
guarantor violates any of its covenants in the guaranteed contract or provides
misrepresentation, error and omitted information in its guaranteed
matters;

       

      2.
contracting, taking over, leasing, shareholding reform, reducing registered
capital, investment, joint operation, merging, acquisition and reconstruction,
separating, joint venture, being applied to stop business for rectification,
applying for dissolving, being suspended, being applied for bankruptcy, changing
controlling shareholder / actual controller or transferring major asset,
suspension and termination of business, criminal prosecution and high amount of
administrative penalties by relevant authority, cancellation of registration,
suspension of business license, and involvement in major litigation, difficulty
of operation, or financial condition deterioration, legal representative or
executive officer being unable to perform responsibilities, etc.

       

      3. Other
situations which would incapacitate or possibly incapacitate the guarantor’s
guarantee ability;

       

      (VI)
Party B believes one of the following situations occur on the mortgage and
pledge may endanger the security of its creditor right under this
contract:

       

      1. The
mortgaged or pledged property is damaged, lost or reduced on value because of
the third party’s behavior, collected by the state, confiscation, expropriation,
taken back without compensation, relocation, market situation change or any
other reasons;

       

      2. The
mortgaged or pledged property is closed down, detained, frozen, deducted, lien,
auctioned and supervised by administrative organization, or the ownership is
being disputed;

       

      3. The
mortgagor or pledgor violates any of the convents stipulated in mortgage
contract or pledge contract,  or provides any false, wrong or omitted
information in the stated and guaranteed matters;

       

      4. Any
other situations that possibly endanger the realization of Party B’s pledge or
mortgage right;

       

      (VII)
Guarantee is not hold, invalid, revoked or lifted, the guarantor breaches the
contract or expressly states or implies by its action that it will not perform
its guarantee obligation, the guarantor losses part or the whole guarantee
ability, reducing the value of collateral or other situations, Party B believes
they may endanger the security of its creditor rights under this contract;
or

       

      (VIII)
Any other situations that Party B believes endangers the security of its
creditor right under this contract.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IV. Party
B’s remedial measures

       

      If any
situation as stipulated in the second or third paragraph of this article occurs,
Party B is entitled to exercise one or several of the following
rights:

       

      (I) Stop
issuing loans;

       

      (II)
Announce loans due immediately; require Party A to immediately repay all due and
undue principals, interests, costs of debt under this contract;

       

      (III) If
Party A does not use loans as stipulated in this contract, Party B has the right
to require Party A to pay liquidated damage which is equal to 10% of the
improperly used loan amount, and to refuse Party A from using the unwithdrawn
loan under this contract;

       

      (IV) If
Party A does not use loans as stipulated in this contract, interest and compound
interest of the portion diverted by Party A shall be calculated and collected
according to penalty interest rate, and mode of interest settlement from the
date of improper use of the loans to the paid off date of principal and
interest;

       

      (V) If
the loan is overdue, interest and compound interest of the loan principal and
interest that are not paid off by Party A (including part or the whole loan
principal and interest that is due ahead of time announced by Party B) shall be
calculated and collected according to penalty interest rate, and mode of
interest settlement from the overdue date to the paid off date of principal and
interest. Overdue loan means that Party A does not pay off loans in the
stipulated period, or goes beyond the installment limit of principal repayment
plan as stipulated in this contract.

       

      Before
the loan is overdue, the compound interest for the interest not paid off on time
by Party A shall be calculated and collected by loan interest rate as stipulated
in this contract.

       

      (VI)
Other remedial measures, including but not limited to:

       

      1. Charge
corresponding amount in RMB or other kinds of currency from Party A’s account
opened with China Construction Bank without advance notice;

       

      2.
Exercise guarantee right;

       

      3.
Require Party A to provide a new guarantee to all debts under this contract
compliant with Party B’s requirements;

       

      4.
Terminate the contract.

       

      Article
X Other clauses

       

      I. Cost
allocation

       

      Unless
otherwise agreed by both parties, costs related to legal services, insurance,
assessment, registration, custody, identification and notarization etc in this
contract and with respect to its  guarantee shall be borne by Party
A,.

       

      All costs
for Party B to realize its creditor right (including but not limited to legal
cost, arbitration fees, property preservation cost, travel expense, execution
fees, assessment fees, auction charge, notary fees, delivery fees, advertising
fees and attorney fees) shall be borne by Party A.

       

      II.
Information disclosure of Party A

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Party A
agrees that Party B can check Party A’s credit status from the credit database
approved and established by People’s Bank of China and credit department, or
related organizations and departments, and provide Party A’s information to the
above-mentioned credit database. Party A also agrees that Party B can fairly use
and disclose Party A’s information.

       

      III.
Collection notices

       

      If Party
A defaults loan principal and interest, or other contract-breaking situations
occur, Party B has the right to report them to the concerned department or
organization, and exercises collection notices through media.

       

      IV.
Evidentiary effect of Party B’s records

       

      Unless
with reliable and confirmed rebuttal evidence, Party B’s internal financial
records related to principal, interest, costs, repayment records etc.; the
receipts and certificates that Party B produced or kept with regard to Party A’s
withdrawing, repaying loan or repaying interest; and collection notices and
evidences from Party B are all the evidence to confirm Party B’s creditor right
related to Party A. Party A shall have no objection to the above records,
receipts or certificates made or kept by Party B.

       

      V.
Reservation of rights

       

      Party B’s
rights under this contract do not influence and eliminate its any other rights
entitled by laws, regulations and other contracts. Party B’s non-exercise,
partial exercise and / or delayed exercise of any of its rights does not
constitute a waiver or partial waiver of that right.  It also does not
affect, restrain and prevent Party B's continued exercise of the rights or the
exercise of any other rights. Party B hereto shall not undertake any
responsibilities and obligations to Party A.

       

      VI.
Except for debts under this contract, if Party A has any debt due to Party B,
Party B has the right to charge Party A of corresponding amount in RMB or other
kinds of currency from the account opened by Party A in China Construction Bank
to pay off any due debts. Party A agrees not to raise any
objection.

       

      VII. If
Party A’s contact address or information is changed, Party A shall notify Party
B in writing immediately. Otherwise, all losses are borne by Party
A.

       

      VIII.
Charge to funds payable

       

      For all
due amounts by Party A under this contract, Party B has the right to charge
Party A of the corresponding amount in RMB or other kinds of currency from Party
A’s account opened with China Construction Bank without advance notice to Party
A. If Party B needs go through currency exchange procedures, Party A has the
obligations to assist Party B. All exchange rate risk is undertaken by Party
A.

       

      IX.
Settlement of dispute

       

      Any
dispute occurring in the performing the contract should be settled through
negotiation by both parties. If it fails, the dispute should be solved using the
first method
below:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      1. File a
law suit with People’s Court in Party B’s domicile.

       

      2. Submit
this column is blank
to arbitration committee (Place of arbitration is this column is
blank). The arbitration shall be conducted in accordance with the
arbitration rules effective as of the time of application. The arbitral award is
final and has binding upon both parties.

       

      During
lawsuit or arbitration, clauses in this contract that are not in controversy
shall still be performed.

       

      X.
Condition effectiveness

       

      This
contract shall take effect after the legal representative (person in charge) or
authorized agent of Party A, and the person in charge or authorized agent of
Party B sign and seal it.

       

      XI. This
contract is in quadruple.

       

      XII.
Miscellaneous

       

      I. If
Part A fails to repay loan principal and interest, Party B has right to report
to People’s Bank of China to list Party A on the “blacklist”. Party B can
disclose relevant information to newspaper and other media to urge Party A to
repay the loan principal and interest.

       

      II. Party
A promises to use loans with stipulated purposes under this contract. The loans
cannot be used for purchasing house or other personal use, or engaged in
transaction or investment prohibited by the state.

       

      III.
Party A commits on the use of the loan as follows: should be used in strict
accordance with the "loan contract"; shall not be used in the securities,
futures and other aspects of speculative operations; shall not be used in the
equity investment; shall not be used on housing, and other individual
consumption activities; shall not be engaged in other matters prohibited by law.
If Party A is found to use loans for other purposes, Party B shall have the
right to refuse issuing loans, or require repayment in advance.

       

      Article
XI. Statement

       

      I. Party
A understands clearly Party B’s business scope, and the scope of Party B’s
authorization.

       

      II. Party
A has already read all clauses in this contract. Per Party A’s request, Party B
has explained the corresponding clauses in this contract. Party A is completely
aware and fully understands the meaning and the relevant legal consequences of
the clauses in this contract.

       

      III.
Obligations signed and performed by Party A are in compliant with laws,
administrative regulations, rules, and the charter or internal constitutional
documents of Party A, and also have been approved by Party A’s internal
executive body and / or  the State’s relevant authority.

       

      Party A
(Seal):

       

      Legal
representative (Person in charge) or Authorized agent (Sign): 

       

      YU
Anming

       

      May 31,
2010

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Party B
(Seal)

       

      Legal
representative (Person in charge) or Authorized agent (Sign):   SHEN,  Yongqing

       

      May 31,
2010

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