Document:

Exhibit
10.1

    

    IDEXX
Laboratories, Inc.

    

    DIRECTOR
DEFERRED COMPENSATION PLAN

    

    Restated
Effective as of July 14, 2010

    

    The
Director Deferred Compensation Plan of IDEXX Laboratories, Inc. (the “Plan”) was
initially established effective July 1, 2003 to provide an additional mechanism
for satisfying stock ownership guidelines, as well as to provide a vehicle for
non-employee Directors to defer the receipt of taxable income. The Plan is
intended to be an “unfunded” plan maintained for the purpose of providing
deferred compensation to non-employee members of the Board of Directors for
purposes of Title I of the Employee Retirement Income Security Act of
1974.  The Plan was amended and restated in its entirety, effective
January 1, 2005, primarily for the purpose of complying with the applicable
requirements of Section 409A of the Internal Revenue Code of 1986 (the “Code”),
and Proposed Regulations §§ 1.409A-1 et seq., and the Company operated the Plan
in good faith compliance with Code Section 409A and the restated Plan document
since that time.  The Plan was also amended and restated in its
entirety, effective January 1, 2008, for the purpose of continuing compliance
with Section 409A of the Code and Final Regulations §§1.409A-1 et seq., and
effective May 6, 2009, for the purpose of replacing a reference to the 2003
Stock Incentive Plan with the 2009 Stock Incentive Plan, which superseded the
2003 Stock Incentive Plan on May 6, 2009.   The Plan is now
restated for the purpose of modifying certain provisions relating to the payment
of benefits.

    

    ARTICLE
I

    DEFINITIONS

    

    Unless
the context otherwise requires, the following words and phrases as used herein
shall have the following meanings:

    

    Section
1.1 “ACCOUNT” means the bookkeeping Account maintained for a Participant to
which Deferrals (including all Deferrals denominated as Deferred Stock Units)
and Annual Grants, plus any earnings thereon, are credited.

    

    Section
1.2 “ANNUAL RETAINER” means the annual cash retainer paid by the Company to
Directors.

    

    Section
1.3 “BENEFICIARY” means the person that the Participant designates to receive
any unpaid portion of the Participant's Account balance should the Participant's
death occur before the Participant receives the entire Account balance. If the
Participant does not designate a beneficiary, his Beneficiary shall be his
spouse if he is married at the time of his death, or his estate if he is
unmarried at the time of his death.

    

    Section
1.4 “BOARD OF DIRECTORS” means the Board of Directors of IDEXX Laboratories,
Inc.

    

    Section
1.5 “CHANGE IN CONTROL” means, solely for purposes of this Plan, the occurrence
of one or more of the following events with respect to the Company:

    

    (a) Any
one person, or more than one person acting as a group, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by
such person or persons) beneficial ownership, directly or indirectly, of stock
of the Company possessing 35% or more of the total voting power of the stock of
the Company; or

    

    (b)
Individuals constituting a majority of the members of the Company’s Board of
Directors are replaced during any 12-month period by new directors whose
appointment or election is not approved by a majority of the members of the
Company’s Board of Directors serving immediately before the appointment or
election of any such new directors; or

    

    (c) A
change in the ownership of a substantial portion of the Company’s assets occurs
on the date that any one person, or more than one person acting as a group,
acquires (or has acquired during the 12-month period ending on the date of the
most recent acquisition by such person or persons) assets from the Company that
have a total gross fair market value equal to or more than 40% of the total
gross fair market value of all of the assets of the Company immediately prior to
such acquisition or acquisitions.  For this purpose, gross fair market
value means the value of the assets of the Company, or the value of the assets
being disposed of, determined without regard to any liabilities associated with
such assets.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    For
purposes of determining whether a Change in Control has occurred, the term
"person" shall have the meaning given in Section 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the term
"beneficial owner" shall have the meaning given in Rule 13d-3 under the Exchange
Act.

    

    Section
1.6 “CODE” means the Internal Revenue Code of 1986, as amended.

    

    Section
1.7 “COMPANY” means IDEXX Laboratories, Inc. and any subsidiary designated as a
participating entity by the Plan Administrator.

    

    Section
1.8 “DEFERRALS” means amounts deferred under the Plan pursuant to Article III
and allocated to a Participant's Account. No money or other assets will actually
be contributed to such Accounts.

    

    Section
1.9 “DEFERRED STOCK UNIT” means a notional interest in one share of IDEXX
Stock.  Each Deferred Stock Unit shall be equivalent in value to one
share of IDEXX Stock and shall be subject to the terms of the 2009 Stock
Incentive Plan.

    

    Section
1.10 “DIRECTOR” means a non-employee member of the Board of
Directors.

    

    Section
1.11 “DISABLED” means that a Participant:  (a) is unable to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve months, or (b)
is, by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous
period of not less than twelve months.

    

    Section
1.12 “EFFECTIVE DATE” means the effective date of this restated plan document,
generally January 1, 2005.

    

    Section
1.13 “IDEXX STOCK” means Common Stock of IDEXX Laboratories, Inc.

    

    Section
1.14 “OTHER COMPENSATION” means cash compensation paid to a Director, other than
the Annual Retainer, including (without limitation) meeting fees, and annual
fees for committee memberships and committee chairs.

    

    Section
1.15 “PARTICIPANT” means a Director who participates in the Plan.

    

    Section
1.16 “PLAN” means this Director Deferred Compensation Plan, as it may be amended
from time to time.

    

    Section
1.17 “PLAN ADMINISTRATOR” means the Vice President - Human Resources of IDEXX
Laboratories, Inc. or any person or entity designated by the Vice President -
Human Resources.

    

    Section
1.18 “PLAN YEAR” means the 12-month period beginning January 1 and ending
December 31.

    

    Section
1.19 “UNFORESEEABLE EMERGENCY” means a severe financial hardship to the
Participant, the Participant’s spouse or a dependent (as defined in Code Section
152(a)) of the Participant, loss of the Participant’s property due to casualty,
or other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant.

    

    ARTICLE
II

    ELIGIBILITY
AND PARTICIPATION

    

    Section
2.1 ELIGIBILITY. Each Director shall be eligible to become a Participant in the
Plan immediately upon the commencement of his or her membership on the
Board.

    

    Section
2.2 PARTICIPATION. A Director may become a Participant in the Plan by making the
applicable election described in Section 3.1 below.  A Director’s
participation will commence with the first quarterly payment of the Annual
Retainer paid after the completion of the Participant’s deferral election. Each
Director shall remain a Participant under the Plan until all amounts credited to
the Participant's Account Balance have been distributed to the Participant or
the Participant's Beneficiary.

    
      
         

      

      
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    ARTICLE III

    DEFERRALS;
ANNUAL GRANTS; VESTING

    

    Section
3.1 DEFERRALS

    

    (a)  General.  A
Participant shall make a deferral election by completing and returning to the
Plan Administrator (or his or her designee) a written election on the form
prescribed by the Plan Administrator.  In general, a Participant’s
election shall be made between December 1 and December 31 of the year
immediately preceding the year in which the Annual Retainer and/or Other
Compensation (as applicable) will be earned, and shall become irrevocable with
respect to a Plan Year as of December 31 of such preceding
year.  However, a Director who shall first become eligible to
participate in the Plan or any similar non-qualified deferred compensation plan
of the Company after the time specified for making the deferral election under
the Plan for the Plan Year as provided in the preceding sentence may make his or
her initial deferral election within 30 days after first becoming eligible, such
election to apply only the Annual Retainer and/or Other Compensation (as
applicable) to be earned for services provided during the remainder of such Plan
Year.

    

    A
Participant’s deferral election shall remain in effect until the date on which
such Participant ceases to be a Director, or until he or she modifies such
election on a prospective basis with respect to a subsequent Plan Year (in
accordance with the requirements of subsection (a) above and any applicable
procedures prescribed by the Plan Administrator.  Notwithstanding the
foregoing, the deferral election of a Participant who shall receive a
distribution from the Plan on account of an Unforeseeable Emergency shall be
canceled for the remainder of the Plan Year, as soon as administratively
practicable following the approval of such distribution, and may not resume
unless and until the Participant shall make a new deferral election for a future
Plan Year.

    

    (b) Plan Years Ending On or
Before December 31, 2005. For Plan Years ending on or before December 31,
2005, a Participant shall be required to defer 50% of his or her Annual
Retainer, which shall be credited to his or her Account in the form of Deferred
Stock Units.  For such Plan Years, a Participant may elect to defer
any or all of the remaining portion of such Annual Retainer and any or all of
his or her Other Compensation for a Plan Year.

    

    (c) Plan Years Beginning On or
After January 1, 2006.  For Plan Years beginning on and after
January 1, 2006, a Participant may elect to defer receipt of all, but not less
than all, of his or her Annual Retainer payable for any Plan Year, and a
Participant shall not be permitted to defer the receipt of any Other
Compensation under the Plan.

    

    (d)  Plan Years Beginning On and
After January 1, 2007.  For Plan Years beginning on and after
January 1, 2007, a Participant may elect to defer receipt of all or any portion
of his or her Annual Retainer and/or Other Compensation payable for any Plan
Year, in accordance with subsection (a) of this Section.

    

    Section
3.2 ANNUAL GRANTS.  For Plan Years beginning on or after January 1,
2006, the Board may make an annual grant to Directors of a number of Deferred
Stock Units having a specified dollar value.  The number of Deferred
Stock Units granted to a Director shall be determined by dividing the closing
price of IDEXX Stock on the grant date by such specified dollar
value.

    

    Section
3.3 VESTING.

    

    (a) Deferrals.  A
Participant’s interest in elective Deferrals made under Section 3.1 of the Plan
shall be fully vested and nonforfeitable at all times.

    

    (b) Annual
Grants.  Each Annual Grant of Deferred Stock Units shall vest
on the first anniversary of the grant date, if the Participant subject to the
grant shall then be a member of the Board of Directors; provided, however, that a
Participant’s interest in his or her unvested Deferred Stock Units shall vest
upon the earliest to occur of a Change in Control, the Participant’s death, or
the Participant’s Disability.

    

    ARTICLE
IV

    INVESTMENT
OF DEFERRALS; DISTRIBUTIONS

    

    Section
4.1 INVESTMENT OF DEFERRALS.  All amounts deferred under the Plan
shall be credited to the Participant’s Account and shall be deemed to be
invested in notional shares of IDEXX Stock, denominated as Deferred Stock
Units.  The number of Deferred Stock Units credited to a Participant’s
Account with respect to any elective or mandatory deferral shall be determined
by dividing the amount of the deferral by the closing price of one share of
IDEXX Stock on the conversion date established by the Plan Administrator with
respect to any deferral period, which conversion date shall not be later than 30
days after the end of the deferral period.

    
      
         

      

      
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    Section
4.2 DISTRIBUTIONS.

    

    (a)          Subject
to the limitations set forth in this Section, a Participant shall be permitted
to elect the form or timing of the distribution of his or her benefits under the
Plan.  A Participant shall make a distribution election with respect
to deferrals for any Plan Year by completing and returning to the Plan
Administrator (or his or her designee) a written election on the form prescribed
by the Plan Administrator.  A Participant’s election shall be made at
the same time as he or she makes a deferral election under Section 3.1(a)
above.

    

    (b)          A
Participant may choose to receive his or her benefits under the Plan at the time
and in the form selected from the following alternatives:

    

    (i)           a
single lump sum as soon as practicable on or after the first business day
following the first anniversary of his or her last day of service on the Board
of Directors; or

    

    (ii)          with
respect to deferrals on and after January 1, 2011, on a nondiscretionary and
objectively determinable date (a “Fixed Date”) in a single lump sum payable as
soon as practicable on or after the Fixed Date or in equal annual installments
over a period of four (4) years commencing as soon as practicable on or after
the Fixed Date.

    

    If no
timely election is returned to the Plan Administrator, a Participant’s benefits
shall be distributed in a single lump sum as soon as practicable on or after the
first business day following the first anniversary of his or her last day of
service on the Board of Directors.    Notwithstanding the
foregoing:  (i) the Participant’s benefit shall be distributed in a
single lump sum as soon as practicable on or after a Change in Control of the
Company; and (ii) a Participant’s benefit shall be distributed to his or her
personal representative if the Participant should die prior to the first
anniversary of the last day of his or her service on the Board of
Directors.

    

    (c)          A
Participant’s election as to the distribution of benefits previously deferred
under the Plan may be modified only subject to the following
requirements:

    

    (i)           such
change in a distribution election shall be made in writing using such forms and
in accordance with such procedures as the Plan Administrator shall
prescribe;

    

    (ii)          no
change in a distribution election may take effect until 12 months after the date
on which the change in election is made;

    

    (iii)        a
Participant may not modify an election to receive a fixed schedule of payments
within 12 months of the first scheduled payment date, and

    

    (iv)        a
change in a Participant’s distribution election must defer the date of the
distribution by at least 5 years from the date the distribution would otherwise
have been made.

    

    An
installment form of distribution shall be treated as an entitlement to receive a
single payment, as described in Treasury Regulations § 1.409A-2(b)(2)(iii), for
purposes of applying the requirements relating to the timing and effect of
subsequent change in a distribution election.

    

    (d)          Upon
application by the Participant, if the Plan Administrator determines that a
Participant has experienced an Unforeseeable Emergency, the Plan Administrator
may authorize the distribution of all or a portion of the Participant’s benefits
under the Plan.  The amount distributed with respect to the
Unforeseeable Emergency must not exceed the amounts necessary to satisfy such
emergency plus amounts necessary to pay taxes reasonably anticipated as a result
of the distribution, after taking into account the extent to which such hardship
is or may be relieved through reimbursement or compensation by insurance or
otherwise or by liquidation of the Participant’s assets (to the extent the
liquidation of such assets would not itself cause severe financial
hardship).

    
      
         

      

      
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    (e)           All
benefit distributions shall be made in the form of shares of IDEXX Stock equal
to the number of Deferred Stock Units credited to the Account of the Participant
(in the case of a lump sum distribution), or equal to the number of Deferred
Stock Units subject to distribution as of the applicable distribution date (in
the case of distributions to be made in installments).

    

    ARTICLE
V

    ADMINISTRATIVE
PROCEDURES

    

    Section
5.1 GENERAL. The Plan shall be administered by the Plan Administrator. The Plan
Administrator shall establish such procedures and rules as he or she, in his or
her sole discretion, shall deem appropriate regarding the making of deferral
elections and distributions, and all other administrative items for this Plan,
in all events consistent with the written terms of the Plan and Section 409A of
the Code.

    

    Section
5.2 PLAN INTERPRETATION. The Plan Administrator shall have the authority and
responsibility to interpret and construe the Plan and to decide all questions
arising thereunder, including without limitation, questions of eligibility for
participation, eligibility for deferrals, Account status, and the timing of the
distribution thereof, and shall have the authority to deviate from the literal
terms of the Plan only to the extent the Plan Administrator shall determine, in
his or her sole discretion, to be necessary or appropriate to operate the Plan
in compliance with the provisions of applicable law, including, without
limitation, Code Section 409A.  In no event shall the Plan
Administrator use its authority or discretion to accelerate the timing of
benefit distributions under the Plan.

    

    Section
5.3 RESPONSIBILITIES AND REPORTS. The Plan Administrator may, pursuant to a
written instruction, name other persons to carry out specific responsibilities.
The Plan Administrator shall be entitled to rely conclusively upon all tables,
valuations, certificates, opinions and reports that are furnished by any
accountant, controller, counsel, or other person who is employed or engaged for
such purposes.

    

    ARTICLE
VI

    CLAIMS
PROCEDURE

    

    Section
6.1 DENIAL OF CLAIM FOR BENEFITS. Any denial by the Plan Administrator of any
claim for benefits under the Plan by a Participant or Beneficiary shall be
stated in writing by the Plan Administrator and delivered or mailed to the
Participant or Beneficiary. The Plan Administrator shall furnish the claimant
with notice of the decision not later than 90 days after receipt of the claim,
unless special circumstances require an extension of time for processing the
claim. If such an extension of time for processing is required, written notice
of the extension shall be furnished to the claimant prior to the termination of
the initial 90-day period. In no event shall such extension exceed a period of
90 days from the end of such initial period. The extension notice shall indicate
the special circumstances requiring an extension of time and the date by which
the Plan Administrator expects to render the final decision. The notice of the
Plan Administrator's decision shall be written in a manner calculated to be
understood by the claimant and shall include (i) the specific reasons for the
denial, including, where appropriate, references to the Plan, (ii) any
additional information necessary to perfect the claim with an explanation of why
the information is necessary, and (iii) an explanation of the procedure for
perfecting the claim.

    

    Section
6.2 APPEAL OF DENIAL. The claimant shall have 60 days after receipt of written
notification of denial of his or her claim in which to file a written appeal
with the Plan Administrator. As a part of any such appeal, the claimant may
submit issues and comments in writing and shall, on request, be afforded an
opportunity to review any documents pertinent to the perfection of his or her
claim. The Plan Administrator shall render a written decision on the claimant's
appeal ordinarily within 60 days of receipt of notice thereof but, in no case,
later than 120 days.

    

    ARTICLE
VII

    FUNDING

    

    Section
7.1 FUNDING. The Company shall not segregate or hold separately from its general
assets any amounts credited to Participant Accounts, and shall be under no
obligation whatsoever to fund in advance any amounts under the Plan, including
Deferrals and earnings thereon.

    

    Section
7.2 INSOLVENCY. In the event that the Company becomes insolvent, all
Participants and Beneficiaries shall be treated as general, unsecured creditors
of the Company with respect to any amounts credited to Participant
Accounts.

     

    
      
         

      

      
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    ARTICLE
VIII

    AMENDMENT
AND TERMINATION

    

    The
Company reserves the right to amend or terminate the Plan at any time by action
of the Board or the Compensation Committee thereof; provided, however, that the
Vice President - Human Resources may approve amendments to the Plan that are
primarily technical or administrative in nature (such as amendments that are
necessary to bring the Plan into formal compliance with applicable law and do
not materially alter the design or benefit structure of the
Plan).  Notwithstanding the foregoing, no such amendment or
termination shall reduce any Participant's Account Balance as of the date of
such amendment or termination, or accelerate the distribution of benefits to any
Participant.  Any distributions made in connection with the
termination of the Plan shall be made:  (a) not sooner than the last
day of the 12th month
after the termination date, (b) not later than the 24th month
after the termination date, and (c) in all other ways in accordance with all
applicable requirements of Section 409A of the Code.

    

    ARTICLE
IX

    MISCELLANEOUS

    

    Section
9.1 NO EMPLOYMENT CONTRACT. The establishment or existence of the Plan shall not
confer upon any individual the right to be continued as a Director.

    

    Section
9.2 NON-ALIENATION. No amounts payable under the Plan shall be subject in any
manner to anticipation, assignment, or voluntary or involuntary
alienation.

    

    Section
9.3 GOVERNING LAW. The Plan shall be governed by and construed in accordance
with the laws of the State of Maine to the extent not preempted by federal
law.

    

    Section
9.4 INCAPACITY. If the Plan Administrator, in his or her sole discretion, deems
a Participant or Beneficiary who is eligible to receive any payment hereunder to
be incompetent to receive the same by reason of illness or any infirmity or
incapacity of any kind, the Plan Administrator may direct the Company to apply
such payment directly for the benefit of such person, or to make payment to any
person selected by the Plan Administrator to disburse the same for the benefit
of the Participant or Beneficiary. Payments made pursuant to this Section shall
operate as a discharge, to the extent thereof, of all liabilities of the
Company, the Plan Administrator and the Plan to the person for whose benefit the
payments are made.

    

    Section
9.5 CONSTRUCTION OF TERMS. For purposes of the Plan, the singular shall include
the plural, and vice versa and the masculine shall include the
feminine.

    

    Section
9.6 BINDING UPON SUCCESSORS. The liabilities under the Plan shall be binding
upon any successor, assign or purchaser of the Company or any purchaser of
substantially all of the assets of the Company.

    

    Section
9.7 NO TRUST ARRANGEMENT. All benefits under the Plan represent an unsecured
promise to pay by the Company. The Plan shall be unfunded and the benefits
hereunder shall be paid only from the general assets of the Company resulting in
the Participants having no greater rights than the Company's other general
creditors. Nothing herein shall prevent or prohibit the Company from
establishing a trust or other arrangement for the purpose of providing for the
payment of the benefits payable under the Plan.

     

    Approved
May 21, 2003

    Restated
on February 22, 2006

    Restated
on January 1, 2008

    Restated
on May 6, 2009

    Restated
on July 14, 2010

    
      
         

      

      
        6Exhibit
10.1

    

    Contract No.: B0290010008U-01

    

    Hankou
Bank

    

    Loan
Facility Agreement

    

    Applicant for Financing (Party A):
Wuhan Blower
Co., Ltd.

    

    Financing Bank (Party B):
Hankou Bank Company
Limited, Wuhan Economic and Technological Development Zone
Branch

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Important
Note:

    

    Financing
Bank kindly requests Applicant for Financing to read through this agreement
carefully, especially the specific provisions contained in articles whose
headlines are marked with ** as listed in the contents below, which may contain
descriptions that result in or may result in the waiver or limitation of
liability. If there is any question or objection, please contact Financing Bank
for explanation in a timely manner.

    

    Contents

    

    Article 1
Credit Line of Maximum Financing

    Article 2
Term of Maximum Financing

    Article 3
Use of Credit Line of Financing **

    Article 4
Provision of Security

    Article 5
Party A’s Representation and Warranties**

    Article 6
Party A’s Rights and Obligations**

    Article 7
Party B’s Rights and Obligations**

    Article 8
Event of Default and its Disposition**

    Article 9
Change and Cancellation of Agreement**

    Article
10 Costs and Expenses**

    Article
11 Other Matters Agreed

    Article
12 Anti-Commercial Bribery

    Article
13 Miscellaneous**

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Applicant for Financing: Wuhan Blower Co., Ltd. and
its subsidiaries (hereinafter “Party A”)

    Domicile
(address): Canglongdao
Science Park, Miaoshan Development Zone, Jiangxia District

    Legal
representative: Xu
Jie__

    Contact:
_________________

    Telephone: 59700043________

    Fax:
_____________________

    

    Financing Bank: Hankou Bank Company Limited,
Wuhan Economic and Technological Development Zone Branch (hereinafter
“Party B”)

    Domicile
(address):  10 Chuangye Road, Wuhan
Economic and Technological Development Zone

    Legal
representative (the responsible person): Shi
Huanwei

    Contact:
_________________

    Telephone:
84211332_______

    Fax:
84211382____________

    

    Whereas,

    Party A
applies to Party B for financing and Party B agrees to provide credit line of
financing to Party A. Based on the principle of equality and voluntariness and
in accordance with the relevant laws, regulations and rules of the People’s
Republic of China, both parties have reached negotiated consensus and hereby
agree as follows:

    

    Article 1
Credit Line of Maximum Financing

    1.1 The
credit line of maximum financing hereunder is RMB (Currency Type)
320,000,000
Yuan.

    

    1.2 If
the financing by Party B to Party A hereunder is in a currency other than the
type specified in Article 1.1, it shall be converted into the type specified in
Article 1.1 at the forex buying price quoted by the People’s Bank of China on
the date of actual financing, with the converted amount being deducted from the
credit line specified in Article 1.1.

    

    1.3 The
credit line of maximum financing referred herein is the balance of the claims
which will occur on a successive basis due to Party B’s grant of loan and/or
provision of other types of financing during the term of maximum financing as
agreed herein.

    

    Article 2
Term of Maximum Financing

    The term
of maximum financing is 36 months, namely, from June 28, 2010 to
June 28, 2013,
during which period Party A shall apply to Party B for the use of credit line of
financing. Party B will not accept the application which is submitted after the
expiration date of such term of financing.

    

    Pursuant
to the laws and/or the agreements of the security contract referred to in
Article 4 herein, if the date on which the claims of maximum security are
established precedes the expiration date of the term of maximum financing set
forth in the preceding paragraph, or if Party B requests early exercise of
security rights and early disposition of security properties, Party B shall not
accept Party A’s application for use of the credit line.

    

    Article 3
Use of Credit Line of Financing **

    3.1 Type
of Financing

    Party B
finances Party A in the form of a loan, draft acceptance and/or other forms
permitted by law on a successive basis. Both parties shall sign a specific
financing contract separately for each loan or other types of financing in
respect of its type, amount, time limit and purpose of use.

    

    3.2 Party
A shall apply for the use of credit line one case by one case and Party B shall
also review and approve the application one by one. If Party A’s application for
the use of credit line fails the requirements of Party B’s approval, Party B
shall be entitled to reject Party A’s application for use of the credit
line.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.3 The
maturity date of each loan or other financing claims within the credit line of
maximum financing may be after the term of the maximum financing provided
hereunder.

    

    Article 4
Clause of Security

    The
Guarantors, Wuhan
Blower Co., Ltd. and Wuhan Sungreen Environment
Protection Equipment Co., Ltd., shall provide maximum security for the
claims under this agreement. The specific matters relating to the security shall
be agreed upon by Party B and the Guarantors in a separate security
contract.

    

    If the
Guarantors fail to sign a relevant security contract pursuant to the agreement
referred to in the preceding paragraph, and/or before the relevant security
registration formalities are handled properly, Party B shall be entitled to
refuse to finance Party A.

    

    Article 5
Party A’s Representation and Warranties**

    5.1 Party
A is a legal entity or other organization duly incorporated and validly existing
pursuant to the laws of the People’s Republic of China, and has the capacity for
civil rights and civil acts necessary for signing and performing this contract
pursuant to the law.

    

    5.2 Party
A’s signing and performance of this agreement is Party A’s true expression of
intent. Party A’s signing and performance of this agreement does not conflict
with its signing and performance of other agreements. Party A has lawfully
obtained, internally or externally or from other competent authorities, any and
all valid approval sand full authorization necessary for signing this
agreement.

    

    5.3 The
documents, information, reports and statements, vouchers and certificates
relevant to Party A, Party A’s affiliates, Guarantor(s) and security which are
provided by Party A to Party B during the signing and performance of this
agreement, are true, accurate, complete and valid, and free from any significant
mistake inconsistent with the facts or omission of any material
fact.

    

    5.4  When
Party A signs this agreement, Party A is free from any litigation, arbitration,
criminal or administrative penalty that brings material adverse impact to Party
A’s business operation or financial status, and free from any other significant
event that affects the performance of Party A’s obligation
hereunder.

    

    5.5 Upon
signing this agreement Party A shall strictly comply with various state laws and
regulations to conduct business activities, ensure ongoing business operation
during the performance of this contract, and handle relevant formalities of
annual inspection and registration in a timely manner.

    

    5.6 After
signing this agreement, Party A shall keep or improve current management level
and each financial index to maintain and increase the value of current assets,
and shall not waive any expired claims, nor shall it dispose of its current
major assets without any compensation, or at unreasonably low prices or by other
inappropriate means.

    

    5.7 Party
A has strictly complied with P.R.C. laws and regulations on anti-commercial
bribes, and during the process of signing and executing this agreement, Party A
did not and will not solicit, accept, offer or give any benefit not agreed
hereunder from Party B or its person in charge or other relevant personnel,
including but not limited to express discount, hidden discount, cash, coupon,
tangible goods, negotiable securities, tour, or other non-material
benefit.

    

    5.8 Party
A has completely read and fully comprehended the security contract signed by and
between Party B and the Guarantors, and is aware of all the agreements thereof
on the determination date of secured claims, events of default, Party B’s early
realization of security rights and/or early disposition of secured properties,
fully comprehended the impact of such agreements possibly caused to the
performance of the contract, and accepts the relevant restrictions.

    

    Article 6
Party A’s Rights and Obligations**

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.1 Party
A shall be entitled to request Party B to provide the loan or other funds within
the credit line of the maximum financing pursuant to the terms and conditions
agreed herein and shall also be entitled to use the relevant credit line
pursuant to this agreement and specific financing contract, provided that Party
A satisfies Party B’s approval requirements for credit line.

    

    6.2 Party
A shall use the loan or other funds for the purpose as agreed and/or promised in
this agreement and each specific contract.

    

    6.3 Party
A shall repay the principal plus interest in full amount on time as agreed in
this agreement and each specific contract.

    

    6.4 Party
A shall, periodically or at any time upon Party B’s request, provide Party B
with true and complete reports, financial statements and other documents and
information which can fully reflect its business operation and financial status,
as well as information about all of Party A’s account-opening banks, account
numbers, balance of loans and deposits, and assists Party B in the
investigation, review and check-up.

    

    6.5 Party
A shall accept Party B’s investigation and supervision of its use of the loan
and relevant manufacture, business operation and financial activities, and bear
various costs and expenses incurred by Party B due to Party A’s obstruction of
Party B’s investigation, examination and supervision.

    

    6.6
Without Party B’s written consent, Party A shall not assign to a third party the
debts under this agreement and/or relevant specific contract in whole or in
part, or otherwise transfer directly or in disguised form the debt liability
under this agreement in any manner.

    

    6.7 If
the Guarantors for the loan hereunder violate any agreement of the security
contract or if any event of default set forth in the security contract occurs,
Party A shall increase or replace security conditions upon Party B’s
request.

    

    6.8 If
Party A is involved or is likely to be involved in any of the following events
or circumstances that may affect the performance of Party A’s obligations
hereunder, Party A shall immediately notify Party B and assist Party B in fixing
the liability for repaying principal plus interest of the loan hereunder
pursuant to Party B’s request, as well as other safeguards to ensure that Party
A’s claims hereunder are repaid in full as scheduled:

    

    6.8.1
significant financial loss, assets loss or other financial crisis;

    

    6.8.2
events that may affect the performance of Party A’s obligations hereunder,
including but not limited to profit distribution, capital expenditure, assets
sale or early repayment of claims;

    

    6.8.3
events that may affect the performance of Party A’s obligations hereunder,
including but not limited to applying to other credit-givers for line of credit,
or modifying the debt clauses reached with other credit-givers;

    

    6.8.4
events that may affect the performance of Party A’s obligations hereunder,
including but not limited to providing debt security for a third party or
mortgaging assets to other creditors or credit-givers after the signing of this
contract;

    

    6.8.5
events that may affect the performance of Party A’s obligations hereunder,
including but not limited to neglect of managing and seeking recourse for
expired claims, disposition of its current major assets without any
compensation, or at unreasonably low prices or by other inappropriate
means;

    

    6.8.6
matters of change of management systems or property rights forms, including but
not limited to consolidation, division or split, capital decrease,
reorganization, equity joint venture, cooperation joint venture, property rights
transfer, shareholding system reform, and other mergers and
acquisitions;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.8.7
causes of dissolution or liquidation, including but not limited to business
suspension or close down, revocation or deregistration of business licenses,
being ordered to close down or dissolve its business, Party A or creditor’s
application for bankruptcy, or the legal representative or chief responsible
person’s engagement in illegal activities;

    

    6.8.8 any
litigation, arbitration or criminal investigation or administrative penalty, or
its major assets being subject to property preservation and other enforcement
measures that will bring material adverse impact to its business operation or
financial status;

    

    6.8.9
Party A’s controlling shareholder or other affiliates suffer a significant
crisis in respect of business operation or financial status, or Party A has a
material related transaction with its controlling shareholder or other
affiliates, which affects its normal business operation;

    

    6.8.10
other significant matters that may affect its solvency.

    

    Article 7
Party B’s Rights and Obligations

    7.1 Party
B shall provide the loan or other funds within the credit line of maximum
financing to Party A as agreed herein, provided that Party A satisfies Party B’s
approval requirements for granting credit line.

    

    7.2 Party
B shall keep confidential Party A’s trade secrets or information about
management, business operation and finance that needs to be kept confidential
according to Party A’s written requirements, unless otherwise prescribed by
laws, rules and regulations or required by supervising authorities.

    

    7.3 Party
B shall be entitled to request Party A to repay the principal plus interest of
the loan, advance payment and other debt financing in full and on time as agreed
in this agreement and specific financing contracts, and shall also be entitled
to directly withhold and deduct Party A’s savings deposited in its accounts
opened at Party B as well as all other operating agencies of Hankou Bank, to
repay the debts under each specific contract referred to in this agreement;
Party B shall be entitled to request Party A to use the loan or other specific
funds for the purpose as agreed in this agreement as well as specific contracts
under this agreement, and supervise Party A’s use of the loan and other funds;
Party B shall have the right to know Party A’s manufacture, business operation
and financial activities, and request Party A to provide information relevant to
this financing.

    

    7.4 Party
B shall be entitled to transfer its specific claims against Party A, and shall
be entitled to notify Party A of such transfer in a way it deems appropriate,
including but not limited to fax, delivery by post, delivery by hand or public
notice.

    

    7.5
Pursuant to the laws and/or the agreements of the security contract referred to
in Article 4 herein, if the date on which the claims of maximum security are
established precedes the expiration date of the term of maximum financing set
forth in the contract, Party B shall be entitled to unilaterally declare the
early maturity of the debts under the contract in whole or in part where it is
appropriate.

    

    7.6 If
any event of default set forth in the security contract referred to in Article 4
herein, and/ or Party B may request early realization of security rights and/or
disposition of security properties, Party B shall be entitled to unilaterally
declare the early maturity of the debts under this contract in whole or in part
where it is appropriate.

    

    7.7 Other
rights and obligations as agreed herein.

    

    Article 8
Liability for Breach**

    8.1 Event
of Default

    If Party
A or Guarantor is found to be in any of the following circumstances, an event of
default shall be deemed as occurred:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.1.1 The
information submitted by Party A to Party B in connection with this financing is
proven to be untrue, inexact, incomplete or have flaws of effectiveness, or
intentionally misleading;

    

    8.1.2
Party A’s representation and warranties of Article 5 herein are proven to be
untrue, inexact, incomplete or have flaws of effectiveness, or intentionally
misleading;

    

    8.1.3
Party A fails to perform its obligation as agreed in Article 6
herein;

    

    8.1.4
Party A commits any other act that does or may endanger or damage Party B’s
legitimate rights and interests.

    

    8.2 Remedies for Breach of
Contract

    If any of
the foregoing events of default set forth in Article 8.1 occurs, Party B shall
be entitled to exercise one or several rights as follows:

    

    8.2.1 to
reduce the credit line of the maximum financing hereunder;

    

    8.2.2 to
cease the use of the remaining credit line of the maximum
financing;

    

    8.2.3 to
early call in the principal plus interest of the loan and funds already granted
within the credit line of the maximum financing;

    

    8.2.4 to
directly withhold and deduct Party A’s savings deposited in the accounts opened
at Party B as well as all other operating agencies of Hankou Bank or other
accounts, to repay all of Party A’s debts agreed in the specific contracts under
this agreement;

    

    8.2.5 if
Party B has accepted the draft or opened (or authorized others to open) the L/C
and L/G during the term of financing, regardless whether Party B has made
advance payment, Party B shall be entitled to request Party A to pay additional
security deposit, or transfer into Party A’s security deposit account Party A’s
savings deposited in other accounts opened at Party B, for the purpose of
repaying Party B’s future advance payment under this agreement, or submit the
relevant payment to a third party for custody, which is to be used as security
deposit for repaying Party B’s future advance payment;

    

    8.2.6
other remedies permitted by laws.

    

    Article 9
Change and Cancellation of Agreement*

    9.1 After
this agreement becomes effective, if Party A intends to assign its debts
actually occurred under this agreement in whole or in part to a third party, it
shall first submit to Party B a written guarantee that the Guarantor agrees to
continue undertaking security obligations after such assignment or provide a new
security, which shall obtain Party B’s written consent.

    

    9.2 After
this agreement becomes effective, without negotiated consensus of both parties,
neither Party A nor Party B shall change or cancel this agreement at its own
discretion, unless otherwise provided herein.

    

    9.3 This
agreement shall remain effective before the agreement for changing or canceling
this agreement takes effect.

    

    Article
10 Costs and Expenses**

    Any
expense in connection with this agreement, including but not limited to
reference check, examination, insurance, assessment, registration, appraisal,
custody and notarization as well as attorney fee, litigation fee, travel
expenses all other fees paid by Party B for realizing its claims, shall be borne
by Party A, Party B shall be entitled to directly withhold and deduct from Party
A’s bank accounts. If the balance of Party A’s bank accounts is insufficient for
deduction, Party A shall undertake to repay in full after receiving Party B’s
notice, and Party B does not need to provide any certification.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
11 Other Matters Agreed

    The
applicants for financing under this Maximum Financing Agreement are Wuhan Blower
Co., Ltd. and its subsidiaries, namely, Wuhan Generating Equipment Co., Ltd. and
Wuhan Sungreen Environment Protection Equipment Co., Ltd.

    

    Article
12 Anti-Commercial Bribery

    12.1 Both
Party A and Party B understand and are willing to strictly comply with the laws
and regulations on anti-commercial bribery of the People’s Republic of China,
and both parties are aware that offering or taking bribes in any form will
violate the laws and be subject to the severe punishment by the
laws.

    

    12.2
Neither Party A nor Party B shall solicit, accept, offer or give any benefit not
agreed hereunder from the other party or its person in charge or other relevant
personnel, including but not limited to express discount, hidden discount, cash,
coupon, bank cards deposited with savings, membership cards deposited with
money, token cards (vouchers), tangible goods, negotiable securities, tour,
inspection or other non-material benefit; however, if such benefit is common
practice or custom of this industry, it shall be expressly stated
herein.

    

    12.3
Party B strictly forbids its person in charge from committing any commercial
bribery. Any act set forth in Article 17.2 that is conducted by Party B’s person
in charge is a violation of Party B’s internal system and shall be investigated
and affixed responsibility pursuant to its internal system.

    

    12.4
Party B seriously declares that, Party B objects to any act set forth in Article
17.2 herein that is conducted by Party A or Party A’s person in charge involving
any third party beyond this agreement for the purpose of performing this
agreement. All such acts are violation of state laws and will be subject to
punishment pursuant to state laws.

    

    12.5 If
either party or its person in charge violates the foregoing provisions of
Article 17.2, Article 17.3 and Article 17.4., which cause loss to the other
party, such party in breach shall undertake liability for compensation for
damages.

    

    12.6
“Other relevant personnel” herein refer to persons having direct or indirect
interest with this agreement, other than Party A or Party B’s person in charge,
including but not limited to the relatives of Party A or Party B’s person in
charge of this agreement.

    

    Article
13 Miscellaneous **

    13.1
Continuity of Obligation

    All of
Party A’s obligations hereunder shall have continuity and full binding force
upon its successor, receiver, assignee and the subject after it is merged and
acquired, reorganized and renamed, and free from the influence of any dispute,
claim, legal proceeding and any directive of superordinate, or any agreement and
document signed by Party A and any natural person, legal person or other
organization, nor shall it be modified because of Party A’s bankruptcy,
insolvency, loss of operating capacity or subject capacity, change of property
rights forms, change of internal organization forms or bylaws, or any other
material change.

    

    13.2
Non-waiver of Rights

    After
this agreement becomes effective, Party B’s any tolerance, grace or deferral in
exercising its rights and interests herein in connection with Party A’s any act
of breach or delay shall not damage, affect or limit any rights and interests
that Party B is entitled to pursuant to this agreement and relevant laws and
regulations, and shall not be deemed as Party B’s permission or recognition of
any act that violates this agreement, nor shall it be deemed as Party B’s waiver
of its rights to take action against any current or future breach
act.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    13.3
Independence of Agreement Clauses

    Should
any clause herein or any of its portion becomes invalid in legal respect for
whatever reason, such invalid clause or its invalid portion shall not affect the
validity and enforceability of other clauses herein or other portion thereof.
Upon the occurrence of the foregoing circumstances, Party A shall undertake any
and all security liability, and/or compensate Party B for all the economic loss,
with the scope of its security liability and/or compensation liability to be
determined according to the security scope set forth in Article
1.3.

    

    13.4
Notice

    Any
notice or request of Party B and Party A in connection with this agreement shall
be made in writing. If delivered by hand, the acknowledged receipt by recipients
shall be deemed as properly served (if rejected by recipients, it shall be
deemed as served on the Date of Rejection); if delivered by mail, it shall be
deemed as properly served seven days after the date of posting; if delivered by
facsimile, the confirmed receipt by the facsimile system of recipients shall be
deemed as served. If Party B notifies Party A of claims assignment or presses
Party A for payment through public notice on news media, such notice shall be
deemed as served on the date of public notice. In the event that Party A or
Party changes its correspondence address, it shall give the other party timely
notice; otherwise, any possible loss arisen therefrom shall be borne by
it.

    

    13.5
Supplemental Agreement

    After
this agreement becomes effective, any amendment to it shall be made in writing
and signed by both parties. Any matter uncovered herein or matters of change may
be agreed upon in a written supplemental agreement through negotiated consensus
by Party A and Party B. Such written supplemental agreement shall be attached
herein and constitute an integral part of this agreement.

    

    13.6
Governing Law

    The
conclusion, construction and dispute resolution of this agreement shall be
governed by the laws of the People’s Republic of China.

    

    13.7
Dispute Resolution

    Any
dispute arisen during the performance of this agreement by Party A and Party B
shall be resolved by both parties through negotiation, failing which the method
No. (2) will be
chosen for resolving the dispute.

    (1) apply
to Wuhan Arbitration Committee for arbitration.

    (2) bring
a lawsuit to the People’s Court at Party B’s location.

    

    13.8
Effectiveness of Agreement

    This
agreement shall become effective after being affixed with the company seals/
special seals for agreement by both parties.

    

    13.9
Counterpart

    This
agreement is made in sextuplicate, all
being equally authentic and each held by Party A, Party B and__House Property
Bureau___, ____Land Administration_,
________ and _____.

    

    13.10
Construction of Agreement Clauses

    Party B
has directed Party A’s attention at the clauses hereof that waive or limit Party
B’s liability, and has provided full explanation for the relevant provisions
pursuant to Party A’s requirements. Neither Party A nor Party B has any
objection to the comprehension of any clause of this contract.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Party A:
/Seal of Wuhan Blower Co., Ltd., Wuhan Generating Equipment Co., Ltd. and Wuhan
Sungreen Environment Protection Equipment Co., Ltd./

    Legal
Representative/ Responsible Person or Authorized Agent (Signature/Seal): /Xu
Jie/

    Date:
June 28, 2010

    

    Party B:
/Seal of Hankou Bank Company Limited, Wuhan Economic and Technological
Development Zone Branch /

    Legal
Representative/ Responsible Person or Authorized Agent (Signature/Seal): /Shi
Huanwei/

    Date:
June 28, 2010

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