Document:

Exhibit 10.34

 

This is an English Translation

 

No. DF0000110008

 

Bank of Hankou

 

Guaranty Contract

 

Guarantor: Legend Holdings Limited

 

Creditor: Bank of Hankou Ltd.Co., Operation Department

 

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Important Notice

 

The Guarantor is advised to read carefully the entire context of this Contract, especially those provisions of which the headlines are marked with xx in the Table of Contents. Such provisions will cause or may cause the release or limitation of liabilities. Please do not hesitate to contact the Creditor for explanation to any questions or objections that arise.

 

Table of Content

Article 1 Guarantyxx

 

Article 2 Amendment of Master Contract and Assignment of Obligatory Right and Transfer of Obligations xx

 

Article 3 Severability of Guarantyxx

 

Article 4 Realization and Elimination of Security Interestxx

 

Article 5 Representations and Warranties of Party Axx

 

Article 6 Rights and Obligations of Party Axx

 

Article 7 Rights and Obligations of Party Bxx

 

Article 8 Liability for Breach of Contractxx

 

Article 9 Modification and Rescission of the Contractxx

 

Article 10 Costsxx

 

Article 11 Notarizationxx

 

Article 12 Announcement for Collection

 

Article 13 Evidential Effect of Party B’s Recordsxx

 

Article 14 Use of Credit Information of the Guarantor

 

Article 15 Collection of Payables

 

Article 16 Supplementary Provisions

 

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Article 17 Anti-Commercial Bribery

 

Article 18 Othersxx

 

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Guarantor: 
    	
Legend Holdings   Limited (hereinafter referred to as “Party   A”)
    
	
Legal Address: 
    	
10/F, Tower A,   South Wing, Raycom Info Tech Park, No. 2 Kexueyuan South Road, Haidian   District, Beijing
    
	
Legal   Representative: 
    	
Chanzhi Liu
    
	
Contact: 
    	
-
    
	
Tel: 
    	
010-62509999
    
	
Fax: 
    	
010-62561056
    
	
 
    	
 
    
	
Creditor: 
    	
Bank of Hankou   Ltd.Co., Operation Department (hereinafter referred to as “Party B”)
    
	
Legal Address: 
    	
133 Jiansheda   Road, Wuhan
    
	
Legal   Representative: 
    	
Guoqing Dong
    
	
Contact: 
    	
 
    
	
Tel: 
    	
 
    
	
Fax: 
    	
 
    

 

WHEREAS, Beijing China Auto Rental Co., Ltd. (hereinafter referred to as “the Debtor”) and the Creditor have entered into the Fixed Assets Loan Contract, No. BF0000110008 (hereinafter referred to as the  “Master Contract”). In order to ensure the performance of the Master Contract and upon the request of the Debtor, the Guarantor voluntarily agrees to provide its guaranty for the Creditor’s right under the Master Contract.

 

On the basis of equality, voluntariness, fairness and good faith, and in accordance with relevant PRC laws, regulations and rules, both Parties hereby agree on the following provisions through consultations:

 

Article 1 Guarantyxx

 

1.1 Type, Amount, and Term of Principal Obligatory Right to be Secured

 

The principal obligatory right to be secured hereunder is the obligatory right enjoyed by Party B as follows:

 

1.1.1 Type of obligatory right: fixed asset loan

 

1.1.2 Amount of obligatory right: RMB (In words) One Hundred Million Yuan; (In figure) ¥100,000,000.00.

 

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1.1.3 Term of obligatory right: Three (o  Day(s) o  month(s) x  year(s)), that is from November 29, 2011 to November 29, 2014.

 

Actual date of occurrence and term of repayment of the principal obligatory right shall be subject to the content of the corresponding obligatory right certificates.

 

1.2 Form of Guaranty

 

Party A shall provide Party B with joint and several liability guaranty. In the event that the obligation under the Master Contract becomes due, or Party A claims that the obligation under the Master Contract is due in advance in accordance with provisions of the Master Contract or laws, and the Debtor fails to timely perform the obligation in full, or is in violation of other relevant provisions under the Master Contract, Party B is entitled to directly require Party A to bear joint and several liability.

 

1.3 Scope of Guaranty

 

The scope of guaranty hereof covers the principal obligatory right, its interest, compound interest, penalty interest, liquidated damages, damages and expenses involved in exercising the obligatory right by Party B, as provided in Article 1.1 (including, without limitation, expenses incurred from relevant qualification and credit investigation, examination, insurance, evaluation, registration, appraisal, storage, lodgment, notarization, taxation, etc., and any and all expenses for the Party B’s realization of obligatory right, such as attorney’s fee, litigation fee, arbitration fee, execution fee, preservation fee, travel expense, transference fee, auction fee, etc.).

 

1.4 Term of Guaranty

 

The term of guaranty shall be two years, commencing from the expiration of the guaranteed obligation performance period as determined in accordance with relevant provisions of the Master Contract.

 

Article 2 Amendment of Master Contract and Assignment of Obligatory Right and Transfer of Obligations xx

 

2.1 Amendment of Master Contract

 

After the Contract becomes effective, the Master Contract may be amended by Party B and Debtor through agreement (including, without limitation, the amendment of repayment currency, repayment method, loan account, repayment account, fund use plan, value date, agreed repayment date, and, without any extension of the term of performance, the amendment to the actual date of occurrence of the obligatory right and expiring date, etc.) without obtaining Party A’s written consent, and Party A shall still

 

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bear guaranty liability for the contract amended. However, the extension of the term of performance or the increase of the principal of the obligation by agreement between Party B and Debtor shall obtain the written consent from Party A. If such consent is not obtained, Party A may merely bear guaranty liability to the extent of the scope of the original guaranty. Where the Master Contract is amended by agreement between Party B and the Debtor without actual performance of such amendment, Party A shall still bear guaranty liability.

 

2.2 Assignment of Obligatory Right and Transfer of Obligations Thereunder

 

Where Party B, in accordance with laws, assigns the obligatory right under the Master Contract during the term of guaranty, the guaranty obligatory right shall be assigned simultaneously. Party A shall bear guaranty liability for the assignee to the extent of the scope of the original guaranty. Where Party B allows the Debtor to transfer the obligations under the Master Contract, such transfer of obligations shall be subject to the written consent from Party A. Otherwise, Party A shall no longer bear guaranty liability for obligations transferred without its consent.

 

Article 3 Severability of Guarantyxx

 

3.1 Severability of Contract

 

The effectiveness of this Contract shall be independent from that of the Master Contract, and the invalidity of the Master Contract shall not impact the validity of this Contract. Where the Master Contract is decided to be invalid or discharged in accordance with laws, Party A shall still bear a joint and several liability in respect of the civil liability (including, without limitation, return of property, compensation for the loss, etc) which should be borne by the Debtor.

 

3.2 Sequence of Security Interest

 

3.2.1 The security interest enjoyed by Party B in accordance with this Contract shall be independent from other security interest which has been created or will be created for the obligatory right under the Master Contract. Party A is entitled to independently decide the realization sequence of each security interest. The realization of other security interest shall not be considered as the precedent condition for Party B claiming security interest against Party A.

 

3.2.2 Regardless of whether any other security interests (including, without limitation, guaranty, mortgage, pledge, lien, letter of guarantee, standby letter of credit and other security methods) are created for the obligatory right under the Master Contract, and of the creation time, the effectiveness of the aforementioned other security interests, and of whether the other security interests are provided by the Debtor itself, and of whether a third party agrees to bear all or part of obligation under the Master Contract, the 

 

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security liability hereunder shall not be released or mitigated. Party B may directly require Party A to bear security liability within the scope of security in accordance with the provisions hereof, and Party B shall not make any objection.

 

3.2.3 If Party A merely bears security liability for part of obligation under the Master Contract, Party B shall agree that notwithstanding the elimination of part of obligation under the Master Contract due to the repayment of the Debtor, the realization of other security liability by Party B or any other reason, Party A shall still bear security liability for the non-eliminated obligation within the scope of security in accordance with the provisions hereof.

 

3.2.4 If Party A merely bears security liability for part of obligation under the Master Contract, and the obligation under the Master Contract fails to be repaid in full after Party A’s assumption of security liability, Party A undertakes that its exercise (including advanced exercise) of right of subrogation or right of recovery against the Debtor and other guarantors shall not damage Party B’s interest. Party A also agrees that the sequence of obligation not repaid under the Master Contract shall be prior to the realization of Party A’s right of subrogation and right of recovery.

 

Specifically, prior to the full repayment of Party B’s obligatory right:

 

(1) Party A agrees not to claim right of subrogation or right of recovery against the Debtor or other guarantor; if in any reason Party A realizes the above rights, the proceeds obtained shall be used first to satisfy the obligatory right outstanding and unpaid to Party B.

 

(2) If a real security is created for the obligation under the Master Contract, and Party A agrees not to claim for any right to the collateral or to the proceeds obtained from disposal thereof by reason of exercising its right of subrogation or right of recovery, or in any other reasons. The above collateral and proceeds obtained shall be used first to satisfy the obligatory right outstanding and unpaid to Party B.

 

(3) If the Debtor or other guarantors provide a counter guaranty, the proceeds obtained by Party A from the above counter guaranty shall be used first to satisfy the obligatory right outstanding and unpaid to Party B.

 

Article 4 Realization and Elimination of Security Interestxx

 

4.1 Realization of Security Interest

 

Upon occurrence of one of the following events, Party B will be entitled to exercise its security interest in accordance with laws and require Party A to bear joint and several liabilities immediately:

 

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4.1.1 all or part of the terms of performance under the Master Contract becomes expired, and Party B fails to be repaid;

 

4.1.2 the Debtor is in violation of the provisions of relevant laws or the Master Contract, and Party B claims that all or part of the secured obligation becomes due in advance, in accordance with provisions of laws and/or the Master Contract;

 

4.1.3 the occurrence of events of Party A (including, without limitation, cease of operation, revocation or cancellation of business licence, closedown by order, revocation of entity, application for or being an object of an application for bankruptcy) results in dissolution or liquidation, and court, liquidation group or other creditors thereby deal with property of Party A pursuant to laws, which prejudices the security interest of Party B;

 

4.1.4 any other event likely to endanger the realization of the obligatory right under the Master Contract.

 

4.2 Realization Methods of Security Interest

 

Upon occurrence of one or more events listed in Article 4.1, the security interest may be realized by the following methods:

 

(1) Party A and Party B enter into an agreement that all the Debtor’s unpaid obligation under the Master Contract shall be repaid directly by Party A.

 

(2) Realize the security interest in accordance with procedures provided in laws such as litigation, arbitration, etc.

 

(3) Party B may directly deduct deposit of the bank account opened by Party A at Party B and/or other business branches of Bank of Hankou, in order to realize Party B’s security interest hereunder.

 

4.3 Elimination of Security Interest

 

The security interest shall be automatically eliminated upon the timely and full repayment by the Debtor of all secured obligation provided in Article 1.3 herein.

 

Article 5 Representations and Warranties of Party Axx

 

5.1 Party A is a legal person or other organization duly incorporated and validly existing under the laws of the PRC with the capacity for civil right and the capacity for civil conduct necessary for the execution and performance of this Contract.

 

5.2 The execution and performance of this Contract is a true manifestation of intent of Party A. The execution and performance of this Contract shall have no contradiction

 

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with the execution and performance of other contracts whatsoever. Full authorization and effective approval originated form the internal or external part of Party A and necessary for the execution of this Contract have been obtained by Party A. Where relevant approval or registration procedure is required by laws and administrative regulations, Party A shall warrant that such procedure has been properly arranged and will remain in force and effect.

 

5.3 Documents, materials, statements, certificates, etc., which are provided by Party B to Party A and its affiliates in execution and performance of this Contract shall be authentic, accurate, complete and valid, without any material mistake in non-compliance with the fact, and without omission of any material fact.

 

5.4 At any time during the execution of this Contract by Party A, no such litigations, arbitrations or criminal and administrative penalties occur as materially and adversely impacting the operation and property condition of Party A, nor does any other major events impact the obligations of Party A hereunder.

 

5.5 Upon execution of this Contract, Party A shall undertake to engage in management activities strictly in compliance with the laws and regulations of the State, and undertakes that it shall operate continuously during the term hereof, and shall timely handle relevant annual examination registration procedures.

 

5.6 Upon execution of this Contract, Party A shall maintain or raise current operation and management level and various financial indicators, shall ensure the maintenance and increase of the value of current assets, shall not waive any obligatory rights due and shall not dispose of current major property without compensation, or at an unreasonably low price, or in any inappropriate way otherwise.

 

5.7 Party A shall strictly comply with the provision of relevant PRC laws concerning anti-commercial bribery.  In no event shall Party A solicit, receive, provide and render any interest not provided herein (including, without limitation, direct or indirect discounts, cash, shopping cards, objects in kind, securities, traveling and other non-material interests) from or to Party B, persons in-charge or any other relevant personnel, during the execution and performance of the Contract.

 

5.8 Party A has entirely read and fully understood the Master Contract entered into by and between Debtor and Party B. And Party A knows the use of the loan and undertakes to supervise the use of financed fund by the Debtor of the Master Contract.

 

5.9 Party A has been fully aware of the risk of interest rate under the Master Contract. Where Party B adjusts the interest rate level, interest accrual or settlement method in accordance with provisions of the Master Contract or the changes of State policy concerning interest rate, causing the increase of interest payable, penalty interest and compound interest of the Debtor, Party A shall bear joint and several guaranty liability likewise in relation to such increase.

 

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5.10 Party A warrants that there is no such event that it obtains bank funds by borrowing from Party B in the name of the Debtor, for the purpose of fundraising or other reasons.

 

5.11 In no event shall Party A prejudice the Party B’s realization of guaranty right (including an act or an omission).

 

Article 6 Rights and Obligations of Party Axx

 

6.1 Party A is entitled to require Party B to treat as confidential the relevant financial materials and trade secretes in respect of production and operation provided by Party A, unless otherwise provided by laws, regulations and rules.

 

6.2 Party A shall bear guaranty liability in accordance with the provisions of this Contract.

 

6.3 Upon the request of Party B, Party A shall, periodically or at any time, provide Party B with statements, financial reports and other documentary materials which are authentic and complete and fully reflect its management, operation and financial conditions, and provide all opening banks, accounts and balance of loans, and shall cooperate with Party B in respect of the investigation, inspection and examination conducted by Party B.

 

6.4 Party A shall accept the investigation and supervision by Party B in respect of its production, operation, and financial activities, and shall bear any expenses incurred by Party B due to Party A’s hindrance to investigation, examination and supervision of Party A.

 

6.5 After this Contract becomes effective, if Party A transfers all guaranty obligations hereunder to a third party, Party A shall in advance submit to Party B a written warranty that the Debtor agrees to delegate and the new guarantor agrees to continuously bear the obligation security liability under the Master Contract, and shall be subject to a written consent from Party B.

 

6.6 In the event of the possible occurrence of any event or condition that might impacts the performance of obligation hereunder of Party B, Party A shall immediately give notice to Party B in writing, coordinate with Party B and take protection measures of the continuous assumption of the joint and several liability guaranty for the obligation under the Master Contract as required by Party B:

 

6.6.1 material financial loss, capital loss or other financial crisis;

 

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6.6.2 events that may impact Party A’s performance of obligations hereunder, including, without limitation, profit distribution, capital spending, sale of assets or repayment in advance, etc.

 

6.6.3 events that may impact Party A’s performance of obligations hereunder, including, without limitation, application for credit to other accrediting parties, modification of the obligation provisions entered into with other accrediting parties, and etc.

 

6.6.4 events that may impact Party A’s performance of obligations hereunder, including, without limitation, provision of obligation security for a third party or a mortgage/ pledge of assets to other creditors or accrediting parties;

 

6.6.5 events that may impact Party A’s performance of obligations hereunder, including, without limitation, Party A’s delay in managing and demanding its obligatory right due, or disposal of the current major assets without compensation, at an unreasonable low price, and in any other inappropriate methods.

 

6.6.6 changes of management structure or property right form, including, without limitation, merger, division, capital reduction, reorganization, joint venture, cooperation, transfer of property right, shareholding system reform, and etc.

 

6.6.7 causes or conditions for dissolution or liquidation, including, without limitation, cease of operation, revocation or cancellation of business licence, closedown by order, revocation of entity, application for or being an object of an application for bankruptcy;

 

6.6.8 any litigations, arbitrations, criminal investigations or administrative penalties that will adversely impact its operation and property condition, or property preservation or other coercive judicial measures taken against its principal assets;

 

6.6.9 material crisis in respect of the operation or finance of its holding shareholders and other affiliated companies, or major associated transaction between Party A and its shareholders or other affiliated companies, which impact its normal operation;

 

6.6.10 other material events that may impact its repayment capacity;

 

6.7 Other rights and obligations as agreed upon herein.

 

Article 7 Rights and Obligations of Party Bxx

 

7.1 Except as otherwise required by laws and regulations or regulatory bodies, Party B shall keep confidential Party A’s trade secrets or the information such as management, operation and finance specified in writing for confidentially by Party A;

 

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7.2 Party B is entitled to request Party A to undertake the liability of guaranty by law and directly deduct the deposits from the bank accounts opened by Party A in Party B and/or other business establishments of the Hankou Bank to settle any payment set out in Article 1.3 of this Contract and fulfill the secured obligatory right under this Contract. Party B is entitled to request Party A to exercise supervision over the creditor’s use of the financed funds, to know Party A’s production, operation and financial activities, and to request Party A to provide information relating to security;

 

7.3 Party B is entitled to transfer the rights against Party A under law and take the manners as it deems appropriate, including but not limited to fax, mail, personal delivery, announcements in the public media etc., to notify Party A of the transfer matter;

 

7.4 With regard to any amounts Party A pays to Party B for the performance of obligations under this Contract, Party B is entitled to determine and use the amounts on priority basis for compensating the costs arising out of Party B’s realization of obligatory right;

 

7.5 Other rights and obligations as agreed under this Contract.

 

Article 8 Liability for Breach of Contractxx

 

8.1 Events of default

 

Party A is deemed to have had an event of default if any of the following circumstances occurs:

 

8.1.1 any materials in relation to this Contract provided by Party A to Party B is proved to be untrue, inaccurate, incomplete, containing effectiveness defects, or deliberately misleading;

 

8.1.2 Party A’s Representations and Warranties under Article 5 are proved to be untrue, inaccurate, incomplete, containing effectiveness defects, or deliberately misleading;

 

8.1.3 Party A fails to perform the obligations stipulated in Article 6 of this Contract;

 

8.1.4 Party A conducts other acts endangering and damaging, or is likely to endanger and damage Party B’s lawful rights and interests.

 

8.2 Breach Remedy

 

If any event of default set forth in Article 8.1 occurs, Party B is entitled to take the following measures simultaneously or separately:

 

8.2.1 request Party A to make correction within the specified period;

 

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8.2.2 charge penalties against Party A based on 50% of the principal obligatory right under the master contract;

 

8.2.3 directly deduct the deposits from the bank accounts opened by Party A in Party B and/or other business establishments of the Hankou or other bank accounts to pay off all debts of Party A under this Contract;

 

8.2.4 exercise the remedies for breach under the master contract;

 

8.2.5 impose interbank sanctions on Party A and report to relevant departments or units. Party B is entitled to make an announcement through the news media for collection;

 

8.2.6 request Party A to provide a new security;

 

8.2.7 declare in advance the maturity of the obligations under the master contract;

 

8.2.8 other remedies permitted by law.

 

Article 9 Modification and Rescission of the Contractxx

 

9.1 Unless otherwise agreed in this Contract, neither Party shall modify or rescind this Contract without mutual consensus after this Contract comes into effect.

 

9.2 If either Party needs to change the terms of this Contract after this Contract comes into effect, the Party shall timely notify the other Party in writing and reach a written agreement with the other Party with regard to the matter of changing the terms of the Contract.

 

9.3 If either Party needs to rescind this Contract after the Contract comes into effect, the Party shall timely notify the other Party in writing and reach a written agreement with the other Party with regard to the matter of rescinding the Contract. After the agreement of rescinding this Contract is reached, Party B is entitled to request Party A to immediately assume liability of guaranty for all outstanding obligations of the debtor.

 

9.4 This Contract remains valid before the agreement for modifying or rescinding this Contract comes into effect.

 

Article 10 Costsxx

 

Party A is responsible for the costs arising in connection with this Contract, including but not limited to the costs arising out of qualification and credit investigation, inspection, insurance, evaluation, registration, appraisal, custody, notarization etc., as well as all costs Party B pays for the fulfillment of the obligatory right including attorneys’ fees, legal fees, and travel expenses etc. Party B is entitled to deduct the amount payable directly from the Party A’s bank accounts. In the case that Party A’s bank account balances are insufficient to meet deduction needs, Party A guarantees to 

 

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repay the amount due in full without any proof from Party B after receipt of a notice from Party B.

 

Article 11 Notarizationxx

 

If either Party hereto requires notarization, the notarization of this Contract shall be carried out in the notarization office prescribed by the State and the costs are borne by Party A. If Party B requires a notarization with effect of enforcement, Party A agrees that Party B may apply for a notarization with effect of enforcement in the notarization office with this Contract. If Party B’s obligatory right and related costs are not settled in full during the performance period agreed in this Contract, Party B may directly present this notarization to Party B’s local people’s court and apply for enforcement. All costs arising therefrom are borne by Party A. Party A unconditionally agrees to the legal enforcement conducted by the local court of Party B and waive all rights of defense.

 

Article 12 Announcement for Collection

 

In the case that Party A engages in illegal conducts, refuses to bear liability of security or conducts other breach of the Contract, Party B is entitled to report to relevant departments or units and make an announcement through the news media for collection.

 

Article 13 Evidential Effectiveness of Party B’s Recordsxx

 

Unless reliable and definitive evidence to the contrary is provided, Party B’s internal accounting records on the contents such as principal, interest, fees and repayment records, receipts and proof Party B produces or saves and that arise in the process when the debtor handles business procedures such as withdrawal, repayment, payment of interest, and records and proof relating to Party B’s loan collection constitute definitive evidence that effectively proves the debtor-creditor relationship between the debtor and Party B. Party A can not raise any objection only due to Party B’s unilateral production or saving of the above records, receipts and proofs.

 

Article 14 the Use of Credit Information of the Guarantor

 

Party A agrees that Party B may query Party A’s credit status through the Underlying Database of the People’s Bank of China for Corporate Credit Information and the corporate credit databases established upon the approval of competent credit rating authorities or relevant units, departments and individuals. The obtained information is limited to the specified purposes in the “Interim Measures for Management of the Underlying Database for Corporate Credit Information” issued by the People’s Bank of China. At the same time, Party A agrees that Party B may provide Party A’s credit information to the Underlying Database of the People’s Bank of China for Corporate Credit Information and the corporate credit databases established upon the approval of competent credit rating authorities.

 

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Article 15 Collection of Payables

 

With regard to all Party A’s payables under this Contract, Party B is entitled to deduct the corresponding payables in RMB or other currencies from any of the accounts Party A opens in the Hankou banking system without prior notice to Party A. In the case that the deducted amount is in foreign currency, Party B is entitled to convert it into the amount in RMB according to the bank purchase price of the foreign exchange rates announced by the People’s Bank of China at the time of deduction to settle Party A’s payables.

 

Article 16 Supplementary Provisions

 

Nil

 

Article 17 Anti-Commercial Bribery

 

17.1 Both Parties understand and are willing to strictly comply with the legal provisions of the People’s Republic of China for anti-commercial bribery. Both Parties acknowledge that any form of offering bribes and conducts of accepting bribes will violate the law and will be severely punished by law.

 

17.2 Party A or Party B shall not ask for, receive, provide and give any benefits not stipulated in the Contract to the other Party or contact person of the other Party or other relevant person, including but not limited to express deduction, implied deduction, cash, gift cards, bank card containing deposits, membership cards with deposits, tokens cards (vouchers), material objects, securities, tourism, on-the-spot study or other non-material benefits etc. If such benefits are part of industry practice or common practice, they shall be expressly specified in this Contract.

 

17.3 Party B shall strictly prohibit any commercial bribery of Party B’s contact person. Any conducts specified in Article 17.2 by Party B’s contact person are in violation of Party B’s internal system and will be held accountable by Party B in accordance with its internal system.

 

17.4 Party B warns: Party B objects that Party A or Party A’s contact person conduct any acts specified in Article 17.2 with any third party other than the Parties hereto for the purpose of this Contract. Such acts are in violation of State laws and will be punished by State laws.

 

17.5 In the case that either Party or its contact person violates the provisions of Article 17.2, Article 17.3, and Article17.4, and thus cause losses to the other Party, they shall be liable for the damages.

 

17.6 “Other relevant person” mentioned in this Article refers to the person other than the contact person of Party A and Party B and having direct or indirect interested 

 

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relationships with this Contract, including but not limited to relatives and friends of contact person in this Contract.

 

18 Otherxx

 

18.1 Continuity of Obligations

 

All Party A’s obligations under this Contract have continuity, are fully binding upon its successors, receivers, assignees and the entities after merger, reorganization and change of name etc., are not affected by any disputes, claims, legal proceedings, any instructions of higher-level units and any contracts entered into by Party A and any natural or legal persons or other organizations, and are not changed as a result of Party A’s bankruptcy, insolvency, loss of business or entity qualification, changes of operational form or the form of property, changes of internal organization forms or charter, or any other essential changes.

 

18.2 No Waiver of Rights

 

After this Contract comes into effect, any grace, extension or delay of exercising interests or rights of Party B hereunder that is given by Party B for any breach or delay of Party A shall not damage, affect or limit any and all rights and interests Party B have in accordance with this Contract and relevant laws and regulations, can not be deemed as Party B’s permission or acknowledgement of any breach of this Contract, and can not be deemed as Party B’s waiver of the rights to take action against existing or future breach.

 

18.3 Independence of the Terms of the Contract

 

In the case that any terms or parts of any terms of this Contract become invalid for whatever reason in law, such invalid terms or parts do not affect the validity and enforceability of this Contract, other terms of this Contract and the remaining content of such terms. If the abovementioned circumstances occur, Party A shall immediately undertake the liability of guaranty to Party B and/or compensate Party B for all economic losses. Its scopes of liability of guaranty and/or compensation liability are determined in accordance with Article 1.3 of this Contract.

 

18.4 Notice

 

Notice and requirements etc. of Party A and Party B relating to this Contract shall be issued in writing. If they are delivered by hand, the recipient’s signing shall be deemed as being served (if the recipient refuses, they are deemed to be served on the rejection day); If delivered by postal mail, the expiration of seven days after delivery shall be deemed as being served; If delivered by fax, the receipt by the fax system of the recipient shall be deemed served. If Party B notifies Party A of matters concerning obligatory right transfer or collection by means of making an announcement in the 

 

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public media, it shall be deemed as being served as of the date of the announcement. If Party A or Party B changes the contact address, it shall promptly notify the other Party; otherwise it shall bear the losses that may arise therefrom.

 

18.5 Supplementary Agreement

 

After this Contract comes into effect, it can only be modified through a written instrument signed by the Party A and Party B. Party A and Party B can reach a supplementary agreement in writing through consultation with respect to any unaccomplished matters or modifications of this Contract. Such written supplementary agreement is attached as an annex to this Contract, and constitutes an integral part of this Contract.

 

18.6 Governing Law

 

The execution, interpretation and dispute resolution of this Contract shall be governed by the laws of the People’s Republic of China.

 

18.7 Dispute Resolution

 

Any disputes arising out of the process of Party A and Party B’s performance of this Contract shall be resolved through consultation by both Parties. In case no settlement can be reached, (II) of the following ways shall be selected for resolution:

 

(I) submit to the Wuhan Arbitration Commission for arbitration.

 

(II) file a lawsuit to Party B’s local people’s court.

 

18.8 Effectiveness of Contract

 

This Contract comes into effect as of the date when it is stamped by both Parties with official seal/contract seal.

 

18.9 Contract Text

 

This Contract is made in three copies which have the same legal effect. Party A, Party B and the debtor each holds one copy.

 

18.10 Interpretation of Terms

 

Party B has adopted the reasonable way of adding “xx” after the headings of the terms hereof to draw the attention of Party A on the terms exempting or limiting Party B’s liability under this Contract, and has given full explanation on the relevant terms according to Party A’s requirements. Both Parties have no objection to the understanding of the content of all terms of this Contract. The headings of this Contract are for convenience only and do not affect the interpretation of this Contract.

 

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Party A: (Seal)

 

Legal Representative/Responsible Person or Authorized Representative (Signature/Signature Seal)

 

[Company’s seal affixed]

 

	
/s/ Chaunzhi   Liu
    	
 
    
	
 
    	
 
    
	
November 28,   2011
    	
 
    

 

 

Party B: (Seal)

 

Legal Representative/Responsible Person or Authorized Representative (Signature/Signature Seal)

 

[Company’s seal affixed]

 

	
/s/ Guoqing   Dong
    	
 
    
	
 
    	
 
    
	
November 28,   2011
    	
 
    

 

18Exhibit 10.35

 

This is an English Translation

 

Guarantee Contract

 

(No. 2011 Nian Kun Lun Xin (Bao Zheng) Zi Di 11058 Hao)

 

Creditor: Kunlun Trust Co., Ltd.

 

Address: Building 19, No. 138 Jiangdong North Road, Jiangdong District, Ningbo

 

Zip Code: 315040

 

Phone: 0574-87031727, 87031728

 

Facsimile: 0574-87031704

 

Guarantor: Legend Holdings Limited

 

Address: 10th Floor, Tower A, Raycom Info. Tech Park, No.2 Kexueyuan South Road, Haidian District, Beijing

 

Zip Code:

 

Phone:

 

Facsimile:

 

Signing Place: Beijing

 

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Important Notes

 

To safeguard your rights and interests, please read the following clauses carefully before signing this Agreement:

 

1.               You have power and authority to enter into this Agreement, and have obtained sufficient authorizations from a third party, if other party’s consent is required by the law.

 

2.               You have carefully read and fully understand the terms of this Agreement, and have paid special attention to the terms regarding the assumption of responsibilities, and the exemption or limitation of liabilities of the Creditor, as well as the part printed in boldface.

 

3.               You and your company fully understand the meanings of the terms and conditions of this Agreement and relevant legal consequences, and willing to accept the same.

 

4.               Certain blank has been left following the terms of this Agreement, and “supplementary article” has been added at the end of the Agreement for the amendment, supplement or abridgment to this Agreement by the Parties.

 

5.               Please consult the Creditor if you have any questions regarding this Agreement.

 

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The Guarantor provides guarantees for the Creditor’s financing service the Creditor provides to Beijing China Auto Rental Co., Ltd. (the “Debtor”). In order to clarify the responsibilities, the Parties have agreed to execute this Agreement in good faith through mutual discussion.

 

Article 1 Definitions and Explanations

 

Unless otherwise provided herein:

 

1.               “Financing” herein means the loans, documentary bills, acceptance of bill, discount and other financing services the Creditor provided to the Debtor according to the Principal Contract.

 

2.               The definitions and explanations in the Principal Contract shall apply to this Agreement.

 

Article 2 Primary Content of the Principal Contract

 

1.               The primary content of the Principal Contract are as follows:

 

(1)   Contract name: Trust Loan Contract

 

(2)   Contract No. 2011 Nian Kun Lun Xin (Dai) Zi Di 11058 Hao

 

(3)   Financing type: loan, currency: Renminbi

 

(4)   Financing amount: RMB Five Hundred Million, the actual amount shall be subject to the Trust Loan Contract

 

(5)   Interest rate: subject to the Trust Loan Contract

 

(6)   The term of the debt: from December 2011 to December 2013

 

2.               In the event that the actual term of the loan differs from the above, the duration provided on the creditor’s right evidences shall prevail.

 

Article 3 Range Covered by Guarantee

 

The range of guarantee under this Agreement includes the principal and their interest (including default interest and compound interest), liquidated damages, compensation for breach, expenses for realization of the Creditor’s rights under the Principal Contract. Expenses for realization of the Creditor’s rights includes but not limited to legal expenses, arbitration fees, property preservation fees, costs and expenses incurred with respect to application for enforcement and handling the case, attorney’s fees, affiche fee, assessment fee, appraisal fee, auctioneer’s fee, costs and expenses for business trips, telecommunication expenses etc.

 

Article 4 Mode of Guarantee

 

1.               The guarantee that the Guarantor provides under this Agreement is joint liability

 

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guarantee. In the event that there are several guarantors under this Agreement, all Guarantors shall undertake guarantee responsibility jointly and severally.

 

2.               In the event that the performance duration of the principal debt expires and the Debtor fails to pay the debts in accordance with the Principal Contract, the Guarantor shall undertake the joint and several responsibility to discharge the aforesaid debts.

 

3.               During the performance duration of the principal debt, in the event that the Creditor declares the debt is due in advance in accordance with the Principal Contract, the Guarantor shall undertake the joint and several responsibility to discharge the principal debts and other debts within the range of guarantee.

 

Article 5 Term of Guarantee

 

1.               The term of guarantee shall be two years following the date of the expiration of performance duration of the principal debts.

 

2.               The term of guarantee for acceptance bill, letter of credit, letter of guarantee shall start from the date on which the Creditor prepaid any fund. If the aforesaid fund is provided in installments, the term of guarantee shall commence from each date of prepayment of every installment.

 

3.               The term of guarantee for commercial bill discount shall be two years from the date of the expiration of the discounted bill.

 

4.               In the event that the Creditor demands the repayment of debts in advance in accordance with the Principal Contract, or the principal debts is due in advance pursuant to relevant laws and regulations, the term of guarantee shall be two years from the date of the early expiration of the principal debts.

 

5.               In the event that the principal debt shall be repaid in installments, the term of guarantee shall commence from each repayment day of every installment. The term of guarantee shall be two years from the date of the expiration of each installment.

 

6.               In the event that Creditor and the Creditor agree to extend the performance duration of the principal debts, the Guarantor shall continue to undertake guarantee responsibilities. The term of guarantee shall be two years from the expiration of the principal debts under relevant extension agreement.

 

Article 6 Performance of Right of Recourse

 

The liabilities of the Guarantor under this Agreement could be demanded by the Creditor directly. The Guarantor shall pay off the debts promptly within      business days from the reception of the creditor’s right collection notice which sets forth the code of guarantee agreement and the amount of principal debts.

 

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Article 7 Representations and Warranties of Guarantor

 

1.               The Guarantor is duly incorporated and validly existing in accordance with relevant laws, and has the qualification to act as a guarantor and has the capacity to pay off the debts, and to undertake and perform guarantee responsibility voluntarily.

 

2.               The Guarantor has obtained all approvals from competent authority which supervises it, the board of directors and other institutions supervising and administrating on it.

 

3.               The execution and performance of this Agreement by the Guarantor will not conflict with or result in any breach of the terms, conditions, or provisions of, or constitute a default under, any contract which its assets is binding on, guarantee agreements with a third party, covenants or instruments under which any such Guarantor is now obligated.

 

4.               All the documents, information, statements and certificates provided to the Creditor by the Guarantor are accurate, true, complete and valid. The Guarantor consents to be supervised and inspected by the Creditor with respect to its business operation and financial status.

 

5.               The Guarantor understands and agrees to all terms of the Principal Contract, and to provide guarantee to the Debtor under the Principal Contract and undertake the joint and several responsibility of discharging the principal debts voluntarily.

 

6.               The Guarantor has not concealed any current and potential events that may result in the Creditor’s refusal of the Guarantor’s guarantee. Such events are set forth as below:

 

(1)          the Guarantor or its main leaders being involved in the events that is in material violation of law, discipline or being claimed for compensation;

 

(2)   litigations or arbitrations that are pending;

 

(3)          all types of debts and contingent debts undertook by, the guarantees provided to a third party and the mortgage or pledge security interest provided by the Guarantor;

 

(4)   events of default under the agreement with the Creditor or other creditors;

 

(5)   other circumstances that may have adverse effect on the Guarantor’s financial status or capacity of guarantee.

 

7.               After performing the guarantee responsibilities, the Guarantor has the right to get compensation from the Debtor so long as it will not have adverse effect the Debtor’s capacity of paying off the debts in the future. In the event that the Debtor

 

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is under the request of the Guarantor for compensation and the Creditor for debts simultaneously, the Guarantor agrees that the Creditor’s request shall prevail.

 

8.               In the event that the Debtor and the Guarantor have entered into or will enter into a counter-guarantee agreement with respect to the guarantee responsibility under this Agreement, the aforesaid counter-guarantee agreement shall not impair the Creditor’s rights legally or virtually.

 

9.               In the event that other securities have been provided under the Principal Contract, the Guarantor’s guarantee responsibility shall not be changed, aggravated or relieved by any other guarantees, and shall not the condition precedent whether the Creditor has claimed for rights, submit for litigation, arbitration or enforcement against the Guarantor’s guarantee.

 

10.         In the event that other securities are also provided under Principal Contract (including but not limited to guarantee, mortgage, pledge, standby letter and other securities), the Guarantor agrees that the Creditor has the right to waive part of real rights for security interest or the sequence of the right for security interest. The Creditor and the mortgager, pledgor (including the circumstances under which the mortgager/pledgor is also the Debtor) can change the sequence of the right for security interest and the amount of debts secured through mutual consent. In the event that the Creditor takes the aforesaid actions, the Guarantor shall continue to undertake guarantee responsibility under this Agreement.

 

11.         Prior to the fully performance of the obligations under this Agreement, in the event that there is any ownership change of properties or adjustment of mode of operation (including but not limited to enter into joint venture agreement or cooperation agreement with foreign investors; dissolution, shut down, stagnate, change the line of production; change; division, merger and acquisition or be a subject of the same; restructure, establish or reorganize into a limited joint stock company or investment company; become a shareholder of or invest a limited joint stock company with fixed assets such as houses, machines, facilities or intangible assets such as trademarks, patents, know-how and land use right, or transaction of property rights or management rights through lease, contracts, joint operation, trust etc.; any change with respect to its organization or the nature of operation), the Guarantor shall notify the Creditor in writing one month in advance. In the event that the Creditor requires to change the mode and entity of security or to add more guarantors, the Guarantor warrants that it will change the mode and entity of security or add guarantor in the manner acceptable to the Creditor.

 

12.         The Guarantor shall immediately notify the Creditor in writing of the event of default under this Agreement or any and all agreements and security contracts

 

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entered into by and between the Guarantor and the institution of the Creditor, the other banks, non-bank financial institutions or other entities.

 

13.         The Guarantor shall deliver relevant copies of registration to the Creditor in the event that it makes any registration of incorporation, change or cancellation with state administration for industry and commerce or other governmental authorities.

 

14.         During the duration of guarantee, the Guarantor warrants that it will not transfer or conceal its assets, waive or negatively excise its creditor’s rights in any manner.

 

15.         During the duration of guarantee, in the event that there is any change to the Guarantor’s equity ownership (including but not limited to equity transfer, trust, custody, pledge etc.), the Guarantor shall prompt notify the Creditor; in the event that the change of equity reaches / %, the Creditor’s written consent shall be acquired.

 

Article 8 Creditor’s Rights

 

1.               In the event that the duration of principal debts expires or the Guarantor fails to perform the obligations under this Agreement, the Creditor has the right to deduct the funds from any bank account of the Guarantor directly to realize discharge the debts within the range of guarantee. In the event that the currency in the Guarantor’s account differs from the currency of principal debt, the exchange rate announced by the bank where the loan account of the Debtor is opened on the date of deduction shall apply.

 

2.               The Creditor has the right to demand the Guarantor to provide financial reports, financial statements and other documents reflecting the Guarantor’s operation and credit situation.

 

3.               In the event that the Debtor fails to pay off the debts according to the Principal Contract, regardless whether there are other guarantees under the Principal Contract (including but not limited to guarantee, mortgage, pledge, guarantee letter, standby letter and any other forms of securties), the Creditor has the right to demand the Guarantor to undertake guarantee responsibilities under this Agreement without exercising other guarantee’s rights in advance.

 

Article 9 Default

 

1.               The occurrence of either of the following events by the Guarantor will be deemed as a default under this Agreement:

 

(1)   non compliance with the representations and warranties set forth in Article 7 of this Agreement.

 

(2)   Breach of other provisions of this Agreement.

 

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2.     In the event that the Guarantor breaches this Agreement, the Creditor has the right to take one or more actions set forth below, meanwhile, the Guarantor irrevocably authorizes the Creditor to adopt the actions specified in clause (6) without taking litigation or arbitration proceedings in advance:

 

(1)   demand the Guarantor to remedy the default within a time limit;

 

(2)         declare that the principal debts as due in advance and demand the Guarantor to perform joint and several guarantee responsibility;

 

(3)   demand the Guarantor to pay   % of the principal debts as liquidated damages;

 

(4)   demand the Guarantor to reimburse the extra actual loss incurred thereof which can not be covered by liquidated damages;

 

(5)   legally revoke the actions that damaged the interests of Creditor;

 

(6)   deduct the funds in any account of the Guarantor to repay the debts covered by guarantee;

 

(7)   pursue the Guarantor’s liability for the breach of this Agreement by means of law.

 

3.              Under the following circumstances, the Creditor has right to declare that the principal debts is due in advance, and demand the Guarantor to perform joint and several guarantee responsibility promptly: deterioration of the Guarantor’s business operation, loss of business reputation, other circumstances that may result in the Guarantor’s loss of capacity of guarantee incurred by the factors other than the Guarantor itself.

 

Article 10 Independence of Guarantor’s Responsibility

 

1.              The Guarantee provided under this Agreement is independent. Under no circumstance shall this Agreement be invalid due to the invalidity of the Principal Contract. In the event that the Principal Contract is declared invalid, the Guarantor shall undertake the joint and several guarantee responsibility for paying off the debts incurred by the return of properties or compensation of the Debtor.

 

2.              Unless otherwise specified herein, the Guarantor’s obligations under this Agreement is independent, and shall not be affected by any party of this Agreement or the relations with the third party.

 

3.              The Guarantor hereby undertakes that the Creditor and the Debtor can make amendment or supplement to the Principal Contract without its consent, while the responsibilities the Guarantor undertake under this Agreement shall remain the same.

 

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4.              The breach of the Principal Contract by the Debtor (including but not limited to fail to use the financing proceeds pursuant to the Principal Contract) shall not affect the Guarantor’s responsibility or constitute the reason for lessening or exempting the Guarantor’s responsibility.

 

Article 11 Notice

 

1.              Any notification or other communications given or made pursuant to this Agreement shall be in writing and shall be delivered to other party at the addresses, facsimile number or other contact information set forth on the cover page of this Agreement.

 

2.              In the event either party’s contact information changes, the changing party shall prompt notify the other party of the changed contact information.

 

3.              Any notification or communication delivered to the aforesaid address shall be deemed effectively given on:

 

(1)   the fifth working day after having been delivered by registered or certified mail;

 

(2)   the date when receiving of the confirmation from the receiver if sent by facsimile;

 

(3)   the date when the receiver acknowledges receipt if sent by personal delivery.

 

4.              In the event that the Guarantor changes its name, legal representative or address without notifying the Creditor, the notification or documents sent by Creditor pursuant to the terms of this Agreement shall be deemed to be effectively given to the Guarantor.

 

Article 12 Jurisdiction, Governing Law and Dispute Resolution

 

1.              This Agreement shall be construed, governed, explained and performed in accordance with PRC laws.

 

2.              All disputes related to the performance of this Agreement shall be resolved through good faith negotiations. In the event the parties fail to reach an agreement, the dispute shall be resolved pursuant to the first clause set forth below:

 

(first)                                           either party may submit the dispute to the people’s court where the Creditor is located.

 

(second)                          submit the dispute for arbitration (Arbitration Place:            ), which shall be conducted in accordance with the rules in effect at the time of the arbitration. The award of the arbitration shall be final and binding upon the disputing parties.

 

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(third)                                       Other manners:                  .

 

3.              During the course of litigation or arbitration, the parties shall continue to implement the other terms of this Agreement which are not concerned in the dispute. The pending dispute shall not constitute a reason for the Guarantor’s refusal of performing its obligations under this Agreement.

 

Article 13 Effectiveness and Miscellaneous

 

1.              This Agreement shall become effective upon the execution of or affixing seal by the parties.

 

2.              The Guarantor hereby undertakes to agree that, during the duration of this Agreement, waiver of any rights or deferment of exercising its right or interest specified in this Agreement or the Principal Contract by the Creditor shall neither damage, affect or restrict the Creditor’s right or interest under this Agreement and laws and regulations, nor be deemed as a waiver of the same hereunder, nor affect any obligations of the Guarantor under this Agreement.

 

3.              The appendix to this Agreement is an integral part of this Agreement and has the same legal effect as this Agreement.

 

4.              “Working Day” means any business day of the deposit bank which the Debtor opens the loan account. During the performance of this Agreement, if the withdrawal date or repayment date is not a business day, the aforesaid date shall be postponed to the date immediately following such date.

 

5.              This Agreement shall be executed in six counterparts, the Creditor having four counterparts and the Guarantor having two counterparts, all of which have the same legal effect.

 

Article 14 Supplementary Clauses

 

[blank]

 

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[Remainder of Page Intentionally Left Blank]

 

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(This is a signature page without context)

 

 

	
Creditor (Company   seal or contract seal):
    	
Legal   Representative or Authorized Attorney (Signature seal):
    
	
 
    	
 
    
	
 
    	
 
    
	
[Company seal affixed]
    	
/s/ Qingshan Wen
    
	
 
    	
 
    
	
 
    	
December 28,   2011
    
	
 
    	
 
    
	
 
    	
 
    
	
Guarantor (Seal):
    	
Legal   Representative or Authorized Agent (Seal):
    
	
 
    	
 
    
	
[Company seal affixed]
    	
/s/ Chaunzhi Liu
    
	
 
    	
 
    
	
 
    	
December 28,   2011
    

 

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