Document:

ex10_34.htm

     EXHIBIT
10.34 

       

     Contract
of Guarantee of Maximum Amount 

     (for
Credits Grant) 

    

     No:
CIB Shenzhen Nanxin (credit) G (2008)0004A 

     

    
   

     Trustor:
Nanxin Branch, Shenzhen, Industrial Bank Co., Ltd. 

     

     Address:
1st Floor, Nanhaitai Mansion,
Nanxin Road, Nanshan District, Shenzhen 

     

     Postal
Code: 518052                                                
       Telex number:
___________ 

     

     Telephone:
26077176                                               
      Fax number: 26077085 

    

     

     

     Guarantor:
SinoHub Electronics Shenzhen Ltd. 

     

     Address:
6/F, Bldg 51, Road 5,
Blvd Qiongyu, Technology Park, Shenzhen, PRC 

     

     Postal
Code: 518053                                        
  Telex number: ___________ 

     

     Telephone:
+86-755-2661-2106                      
  Fax number: +86-755-2661-2060 

     

     Primary
deposit account: ________________________________________ 

     

     General
deposit account: ________________________________________ 

    

    

    

    

    

    

     Place
of signing the contract: CIB Mansion, Futian District, Shenzhen 

     

     Shenzhen
Branch, Industrial Bank Co., Ltd. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     The
Guarantor is willing to offer the guarantee of maximum amount for the Trustor
(“Creditor”) against SinoHub Electronics Shenzhen Ltd.  Ltd. (the
“debtor”). In order to clarify obligations, both sides signing this Contract
must scrupulously keep their word and strictly execute the contract in
compliance with the relative law and regulations. 

    

     Article
I Definition 

     Unless
otherwise agreed upon by both parties, then: 

    
      	
               (1) 

            	
               “Credit”
      here means the Creditor comprehensively appraises the operation and risks
      of the debtor, and ascertains on the comprehensive maximum amount of the
      debtor, including RMB/foreign currency loan, trade financing, acceptance,
      discount, opening L/C, guarantee,
etc. 

            

    

    
      	
               (2) 

            	
               “Primary
      credit” refers to the credit amount specified according to the basic
      information of the client, used for the current fund turnover of the
      client. The amount of the primary credit can be used several times and in
      recycle within the period of
validity. 

            

    

    
      	
               (3) 

            	
               “Specialized
      credit” refers to the credit given for some special projects and the
      amount exceeding the primary credit with the changes of the national
      policy, market situation and the special requirement of the debtor. The
      amount of specialized credit shall be given once, could be used several
      times but not in recycling. 

            

    

    
      	
               (4) 

            	
               “Valid
      term of credit” means that within a non-interrupted period, with the
      consent of the Creditor, the debtor is entitled to deal with his business
      under the credit amount at the Creditor. The time of the debtor to fulfill
      his obligations (including but not limited to the term of fulfilling the
      master liabilities, the term of guarantee undertaking) specified in the
      terms of this contract could be after the valid term of
      credit. 

            

    

    
      	
               (5) 

            	
               Creditor
      shall implement control over balance for the debtor. This balance refers
      to the sum of the balance incurred during the credit term, the debtor
      takes in use of the credit given by the Creditor, including the pending
      balance before due and overdue outstanding balance,
    i.e.: 

            

    

    
      	
               1.     

            	
               pending
      balance before due is all kinds of outstanding debt before expiration that
      the debtor correspondingly shall pay when the Creditor processes the
      transactions for the debtor according to this Contract,
    or 

            

    

    
      	
               2.    
      

            	
               overdue
      outstanding balance, is all kinds of outstanding debt before expiration
      that the debtor correspondingly shall pay but not fulfilled yet and the
      amount that the Creditor has fulfilled to maintain its external credit
      standing when the Creditor processes the transactions for the debtor
      according to this Contract. 

            

    

    
      	
               (6) 

            	
               “Sub-contract”
      is the contract based on the terms of the primary credit contract or
      specialized credit contract the debtor shall sign with the Creditor after
      getting approval of the Creditor to concretely specify the amount and term
      of each master liability, and other rights and obligations. Primary credit
      contract or specialized credit contract is the Principal Contract of the
      sub-contracts. The sub-contracts, is an integral part of the Principal
      Contract, and has the same legal
effect. 

            

    

    
      	
               (7) 

            	
               “Prime
      liability” is the principal debt due for repayment occurred when the
      debtor process his business, including but not limited to the RMB/foreign
      currency principal, trade financing principal, bankers' acceptance bill,
      bills discounted, interest under the item of L/C, principal that the
      Creditor is liable to guarantee for the debtor,
  etc. 

            

    

    

    

     Article
II Principal Contract 

    

     The
Principal Contract of this Contract is “Primary Credit Contract” and its
sub-contracts (No: CIB Shenzhen Nanxin (credit) Mortgage (2008)0004). The credit
amount is RMB30,000,000.00, and the term of the credit is from September 25,
2008 to September 25, 2009. 

    

     Article
III Guarantee Liability 

    

     The
Guarantor is responsible for suretyship of joint and several liability under the
terms of this Contract. Under any circumstances that the debtor fails to fulfill
his liabilities (including the liability occurred when debtor or
Guarantor breaches the contract and the Creditor announces the debt due
prematurely), the Guarantor shall perform his liability of paying off the debt
in compliance with this contract. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     Article
IV The scope of Guarantee 

    

     The
guarantee applies to all the liabilities within the credit amount (including
several sub-contracts under the principal contract), including the prime
liability, interest (penalty interest), penalty, compensation for loss and
expenses for the Creditor to fulfill his claim under the
credit. 

    

     The
expenses for the Creditor to fulfill his claim includes but not limited to the
litigation fee, property preservation fee, application fee for execution, lawyer
fee, legal fee, announcement fee, appraisal fee, auction fee,
etc. 

    

    

     Article
V Term of Guarantee 

    

     The
guarantee term of all the liabilities under the credit is 2 years, since the
date of execution of each primary liability. 

    

     On the
condition that the Creditor takes back the loan prior of the agreed time, the
primary liability shall be regarded as early execution, and the guarantee term
of the liability is put ahead correspondingly. 

    

    

     Article
VI Demand Guarantees 

    

     The
liability of the Guarantor under this Contract is demand guarantees, i.e. the
Guarantor shall fulfill his liabilities of paying off debt upon receiving the
overdue notification specifying the liabilities under the guarantee contract and
balance of debts provided by the Creditor. 

    

     Article
VII Representations and Warrants 

    

    
      	
               1. 

            	
               The
      Guarantor makes the following representations to the
      Creditor: 

            

    

    
      	
               (1)  
      

            	
               All
      the commitment made by the Guarantor under this contract is valid against
      all kinds of business (except for the transaction that Creditor, debtor
      and Guarantor agree not to provide guarantee under the financing line).
      The Guarantor shall not complete the guarantee procedures for each
      sub-contract unless required by
Creditor. 

            

    

    
      	
               (2)  
      

            	
               Guarantor
      hereinafter irrevocably authorizes the Creditor to be entitled to
      deduct from any account of the Guarantor in any operational organization
      of the Creditor in order to pay off the corresponding debt and other
      relative expenses, 

            

    

    
      	
               (3)  
      

            	
               The
      Guarantor ensures to use all of his personal property and income to
      fulfill the guarantee obligations, and shall not sell or transfer his own
      personal property to any third party with any reason within the guarantee
      term. 

            

    

    
      	
               (4)  
      

            	
               The
      Guarantor hereby confirms having acquired the co-owner’s consent when
      making the family property as the guarantee, and the co-owner shall issue
      announcement to Creditor in written
form. 

            

    

    
      	
              
                 (5)  
      

              

            	
               The
      Guarantor does not hide any of the following situations that has already
      happened or is going to happen and will disable the Creditor to accept the
      Guarantor: 

            

    

    
      	
                
      

            	
               1. 

            	
               any
      major illegal act or disciplinary breach or claim events with the
      Guarantor or its principal management
  involved; 

            

    

    
      	
                
      

            	
               2. 

            	
               unsettled
      litigation or arbitration; 

            

    

    
      	
                
      

            	
               3. 

            	
               all
      kinds of debts of the Guarantor or guarantee, mortgage or pledge provided
      to the third party; 

            

    

    
      	
                
      

            	
               4. 

            	
               any
      default events occurred under the contract the Guarantor signed with
      the Creditor or any other creditors;
or 

            

    

    
      	
                
      

            	
               5. 

            	
               other
      situation that influences the guarantee ability of the
      Guarantor. 

            

    

    
      	
               2. 

            	
               The
      Guarantor makes the following warranties to the
    Creditor: 

            

    

    
      	
               (1)  
      

            	
               Within
      the term of this contract, the Guarantor shall not transfer, abandon,
      exercise its liabilities passively or conduct in other ways to harm the
      benefit of the Creditor or try to exempt from the
      liabilities. 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               (2)  
      

            	
               On
      the condition that the Debtor faces the requirement of the Guarantor to
      and the payment request from the Creditor under the terms of the principal
      contract simultaneously, the Guarantor agrees that the debtor pays off its
      debts against the Creditor with
priority. 

            

    

    
      	
               (3)  
      

            	
               If
      the debtor and Guarantor have signed or shall sign a counter guarantee
      contract under the guarantee liabilities of this Contract, then this
      counter guarantee contract shall not do any harm to the rights and
      interest that the Creditor has under this guarantee contract legally or
      factually. 

            

    

    
      	
               (4)  
      

            	
               Before
      all the obligations of this contract are fulfilled, in any cases that the
      Guarantor changes the ownership or adjusts the operation (including but
      not limited to signing a joint venture or cooperation contract
      with foreign investment enterprises; to cancel, close, discontinue,
      change production line or alter; to separate, merge, acquire or being
      acquired; to reconstruct, reorganize or re-establish share-issuing
      enterprise, investment enterprise; to buy shares or invest
      share-issuing enterprises with tenement, machinery, equipment, etc.
      fixed assets or trademark, patent, proprietary technology, land-use right,
      etc. intangible assets; to be involved in the transaction of
      ownership or management right in the form of lease, contract, joint
      venture or consignment; or to change the structure or operation methods in
      the other way), the Guarantor shall inform the Creditor in written form in
      advance. 

            

    

    
      	
               (5)  
      

            	
               Before
      all the obligations of this contract are fulfilled, in any cases that
      the Creditor requires to supplement or change the guarantee way or
      subject, the Guarantor shall guarantee to make such changes that is
      accepted by the Creditor. 

            

    

    
      	
               (6)  
      

            	
               The
      Guarantor commits to inform the Creditor in written form immediately on
      the events of default occurring under this contract, or any contract,
      guarantee contract or other contracts signed with any department of the
      Creditor, organizations, other banks, non-financial organizations or
      units. 

            

    

    
      	
               (7)  
      

            	
               On
      the condition that the Guarantor registers the establishment, modification
      or cancellation at business and commercial management department or the
      relative government bodies, the Guarantor shall inform the Creditor in
      written form in advance. And after the registration, the Guarantor shall
      deliver the duplicate copies of registration to the
      Creditor. 

            

    

    
      	
               (8)  
      

            	
               On
      the condition that the debtor fails to fulfill its liabilities according
      to this Contract, no matter what other ways that the Creditor has
      guaranteed the claim under the Principal Contract (including but not
      limited to guarantee, mortgage, pledge, guarantee letter, Standby and any
      other guarantee way), the Creditor is entitled to require the Guarantor to
      be responsible for all the guarantee liabilities, without exercising any
      guarantee rights. 

            

    

    

     Article
VIII Liabilities for Breach of Contracts 

    

    
      	
               1. 

            	
               On
      condition that one of the following situation occurs, it will be regarded
      as breaching the contract: 

            

    

    
      	
               (1)  
      

            	
               the
      Guarantor fails to fulfill the representations and warrants of Article VII
      of this Contract; 

            

    

    
      	
               (2)  
      

            	
               the
      credit status of the Guarantor is worsened;
  or 

            

    

    
      	
               (3)  
      

            	
               the
      Guarantor fails to fulfill the other terms of this
      Contract. 

            

    

    
      	
               2. 

            	
               The
      Creditor is entitled to take one or several of the following
      measures: 

            

    

    
      	
               (1)  
      

            	
               setting
      a deadline for the rectification of the
  breach; 

            

    

    
      	
               (2)  
      

            	
               announcing
      the early expiration of the primary liability, and requiring the Guarantor
      to be responsible for the jointly
  liabilities. 

            

    

    
      	
               (3)  
      

            	
               requiring
      the Guarantor to pay 10% of the loan of the principal contract as
      penalty; 

            

    

    
      	
               (4)  
      

            	
               requiring
      the Guarantor to provide new, efficient and valid guarantee;
      or 

            

    

    
      	
              
                 (5)  
      

              

            	
               requiring
      the Guarantor to pay for the actual loss that the indemnity is not
      sufficient to make up. 

            

    

    

     Article
IX Independent Guarantee 

    

    
      	
               1. 

            	
               The
      guarantee stated in this Contract is independent. This contract shall not
      be invalid due to the invalidity of its Principal Contract under any
      circumstances. 

            

    

    
      	
               2. 

            	
               On
      the condition that the Creditor and debtor agree to amend or supplement
      the principal contract, there’s no necessity of getting the approval of
      Guarantor, and there’s no change on the obligations of the Guarantor under
      this Contract. 

            

    

    
      	
               3. 

            	
               On
      the condition that the debtor breaches the terms of the Contract
      (including but not limited to the behavior that the debtor does not use
      the loan as the agreed purpose of loan in this Contract), the guarantee
      obligations of the Guarantor under this Contract shall not be influenced,
      and the Guarantor shall not make it an excuse to alleviate or exempt from
      the obligations. 

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     Article
X Execution of Obligations and Abandonment of Rights 

    

    
      	
               1. 

            	
               The
      obligations of the Guarantor under this Contract are independent, and
      shall not be influenced by the relationship between any party of the
      contract and any third party, except as provided elsewhere in the
      contract. 

            

    

    
      	
               2. 

            	
               Any
      tolerance, extension, favorable conditions or any delay on exercising the
      rights under this Contract that the Creditor offers to the Guarantor shall
      not influence, harm or restrict any rights and interests of the Creditor
      according to this Contract and relative law and regulations, and shall not
      be considered as abandonment of rights and interests against the terms of
      this Contract, neither shall it affect any obligations of the Guarantor
      specified in the Contract. 

            

    

    

     Article
XI Notification 

    

    
      	
               1. 

            	
               Any
      notification or all kinds of communication of this Contract shall be
      delivered to another party according to the address, telex or other
      contact means on the cover of this Contract in written
      form. 

            

    

    
      	
               2. 

            	
               Any
      changes of the contact information of any party of this Contract shall be
      notified to another party
immediately. 

            

    

    
      	
               3. 

            	
               Any
      notice or contact that was delivered according to the above address
      (address after change shall apply) shall be regarded as to arrive at the
      following dates: 

            

    

    
      	
                
      (1)   

            	
               5
      work days after being delivered with registration for ordinary
      letter; 

            

    

    
      	
                
      (2)   

            	
               The
      day while receiving the confirmation of another party for
      telex; 

            

    

    
      	
                
      (3)   

            	
               Upon
      signing and receiving the mail for express
  mail. 

            

    

    

     Article
XII Governance 

    

     The
establishment, validity, explanation, performance and resolving of disputes of
this Contract applies to the law of People’s Republic of China. During the term
of this Contract, any arguments, disputes related to this contract shall be
resolved on the basis of friendly negotiation of both parties. When the
negotiation fails, one of the following measures shall be
adopted: 

     √ Apply for
arbitration at Shenzhen Arbitration Committee 

        Bring
an accusation at the People’s Court where the Contract was
signed 

    

    

     Article
XIII Validity and Termination of the Agreement 

    

     This
contract shall take effect when both parties sign or chop. When the Creditor
requires notarization of this Contract, this contract shall take effect upon the
completion of the notarization procedures. 

    

     This
contract shall be terminated on the condition that all the liabilities of this
Contract is cleared off. 

    

     Article
XIV Text 

    

     The
original copies of this Contract are in triplicate. All parties, registration
organization, notarization organization, and the debtor shall keep a copy
properly. 

    

    

     Article
XV Appendix: 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     Creditor (Corporate Chop):
Nanxin Branch, Shenzhen, Industrial Bank Co., Ltd. 

     

     Legal
representative or authorized agent (signature): /s/Zhu Jiusheng 

     

    
   

     September
21, 2008 

     

    
   

     Creditor (Corporate Chop):
SinoHub Electronics Shenzhen Ltd. 

     

     Legal
representative or authorized agent (signature): /s/Li Dehai 

    

    

     September
21, 2008ex10_35.htm

     EXHIBIT
10.35 

     

    
       Contract
of Guarantee of Maximum Amount 

       (for
Credit Grants) 

      

       No:
CIB Shenzhen Nanxin (credit) G (2008)0004B 

      

       

       Trustor:
Nanxin Branch, Shenzhen, Industrial Bank Co., Ltd. 

       

       Address:
1st Floor, Nanhaitai Mansion,
Nanxin Road, Nanshan District, Shenzhen 

       

       Postal
Code: 518052                                                      
 Telex number: ___________ 

       

       Telephone:
26077176                                                             
     Fax number: 26077085 

       

      
   

       Guarantor:
Shenzhen Yin Zhao Co., Ltd. 

       

       Address:
Rm. 904 Unit A, Fujian
Mansion, Futian District, Shenzhen 

       

       Postal
Code:
518026                                          
     Telex number: ___________ 

       

       Telephone:
83674648                                                   Fax
number: 83674648 

       

       Primary
deposit account: ________________________________________ 

       

       General
deposit account: ________________________________________ 

      

      

      

      

      

      

       Place
of signing the contract: CIB Mansion, Futian District, Shenzhen 

       

       Shenzhen
Branch, Industrial Bank Co., Ltd. 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       The
Guarantor is willing to offer the guarantee of maximum amount for the Trustor
(“Creditor”) against SinoHub SCM Shenzhen Ltd. (the “debtor”). In order to
clarify obligations, both sides signing this Contract must scrupulously keep
their word and strictly execute the contract in compliance with the relative law
and regulations. 

      

       Article
I Definition 

       Unless
otherwise agreed upon by both parties, then: 

      
        	
                 (1)   

              	
                 “Credit”
      here means the Creditor comprehensively appraises the operation and risks
      of the debtor, and ascertains on the comprehensive maximum amount of the
      debtor, including RMB/foreign currency loan, trade financing, acceptance,
      discount, opening L/C, guarantee,
etc. 

              

      

      
        	
                 (2)   

              	
                 “Primary
      credit” refers to the credit amount specified according to the basic
      information of the client, used for the current fund turnover of the
      client. The amount of the primary credit can be used several times and in
      recycle within the period of
validity. 

              

      

      
        	
                 (3)   

              	
                 “Specialized
      credit” refers to the credit given for some special projects and the
      amount exceeding the primary credit with the changes of the national
      policy, market situation and the special requirement of the debtor. The
      amount of specialized credit shall be given once, could be used several
      times but not in recycling. 

              

      

      
        	
                 (4)   

              	
                 “Valid
      term of credit” means that within a non-interrupted period, with the
      consent of the Creditor, the debtor is entitled to deal with his business
      under the credit amount at the Creditor. The time of the debtor to fulfill
      his obligations (including but not limited to the term of fulfilling the
      master liabilities, the term of guarantee undertaking) specified in the
      terms of this contract could be after the valid term of
      credit. 

              

      

      
        	
                 (5)   

              	
                 Creditor
      shall implement control over balance for the debtor. This balance refers
      to the sum of the balance incurred during the credit term, the debtor
      takes in use of the credit given by the Creditor, including the pending
      balance before due and overdue outstanding balance,
    i.e.: 

              

      

      
        	
                  
      1.   

              	
                 pending
      balance before due is all kinds of outstanding debt before expiration that
      the debtor correspondingly shall pay when the Creditor processes the
      transactions for the debtor according to this
  Contract. 

              

      

      
        	
                  
      2.   

              	
                 overdue
      outstanding balance, is all kinds of outstanding debt before expiration
      that the debtor correspondingly shall pay but not fulfilled yet and the
      amount that the Creditor has fulfilled to maintain its external credit
      standing when the Creditor processes the transactions for the debtor
      according to this Contract. 

              

      

      
        	
                 (6)   

              	
                 “Sub-contract”
      is the contract based on the terms of the primary credit contract or
      specialized credit contract, the debtor shall sign with the Creditor after
      getting approval of the Creditor to concretely specify the amount and term
      of each master liability, and other rights and obligations. Primary credit
      contract or specialized credit contract is the Principal Contract of the
      sub-contracts. The sub-contracts, is an integral part of the Principal
      Contract, and has the same legal
effect. 

              

      

      
        	
                 (7)   

              	
                 “Prime
      liability” is the principal debt due for repayment occurred when the
      debtor process his business, including but not limited to the RMB/foreign
      currency principal, trade financing principal, bankers' acceptance bill,
      bills discounted, interest under the item of L/C, principal that the
      Creditor is liable to guarantee for the debtor,
  etc. 

              

      

      

      

       Article
II Principal Contract 

      

       The
Principal Contract of this Contract is “Primary Credit Contract” and its
sub-contracts (No: CIB Shenzhen Nanxin (credit) Mortgage (2008)0004). The credit
amount is RMB30,000,000.00, and the term of the credit is from September 25,
2008 to September 25, 2009. 

      

       Article
III Guarantee Liability 

      

       The
Guarantor is responsible for suretyship of joint and several liability under the
terms of this Contract. Under any circumstances that the debtor fails to fulfill
his liabilities (including the liability occurred when debtor or
Guarantor breaches the contract and the Creditor announces the debt due
prematurely), the Guarantor shall perform his liability of paying off the debt
in compliance with this contract. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       Article
IV The scope of Guarantee 

      

       The
guarantee applies to all the liabilities within the credit amount (including
several sub-contracts under the principal contract), including the prime
liability, interest (penalty interest), penalty, compensation for loss and
expenses for the Creditor to fulfill his claim under the
credit. 

      

       The
expenses for the Creditor to fulfill his claim includes but not limited to the
litigation fee, property preservation fee, application fee for execution, lawyer
fee, legal fee, announcement fee, appraisal fee, auction fee,
etc. 

      

      

       Article
V Term of Guarantee 

      

       The
guarantee term of all the liabilities under the credit is 2 years, since the
date of execution of each primary liability. 

      

       On the
condition that the Creditor takes back the loan prior of the agreed time, the
primary liability shall be regarded as early execution, and the guarantee term
of the liability is put ahead correspondingly. 

      

      

       Article
VI Demand Guarantees 

      

       The
liability of the Guarantor under this Contract is demand guarantees, i.e. the
Guarantor shall fulfill his liabilities of paying off debt upon receiving the
overdue notification specifying the liabilities under the guarantee contract and
balance of debts provided by the Creditor. 

      

       Article
VII Representations and Warrants 

      

      
        	
                 1.   

              	
                 The
      Guarantor makes the following representations to the
      Creditor: 

              

      

      
        	
                  
        (1)   

              	
                 All
      the commitment made by the Guarantor under this contract is valid against
      all kinds of business (except for the transaction that Creditor, debtor
      and Guarantor agree not to provide guarantee under the financing line).
      The Guarantor shall not complete the guarantee procedures for each
      sub-contract unless required by
Creditor. 

              

      

      
        	
                    
      (2)   

              	
                 Guarantor
      hereinafter irrevocably authorizes the Creditor to be entitled to deduct
      from any account of the Guarantor in any operational organization of the
      Creditor in order to pay off the corresponding debt and other relative
      expenses, 

              

      

      
        	
                    
      (3)   

              	
                 The
      Guarantor ensures to use all of his personal property and income to
      fulfill the guarantee obligations, and shall not sell or transfer his own
      personal property to any third party with any reason within the guarantee
      term. 

              

      

      
        	
                    
      (4)   

              	
                 The
      Guarantor hereby confirms having acquired the co-owner’s consent when
      making the family property as the guarantee, and the co-owner shall issue
      announcement to Creditor in written
form. 

              

      

      
        	
                    
      (5)   

              	
                 The
      Guarantor does not hide any of the following situations that has already
      happened or is going to happen and will disable the Creditor to accept the
      Guarantor: 

              

      

      
        	
                 1. 
         

              	
                 any
      major illegal act or disciplinary breach or claim events with the
      Guarantor or its principal management
  involved; 

              

      

      
        	
                 2. 
         

              	
                 unsettled
      litigation or arbitration; 

              

      

      
        	
                 3. 
         

              	
                 all
      kinds of debts of the Guarantor or guarantee, mortgage or pledge provided
      to the third party; 

              

      

      
        	
                 4. 
         

              	
                 any
      default events occurred under the contract the Guarantor signed with
      the Creditor or any other creditors;
or 

              

      

      
        	
                 5. 
         

              	
                 other
      situation that influences the guarantee ability of the
      Guarantor. 

              

      

      
        	
                 2.   

              	
                 The
      Guarantor makes the following warranties to the
    Creditor: 

              

      

      
        	
                    
      (1)   

              	
                 Within
      the term of this contract, the Guarantor shall not transfer, abandon,
      exercise its liabilities passively or conduct in other ways to harm the
      benefit of the Creditor or try to exempt from the
      liabilities. 

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                    
      (2)   

              	
                 On
      the condition that the Debtor faces the requirement of the Guarantor to
      and the payment request from the Creditor under the terms of the principal
      contract simultaneously, the Guarantor agrees that the debtor pays off its
      debts against the Creditor with
priority. 

              

      

      
        	
                    
      (3)   

              	
                 If
      the debtor and Guarantor have signed or shall sign a counter guarantee
      contract under the guarantee liabilities of this Contract, then this
      counter guarantee contract shall not do any harm to the rights and
      interest that the Creditor has under this guarantee contract legally or
      factually. 

              

      

      
        	
                    
      (4)   

              	
                 Before
      all the obligations of this contract are fulfilled, in any cases that the
      Guarantor changes the ownership or adjusts the operation (including but
      not limited to signing a joint venture or cooperation contract
      with foreign investment enterprises; to cancel, close, discontinue,
      change production line or alter; to separate, merge, acquire or being
      acquired; to reconstruct, reorganize or re-establish share-issuing
      enterprise, investment enterprise; to buy shares or invest
      share-issuing enterprises with tenement, machinery, equipment, etc.
      fixed assets or trademark, patent, proprietary technology, land-use right,
      etc. intangible assets; to be involved in the transaction of
      ownership or management right in the form of lease, contract, joint
      venture or consignment; or to change the structure or operation methods in
      the other way), the Guarantor shall inform the Creditor in written form in
      advance. 

              

      

      
        	
                    
      (5)   

              	
                 Before
      all the obligations of this contract are fulfilled, in any cases that
      the Creditor requires to supplement or change the guarantee way or
      subject, the Guarantor shall guarantee to make such changes that is
      accepted by the Creditor. 

              

      

      
        	
                    
      (6)   

              	
                 The
      Guarantor commits to inform the Creditor in written form immediately on
      the events of default occurring under this contract, or any contract,
      guarantee contract or other contracts signed with any department of the
      Creditor, organizations, other banks, non-financial organizations or
      units. 

              

      

      
        	
                    
      (7)   

              	
                 On
      the condition that the Guarantor registers the establishment, modification
      or cancellation at business and commercial management department or the
      relative government bodies, the Guarantor shall inform the Creditor in
      written form in advance. And after the registration, the Guarantor shall
      deliver the duplicate copies of registration to the
      Creditor. 

              

      

      
        	
                    
      (8)   

              	
                 On
      the condition that the debtor fails to fulfill its liabilities according
      to this Contract, no matter what other ways that the Creditor has
      guaranteed the claim under the Principal Contract (including but not
      limited to guarantee, mortgage, pledge, guarantee letter, Standby and any
      other guarantee way), the Creditor is entitled to require the Guarantor to
      be responsible for all the guarantee liabilities, without exercising any
      guarantee rights. 

              

      

      

       Article
VIII Liabilities for Breach of Contracts 

      

      
        	
                 1.   

              	
                 On
      condition that one of the following situation occurs, it will be regarded
      as breaching the contract: 

              

      

      
        	
                    
      (1)   

              	
                 the
      Guarantor fails to fulfill the representations and warrants of Article VII
      of this Contract; 

              

      

      
        	
                    
      (2)   

              	
                 the
      credit status of the Guarantor is worsened;
  or 

              

      

      
        	
                    
      (3)   

              	
                 the
      Guarantor fails to fulfill the other terms of this
      Contract. 

              

      

      
        	
                 2.   

              	
                 The
      Creditor is entitled to take one or several of the following
      measures: 

              

      

      
        	
                    
      (1)   

              	
                 setting
      a deadline for the rectification of the
  breach; 

              

      

      
        	
                    
      (2)   

              	
                 announcing
      the early expiration of the primary liability, and requiring the Guarantor
      to be responsible for the jointly
  liabilities; 

              

      

      
        	
                    
      (3)   

              	
                 requiring
      the Guarantor to pay 10% of the loan of the principal contract as
      penalty; 

              

      

      
        	
                    
      (4)   

              	
                 requiring
      the Guarantor to provide new, efficient and valid guarantee;
      or 

              

      

      
        	
                    
      (5)   

              	
                 requiring
      the Guarantor to pay for the actual loss that the indemnity is not
      sufficient to make up. 

              

      

      

       Article
IX Independent Guarantee 

      

      
        	
                 1.   

              	
                 The
      guarantee stated in this Contract is independent. This contract shall not
      be invalid due to the invalidity of its Principal Contract under any
      circumstances. 

              

      

      
        	
                 2.   

              	
                 On
      the condition that the Creditor and debtor agree to amend or supplement
      the principal contract, there’s no necessity of getting the approval of
      Guarantor, and there’s no change on the obligations of the Guarantor under
      this Contract. 

              

      

      
        	
                 3.   

              	
                 On
      the condition that the debtor breaches the terms of the Contract
      (including but not limited to the behavior that the debtor does not use
      the loan as the agreed purpose of loan in this Contract), the guarantee
      obligations of the Guarantor under this Contract shall not be influenced,
      and the Guarantor shall not make it an excuse to alleviate or exempt from
      the obligations. 

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       Article
X Execution of Obligations and Abandonment of Rights 

      

      
        	
                 1.   

              	
                 The
      obligations of the Guarantor under this Contract are independent, and
      shall not be influenced by the relationship between any party of the
      contract and any third party, except as provided elsewhere in the
      contract. 

              

      

      
        	
                 2.   

              	
                 Any
      tolerance, extension, favorable conditions or any delay on exercising the
      rights under this Contract that the Creditor offers to the Guarantor shall
      not influence, harm or restrict any rights and interests of the Creditor
      according to this Contract and relative law and regulations, and shall not
      be considered as abandonment of rights and interests against the terms of
      this Contract, neither shall it affect any obligations of the Guarantor
      specified in the Contract. 

              

      

      

       Article
XI Notification 

      

      
        	
                 1.   

              	
                 Any
      notification or all kinds of communication of this Contract shall be
      delivered to another party according to the address, telex or other
      contact means on the cover of this Contract in written
      form. 

              

      

      
        	
                 2.   

              	
                 Any
      changes of the contact information of any party of this Contract shall be
      notified to another party
immediately. 

              

      

      
        	
                 3.   

              	
                 Any
      notice or contact that was delivered according to the above address
      (address after change shall apply) shall be regarded as to arrive at the
      following dates: 

              

      

      
        	
                    
      (1)   

              	
                 5
      work days after being delivered with registration for ordinary
      letter; 

              

      

      
        	
                    
      (2)   

              	
                 The
      day while receiving the confirmation of another party for
      telex; 

              

      

      
        	
                    
      (3)   

              	
                 Upon
      signing and receiving the mail for express
  mail. 

              

      

      

       Article
XII Governance 

      

       The
establishment, validity, explanation, performance and resolving of disputes of
this Contract applies to the law of People’s Republic of China. During the term
of this Contract, any arguments, disputes related to this contract shall be
resolved on the basis of friendly negotiation of both parties. When the
negotiation fails, one of the following measures shall be
adopted: 

       √ Apply for
arbitration at Shenzhen Arbitration Committee 

          Bring
an accusation at the People’s Court where the Contract was
signed 

      

      

       Article
XIII Validity and Termination of the Agreement 

      

       This
contract shall take effect when both parties sign or chop. When the Creditor
requires notarization of this Contract, this contract shall take effect upon the
completion of the notarization procedures. 

      

       This
contract shall be terminated on the condition that all the liabilities of this
Contract is cleared off. 

      

       Article
XIV Text 

      

       The
original copies of this Contract are in triplicate. All parties, registration
organization, notarization organization, and the debtor shall keep a copy
properly. 

      

      

       Article
XV Appendix: 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       Creditor (Corporate Chop):
Nanxin Branch, Shenzhen, Industrial Bank Co., Ltd. 

       

       Legal
representative or authorized agent (signature): /s/Zhu Jiusheng 

      
   

       September
21, 2008 

       

       

       Guarantor (Corporate Chop):
Shenzhen Yin Zhao Co., Ltd. 

       

       Legal
representative or authorized agent (signature): /s/Jiang
Xiuqiong 

       

       

       September
21, 2008

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]