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    Guarantee
Contract

     

    China
Construction Bank

     

    Zhejiang
Branch

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Contract
No.: 6472009992010011

     

    Guarantor
(Party A): Zhejiang Chisen Glass Co., Ltd.

     

    Domicile:
Longxing County                     
 Township Development Zone  Zip Code: 313100

     

    Legal
Representative (Person in Charge): XU Keping

     

    Facsimile:                                Tel.:

     

    Lender
(Party B): China Construction Bank Corporation Longxing Sub-branch

     

    Domicile:
No. 18,                   
 Street,                   
Township, Longxing                                  
  Zip Code: 313100

     

    Person in
Charge: WANG Wei

     

    Facsimile:                                Tel.:
6024028

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Whereas
Party B, for consecutively handling the following A and B credit
business for Changxing
Chisen Electric Co., Ltd. (hereinafter “Borrower”), during the period
commencing from April
2, 2010 to April 2, 2012 (hereinafter “the Term of the Master Contract”),
will (and/or has) entered into a Renminbi loan contract, Foreign Exchange Loan
Contract, Bank Acceptance Agreement, the Contract of Issuing a Letter of Credit,
the Agreement of Issuing a Letter of Guarantee and/or other documents of a legal
nature (referred to as the “Master Contract” under the above contracts,
agreements and/or other documents of a legal nature signed during the Term of
the Master Contract) with Borrower.

     

    A.
granting Renminbi/foreign exchange loan;

     

    B.
acceptance of commercial bill of exchange;

     

    C.
issuing a letter of credit;

     

    D.
issuing a letter of guarantee;

     

    E. other
credit business: intentionally left blank
herein           .

     

    Party A
is willing to provide the maximum amount guarantee for the series of debts of
Borrower under the Master Contract. In accordance with the related laws,
regulations and rules, Party A and Party B hereby agree through consultation to
enter into this contract for mutual compliance and implementation.

     

    Article 1 Scope of
Guarantee

     

    1. The
scope of guarantee hereof is:

     

    1.1 The
balance of the principal under the Master Contract that is not more than
(currency) Renminbi
(in words) Sixty-five Million
only; and

     

    1.2 The
interest (including the compound interest and penalty interest), liquidated
damage, damages, other amount that Borrower shall pay to Party B (including but
not limited to the related handling charge, communication fee, miscellaneous
fees and the related bank fees that the beneficiary under the letter of credit
refuses to undertake), any and all the fees incurred to Party B arising from the
realization of Lender’s right and guarantee right (including but not limited to
litigation fees, arbitration fees, fees for preservation of properties,
travelling expenses, enforcement fees, appraisal fees, auction fees, public
notarization fees, service fees, public announcement fees and attorney’s
fees).

     

    2.
Provided that Party A fulfils its guarantee responsibilities pursuant to this
Contract, the maximum of the principal that it guarantees shall be deducted
according to the amount of the principal that Party A settles.

     

    3. Even
the loan, advances, interests and fees under the Master Contract or any other
debts of Party B are actually formed is beyond the Term of the Master Agreement,
they shall be within the scope of guarantee hereof. The expiration date for the
performance of the obligation under the Master Contract will not be limited to
the expiration date of the Term of the Master Contract.

    
    

    Article 2 Method of
Guarantee

     

    The
guarantee provided by Party A hereunder shall be the guarantee with several and
joint liability.

     

    Article 3 Term of
Guarantee

     

    1. The
Term of Guarantee hereunder shall be respectively calculated according to the
single credit business that Party B handles for Borrower, namely, starting from
the date on which the Master Contract for the single credit business is signed
until the two years after the expiration date of the term for performing the
obligations of Borrower under the said Master Contract.

     

    2. Where
Party B and Borrower reach an agreement regarding the extension of the term for
Borrower’s performing the obligations under the Master Contract, the Term of
Guarantee shall last for the two years as from the expiration date of the term
for performing the obligations as stipulated in the extension agreement. The
extension of the term has not to be subject to the consent of Guarantor, who
shall still undertake a joint and several liability for the
guarantee.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.
Provided that Party B announces to advance the maturity of the Debt in case of
the occurrence of any event as stipulated in the laws and regulations or in the
Master Contract, the Term of Guarantee shall last for the two years upon the
earlier maturity of the Debt.

     

    Article 4 Independence of the
Guarantee Contract

     

    The
validity of this Contract is independent from the Master Contract. Failure to
establish, ineffective, invalidity, partial invalidity, revocation or rescinded
of the Master Contract shall not affect the effectiveness of this Contract. If
the Master Contract is determined as not established, ineffective, invalid or
partially invalid, or revoked or rescinded, Party A shall be jointly and
severally liable for the debts arising from Borrower returning the property or
compensating the losses.

     

    Article 5 Amendment of the
Master Contract

     

    1. Party
A agrees that Party B and the Borrower, while concluding master contract or
amend it (including but not limited to renewal of the period of repaying debts,
or increase of the principal of Lender’s rights), need not to notify Party A and
that Party A shall still undertake guarantee liabilities within the maximum
amount and guarantee scope as specified herein.

     

    2. The
guarantee liabilities of Party A shall not be mitigated due to any one of the
following events:

     

    (1)   Restructuring,
consolidation, merger, division, increase or decrease of the registered capital,
joint venture, joint operation, change of the name of Party B or
Borrower;

     

    (2)   Party
B entrusts a third party to fulfill its obligations under the Master
Contract.

     

    3. Where
the Lender’s rights under the Master Contract are transferred, the guarantee
hereunder shall be transferred therewith.

     

    4. Where
the transfer of Lender’s rights or debts under the Master Contract is
ineffective, invalid, revoked or rescinded, Party A shall still undertake a
joint and several guarantee liability to Party B as specified
herein.

     

    Article 6 Responsibility of
Guarantee

     

    1. if the
debts under the Master Contract matures or Party B announces the debts are
matured in advance pursuant to the provisions of the Master Contract or the law,
where Borrower fails to fully fulfill the debts on time or Borrower violates
other provisions of the Master Contract, Party A shall undertake the guarantee
liability within the Scope of Guarantee.

     

    2. No
matter whether Party B has other guarantee for the debts under the Master
Contract (including but not limited to such guarantee methods: guarantee,
mortgage, pledge, letter of guarantee or standby letter of credit), no matter
when it is established, whether it is valid, whether Party B files a claim
against other guarantors, whether a third party agrees to undertake the whole or
partial debts under the Master Contract, or whether other guarantee is provided
by Borrower itself, the guarantee liability of Party A hereunder shall not be
mitigated or exempted, Party B may directly require Party A to undertake the
guarantee liability within its scope of guarantee as stipulated herein and Party
A shall not raise any objection.

     

    3. In the
event that the Lender’s rights under the Master Contract fail to be fully
settled after Party A undertakes the guarantee liability, Party A undertakes
that, its claims to the right of subrogation or the right to seek compensation
against other Borrower or guarantor shall not cause any harm to the interest of
Party B and agrees that the settlement of the debts under the Master Contract is
superior to the fulfillment of Party A’s right of subrogation or the right to
seek compensation.

     

    To be
more specific, prior to the full settlement of Party B’s Lender’s
rights:

     

    (1) Party
A agrees not to claim for the right of subrogation or the right to seek
compensation against other Borrower or guarantor; if for any reason whatsoever,
Party A fulfils the above rights, the amount it obtains shall be first used to
settle the outstanding Lender’s right of Party B;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (2)
Provided that the debts under the Master Contract has a security for things,
Party A agrees not to file any claim for the security thing or the amount
obtained from the disposal thereof, which shall be first used to settle the
outstanding Lender’s right of Party B;

     

    (3)
Provided that Borrower or other guarantor provides counter-guarantee for Party
A, the amount that Party A obtains based on the above counter-guarantee shall be
first used to settle the outstanding Lender’s right of Party B.

     

    4. Party
A has been fully aware of the interest rate risks. Provided that Party B adjusts
the interest rate level, the method of calculating or settling the interests
pursuant to the provisions of the Master Contract or the change to the interest
policy of the State, which results in the increase of the interest, penalty
interest or compound interest that Borrower shall repay, Party A shall be
jointly and severally liable for the increased part.

     

    5.
Provided that in addition to the debts under the Master Contract, Borrower has
other due debts to Party B, Party B shall be entitled to first allocate and
collect the amount in Renminbi or other currency from the account that Borrower
opens in the China Construction Bank system to settle any due debt. The
guarantee liability of Party A shall not be mitigated or exempted
thereby.

     

    Article 7 Other Obligations of
Party A

     

    1. Party
A shall supervise the use of the loan by Borrower (including the purposes), and
accept the supervision of Party B on the capital, property and operation status
of Party A, provide such information, documents and materials as the financial
statements according to the request of Party B and ensure its accuracy,
authenticity, integrity and validity thereof. Without the written consent of
Party B, Party A shall not provide guarantee for a third party that is beyond
its capacity;

     

    2. In
case of any of the following: contracting, trust (takeover), lease, share-equity
transformation, decrease of registered capital, investment, joint operation,
consolidation, merger, acquisition and restructuring, division, joint venture,
applying for or being applied for suspension of business for internal
rectification, applying for dissolution, being revoked, applying for or being
applied for bankruptcy, change to the controlling shareholder/actual controller
or transfer of major assets, production suspension, shut-down, being imposed a
significant amount of fines by the competent authority, being deregistered,
being revoked the business license, being involved in major legal dispute,
severe difficulties or financial deterioration occurred to production or
operation , legal representative or major responsible person unable to perform
the normal duties, or losing or probably losing the guarantee capacity for any
reason, Party A shall immediately inform Party B in writing and carry out the
undertaking, transfer or commitment of the guarantee liability hereunder or
provide a new guarantee for the performance of the Master Contract to be
acknowledged by Party B.

     

    3. In the
event that there is any change to such aspects as the name, legal representative
(responsible person), domicile, scope of business, registered capital or the
articles of association of the company (enterprise) of Party A, Party A shall
inform Party B in writing within thirty (30) working days upon the change and
attach the related materials changed.

     

    Article 8
Miscellaneous

     

    1.
Allocation and Collection of Payables

     

    With
respect to all the payables of Party A hereunder, Party B shall be entitled to
allocate and collect the corresponding amount in Renminbi or other currency from
the bank account that Party A opens in the China Construction Bank system,
without informing Party A in advance. Where the procedures regarding settlement
and sale of foreign exchange or purchase/sale of foreign exchange is required,
Party A shall be obliged to assist Party B in this regard and the foreign
exchange rate risks shall be undertaken by Party A.

     

    2. Use of
Party A’s Information

     

    Party A
agrees Party B to inquire about the credit status of Party A in the credit
database established under the approval of the People’s Bank of China or credit
competent authority or inquire the related entity or department and agrees Party
B to provide Party A’s information to the credit database established under the
approval of the People’s Bank of China or credit authority.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. Public
Announcement and Collection

     

    With
respect to the defaults of Party A, Party B shall be entitled to notify the
related department or entity and to make public announcements for collection
through the news media.

     

    4.
Evidence of Party A’s Records

     

    Unless
there is reliable and definite evidence to the contrary, the internal accounting
records of Party B regarding the principal, interest, fees and re-payment
records, documents, voucher prepared or kept by Party B that are generated
during such business procedures as withdrawal, re-payment, interest payment that
Borrower goes through and the records and vouchers of the loan-collection by
Party B shall all constitute the definite evidence to prove the Lender’s right
relationship under the Master Agreement. Party A shall not raise any objection
only on the ground that the aforesaid records, accounts, documents and vouchers
are unilaterally prepared or kept by Party B.

     

    5.
Reservations of Rights

     

    Party B’s
rights hereunder shall not affect and exclude any other rights it shall be
entitled to pursuant to the laws, regulations and other contracts. Any
tolerance, grace for any default or delay, or preference or suspension in
exercising any right hereunder shall not be deemed as a waiver of the rights and
interests hereunder or permission or approval of any breaches, nor shall it
affect, prevent or obstruct continuous exercise of such right or any other right
or result in Party B’s assumption of obligations and responsibilities to Party
A.

     

    In the
event that Party B fails to or delays in exercising any right under the Master
Contract or fails to exhaust any remedy under the Master Contract, the guarantee
responsibility of Party A hereunder shall not be mitigated or exempted. However,
provided that Party B exempts the debts under the Master Contract, the guarantee
responsibility of Party A hereunder shall be mitigated or exempted
accordingly.

     

    6.
Dissolution or Bankruptcy of Borrower

     

    Where
Party A obtain the information that Borrower enters into dissolution or
bankruptcy procedure, Party A shall inform Party B to file claims. In the
meantime, it shall take part in the dissolution or bankruptcy procedure promptly
and exercise the right to recourse first. Provided that Party A knows or should
know Borrower enters into dissolution or bankruptcy procedures but fails to
first exercise the right to recourse promptly, the losses thereof shall be
solely undertaken by Party A.

     

    Notwithstanding
the provisions in the second sub-paragraph of the fifth paragraph of this
clause, during the bankruptcy procedure of Borrower, in the event that Party B
enters into a reconciliation agreement with Borrower or agrees to the
re-construction plan, Party B’s rights hereunder shall not be damaged due to the
reconciliation agreement or re-construction plan and the guarantee
responsibility of Party A shall not be mitigated or exempted. Party A shall not
use the conditions as stipulated in the reconciliation agreement or
reconstruction plan to oppose the rights and claims of Party B. With respect to
the part of the Lender’s rights that Party B makes compromises to Borrower in
the reconciliation agreement or the re-construction plan and hence is not
settled, Party B shall still be entitled to request Party A to continuously
settle.

     

    7.
Dissolution or Bankruptcy of Party A

     

    Where
Party A becomes dissolved or bankrupt, even if the Lender’s rights of Party B
under the Master Contract are not expired, Party B shall be entitled to take
part in the liquidation or bankruptcy procedures of Party A and file
claims.

     

    8. Where
there is a change to the correspondence address or contact of Party A, Party A
shall immediately notify Party B. Any losses arising from failure to notify
Party B promptly shall be solely undertaken by Party A.

     

    9.
Settlement of Disputes

     

    Any
dispute arising from the performance of this Contract may be settled through
negotiations, failing which, it shall be settled in the 1st way as
follows.

     

    (1)   Bring
a lawsuit before the people’s court at Party B’s location.

     

    (2)   Submit
to intentionally left
blank Arbitration Commission (the place of arbitration is intentionally left
blank) for arbitration in accordance with rules in effect at the time of
applying for arbitration. The arbitration award shall be final and binding upon
both parties.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    During
the litigation or arbitration, the provisions of this Contract that are not in
dispute shall continue to be implemented.

     

    10.
Conditions for the Effectiveness of this Contract

     

    The
Contract shall come into force as soon as being signed or sealed by Party A’s
legal representative (principal) or authorized agent and Party B’s principal or
authorized agent.

     

    11. This
Contract is in quadruplicate.

     

    12. Other
Provisions

     

    Within the period of the
Contract, if the contracts and agreement and other legal instruments concluded
for the Lender’s rights and debts between Party B and the Borrower “Changxing
Chisen Electric Co., Ltd. are not guaranteed by the Contract, they shall be
explained in such contracts and agreement and other legal
instruments.

     

    Article 9 Representation and
Warranty of Party A

     

    1. Party
A clearly knows the business scope and scope of authorization of Party
B.

     

    2. Party
A has already read all the clauses of this contract and the Master Contract.
Upon Party A’s request, Party B has already explained the clauses of this
Contract and the Master Contract. Party A is completely aware of and fully
understands the meaning and the corresponding legal consequences of the clauses
of this Contract and the Master Contract.

     

    3. Party
A has the legal qualification to be Guarantor. The Guarantee provided by Party A
hereunder complies with the provisions of the law, administrative regulations,
rules and articles of association or internal constitutional documents of Party
A, and has already obtained the approval of the company’s internal competent
body and/or the State’s competent authority. Any liabilities arising from the
lack of Party A in the right to sign this Contract shall be undertaken by Party
A, including but not limited to full compensation for the losses that Party B
suffered thereby.

     

    4. Party
A acknowledges that it fully understands the conditions of Borrower’s assets,
debts, operation, credit and credibility, whether Borrower has the subject
qualification and authority to sign the Master Contract and all the contents of
the Master Contract.

     

    Party A
(Company’s seal):

     

    Legal
Representative (Person in Charge) or Authorized Agent (Signature): /s/ Authorized
Person 

     

    April 2,
2010

     

    Party B
(Company’s seal):

     

    Person in
Charge or Authorized Agent (Signature): /s/ Authorized
Person 

     

    April 2,
2010Unassociated Document

    No.
ZB5201200900000013

     

    SHANGHAI
PUDONG DEVELOPMENT BANK

     

    Contract
of Guarantee of Maximum Amount

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Contract
of Guarantee of Maximum Amount

     

    Guarantor:
Zhejiang Changxing
Chisen XingGuangYuan Co., Ltd.

     

    Lender:
Shanghai Pudong
Development Bank Huzhou Sub-branch

     

    Whereas:

     

    In order
to ensure that the Borrower would fulfill all of its lender’s rights under the
master contract (refer to Article 7 herein) in time and guarantees the
realization of lender’s rights by the Lender, the Guarantor is willing to
undertake guarantee liabilities against all debts of the Borrower under the
master contract.

     

    In order
to clarify the respective rights and lender’s rights of both parties, through
negotiation, the Guarantor and the Borrower hereby conclude this Contract and
promise to abide by it.

     

    Article
1   Guaranteed Principal Lender’s rights

     

    The
principal lender’s rights guaranteed under this Contract are shown in Article 7
herein.

     

    Article
2   Liabilities of
Guarantee

     

    
      	
              1.

            	
              Scope
      of guarantee

            

    

     

    In
addition to the principal lender’s rights, the guarantee herein also applies to
the interest thereon (including interest, penalty interest and compound
interest), penalty, liquidated damages, handling charges as well as other
expenses arising on the execution or performance of this Contract, the expenses
accrued to the Lender for realizing guarantee rights and lender’s rights
(including but not limited to disposing expenses, taxes, legal costs, auction
expenses, attorney fee and travel expenses), and the guarantee money that fails
to be supplemented as required by the Lender after the master contract enters
into effect.

     

    
      	
              2.

            	
              Method
      of guarantee

            

    

     

    The
guarantee herein is joint and several.

     

    The
Guarantor acknowledges that where the Borrower fails to perform its debt under
the master contract, no matter whether the Lender owns any other guarantee
(including but not limited to guarantee, mortgage and pledge) against the
lender’s rights under the master contract, the Lender is entitled to require the
Guarantor to undertake its guarantee liability within the said scope of
guarantee, with no lender’s right to require any other guarantor to perform
their guarantee liabilities first.

     

    The
Guarantor hereby waives the defense of first enforcing the security for things
provided by the Borrower.

     

    
      	
              3.

            	
              Period
      of guarantee

            

    

     

    The
period of guarantee shall be calculated separately for each lender’s rights of
the Lender against the Borrower. The period of guarantee for each lender’s right
shall be from the date of expiration of each lender’s rights till two years
after the date of expiration of the lender’s right.

     

    The
Guarantor shall bear guarantee liability respectively for repayment lender’s
rights in installments under each contract during period of occurrence of the
lender’s rights. The period of guarantee for each lender’s right shall be from
the date of expiration of each debt till two years after the date of expiration
of the last installment.

     

    “Due” and
“expiration” under this Contract includes the circumstance under which the
Lender announces mature ahead of time.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Where the
principal lender’s rights announced mature ahead of time are all or partial
lender’s rights during the period of occurrence of lender’s rights, the date of
maturity announced shall be the date of maturity of the said all or partial
lender’s rights and the period of occurrence of lender’s rights is mature at the
same time.

     

    Where the
Lender and the Borrower conclude a renewal agreement to prolong the period of
debt, the period of guarantee shall remain till two years after the period of
debt under the renewal agreement. Renewal need not be consented by the
Guarantor, however, the Guarantor shall still undertake joint and several
guarantee liabilities.

     

    
      	
              4.

            	
              Amendment
      of master contract

            

    

     

    Neither
forbearance or delay in repayment granted by the Lender to the Borrower nor any
amendment, change or substitution of any terms of the master contract will in
any way affect the rights and interests of the Lender under this Contract. Any
of the said circumstances will be deemed as having been consented by the
Guarantor and the guarantee liability of the Guarantor will not be
relieved.

     

    Where the
Lender issuance letter of credit, bank guarantee or standby letter of credit for
the benefit of the Borrower in accordance with the master contract, any
amendment to the said letter of credit, bank guarantee or standby letter of
credit made by and between the Lender and the Borrower need neither be approved
by the Guarantor nor be otherwise informed to the Guarantor. Such amendment will
be deemed as having been consented by the Guarantor and the guarantee liability
of the Guarantor will not be relieved.

     

    Article
3   Statements and Guarantees

     

    The
Guarantor hereby makes the following statements and guarantees to the
Lender:

     

    
      	
              (1)

            	
              The
      Guarantor is an independent legal entity, has all necessary legal
      capacities and is able to fulfill lender’s rights and undertake
      liabilities under this Contract on its
own.

            

    

     

    
      	
              (2)

            	
              The
      Guarantor is entitled to execute this Contract and completes all
      authorization and approvals necessary for executing this Contract and
      fulfilling its lender’s rights under this Contract. All the terms of this
      Contract are the authenticity declaration of will of the Guarantor and
      binding upon the Guarantor.

            

    

     

    
      	
              (3)

            	
              The
      Guarantor promises to comply with laws. The execution and performance of
      this Contract is neither inconsistent with laws (including laws,
      regulations, rules, local regulations and judicial interpretation),
      articles of association, documents of relevant organs, judgments and
      rulings that the Guarantor must comply with nor in conflict with any
      contract or agreement executed by the Guarantor or any other lender’s
      right undertaken by the Guarantor.

            

    

     

    
      	
              (4)

            	
              The
      Guarantor guarantees that all of its financial statements (if any) comply
      with the laws of the People’s Republic of China (excluding Hong Kong,
      Macao and Taiwan), are authenticity and complete, and fairly represent the
      financial status of the Guarantor, and that all information and documents
      involved in this Contract are authenticity, effective, accurate and
      complete with no omission.

            

    

     

    
      	
              (5)

            	
              The
      Guarantor promises to complete filing, registration or other procedures
      necessary for the effectiveness and performance of this Contract and pay
      relevant taxes and expenses.

            

    

     

    
      	
              (6)

            	
              Since
      the issuance of the latest audited financial statement, no substantial
      adverse change has happened to the operation status or financial status of
      the Guarantor.

            

    

     

    
      	
              (7)

            	
              The
      Guarantor has disclosed to the Lender facts and status that the Guarantor
      knows or should know and are necessary for the Lender to determine whether
      to grant financing under the master
contract.

            

    

     

    
      	
              (8)

            	
              On
      the date of the execution of this Contract and during the performance of
      this Contract, the Guarantor has not defaulted and will not default any
      wage, medical or disability allowance, pension or
      compensation.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              (9)

            	
              The
      Guarantor suffers from no situation or fact which causes or may cause
      substantial adverse influence to the ability of the Guarantor to fulfill
      contract.

            

    

     

    Article
4   Covenants

     

    
      	
              1.

            	
              Commitment
      of the Guarantor

            

    

     

    
      	
              (1)

            	
              The
      Guarantor promises that without obtaining the written consent of the
      Lender, the Guarantor will not engage in any of the following
      activities:

            

    

     

    o Sell, gift,
lease, lend, transfer, mortgage or otherwise dispose of all or substantial part
of its major assets;

     

    o Make substantial
change in its operating system or company structure, including but not limited
to contracting, leasing, joint venture, corporate restructuring, joint stock
restructuring, equity transfer, consolidation (merger), joint investment (or
cooperation), division, establishment of subsidiary, transfer of title and
decrease in capital;

     

    o Amend the
Articles of Association of the company or change the scope of business or
principal business;

     

    o Provide
guarantee for any third party, which causes substantial adverse influence to its
financial status or ability of fulfilling the lender’s rights under this
Contract;

     

    o Apply for
reconstruction, bankruptcy or dissolution; or

     

    o Execute any
contract/agreement or undertake any lender’s right which is substantially
adverse to the ability of the Guarantor in fulfilling the lender’s rights under
this Contract.

     

    
      	
              (2)

            	
              The
      Guarantor promises that when any of the following events occurs, the
      Guarantor will, on the date of the occurrence, inform the Lender of such
      event, and within five banking days as of the date of the occurrence, send
      the original of the said notice (if the Guarantor is a natural person, the
      notice shall be signed; otherwise, it shall be sealed) to the
      Lender:

            

    

     

    o The occurrence
of any event causes any of the statements and warranties of the Guarantor under
this Contract to become inveracity or inaccurate;

     

    o The Guarantor or
its controlling shareholder, actual controller or connected person is involved
in lawsuit or arbitration, or any of their assets are seized, closed down,
frozen or enforced compulsorily or suffers from any other measure with
equivalent effect, or its legal representative, director, supervisor or officer
is involved in lawsuit, arbitration or any other compulsory
measure;

     

    o Any change
happens to the legal representative or authorized representative, principal,
chief financial officer, address, name or office of the Guarantor, or the
Guarantor changes its domicile, habitual residence, working unit or name or
leaves for another city for a long time or the Guarantor’s income reduces
substantially; or

     

    o The Guarantor is
revoked by the competent authority or required to restructure or bankrupt by any
other lender.

     

    
      	
              (3)

            	
              The
      Guarantor promises that during the execution and performance of this
      Contract, the Guarantor will provide relevant financial information or
      income certificate from time to time upon the requirement of the
      Lender.

            

    

     

    
      	
              (4)

            	
              Where
      the Lender issues letter of credit, bank guarantee or standby letter of
      credit for the benefit of the Borrower in accordance with the master
      contract, the Guarantor promises that when the Borrower fails to
      supplement (or supplement in advance) the guarantee money in full
      according to relevant requirements, the Guarantor shall bear joint and
      several liability to supplement the guarantee money. The supplement of
      guarantee money by the Guarantor shall not relieve the Guarantor of the
      guarantee liability of the Guarantor under this Contract. Any losses
      (including interest losses) occurred to the Guarantor when it supplements
      the guarantee money shall be borne by the Guarantor
  itself.

            

    

     

    
      	
              (5)

            	
              The
      Guarantor confirms that before the Borrower pays off all the debts under
      the master contract to the Lender, the Guarantor may not exercise recourse
      or any related right against the
Borrower.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              (6)

            	
              Where
      the Borrower repays all or part of its debts in advance or the Borrower
      only pays debts to the Lender, but such repayment in advance or solely is
      revoked, the Guarantor shall continue to undertake joint and several
      liabilities.

            

    

     

    
      	
              2.

            	
              Agreement
      on deduction

            

    

     

    
      	 	
              (1)

            	
              Where
      the Guarantor fails to pay any debts due or shall supplement the guarantee
      money fully, the Lender may directly deduct from any accounts of the
      Guarantor in Shanghai Pudong Development
Bank.

            

    

     

    
      	
            	
              (2)

            	
              Unless
      otherwise provided by relevant authorities, the money deducted shall be
      used to repay debts according to the following order of preference: (a)
      due expenses payable by the Guarantor and the Borrower; (b) interest due;
      and (c) principal due. Where several lender’s rights are due and unpaid,
      the order of preference shall be determined by the
  Lender.

            

    

     

    
      	
            	
              (3)

            	
              Where
      the currency of money deducted is not the currency of repayment, the
      Lender is entitled to settle/purchase exchange according to the exchange
      rate determined by itself. The risks in connection with exchange rate
      shall be undertaken by the
Guarantor.

            

    

     

    
      	
              3.

            	
              Certificate
      of lender’s rights

            

    

     

    The valid
credence of the lender’s rights guaranteed by the Guarantor is the accounting
document issued and recorded by the Lender according to its own
rules.

     

    
      	
              4.

            	
              Notices
      and service

            

    

     

    
      	
            	
              (1)

            	
              Any
      notice under this Contract shall be sent to the address mentioned in the
      page of signature until and unless such address is changed through written
      notice. Any notice sent to the said address will be deemed as received on
      the following date: if by letter, the seventh banking day after delivery;
      if by hand, the date of receipt; if by fax or email, the date when the fax
      or email is delivered. However, all notices, requirements or communication
      sent or delivered to the Lender will be deemed as received when such
      notices, requirements or communication are received by the Lender. All
      notices or requirements sent to the Lender by fax or email must be
      confirmed by delivering the original (if the Guarantor is a natural
      person, it shall sign the original, otherwise, it shall be sealed) to the
      Lender by hand or postal.

            

    

     

    
      	
            	
              (2)

            	
              The
      Guarantor agrees that any summons or notice will be deemed as received as
      long as they are delivered to the domicile stated in the page of signature
      herein. No change of such domicile is valid unless the Guarantor informs
      the Lender in writing in advance.

            

    

     

    
      	
              5.

            	
              Effectiveness,
      amendment and termination

            

    

     

    
      	
              (1)

            	
              This
      Contract enters into effect after being sealed by the Guarantor and the
      Lender and signed or sealed by the legal representative/principal or
      authorized representative of both parties (if the Guarantor is a natural
      person, this Contract shall be only signed by the natural person) and
      terminates when all the lender’s rights guaranteed under this Contract are
      settled.

            

    

     

    
      	
              (2)

            	
              This
      Contract is independent of the master contract. Its validity is not
      affected even if the master contract is invalid or
  revoked.

            

    

     

    
      	
              (3)

            	
              After
      this Contract enters into effect, no party is allowed to amend or
      terminate this Contract in advance without the consent of the other party.
      Both parties may conclude written agreement through negotiation to amend
      or terminate this Agreement.

            

    

     

    Article
5   Events of Breach and Disposal

     

    
      	
              1.

            	
              Events
      of breach

            

    

     

    Where any
of the following circumstances occurs, the Guarantor constitutes breach of this
Contract:

     

    
      	
              (1)

            	
              Any
      statement, acknowledgement or guarantee of the Guarantor under this
      Contract or any notice, authorization, approval, consent, certificate or
      any other document made under this Contract or in connection with this
      Contract is inaccurate or misleading, or confirmed to be inaccurate or
      misleading, or verified to be invalid or have been
  revoked;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              (2)

            	
              The
      Guarantor breaches of any item under Article 4
  herein;

            

    

     

    
      	
              (3)

            	
              The
      Guarantor winds up, stops production, is under restructuring, liquidation,
      receivership or trusteeship, is dissolved or bankrupt, or has its business
      license revoked or cancelled;

            

    

     

    
      	
              (4)

            	
              The
      Guarantor is dead or declared dead;

            

    

     

    
      	
              (5)

            	
              The
      Guarantor transfers or tries to transfer assets by excuse of change of
      marital relationship;

            

    

     

    
      	
              (6)

            	
              The
      financial status of the Guarantor worsens, or its operation is in great
      difficulty, or any event or circumstance adverse to its operation,
      financial status or repayment ability
occurs;

            

    

     

    
      	
              (7)

            	
              The
      Guarantor or its controlling shareholder, actual controller or connected
      person is involved in major lawsuit or arbitration, or any of their major
      assets are seized, closed down, frozen or enforced compulsorily or suffers
      from any other measure with equivalent effect, or its legal
      representative, director, supervisor or officer is involved in lawsuit,
      arbitration or any other compulsory measure so that the repayment ability
      of the Guarantor is affected adversely;
or

            

    

     

    
      	
              (8)

            	
              The
      Guarantor breaches of this Contract in any other way so that the normal
      performance of this Contract is affected, or engages in any other activity
      damaging the legitimate interest of the
Lender.

            

    

     

    
      	
              2.

            	
              Disposal

            

    

     

    Where any
above event occurs, the Lender is entitled to declare the maturity of the period
of occurrence of principal lender’s right and/or lender’s right, require the
Guarantor to undertake guarantee liability or the Borrower to supplement the
guarantee money, and ask the Guarantor to pay the penalty (the method for
calculating penalty is shown in Article 7 herein). Where the penalty is
insufficient to make up the losses of the Lender, the Guarantor shall compensate
the total losses suffered by the Lender.

     

    Article
6   Other Provisions

     

    
      	
              1.

            	
              Governing
      law

            

    

     

    This
Contract is governed by the laws of the People’s Republic of China (excluding
Hong Kong, Macao and Taiwan).

     

    
      	
              2.

            	
              Settlement
      of dispute

            

    

     

    Any
dispute in connection with this Contract shall be settled through amicable
negotiation. Where negotiation fails, the dispute is subject to the
non-exclusive jurisdiction of the people’s court in the place where the domicile
of the Lender is. During the period of dispute, both parties shall continue to
perform terms not in dispute.

     

    
      	
              3.

            	
              Miscellaneous

            

    

     

    
      	
              (1)

            	
              Where
      there is any inadequacy herein, both parties may negotiate to supplement
      in Article 7 herein or otherwise conclude written agreement as appendix to
      this Contract. Any appendix to this Contract (refer to Article 7 of this
      Contract) is an integral part of this Contract and has the same legal
      effect with this Contract.

            

    

     

    
      	
              (2)

            	
              Unless
      otherwise stated in this Contract, the terms and expressions under this
      Contract have the same meaning with those under the master
      contract.

            

    

     

    Article
7   Essential Terms

     

    
      	
              1.

            	
              The
      master contract guaranteed by this Contract [corresponding to the Whereas
      clause herein]

            

    

     

    
      	
              (1)

            	
              The
      master contract is  concluded
      by the Borrower and the Lender on   or a
      series of contracts from April 14, 2009 to April 14, 2012. The Lender
      under this Contract is Shanghai Pudong
      Development Bank Huzhou Sub-branch under the master
      contract.

            

    

     

    
      	
              (2)

            	
              The
      Borrower under the master contract is Changxing Chisen
      Electric Co., Ltd. whose domicile is Changxing Economic
      Development Zone.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              2.

            	
              The
      principal lender’s rights guaranteed by this Contract [corresponding to
      Article 1 herein]

            

    

     

    The
principal lender’s rights guaranteed under this Contract are one or more kinds
of credit extensions provided by the Lender to the Borrower from April 14, 2009
to April 14, 2012 (“the period of occurrence of lender’s rights), including but
not limited to various kinds of loan and contingent liabilities formed due to
the provision of bank acceptance. The maximum balance of the principal lender’s
rights during the period of occurrence of lender’s rights shall be RMB
26,000,000.00 (or equivalent foreign currency). Where the principal lender’s
right is expressed in foreign currency, it shall be converted according to the
exchange rate determined by the Lender.

     

    
      	
              3.

            	
              Settlement
      for breach [corresponding to Paragraph 2 of Article 5
    herein]

            

    

     

    Penalty:
Equivalent to 1% of the principal lender’s rights.

     

    
      	
              4.

            	
              The
      appendices to this Contract include: [corresponding to Item 1 of Paragraph
      3 of Article 6 herein]

            

    

     

    
      	
              (1)

            	
              .

            

    

     

    
      	
              (2)

            	
              .

            

    

     

    
      	
              (3)

            	
              .

            

    

     

    
      	
              (4)

            	
              .

            

    

     

    
      	
              (5)

            	
              .

            

    

     

    
      	
              5.

            	
              Other
      matters agreed upon by both parties [corresponding to Item 1 of Paragraph
      3 of Article 6 herein]

            

    

    _______________________________________________________________________________________

    _______________________________________________________________________________________

    _______________________________________________________________________________________

    _______________________________________________________________________________________

     

    
      	
              6.

            	
              This
      Contract is in duplicate. The Guarantor and the Lender each hold one copy.
      Each copy has the same legal
effect.

            

    

     

    (No text
below)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (This
page is for signature with no text)

     

    This
Contract is signed by the following Guarantor and Lender on April 14, 2009. The
Guarantor confirms that upon the signature of this Contract, both parties have
discussed all the terms of this Contract, have no doubt about any term of this
Contract and have accurately comprehended the legal meaning of rights and
lender’s rights of both parties and limitation or exclusion of
liability.

     

    
      
        
          	
                  The
      Guarantor:

                	
                  The
      Lender:

                
	 
      	 
      
	
                  Zhejiang
      Changxing Chisen

                	
                  Special
      Seal for Corporate Banking of Shanghai

                
	 
      	 
      
	
                  Xingguangyuan
      Co., Ltd. (seal)

                	
                  Pudong
      Development Bank Huzhou Sub-branch (seal)

                
	/s/
      Authorized Person	/s/
      Authorized Person

        

      

    

     

    Legal or
authorized representative (sign or seal) Legal or authorized representative
(sign or seal)

     

    (The
above applies to legal person)

     

    The
Guarantor (sign)

     

    Type and
Number of Valid Identity Certificate

     

    _________________________

    (The
above applies to natural person)

     

    
      
        
          	
                  Domicile:

                	
                  Principal
      Place of Business:

                
	 
      	 
      
	
                  Post
      Code:

                	
                  Post
      Code:

                
	 
      	 
      
	
                  Tel:

                	
                  Tel:

                
	 
      	 
      
	
                  Fax:

                	
                  Fax:

                
	 
      	 
      
	
                  Email:

                	
                  Email:

                
	 
      	 
      
	
                  Contact:

                	
                  Contact:

                

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Format of
Letter of Commitment That the Spouse Agrees to Dispose of Common Properties
(this format applies when the Guarantor is a natural person)

     

    Appendix:

     

    Letter
of Commitment on Consent to Enforce Common Properties

     

    
      
        
          
            
              
                
                  
                    	 
      	
                            No.
      

                          

                  

                

              

            

          

        

      

        

    

    To
Shanghai Pudong Development Bank Branch/Sub-branch,

     

               (I.D.
card number:                 
) is the legal spouse of the Guarantor                        
. For the purpose of the execution and performance of the Contract of
Guarantee of Maximum Amount (No.                      
), I hereby make the following commitment:

     

    I’ve
fully informed of the execution of the said Contract of Guarantee
by     , agree with the execution and performance of
the Contract, and agree that when the Guarantor undertakes guarantee liabilities
under the Contract, the Lender is entitled to dispose of our common
properties.

     

    
      
        
          
            	 
      	
                    Promisor:

                  
	 
      	 
      
	 
      	
                    Dated:

                  

          

        

      

    

     

    Appendices:

     

    
      	
               
      

            	
              1.

            	
              Copy
      of I.D. card

            

    

     

    
      	
               
      

            	
              2.

            	
              Copy
      of marriage certificate

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