Document:

Exhibit 10.25

 

Ref:(2010) Xin Kai Yin Zui Bao Zi No. 000040-3

 

Maximum Value Guarantee Contract

 

Prepared by: China CITIC Bank, Dalian Branch

 

  

  

  

 

Instruction

 

1.      The Contract herein shall be filled with dark blue or black-inked signature pen or pens.

 

2.      The Contract shall be completed in full with print letters.

 

3.      Currency type instead of its symbol shall be written in Chinese. When it relates to capital amount, currency type shall be added in front of capital letters, and currency symbol shall be added in front of small letters.

 

4.      Columns and blank spaces under Withdrawal Plan or Repayment Schedule shall be filled with fold lines and handwritten/stamping words “The blank is left intentionally”. Other unnecessary blank spaces may be crossed with “/”.

 

  

  

  

 

The Maximum Value Guarantee Contract (as the “Contract”) is made on April 6th 2010, at Rd. Renmin #29, Zhongshan District, Dalian, P.R.C., 116001.,

 

By and between

 

the Guarantors, Mr. Zheng Chuantao and Sun Lihua who live at #2-2-1 No.63 Zhongshan Road, Ganjingzi District, Dalian, P.R.C. (as “Guarantors”)

 

And

 

the Creditor, China CITIC Bank Dalian Branch who assigns Mr. Yu Wenbo as its legal representative and its principal place of business is Rd. Renmin #29, Zhongshan District, Dalian, P.R.C., 116001, phone 86-411-82821868 (as the “Creditor”).

 

In order to facilitate execution of multiple obligatory rights (as “principal claim”) between the Creditor and Dalian TOFA New Materials Development Co., Ltd. (as “Debtor”), the Guarantors are willing to provide maximum value guarantee to the Debtor. For the consideration of mutual premises, and in accordance with Contract Law of PRC and Guarantee Law of PRC and other laws and regulations, Guarantors and Creditor hereto agree as follow:

 

Article 1 Definition

 

Maximum value guarantee means the highest guarantee line agreed between guarantors and creditor against multiple debts incurred by Debtor. Guarantors shall provide such guarantee no higher than such line. Such highest line equals the total amount of unpaid liabilities (including contingent liabilities) Debtor shall pay to Creditor.

 

Article 2 Guaranteed Principal Claim

 

2.1 Guaranteed principal claim means a series of obligatory rights arising from Creditor extending a credit line to Debtor during the period as of April 6th 2010 till April 6th 2012. Those obligatory rights include but not limited to loans, notes, letter of guarantee, L/C and other banking services.

 

2.2 Guaranteed principal claim is up to RMB twenty million (20,000,000). If Guarantors performs its obligations stated in the Contract, the highest guarantee line will be lowered subject to Guarantors’ performance.

 

2.3 Within the abovementioned period and below highest guarantee line, any debt-related contracts, agreements and instruments made between Creditor and Debtor shall constitute the master contract over the Contract herein (as “Master Contract”).

 

Article 3 Guarantee

 

3.1 Guarantors shall bear joint obligations of guarantee. Creditor shall reserve the right to directly require Guarantors performing its obligations, provided that Debtor fails to execute all or part of a separate matured debt contemplated under the Master Contract.

 

3.2 If Debtor fails to execute its debt liabilities as agreed in the Master Contract, Creditor shall have the right to directly require Guarantors performing its obligations to an extent of its guarantee line, regardless of Creditor’s any other guarantees against debt under the Master Contract (including but not limited to warranties, pledge, mortgage, letter of guarantee, standing L/C and other forms of guarantee)

 

  

  

  

 

Article 4 Term

 

4.1 Guarantee term is two years as of the second anniversary date after maturity of liabilities specified under Debtor’s business contract. Guarantee term of each business contract shall be calculated separately.

 

4.2 If the debt is terminated in advance as (1) required by laws and regulations, (2) agreed under the Master Contract, or (3) Debtor and Creditor agree to do so, the date of such termination is the matured date of the debt.

 

4.3 If the subject contemplated under the Master Contract is in form of L/C, bank acceptance bills or letter of guarantee, the guarantee term lasts for two years as of the date of advanced payment. For installment in advance, the guarantee term commences as of the date of each installment.

 

Article 5 Guarantee Scope

 

5.1 The Contract shall cover the fees and expenses under the Master Contract, including principal, interest, punitive and compound interest, imbursement for contract violation, damages, and expenses for materializing debt rights (including but not limited to legal cost, arbitration, attorney fee no higher than 20% total principal claim, accommodation, assessment &evaluation, auction, disposal, transfer, property preservation, public disclosure and execution).

 

Article 6 Guarantors’ Representation and Warranties

 

6.1 Guarantors is a legal person incorporated under laws of P.R.C., of civil rights and behavioral competence, and independently liable to any civil duties. Guarantors has obtained necessary/lawful authorizations and approvals, from external or internal, to sign the Contract herein.

 

6.2 Guarantors fully understand and agree on all the terms and provisions set forth under the Master Contract. Guarantors provide such guarantee to Debtor at its discretion and all the presentations and statements made under the Contract are true or factual.

 

6.3 The guarantee contemplated hereunder shall neither bear any limits nor cause any illicit circumstances.

 

6.4 All the documentations, reports, representations provided by the Debtor are of effect, truth, accurateness, completeness and law-binding. Other than conditions Guarantors make written disclosure on to Creditor, Guarantors has no other material liabilities (including contingent liabilities), behaviors of contract violations, prosecution, arbitration or other significant events influential to Guarantors’ assets.

 

Article 7 Guarantors’ Rights and Obligations

 

7.1 Guarantors shall furnish Creditor with the instruments that are truth, effective and adequate to testify Guarantors’ identity.

 

7.2 If Guarantors makes changes to legal person name, legal representative, project director, principal place of business, telephone, fax and among others, Guarantors shall inform Creditor in written form seven (7) days after such change.

 

7.3 In case that Debtor fails to pay the principal and interest at the matured date or before as specified under the Master Contract, Creditor shall have the right to directly require Guarantors paying off the debt. Guarantors shall promise not to reject Creditor’s any payment claim with any reasons, and shall waive the defense right as defined in A22 Guarantee Law of PRC.

 

  

  

  

 

7.4 Guarantors shall be liable to provide its balance sheets and disclosures on any other guarantees it provide to third party. Also, Guarantors shall, at Creditor’s request, furnish the financial reports and documents that truly reflect financial standing, on a regular basis or from time to time.

 

	
7.5

	
Guarantors shall issue a written notice to the Creditor provided that throughout the term, there are any material changes in Guarantors’ operations including but not limited to stock conversion, reorganization, M&A, spin-off, joint capital, alliance, leasing, any change to Debtor’s scope of operation and registered capitals, or any capital transfer that materially hampers Guarantors’ capability of providing guarantees.

 

	
7.6

	
If Guarantors incurs events including but not limited to suspension, stoppage, bankruptcy, delinquency, revoke of business license, economic loss, lawsuits, arbitration, criminal affairs, and administrative punishment, thus hampering part or whole of capability of guaranteeing the loan, Guarantors shall issue a written notice to Creditor within three days upon the occurrence or possible occurrence of such event.

 

	
7.7

	
Guarantors shall not harm Creditor’s rights and interest provided that Guarantors intends to provide guarantees of any kind and of any nature to any other third party.

 

	
7.8

	
If any event specified under Article 7.5 and Article 7.6 occurs to Guarantors, Guarantors shall agree to reasonably execute all the obligations under the Contract and offer a detailed schedule for such execution.

 

	
7.9

	
If Debtor fails to pay all or part of the debts as stated in the Master Contract (including circumstances (1) required by laws and regulations, (2) agreed under the Master Contract, or (3) Debtor and Creditor agree to an early maturity of debt), and Creditor requires Guarantors to fulfill its obligations of guarantees, Guarantors shall, upon receiving Creditor’s written notice, timely materialize the payment at the amount/form  as required in the notice

 

	
7.10

	
If Guarantors fails to execute Article 7.9 and in order to settle the debt under the Master Contract, Guarantors shall authorize Creditor to (1) directly withdraw from any of bank account set in CITIC Bank; and/or (2) dispose Guarantors’ any property or property rights lawfully held and controlled by Creditor. Under conditions that Creditor is authorized to withdraw from Guarantors’ bank account and account currency is different from debt currency, then the currency shall be translated at the exchange rate announced by CITIC Bank at the exact withdrawal date.

 

	
7.11

	
Guarantors shall continue to assume the obligations as specified in Article 3 provided that any third person extends guarantees to the debt under the Master Contract.

 

Article 8

 

8.1 When Creditor transfers all the debt rights under the Master Contract to any third party, Guarantors shall be timely informed in written form upon signing the transferring contract.

 

8.2 If Creditor and Debtor agree to sign a particular contract in connection with the credit services contemplated under the Master Contract, Guarantors may not be informed of such deal.

 

8.3 If Debtor fails to pay all or part of the debts as stated in the Master Contract (including circumstances (1) required by laws and regulations, (2) agreed under the Master Contract, or (3) Debtor and Creditor agree to an early maturity of debt), Creditor shall have the right to require Guarantors to perform its obligations as set forth.

 

8.4 Creditor shall keep confidential all the files, documents and information provided by Guarantors, excluding conditions that laws and regulations require to disclose or make accessible.

 

  

  

  

 

Article 9 Violation

 

9.1 Parties hereto shall execute the Contract upon effect, or otherwise assume relevant liabilities for breaching the Contract.

 

9.2 If Guarantors provides inaccurate, untruthful, incomplete or intentionally misleading representations and warranties under Article 6, thus causing loss to Creditor, Guarantors shall bear the damages arising thereof.

 

9.3 In case that the Contract becomes null and valid by virtue of Guarantors’ fault, Guarantors shall cover Creditor’s loss up to its guarantee scope.

 

9.4 Throughout the term, Creditor shall have the right to ask Guarantors to fulfill obligations or employ applicable legal actions against Guarantors, Guarantors’ property or property rights in accordance with Article 7.9 and Article 7.10, provided that:

 

9.4.1 Any debt under the Master Contract is matured without full imbursement.

 

9.4.2 Creditor is not paid at the date (1) required by laws and regulations, (2) agreed under the Master Contract, or (3) Debtor and Creditor agree to an early maturity of debt;

 

9.4.3 Guarantors (1) incur significant economic loss, asset damages or assets damages due to guarantees, or other financial crisis, and (2) fail to provide guarantees, or provide unsatisfied guarantees.

 

9.4.4 Guarantors’ normal business course is distracted, due to (1) a significant operational or financial crisis incurring to Guarantors’ holding shareholders or affiliated companies, or (2) a material related-party transaction executed among Guarantors, Guarantors’ holding shareholders and affiliated companies; and Guarantors fails to provide guarantees, or provides unsatisfied guarantees.

 

9.4.5 There is adverse trend in Guarantors’ industry; and Guarantors fails to provide guarantees, or provides unsatisfied guarantees.

 

9.4.6 Guarantors’ senior managers are involved in corruptions, bribery, embezzlement or other illicit operational activities; and Guarantors fails to provide guarantees, or provides unsatisfied guarantees.

 

9.4.7 Guarantors violate the debt agreements entered with other Creditors; and Guarantors fails to provide guarantees, or provides unsatisfied guarantees.

 

9.4.8 Guarantors experiences shut-off, stoppage, delinquency, solvency, or delinquency of business license.

 

9.4.9 Guarantors violate Article 7.8 and fail to fulfill all the obligations under the Contract or the action plan in this regard fails to satisfy Creditor.

 

9.4.10 Guarantors incur any events that may threaten/hamper or possibly threaten/hamper Creditor’s rights and interest.

 

Article 10 Accumulation of Creditor’s Rights

 

Creditor’s rights and interest under the Contract shall be accumulated, free from relevance of any rights required by laws or contracts. Unless specified in Creditor’s written statement, Creditor’s any delayed execution, partial execution and non-execution of any rights shall neither constitute any waiver of all/partial rights, nor impact Creditor’s continued execution of such rights or other rights.

 

  

  

  

 

Article 11 Continuity of Obligation

 

Any obligations and joint liabilities under the Contract shall bear continuity, which legally binds Debtor’s successors, receivers, transferee and entities after Debtor’s M&A, reorganization or name change, free from any disputes, claims, prosecutions, superior’s orders, or any contracts or files signed between Principal Claim Contract Debtor and any other persons. Such obligations shall not be altered due to Debtor’s solvency, delinquency, disqualification, amended Article of Associations or other changes of any nature or of any kind.

 

Article 12 Other Agreed Items

 

None

 

Article 13 Governing Law

 

13.1 The Contract shall be governed by laws of Peoples’ Republic of China.

 

Article 14 Disputes

 

14.1 In case of any disputes arising from or related to the Contract, parties hereto shall settle the disputes on a friendly basis; otherwise either party may file a legal suit to the people’s court where Creditor is located.

 

Article 15 Force of the Contract

 

15.1 The Contract is independent from the Master Contract. For any reasons the Master Contract becomes null, the Contract shall remain in full force. Guarantors’ joint liabilities under the Contract shall cover Debtor’s contractual obligations upon the invalid Master Contract.

 

15.2 If a certain paragraph or content of a certain paragraph herein is deemed as ineffective by now or in the future, such paragraph or content shall not affect the legal power of Contract, other paragraphs or other content of such paragraph.

 

Article 16 Effect, Change and Termination

 

16.1 The Contract enters into full force upon signatures and seals attached by Guarantors’ legal representatives or authorized agents, and Creditor’s legal representatives, incumbent or authorized agents.

 

16.2 Unless otherwise specified herein, parties hereto shall not alter or revoke the Contract at its discretion, upon the Contract entering into force. For any changes or terminations, parties hereto shall agree and form a written supplement.

 

Article 17 Miscellaneous

 

17.1 For any unsettled matters hereunder, parties hereto may make supplemental agreements as attachment of the Contract. Any attachment, amendment, supplements to the Contract shall constitute each and any inseparable part of the Contract, each with equivalent legal force.

 

17.2 Any notices, requirements or other correspondences issued by Creditor to Debtor, including but not limited to telegraph, telex and facsimile, shall be deemed to be served to Debtor as soon as such notices, requirements or other correspondences are issued. The abovementioned correspondence in certified mail form shall be deemed to be served to Debtor at the third day upon such mailing day.

 

17.3 The Contract is made and executed in quadruplets, one for Guarantors and three for Creditor.

 

  

  

  

 

17.4 Creditor has employed reasonable measures to (1) request Debtor to notice, and (2) make full explanation to any terms and provisions in connection with exemption or limited obligations. Both parties hold no dissent on understanding of all the terms and provisions hereunder.

	
Debtor: (Seal)

	
Creditor: (Seal)

	  	  
	
Legal Representative: /s/ Zheng Chuantao

	
Legal Representative: /s/ Yu Wenbo

	
                                    /s/ Sun LihuaExhibit 10.26

 

No.ED750009000515

 

Financing limit agreement

 

(Large and medium enterprise)

 

Client (party A): Dalian TOFA New Materials Development Co., Ltd.

 

Address: South area, Lingang Industrial Area of Dalian Economic and Technology Development Zone, Dalian

 

Legal representative:  Zheng Chuan-tao

 

Financing bank (party B): Shanghai Pudong Development Co.,Ltd, Dalian Branch

 

Address: Dalian Zhongshan District Zhongshan square, #3

 

Legal representative: Wang Xinhao

 

In view of the fact that party B applied comprehensive credit limit (hereinafter referred to as “credit line”).This agreement is approved by the two sides based on the constitution of People’s Republic of China, in the spirit of equality, voluntaries and the principle of good faith.

 

Article 1. Credit limit

 

Credit limit means the ceiling value of sheet credit business (hereinafter referred to as sheet credit business) and bank acceptance like short term loans, packing loans, import and export documentary credit, ticket discount business , off sheet credit business contract  import letter of credit, letter of guarantee that Party B provide to party A.

 

The credit limit party B provides to party A is RMB (Capital letter) 20 million.  The exposing credit is RMB 20 million after the conduction of margin.

 

The credit limit upon includes other equivalent currencies. The exchange rate can be calculated by the exchange rate published by party B based on the actual practice.

 

The sheet credit limit and off sheet credit limit mentioned upon can be changed to each other, but The balance of credit business an not exceed the exposing credit limit at any time.

 

Article 2. Credit period

 

Credit period is 1 year, namely from September 1, 2009 to September 1, 2010. During the period party A should apply for service application .Party B don’t accept any cases party A proposed out of credit period.

 

Article 3. Use of credit line

 

During the credit period, party A can circulate to use the credit limit, but he should apply for it one after one. And party B should approve one by one. The two parties should sign packing loans agreement, import and export documentary credit agreement, ticket discount business contract, Bank acceptance agreement, imports of the issuing protocol, credit business contract (hereinafter referred to as “the specific contract”)

 

  

 

  

Article 4. Intrerst and fees

 

The interest of sheet credit business costs of off sheet credit business within the credit line, should based on the specific provisions of the contract.

 

Article 5. Warranty

 

5.1 All the debt owed by party B to party A under this agreement should be pay back by   Chuan Tao Zheng  (sponsor), as the party who bear joint and several responsibilities, this company should provide << Maximum Guarantee Contract>>

 

5.2 All the debt owed by party B to party A under this agreement should be pay back by Dalian TOFA New Material Development Co., Ltd    (mortgager/plegor) with the collateral like real estate, lands, facilities that he owed. The two parties should also sign <<Maximum Real Estate Mortgage Contract >> and <<Maximum Mortgage Contract of Movables>>

 

Article 6 Rights and responsibilities of party A

 

6.1 Party A have the right to use the credit limit under this contract

 

6.2 Party A have the authority to require Party B to keep the manufacture, operation and property confidentially.

 

6.3 party A should provide the wanted documents, opening bank, account ant the balance conditions of deposits and loans required by party B.

 

6.4 Party A should accept the supervision of Party on the relevant financing practice that may affect debts.

 

6.5 Party A should use the specific sheet credit business and off sheet credit business under the contract.

 

6.6 Party A should pay the debt back of sheet credit business and off sheet credit business or other promises under the contract.

 

6.7 Party A should notice party B immediately after these events occur and make sure the relevant fees can be paid back successfully with party B:

 

1. Significant financial loss, losses of assets and other financial crisis

 

2. Providing guarantee to the third party who lead to the adverse effects on the mortgage’s finance and the mortgage’s capacity to carry out obligations.

 

3. Emerges, discretion, reorganizations, jointing of other ventures, proper / stock transfer, joint –stock reform.

 

Closure of the company or apply for bankruptcy or the like situation occur

 

5. Big crisis hit the shareholder or the other relevant operations which lead to unhealthy operation.

 

6. Significant business practices with other companies that affect normal operation.

 

  

 

  

7. Any lawsuit (seal, detention, freeze or the like), arbitration, criminal penalties that may affect the production or finance.

 

8. Other significant events that may affect the paying ability.

 

Article 7. Rights and responsibilities of party B

 

7.1 Have the authority to ask party A to pay back the principle and interest under the agreement.

 

7.2 Have the authority to ask party A to provide the relevant materials that is connected to the use of credit limit.

 

7.3 Have the authority to find out the operation and finance practice of party A.

 

7.4    Have the Authority to supervise party A to use sheet credit business and off shit credit business under the agreement the specific contract.

 

7.5    Have the authority to deduct the due principle and interests under sheet credit business and off sheet credit from the account of party A.

 

7.6    If party A doesn’t comply with part or several responsibilities of the agreements, party B has the authority to postpone to providing the unused service to it.

 

7.7    When accidents like clause 6.8 happen, party B has the authority to ask party A to pay back the principle and interests and other relevant fees in and off sheet.

 

7.8    Providing loans and other credit according to the agreement and the promised conditions under the contract.

 

7.9    Keeping manufacture, operation and property confidential. Except those provided by law.

 

Article 8 party A provide the following specific promises

 

8.1 Party A is an enterprise that is legally exists bases on Chinese law or objects that enjoy the qualification of being cooperation and enjoy full civil penalty right to sign and comply with the contract.

 

8.2 It has been authorized to sign the contract by the board of shareholders.

 

8.3 The sponsor, mortgagor, documents, materials, and other evidence are real exact complete and effective provided by party A.

 

8.4 Lawsuit, arbitration criminal penalties and the like don’t happen when the agreement is signed. Other it should be noticed to party B.

 

8.5 comply with national laws and regulations. Run the business under 《business license》 and, finish registering annual inspection procedures.

 

8.6 maintain and improve the existing management level and to make sure the increasing of the value of property.

  

 

  

8.7 No big accident that may influence party B’s capacity to comply with the agreement when it is signed.

 

Article 9. Other fees

 

Fees cause by the credit investigation, inspection and the debt party A doesn’t pay back in time are paid by party A. Also, the fees of employing lawyer, issuing, insurance, transports are beard by party A.

 

Article 10 Defaults and solutions

 

10.2 Any of the following occurs to party A is viewed as defaults:

 

1. Violate to clause 6.3, provide fake information or hide important facts. Don’t cooperate with the investigation of party B.

 

2. Violate to clause 6.4, don’t accept or escape the supervision of party B on finance and operation practice.

 

3. Violate to 6.5, don’t use the sheet and off sheet credit as is ruled to.

 

4. Violate to clause 6.6, don’t pay principle and interest in time

 

5. Violate to clause 6.7, don’t notice party when accidents listed happen.

 

6. Violate to clause 8.1, 8.2, and 8.3 which cause great losses to party B. Or violate clause 8.3, 8.5, 8.6.8.7. Or don’t require correction when faults occur.

 

7. Other accidents happens that may effect the legal rights of part A’s

 

10.4 When accidents listed in clauses 10.1, 10.2, and 10.3 happen, party B enjoy the right to take the following actions. Part A should have no right to challenge it.

 

1. Stop providing the unused sheet credit within the credit limit

 

2. Countermand the principle and interest and relevant fees before the due day.

 

3. To the bill of exchanges that have been accepted or the opening credit letter, guarantee, no matter whether party B have paid the advances, party B can require party A to add additional guarantee.

 

4. Deduct the deposits from party A’s settlement account or from other accounts in order to pay the debt party A owed under the agreement.

 

5. Excusing recourse based on clause 13

 

Article 11 Exchanges and removes

 

This agreement can be changed or get removed by the consensus of the two parties. Before the paper work come out, this agreement is still effective. Any of the two parties have no rights to change the agreement by one side.

  

 

  

Article 12 Others

 

12.1 During the period this agreement come into effect, when party is tolerant with the defaults of the other party, all the rights and benefits of party A cannot be suffered.

 

12.2 Part A should pay foe all the debt owed to party B under the contract no matter it is ineffective in part or whole. Otherwise, party B can terminate the agreement and require party B to pay for the debt immediately.

 

12.3 Party B should provide the relevant paper work of notice, requirements to party A. Any telex and telegraph sent by party A means it has arrived . The postal letters are viewed as arrival when it is posted.

 

12.4 After discussion of the two parties, a supplemental agreement should come out to deal with the unsettled. This supplemental agreement and the contract under is should be attached, becoming the integral part of this agreement.

 

12.5 Other promised articles

 

Article 13 Laws and solutions to disputes

 

13.1 The set, explanations, solutions to disputes are based on constitution of PRC. The right od party A and B are protected by PRC.

 

13.2 Disputes occurred which are not solved during the practice of the agreement can get settled by issuing it to the people’s court of party A’s side. After the agreement and the specific contract are notarized with enforced right by the two parties, party B can recourse the unpaid debt by applying for enforcement to the local court.

 

Article 14 .Protocol validation

 

This agreement should be signed or sealed by the one in power from both parties. After complete the guarantee procedure required as article 5 it comes into effect. It cease to be in force automatically when party A paid back all the debt and the relevant fees.

 

Article 15. The agreement is prepare in duplicate. Each of the two parties holds one.

 

After signing the agreement, both of the two parties have no doubts of relevant rights, responsibilities.

 

The unpaid practice of financing credit limit Code number ED75082008282195 should be restricted by this agreement, it engrosses the credit limit of the contract.

 

Party A (Seal) Dalian TOFA New Material Development Co. Ltd

Legal representatives or authorized representatives (signature and seal): /s/ Chuan Tao Zheng

 

Party B (seal) Shanghai Pudong Development Co.,Ltd, Dalian Branch

Legal representatives or authorized representatives (signature and seal): /s/ Xin Hao Wang

 

Date: August 14, 2009

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]