Document:

posama3ex10lxix_keyuan.htm

Exhibit 10.69

 

Preface

 

In order to maintain you/your company’s legal right, please read carefully following content and confirm related issues before signing:

 

	
1.  

	
All application materials you/your company providing shall be authentic, complete, legal and validity, neither including fault record false records, misunderstand statements and material omission.

 

	
2.  

	
You/your company have read all clauses in the contract carefully, especially the font bold part and completely understood the meaning and legal effect.

 

	
3.  

	
Before signing, you /your company have the right to put forward amendment of the contract. You/your company must execute rights and fulfill obligation according to the contract.

 

	
4.  

	
In order to protect you/your company’s interest, please inform the Bank within 10 days with written form when you/your company’s domicile, mailing address, contact telephone and business scope, legal representative changed.

 

	
5.  

	
Please consult to the Bank when you/your company have questions on the contract and related issues.

 

  

  

  

 

Maximum Guarantee Contract

 

Contract No. SDBNB Maximum Guarantee No.2621202022

 

Party A (Loaner of the main contract ):ShenZhen Development Bank NingBo Haishu Branch

 

Address: No.188 Jiefang South Road ,Haishu Zone, Ningbo

 

	Tel: 83863269	Fax: 83863267
	 	 
	Principal: Zhixiong Huang	
Title: President of the Bank

 

Part B( Guarantor): Ningbo Litong Petrochemical Co., Ltd

 

	Certificate Type :	
Certificate No.

 

Address: No. 239 Daqi Shiqiu village ,Beilun Zone

 

	Tel: 86232717	Fax: 86152818
	 	 
	Legal representative: Hongjiao Chen	Title: Director

 

In order to guarantee execution of the contract (“Main Contract”) between Party A and Ningbo Keyuan Plastics Co., Ltd.(“Loanee”), Party B is willing to be the guarantor of the loanee of the main contract to provide suretyship of joint and several liability to Party B. Through the consensus of Party A and Party B, they sign the contract.

 

Article1 Scope of Guaranty

 

Scope of guaranty in the contract is (Chosen with “ √ ”):

 

x SDB ___No. ___of ___ the contract ,the loanee shall bear the entire debt (include contingent liabilities ) principal, interest, compound interest and default interest and the fees for realization of claims. The Maximum amounts (balance) of the debt principal are ___currency (Capitalization) ___.

 

  

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√ Under SDB NB No. 2621202022   of General Credit limit contract, the loanee shall undertake the entire debt (include contingent liabilities) principal RMB currency (Capitalization) 50Million  among RMB currency (Capitalization)  200Million , and corresponding, interest, compound interest and default interest and the fees for realization of claims. Party A has the right to request should joint and several liability in the scope of guaranty for the debt balance if the debt wasn’t paid completely under the main contract.

 

	
x

	
Loanee fulfill the debt under the whole main contract which signed from  year   month date to  year month date with Party A. Signing Date should be within above period while Execution Date is not limited in above period. Scope of guaranty of Party B includes loanee’s the entire debt (include contingent liabilities ) principal, interest, compound interest and defaut interest and the fees for realization of claims under the main contract .The maximum balance of above debt principal is ___ Currency(Capitalization) 

 

	
x

	
Under SDB ____ No. ___ of ____contract, the entire unpaid debt principal of loanee is ___Currency(Capitalization) ___ and related interest, compound interest and defaut interest and the fees for realization of claims .

 

Interest, compound interest and default interest can be calculated according to the agreement of the main contract, through the date the debt is paid off. The fees of realization of claims include but not limited to announcement fees, delivery fees, appraisal fees, counsel fees, court fees, travel fees, valuation fees, auction fees, property preservation fees, enforcement fees ,etc.

 

Exchange rate of currency excluding RMB to convert based on Party A’ s outstanding exchange rate quotation when happening the specific business.

 

Article2 Guaranty Period

 

Guaranty Period in the contract is (Chosen with “ √ ”):

 

√ Additional 2 years since effective date of the contract to expiry date of execution of any debts in main contract .Guaranty period shall be calculated separately of each specific credit line and if occurs any specific credit extension, guaranty period should extent to additional 2 years since credit extension.

 

  

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Party A has the right to transfer the claims to the third party by the laws during guaranty period, Party B hereby agreed to continued to bear guaranty liability within the original scope.

 

Article 3 Loanee transferred the credit line Party A granted to the third party, Party B hereby agreed to shoulder guaranty liability in accordance of the contract for the transferred credit line ,the transferee of credit line and amounts are :

 

 

Article 5 The contract is in triplicate, one for Party A, one for Party B, loanee respectively, each one has equal legal effect.

 

Article 5 Enforcement Notarization

 

x Both parties agree to make enforcement notarization for the contract .

 

The contract, after both parties handling enforcement notarization, on the condition of Party B doesn’t fulfill or incompletely fulfill obligation according to the contract ,Party A has the right to apply execution certificate from original notary organs and submit to the jurisdictional people’s court(the people’s court which located in the domicile of person subject to enforcement or the place of his property) based on original notarial deed and execution certificate to apply for execution.

 

√ The contract would never be made enforcement notarization.

 

  

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Article 7 Guarantee Liability

 

Party B shall undertake the joint liability for the entire debt ((include contingent liabilities) principal, interest, compound interest and default interest and the fees for realization of claims. When loanee failed to fulfill payment obligation on the due date (including contract expiration and expiration in advance) or other breach matters under the main contract, Party A could request payment both from loanee and Party B. Party B hereby agrees irrevocably granted Party A that Party A could deduct the due claims amount from the Party B’s bank account when loanee failed to fulfill payment obligation on the due date (including contract expiration and expiration in advance).

 

Whether loanee or the third party offers property security (pledge/mortgage), Party A has the right to request Party B to undertake liability, and needless to handle collateral in advance.

 

Article 8   Guaranty hereby is independent and won’t affect by guarantee which other guarantors offered.

 

Article 9 Guaranty hereby is irrecoverable, won’t affect by any agreement or file signed between loanee and any entities, won’t change due to various conditions of the loanee, including bankrupt, unable to pay off, losing business qualification ,rearrangement of article of association and so on.

 

Article 10 Events and Liability of Default

 

	
1.  

	
Events of Default

 

If had occurred any one of following events, it deemed to be events of Default:

 

	
1)  

	
Party B default any obligation under the contract ,or Party B explicitly states or shows with his behaviors that he won’t fulfill any obligation under the contract;

 

 

	
2)  

	
Party B offers related certification and documents or any statement, guaranty and promise to Party A which are unauthentic ,inaccurate , incomplete or refer to false records, misunderstanding statements or material omission;

 

	
3)  

	
Party B conceals the real important condition, doesn’t cooperate to investigation, review and examination;

 

	
4)  

	
Party B lazily manages and searches the due claims, or transfers his property or other evading debts actions ,such as handling his principal property for free, unreasonable low price and other inappropriate methods;

 

  

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5)  

	
Party B defaults the other similar contracts (including not limiting credit contract, loan contract, guarantee contract) with Party A or other third parties, or issues debt securities, or enters into suit or arbitration due to argument of the kinds of contracts or securities.

 

	
6)  

	
Guaranty is invalid or waived.

 

	
7)  

	
Main contract debt is due or acceleration of maturity, debt of Party A is completely or partly being unpaid.

 

	
8)  

	
Party A is intent to evade and reject bank claims via related transactions or other methods;

 

	
9)  

	
If Party B is an entity:

 

	
a)  

	
Party B has material weakness on operation condition, worsens seriously on financial situation ,occurs material lose on finance, reduces assets (includes but not limits losing assets incurred by guaranty), or other financial risks;

 

	
b)  

	
Party B suffers administrative penalty, penal sanction or investigations or has potential to suffer administrative penalty and penal sanction due to illegal behaviors in operation;

 

	
c)  

	
Party B occurs following conditions: division, merger, acquisition and rearrangement, major assets disposal, assets reduction, liquidation, reconstruction, waiver, bankrupt, close-down, etc.

 

  

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d)  

	
Party B’s controlling shareholders or actual controllers changed and Party A considered it has endangered or may endanger the claims realization under the main contract or/and the contract; or Party B’s controlling shareholders, actual controllers, legal representative, officers changed, includes but not limited suffering administrative penalty and penal sanction or being investigated and have potential to suffer suffering administrative penalty and penal sanction, proceeding or arbitration, weakness of financial condition, bankrupt or waiver and so on due to illegal behaviors in operation.

 

	
e)  

	
The industry of Party B changed adversely and Party A considered it has endangered or may endanger the claims realization under the main contract or/and the contract.

 

	
10)  

	
If Party B is an individual:

 

	
a)  

	
Party B dropped into any one following changes: disability, unemployment, relocation, job changes ,business changes, etc. , and Party A considered it has affected or may affected his guaranty liability fulfillment .

 

	
b)  

	
By the laws, Party B was investigated for criminal responsibility or other enforcement measures or was limited certain right by appropriate body, and Party A considered it has affected or may affected his guaranty liability fulfillment .

 

	
c)  

	
Party B 's heirs or legatee waives inheritance, legacy or accepts inheritance, legacy but refuses to continue to bear guaranty liability.

 

	
11)  

	
Other related conditions which make Party A to consider has affected or may affected Party B guaranty liability fulfillment.

 

	
2.  

	
Liability of Default

 

When happened events listing above item 1, Party A has the right to take any one or some below measures:

 

	
1)  

	
Request Party B to bear guaranty liability and has the right to deduct from Party B’s bank account the entire debts under the main contract (include contingent liabilities ) principal, interest, compound interest and default interest and the fees, including but not limited fees related to credit information, test and notarization and so on ,and fees for realization of claims including legal fees, costs, arbitration fees, travel fees, notice fees, delivery fees, execution fees and so on .

 

  

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2)  

	
Request Party B to offer new guaranty under the main contract according to Party A’s requirement, including but not limited offering mortgage and pledge.

 

	
3)  

	
Request Party B to pay all lose of Party A.

 

	
4)  

	
Request Party B’s loanee to bear subrogation by the laws, Party B needs to provide all necessary cooperation and support according to Party A’s requirement, and pays related fees.

 

	
5)  

	
Request the People’s court to revoke Party B’s behaviors regarding waives due claims or transfer property for free or with unreasonable low price, Party B needs to provide all necessary cooperation and support according to Party A’s requirement, and pays related fees.

 

	
6)  

	
Party A has the right to propose the other remedy measures by the laws and regulations.

 

Article 11 If the main contract or the special business under the main contract becomes complete invalid or part invalid by the laws due to any reasons, Party B still has the right to request loanee to pay back agreed credit principals and interest and other related costs submitting to appropriate laws. In above condition, the contract’s effective wasn’t being affected, and Party B still burdens guaranty liability for the main contract loanee’s payment liability according to the contract.

 

Article 12 Party B’s Representations, Warranties, and Covenants

 

	
1.  

	
Party B has legal power, right and authorized signature, delivery and fulfillment of the contract. The contract forms effective and binding force agreement to Party B, and impose Party B to execute according to the contract.

 

  

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2.  

	
When Party B is a corporate, it must be a corporate which established legally in jurisdictions, adapted effectively, had good reputation and had the entire corporate right and the government permission and approval for his current business.

 

	
3.  

	
Party B promises that the various application documents are authentic, legal, valid without any false records, misunderstanding statements or material omission.

 

	
4.  

	
Party B hereby promises that he will completely fulfill the entire obligation with friendly method under the contract and will never take any actions (including he should performance but not do , or should nonperformance but do) to endanger the claims realization under the contract without obtaining Party A’s written consent in advance.

 

	
5.  

	
Party B hereby promises that he will inform Party A within 10 days with written consent if domicile, mailing address, contract telephone and employment status ( or business scope, legal representative) ,etc. changed. On the condition that Party B failed to fulfill above notice obligation, it seemed as being delivery to Party B if Party A mailed related notice, documents with original mailing address.

 

	
6.  

	
Party B hereby confirms that he has read, completely learned and understood the whole clauses in the contract, signs the contract to show the real representation.

 

Article 13 Amendment

 

	
1.  

	
With two parties consensus, the contract can be amended or removed with written forms.

 

	
2.  

	
When the main contract amended, Party A shall inform Party B timely, Party B agrees and continues to bear guaranty liability jointly and severally. However, when the amendment reduced loanee’s debts status ( including but not limited reduction of debt amounts , shortening of debt priod under the main contracts), Party B shall be considered to agree, therefore, there needles to inform Party B again, and Party B  continues to bear guaranty liability jointly and severally to the amendment.

 

  

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Article 14 When in the period of continued existing, Party A fulfills the right with tolerant, grace or postponing attitude under the contract for any default or postponing of Party B, and would never reduce, affect or limit Party A’s all right according to the contract and appropriate laws and regulations , which couldn’t be considered permission or approval for any break behaviors , nor the Party A waives the right to take actions for Party B’s current or future nonperformance.

 

Article 15 Appropriate Laws and Settlement of Dispute

 

	
1.  

	
The contract is constructed and interpreted by the laws of the People’s Republic of China.

 

	
2.  

	
The dispute of the contract is settled by the agreement of the main contracts.

 

Article 16 The contract becomes effective after two parties’ signatures ( If the party is nature person ,the contract shall be signed by the party , if the party is corporate or other organization , the contract shall be signed by authorized person or sealed and common seal).

 

  

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Party A: ShenZhen Development Bank NingBo Haishu Branch (Stamp)

 

Principal or Entrusted Agent:   

 

February 18, 2012

 

 

 

Party B(Corporate) common seal: Ningbo Litong Petrochemical Co., Ltd(Stamp)

 

Legal Representative or Entrusted Agents: 

 

February 18, 2012

 

 

 

Party B ( Individual ) in person

 

Entrusted Agents

 

       Year       Month       Date

 

 

11posama3ex10lxxa_keyuan.htm

Exhibit 10.70

 

MAXIMUM GUARANTEE CONTRACT

 

(Applicable for Companies’ Guarantee)

 

Bank of Shanghai

 

  

  

  

MAXIMUM GUARANTEE CONTRACT

(Applicable to Guarantee Provided by Units)

Contract No.: ZDB 301100528

Guarantor: Ningbo.Litong Petrochemicals Co., Ltd.

Registration Location:                   Postcode:

Principal business place:              Postcode:

Tel: 86152818                                                Fax:

Opening bank for basic bank accounts:       Account No.:

Legal representative (responsible person):

Agent:                                                                   Tel:

Person for contact:                                              Tel

Email:                                                                 Website:

Loaner: Bank of Shanghai Ningbo Branch

Principal business place: No.1, Zhaohui Road, Jiangdong District, Ningbo

Postcode: 315040

Tel: 87979876                                                Fax: 87979875

Legal representative (responsible person):

Agent:                                                                    Tel:

Person for contact:                                               Tel:

Email:                                                                 Website:

 

 

  

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In order to clarify the rights and obligations of both parties, according to the Property Law of the People’s Republic of China, the Guarantee Law of the People’s Republic of China and other laws, regulations and financial regulations, the loaner and the guarantor make this contract for common abidance.

(Caption: The in the contract indicate choice, the chosen one is indicated by √, the without chosen one is indicated by × .)

Article 1. The Principal Claims

The principal claims guaranteed in the contract is the debt principal (including loan principal, discount and money in advance) which happen due to a series of activities (one or the combination of many) listed during the claims period agreed in Item 2 in the contract made between the loaner and the loanee Ningbo Keyuan Plastics Co. Ltd., including comprehensive credit, loans, project financing, trade financing, discounting, overdrafts, factoring, v. letter and repurchase, loan commitments, guarantees, letters of credit, bill acceptance, and other services under the specific contract (hereinafter called "the main contract").

Article 2. Claims Period

The claims period is from November 29, 2011 to November 29, 2012.

Article 3. Limit of Maximum Principal Claims Guaranteed

The maximum principal claims guaranteed in the contract are limited to:

√(Currency ) RMB (Amount written in capitalization) 30million

×(Currency) ____ (Amount written in capitalization) ____

×(Currency)           (Amount written in capitalization) ____

 

Principal claims balance = Accumulated principal claims amount happened-

Accumulated principal claims amount paid

Article 4. Period for The Loanee to Pay the Debt

Period for The Loanee to Pay the Debt is the repayment limit agreed by the main contract under Term 1 of the contract.

 

  

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Article 5. Guarantee Method

The guarantor guarantees the guaranteed claims to the loaner by shouldering joint liability.

Article 6. Scope of Guaranty

6.1 Scope of guaranty includes: debt principal, interest, default interest, penalty, compensation; all the bank fees concerning principal claims (including not limited to issuing fees, fees charged for amending letters of credit, fees for lading endorsement, acceptance fees, risk fees, registration fees, notary fees and insurance fees); claims realization fees (including not limited to collection fees, court costs, security fees, implementation fees, attorney fees, collateral disposal fees, advertising fees, auction fees, transfer fees, travel expenses) and other damage on the loaner caused by the loanee (the above claims are collectively referred to as “secured claims”).

6.2 If the scope of guaranty goes beyond the limit of maximum principal claims specified in Item 3 in the contract, the guarantor should also shoulder the guarantee obligation.

6.3 If it has been agreed in the main contract that the loanee should pay deposit, but the loanee does not pay or pay in less amount, the guarantor is obliged to pay instead.

Article 7. Guarantee Period

7.1 The guarantor’s obligation period is 2 years from the fulfillment expiry date of each debt in the main contract. If the debt in the main contract is divided into several parts (such as installment), and each part’s fulfillment period is different, the guarantee period is 2 years from the fulfillment expiry date of the last principal debt. If the loaner withdraw claims in advance because of the loanee’s default, the guarantor should shoulder the guarantee obligation in advance.

7.1.1 The principal debt’s fulfillment expiry date for loans, project financing, discounting, over draft and lending is the payment due date agreed in the main contract.

7.1.2 The principal debt’s fulfillment expiry date for letter of credit and bank guarantee is the payment date regulated in the payment note offered by the loaner.

7.1.3 The principal debt’s fulfillment expiry date for import and export letters of credit, export collection financing, export invoice discounting and packing loan is the financing due date agreed in the main contract.

7.1.4 If the loaner and the loanee consult to extend the debt, the principal debt’s fulfillment expiry date is the extended due date; if the loaner declares early due date, the fulfillment expiry date is the declared early due date.

 

  

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7.2 The period for the guarantor to pay the margin and pay the added margin to shoulder the guarantee obligation to the loanee is 2 years since the date the loaner requires the loanee to pay; if the loaner requires the payment separately, the period is 2 year from each date of the separate payment and added payment required.

7.3 If the loaner does not get the pay off when the fulfillment period for part or all the claims has been due, the loaner has the right to require the guarantor to shoulder the guarantee obligation.

Article 8. Debt Settlement Order

Unless otherwise agreed, the below orders are abided when the guarantor’s any payment for fulfilling the guarantee obligation to the loaner happens: (1) pay the payable fees and taxes of the loanee under the main contract; (2) damages; (3) liquidated damages; (4) overdue interest and penalty interest under the main contract; (5) interest under the main contract; (6) the principal and other payment under the main contract.

Article 9. Declaration and Commitment

9.1 Guarantor’s declaration:

9.1.1 Guarantor is a legally established and validly existing independent civil subject, has all the essential civil rights and civil capacity required, and is able to sign the contract in its own name and perform the civil liability of the contract.

9.1.2 The guarantor’s signing the contract and fulfilling the obligation of the contract is totally out of true intention, and in accordance with company’s regulation; the signature personal representative of the guarantor has got all the essential legal authorization and violates no regulation and laws.

9.1.3 The fulfillment and enforcement of the contract will not conflict any laws and regulations that the guarantor must abide, neither will it violate any paper that the guarantor has signed.

9.1.4 The guarantor does not hide any events involved that may endanger the loaner’s interests such as regulation, arbitration, litigation, enforcement, claims event and others. Any of the guarantor’s property is under the situation of attachment, seizure, freezing, and other enforcement measures.

9.1.5 All the data and certificating papers provided by the guarantor to the loaner are authentic, legal and effective.

 

  

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9.2 Guarantor’s commitment

9.2.1 The guarantor will accept and coordinate the loaner’s checking about security qualifications, privileges, credit status and the truth nature of the consent to provide writing papers for guarantee.

9.2.2 The guarantor has known that the scope of guarantee obligation may exceed the maximum of the claims.

9.2.3 If there is any other property security under the claims, the loaner has the right to choose to exercise other property security or require the guarantor to shoulder guarantee obligation, and the guarantor gives up the defense right on other property security, security sequence, changes of guarantee objects and the fulfillment order of the guarantee obligation.

9.2.4 The guarantor will timely provide according to the loaners requirement financial accounting reports and financial statements, and all the financial accounting reports should be signed and sealed by the legal representative or person authorized.

9.2.5 Names and Account of all banks should be provided.

9.2.6 Within period of validity, if the following significant situations on the guarantor’s side happen such as changes in management mechanism, changes in registered capital, changes in ownership, bankruptcy, dissolution, liquidation, revocation of business licenses and etc., the guarantor must notify the loaner 30days in advance. If the guarantor changes address, name, legal representative and etc., the guarantor should notify the loaner within 3 days.

9.2.7 If any of the events listed below happens, the guarantor must immediately notify the loaner with written form:

9.2.7.1 The guarantor has been or will be involved in significantly negative events, such as litigation, arbitration, administrative or other judicial proceedings.

9.2.7.2 The guarantor receives any notice, order or instruction from any government agencies that have great negative influence on the fulfillment of the obligation of the contract.

9.2.7.3 The guarantor has learned other events that may have significantly negative influence on the fulfillment of the obligation of the contract.

  

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Article 10. The Realization of Guarantee Rights

10.1 If any of the situation below listed happens, the loaner has the right to send the guarantor written notices and require the guarantor to liquidate the guaranteed claims within 10 days after receiving the notices. The contents of the notices should include the total amount of the guaranteed claims and the details of each claim in the scope of the guaranteed claims (including amount, period and types etc.). The notices should have the same binding force to both parties unless there are obvious errors between the loaner’s corresponding calculation and the contents of the notices.

10.1.1 The loanee does not fulfill any debt in the main contract stated in Item 1 of this contract when the time is due.

10.1.2 The loaner requires the guarantor shoulder the guarantee obligation in advance when it happens that the loanee under the main contract defaults or the guarantor default in terms of this contract.

10.1.3 It happens that the loanee or the guarantor has the following situations that may influence the loaner’s claims realization: bankruptcy, dissolution, liquidation, revocation of business licenses, encounters of serious illness, accident, involvement in significant civil and criminal litigations, arbitration and etc.

10.1.4 The margin should be submitted (or submitted later) according to the contract, but the loanee does not fulfill the corresponding obligation, and the guarantor refuses to submit instead.

10.1.5 The guarantor violates the declaration and commitment or does not fulfill the other obligations of the contract.

10.1.6 Other situations that influencing the loaner to fulfill the claims realization.

Article 11. Rights and Obligations of Both Parties

11.1. Guarantor’s rights and obligations

11.1.1 The guarantor is obliged to pay to the loaner the guaranteed claims defined by the contract and clearly recorded in the written notices within 10 days after receiving as specified in Item 10.1.

11.1.2 The guarantee offered by the guarantor is independent, if there is a third party also providing guarantee for the loanee to fulfill the contract, the guarantor still should shoulder the whole guarantee obligation unless the loaner has agreed.

11.1.3 The guarantor’s rights and obligations in the contract are not able to be removed or influenced for the following situations:

  

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11.1.3.1 The loaner offers grace for loanee’s repayment or negotiates debt reconciliation with the loanee.

11.1.3.2 The loaner sets up, changes or remove any rights in loanee’s respect.

 

11.1.3.3 Other guarantees under the guaranteed claims have been changed, delayed in fulfillment, removed, and lose partially or wholly.

11.1.3.4 The loanee’s obligations in the contract are affected because of the loanee’s bankruptcy, liquidation, dissolution or other events due to any law, regulation or administrative order.

11.1.4 In case that the loaner and the loanee change the principal contact, if the guarantor’s obligations are not increased, the guarantor’s agreement about the change needs not to be drawn, and the joint guarantee obligations are not able to be relieved because of this.

11.1.5 Within the period of validity, the guarantor is not allowed to guarantee for the third party without the loaner’s permission.

11.2 Loaner’s rights and obligations

11.2.1 The loaner has the rights to require at any time the loanee to provide financial reports and financial statements or other data that reflect the guarantor’s business condition.

11.2.2 If the guarantor does not fulfill the guarantee obligations as agreed in the contract, the loaner has the rights to directly deduct the guarantor’s money in the accounts opened at the Bank of Shanghai, Inc (including any level of branches) in order to liquidate the claims guaranteed by the guarantor.

11.2.3 The guarantee in the contract is independent of any guarantee rights that the loaner obtains now or will obtain in future. The loaner is allowed to directly carry out the guarantee rights in the contract without carrying out other guarantee rights firstly.

11.2.4 Unless the loaner expresses to give up the rights in the contract in writing, the loaner’s not carrying out and delaying to carry out the whole or partial right, and the loaner’s agreement for the loanee to repay later are not able to be taken as giving up the rights.

Article 12. The Contract’s Effectiveness, Amendment and Termination

12.1 The contract takes effect after the signature or seal of the legal representatives (responsible person) and agents of both parties.

  

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12.2 After the contract has taken effect, any party can not amend or terminate the contract unauthorized. If amend or termination needed, the two parties shall negotiate an agreement and make a written contract.

Article 13. The Independency of The contract

13.1 The contract is independent of the main contract, the invalidation or the ceasing of the invalidation of the main contract does not affect the effectiveness of the contract. The guarantor shall shoulder the guarantee obligation of the civil obligation caused of the loanee to the loaner because of the invalidation of the whole contract or part of the contract.

13.2 The invalidation of part of the items in the contract does not affect the validation of other items; neither does it affect the loaner’s rights.

Article 14. Breach of the Contract

 

After the contract has taken effect, both parties should fulfill the obligations agreed in the contract, any party that does not fulfill or does not full fulfill should shoulder corresponding breach of the contract, and compensates the loss so caused to the other party.

Article 15. Applicable Law and Dispute Resolution

15.1 The contract is applicable to laws in China and is explainable accordingly.

15.2 If disputes appear in the fulfillment of the contract between the two parties, they can negotiate, as well as directly submit litigation to the people’s court in the loaner’s location.

15.3 If the contract has been enforced arbitration, when the debt fulfillment term ends, the loanee does not fulfill or does not fully fulfill the debt or the loaner realizes the claim in advance because the loanee has violates the contract, enforced implementation can be directly applied according to law.

Article 16. Force Majeure

If one party is not able to fulfill the obligation of the contract because of the force majeure, the party should notify the other party with written form within 10 days after the occurring date, and provides the written data issued by related agencies to certify the occurring of the force majeure.

  

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Article 17. Notice Form and Delivery

17.1 Notice about related subjects of the two parties should be in written form and delivered to the corresponding party according to the principal business addresses listed in the contract.

17.2 When notices are delivered according to the address above, delivery date is: for delivery on a special trip, the date the recipient signed; for telegram and fax, the time fax and telegram arrived at the corresponding party; for post, postmark date for registered letter.

Article 18. Pending Issues

The pending issues of the contract are implemented according to the related laws, regulations and financial regulations of the nation.

Article 19. Indication and Specification

19.1 When the contract is signed, the loaner has stated and explained the item in the contract in detail to the guarantor, there is no disagreement about the contract items between both parties, and both parties have a correct understanding on the legal significance of related rights, obligations, limits on responsibilities and the disclaimer.

19.2 The loaner’s rights and obligations in the contract are able to be enjoyed and fulfilled by the loaner of the contract, or by the upper agencies the loaner belongs to.

Article 20. Consultation Supplementary

 

Article 21. Contract Copies

The contract has 3 duplicates, the loaner holds one, the guarantor holds one, and the arbitration agency holds one. The number of the duplicates is decided by needs and has the same legal force with the original one.

 

 

	Loaner:  	Guarantor:
	 	 
	 	 
	(Seal)	(Seal)
	 	 
	 	 
	Legal representative (Principal)	Legal representative (Principal)
	GuiShen (Seal)	Liangcai Zhu (Seal)
	 	 
	 	 
	 	 
	 	 
	 	 Time: November 29, 2011
	 	 Place: No.1 Zhouhui Road Ningbo

 

 

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