Document:

Unassociated Document

    Exhibit
10.11

     

    
      
        
          	 
      	
                  Maximum
      Mortgage Contract

                	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  
                    

                  

                	
                      China
      Construction Bank Fujian Branch

                	 
      

        

        
        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This
Maximum Mortgage Contract (“Contract”) is entered into by
and between:

    

    Mortgagor
(“Party A”): please
refer to Article 14 hereof

    Mortgagee
(“Party B”): please
refer to Article 14 hereof

    

    
      	
              Article
      1

            	
              Collaterals

            

    

    
      	
               
      

            	
              I.

            	
              Party
      A will create mortgages on the properties listed in the Collaterals List
      as attached hereto.

            

    

    
      	
               
      

            	
              II.

            	
              After
      new ownership or other title certificates (certifications) are issued for
      the Collaterals, any discrepancy between the Collaterals List or other
      title (mortgage) certificates or mortgage certification documents accepted
      by Party B, and such new title certificates (certifications) or relevant
      records on the register of registration authority, shall not procure Party
      A to reject bearing the guarantee
liability.

            

    

    
      	
            	
              III.

            	
              Unless
      otherwise as agreed by the parties or provided in laws, any new additions
      on the Collaterals due to any accessories, mixing, processing and
      improvement shall be applied to guarantee Party B's claims as well, and
      Party A shall complete necessary mortgage registration at the request of
      Party B.

            

    

    
      	
            	
              IV.

            	
              If
      Party B's claims are adversely impacted because the values of the
      Collaterals have been or may be reduced, Party A shall provide new
      guarantees at the request of Party
B.

            

    

    

    
      	
              Article
      2

            	
              Guaranteed
      Scope and Maximum Claims

            

    

    
      	
               
      

            	
              I.

            	
              The
      Maximum Mortgage covers all the obligations under the principal contracts,
      including but not limited to all the principals, interests accruals
      (including compound interests and penalties), liquidated damages, damages,
      other payables to Party B by the debtor (including but not limited to
      relevant service fees, telecommunication fees and incidental expenses
      advanced by Party B, relevant banking service fees under L/C rejected by
      the beneficiary), the fees arising out of realization of claims and
      guarantees by Party B (including but not limited to court fees,
      arbitration fees, property preservation fees, travel expenses, enforcement
      fees, appraisal fees, auction fees, service fees, announcement fees,
      attorney's fees, etc.)

            

    

    
      	
               
      

            	
              II.

            	
              Please
      refer to Article 15 hereof.

            

    

    
      	
            	
              III.

            	
              Loans,
      advances, interest accruals, fees or Party B's other claims under the
      principal contracts shall be governed by the Maximum Mortgage hereunder,
      irrespective of whether their actual creation goes beyond the Period for
      Determining Claims (defined below). The due date of obligations under the
      principal contracts shall not be limited by expiry date of the Period for
      Determining Claims.

            

    

    

    
      	
              Article
      3

            	
              Registration
      of Collaterals

            

    

    The
parties hereto shall complete the mortgage registration with appropriate
registration department within five business days after this Contract is signed.
Party A shall submit to Party B the originals of other title certificates of
Collaterals, mortgage registration documents, and other title certificates
before the mortgage registration is completed.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              Article
      4

            	
              Modifications
      to Principal Contracts

            

    

    

    
      	
               
      

            	
              I.

            	
              Party
      A agrees that it is not required to inform it if Party B and the debtor
      sign principal contracts or make any modification to the same (including
      but not limited to extension of performance of obligations or additions to
      the principals). And Party A shall still bear the guarantee liability
      under the Maximum Mortgage and the guaranteed scope hereunder as
      before.

            

    

    
      	
               
      

            	
              II.

            	
              Replacement
      of Parties

            

    

    Party A's
guarantee liability hereunder shall not be reduced or released under any of the
following circumstances:

    
      	
               
      

            	
              (I)

            	
              Party
      B or the debtor conducts restructuring, consolidation, merger and/or
      division, or increases or reduces capitals, or conducts joint venture,
      joint operation, or changes its
name;

            

    

    
      	
               
      

            	
              (II)

            	
              Party
      B entrusts a third party to perform its obligations under the principal
      contracts.

            

    

    
      	
            	
              III.

            	
              If
      the claims under the principal contracts are transferred to a third party,
      the guarantees hereunder shall be transferred as well. In such case, Party
      A shall assist Party B and such a third party to complete the changes in
      mortgage registration as required by
laws.

            

    

    
      	
            	
              IV.

            	
              Party
      A shall still bear joint and several liability to Party B pursuant to this
      Contract if any transfer of claims or obligations under principal
      contracts fails to come into effect, becomes null and void, or is canceled
      or rescinded.

            

    

    

    
      	
              Article
      5

            	
              Possession
      and Custody of Collaterals

            

    

    

    
      	
               
      

            	
              I.

            	
              Party
      A shall possess, keep, repair and maintain the Collaterals in a proper
      manner, reasonably use the same and keep the same in good conditions;
      meanwhile, it shall pay for all applicable taxes in relation to the
      Collaterals. Party B shall be entitled to inspect the Collaterals, and to
      request Party A to submit the originals of title certificates of
      Collaterals to Party B for keeping.

            

    

    
      	
               
      

            	
              II.

            	
              If
      Party A entrusts a third party to possess, keep and use the Collaterals,
      or agrees on doing so by a third party, it shall inform such third party
      of the mortgages on such Collaterals in favor of Party B, and request such
      third party to keep the Collaterals in good conditions, to allow Party B
      to inspect the Collaterals, and not to prevent Party B from realizing the
      mortgages. Meanwhile, Party A shall not be released from its obligations
      as specified in the preceding paragraph, and shall be liable for acts of
      such third party simultaneously.

            

    

    
      	
            	
              III.

            	
              Party
      A shall be liable for injury or damage to properties caused by the
      Collaterals, if any. And Party B shall be entitled to make recourse
      against Party A if it suffers claims or makes an advance for damages due
      to any such injury or damage.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              Article
      6

            	
              Insurance
      for Collaterals

            

    

    

    
      	
               
      

            	
              I.

            	
              Unless
      otherwise agreed by the parties, Party A shall insure the Collaterals
      according to applicable laws and types of insurance, insurance period and
      insured amount as designated by Party B. The insurer shall have legal
      qualifications and good reputations as
required.

            

    

    
      	
               
      

            	
              II.

            	
              The
      policies shall conform to Party B's requirements without any attached
      restrictive conditions that may damage Party B's benefits. In particular,
      the policies shall be noted as follows: Party B shall be the preferred
      beneficiary (the first beneficiary) of the insurance proceeds; any
      modification to the policies can only be made upon prior written consents
      of Party B; the insurer shall directly pay insurance proceeds to the
      account designated by Party B upon occurrence of insured accidents.
      Appropriate remarks or modifications shall be made on the policies if the
      Collaterals have been insured but the above contents are not marked on the
      policies.

            

    

    
      	
            	
              III.

            	
              Party
      A shall ensure consecutive and effective insurances on the Collaterals. It
      is not allowed to cease, cancel or invalidate the insurances for any
      reasons, or procure the insurer to be reduced or released from
      indemnification, or modify the policies without prior consents of Party B.
      If the claims guaranteed by Party A are not paid in full after the
      insurance period is expired, Party A shall renew the insurance and the
      insurance period shall be extended
accordingly.

            

    

    
      	
            	
              IV.

            	
              Party
      A shall submit originals of policies of the Collaterals to Party B within
      five business days from the date of conclusion of this Contract (or the
      date of renewal of insurance if the Collaterals are renewed for
      insurance), and leave documents in relation to insurance claims and
      necessary to transfer of insurance benefits at Party
  B.

            

    

    
      	
               
      

            	
              V.

            	
              Party
      B shall be entitled to dispose insurance proceeds from the Collaterals as
      follows, and Party A shall assist to complete all applicable
      formalities:

            

    

    
      	
               
      

            	
              (I)

            	
              To
      apply such proceeds to repair the Collaterals for recovering values of the
      same upon prior consents of Party
B;

            

    

    
      	
               
      

            	
              (II)

            	
              To
      apply such proceeds to pay principals, interest accruals thereon and
      relevant fees under the principal contracts, or to do so in
      advance;

            

    

    
      	
               
      

            	
              (III)

            	
              To
      create pledge guarantee for obligations under the principal
      contracts;

            

    

    
      	
               
      

            	
              (IV)

            	
              To
      be disposed by Party A at its own discretions provided that Party A
      provides new guarantees conforming to Party B's
    requirements.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              Article
      7

            	
              Limitations
      on Disposal of Collaterals by Party
A

            

    

    

    
      	
               
      

            	
              I.

            	
              Without
      prior written consents of Party B, Party A shall not dispose the
      Collaterals in any way, including but not limited to any waiver, lease
      (including renewed lease upon expiry of original lease contract), gift,
      transfer, contribution, repeated guarantees, assignment, changes for
      public benefits, additions to other objects, or restructuring and/or
      division.

            

    

    
      	
               
      

            	
              II.

            	
              Upon
      prior written consents of Party B, Party A shall deposit the proceeds from
      disposal of the Collaterals or other money into the account as designated
      by Party B. Party B shall be entitled to dispose such proceeds or money
      through any of the methods as specified in (II) to (IV) of Paragraph V of
      Article 6, for which Party A shall assist to complete applicable
      formalities.

            

    

    

    
      	
              Article
      8

            	
              Encumbrance
      by A Third Party

            

    

    

    
      	
               
      

            	
              I.

            	
              If
      the Collaterals are levied, requisitioned, removed, forfeited, withdrawn
      without any compensation, by the State, or if they are sealed, frozen,
      seized, monitored, created a lien, sold by auction, possessed in force,
      damaged or otherwise disposed by a third party, Party A shall promptly
      inform Party B, as well as take precautious, elimination or recovery
      remedial measures for preventing losses from being expanded. If required
      by Party B, Party A shall provide new guarantees conforming to Party B's
      requirements.

            

    

    
      	
               
      

            	
              II.

            	
              Upon
      occurrence of the circumstances as provided in the preceding paragraph,
      the remaining values of the Collaterals shall be applied to guarantee
      Party B's claims. Party A shall deposit damages or compensations obtained
      due to the above reasons into the account as designated by Party B. Party
      B shall be entitled to dispose such damages or compensations through any
      of the methods as specified in (I) to (IV) of Paragraph V of Article 6,
      for which Party A shall assist to complete applicable
      formalities.

            

    

    

    
      	
              Article
      9

            	
              Realization
      of Mortgage

            

    

    

    
      	
               
      

            	
              I.

            	
              Party
      B shall be entitled to dispose the Collaterals if the debtor fails to
      perform its due obligations under the principal contracts or such
      obligations as declared to become due earlier, or if it breaches other
      provisions of the principal
contracts.

            

    

    
      	
               
      

            	
              II.

            	
              The
      values of the Collaterals as recorded on the Collaterals List or as
      otherwise agreed by the parties (“Interim Values”) shall not mean final
      values of the Collaterals, and their final values shall be the net price
      from disposal of the Collaterals by Party B after all applicable taxes are
      deducted.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If the
Collaterals are applied to offset Party B's claims, the above Interim Values
shall not be deemed as the grounds for offsetting Party B's claims by the
Collaterals, and values of the Collaterals shall be determined through
negotiation by the parties or fair evaluation to be conducted according to law
for the time being.

    

    
      	
            	
              III.

            	
              Proceeds
      from disposal of the Collaterals by Party B shall be applied to pay off
      obligations under the principal contracts, and the remaining shall be
      refunded to Party A after the expenses or fees (including but not limited
      to custody fees, appraisal fees, auction fees, transfer fees, taxes,
      considerations for grant of state-owned land use right) arising out of
      sale or auction of the Collaterals are
paid.

            

    

    
      	
            	
              IV.

            	
              If
      Party A and the debtor is the same person, Party B may apply for
      enforcement against Party A's properties beyond the Collaterals, which is
      not conditional upon waiver of the mortgages hereunder or prior disposal
      of the Collaterals.

            

    

    
      	
               
      

            	
              V.

            	
              Party
      B shall not create any encumbrance (including action or non-action)
      against realization of mortgages by Party B in any
  way.

            

    

    
      	
            	
              VI.

            	
              Party
      A's guarantee liability hereunder shall not be reduced or released, and
      Party A shall not have any objection if Party B directly requests Party A
      to bear the guarantee liability pursuant to this Contract, irrespective of
      other guarantees (including but not limited to warranty, mortgage, charge,
      letter of guarantee, standby L/C) created in favor of Party B's claims
      under the principal contracts, or of the time of creation of or validity
      of the above guarantees, or of claims against other guarantors by Party B,
      or of agreeing to bear the whole or part of obligations under principal
      contracts by a third party, or of other guarantees granted by the
      debtor.

            

    

    
      	
            	
              VII.

            	
              If
      the maximum guarantee hereunder is less than the balance of the actual
      claims under the principal contracts, and if the claims under principal
      contracts are not satisfied in full after Party A performs its guarantee
      liability, Party A shall undertake not to damage Party B's benefits in any
      way if it claims (and/or pre-exercises) subrogation or pay-off rights
      against the debtor or other guarantors. Meanwhile, Party A agrees that the
      pay-off of obligations under the principal contracts is prior to its
      subrogation or pay-off rights.

            

    

    

    As
specifically, before Party B's claims are not satisfied in full,

    
      	
               
      

            	
              (I)

            	
              Party
      A agrees not to claim its subrogation or pay-off rights against the debtor
      or other guarantors; if Party A realizes such rights for any reasons, the
      proceeds generated from realization of such rights shall be applied to
      satisfy unpaid claims of Party B with
priority;

            

    

    
      	
               
      

            	
              (II)

            	
              If
      collaterals are given for securing the obligations under the principal
      contracts, Party A agrees not to exercise its subrogation or bring claims
      against such collaterals or proceeds from disposal of the same for any
      reasons. Such collaterals and proceeds shall be applied to satisfy unpaid
      claims of Party B with
priority;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (III)

            	
              If
      the debtor or other guarantors grant counter guarantees in favor of Party
      A, the proceeds gained by Party A from such counter guarantees shall be
      applied to satisfy unpaid claims of Party B with
  priority.

            

    

    
      	
            	
              VIII.

            	
              If
      principal contracts are not concluded, do not come into effect, become
      null and void in whole or part, or are canceled or rescinded, and if Party
      A and the debtor are not the same person, Party A shall, to the extent of
      guarantee scope as specified hereunder, bear joint and several liability
      together with the debtor for the obligations arising out of the return of
      properties by or the indemnification of losses by the
    debtor.

            

    

    
      	
            	
              IX.

            	
              Party
      A has fully recognized risks from exchange rates. If interest accruals,
      penalties and compound interests payable by the debtor are increased after
      Party B adjusts the rates, the interest bearing or settlement methods
      pursuant to principal contracts or based on changes of national rate
      policies, Party A shall bear joint and several liability for the extra
      part as well.

            

    

    
      	
               
      

            	
              X.

            	
              If
      the debtor, in addition to the obligations under the principal contracts,
      bears other due obligations to Party B, Party B shall be entitled to apply
      the debtor's funds in RMB or other currencies under its accounts opened
      with China Construction Bank to satisfy any obligations due to Party B in
      the first instance, and whereby Party A's guarantee liability shall not be
      reduced or released.

            

    

    

    
      	
              Article
      10

            	
              Breaching
      Liability

            

    

    

    
      	
               
      

            	
              I.

            	
              Breaching
      Liability of Party A

            

    

    
      	
               
      

            	
              (I)

            	
              If
      Party A breaches any provision hereof, or if any of its representations or
      warranties is false, wrong or misunderstanding, Party B shall be entitled
      to take one or more of the following
measures:

            

    

    
      	
               
      

            	
              i.

            	
              Request
      Party A to correct its breaches within the given time
    limit;

            

    

    
      	
               
      

            	
              ii.

            	
              Request
      Party A to provide new guarantees;

            

    

    
      	
               
      

            	
              iii.

            	
              Request
      Party A to indemnify losses;

            

    

    
      	
               
      

            	
              iv.

            	
              Dispose
      the Collaterals;

            

    

    
      	
               
      

            	
              v.

            	
              Take
      other remedial measures as permitted by
laws.

            

    

    
      	
               
      

            	
              II.

            	
              Party
      B shall be entitled to dispose proceeds from the disposal of the
      Collaterals through any of the methods as specified in (II) to (IV) of
      Paragraph V of Article 6, for which Party A shall assist to complete
      applicable formalities.

            

    

    
      	
            	
              III.

            	
              Party
      B shall be entitled to request Party A to bear the joint and several
      liabilities within the mortgages as specified in this Contract with the
      debtor if the mortgages are not created or values of the Collaterals are
      reduced or Party B fails to realize the mortgages in full or in a timely
      manner for Party A's reasons, and if Party A and the debtor are not the
      same person.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	
              IV.

            	
              Breaching
      Liability of Party B

            

    

    If title
certificates of the Collaterals delivered by Party A are lost due to default of
Party B, or if Party B fails to return such certificates in a timely manner
after the obligations under the principal contracts are paid, or if Party B
fails to assist to cancel mortgage registration according to law as requested by
Party A, Party A shall be entitled to take one or more of the following
measures:

    
      	
               
      

            	
              (I)

            	
              Request
      Party B to bear fees for re-obtaining title certificates of the
      Collaterals;

            

    

    
      	
               
      

            	
              (II)

            	
              Request
      Party B to return title certificates of the Collaterals within the given
      time limit, or assist Party A to cancel the mortgage
      registration.

            

    

    

    
      	
              Article
      11

            	
              Miscellaneous

            

    

    

    
      	
               
      

            	
              I.

            	
              Bearing
      of Fees

            

    

    Unless
otherwise as agreed by the parties, all fees (including but not limited to such
fees arising out of possession, management, disposal, registration, public
notary, insurance, transport, storage, custody, appraisal, repairs, maintenance,
auction and transfer) in relation to this Contract and the Collaterals hereunder
shall be borne by Party A.

    

    
      	
               
      

            	
              II.

            	
              Drawing
      of Payables

            

    

    As for
all the payables by Party A under this Contract, Party B shall be entitled to
draw corresponding money in RMB or other currencies from Party A's accounts
opened with China Construction Bank without any further prior notice to Party A.
If foreign exchange settlement or purchase-and-sale of foreign exchanges is
required, Party A shall be obligated to assist Party B to complete the same at
the exchange rate risks of Party A.

    

    
      	
            	
              III.

            	
              Use
      of Party A's Information

            

    

    Party A
accepts and acknowledges that (i) Party B may search Party A's credit standing
information in the credit database established upon approval of People's Bank of
China and the competent credit standing departments or via relevant entities or
departments, and (ii) Party B may provide Party A's credit standing information
to such credit database established upon approval of People's Bank of China and
the competent credit standing departments. Meanwhile, Party A agrees that Party
B may reasonably use and disclose Party A's information as well based on its
business.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	
              IV.

            	
              Collection
      by Announcement

            

    

    In the
event of any breach by Party A, Party B shall be entitled to report any such
breach to relevant departments or entities, or to announce the collection via
news medias.

    

    
      	
               
      

            	
              V.

            	
              Validity
      of Evidences of Party B's Records

            

    

    Save for
reliable and determinable contrary evidences, Party B's internal accounting
records on principals, interest accruals, expenses and repayment, its documents
and vouchers produced or remained by Party B in the business of drawing,
repayment and payment of interest accruals by the debtor, and its records and
vouchers on collection of loans by it, shall constitute definite evidences for
claims under the principal contracts. And Party A shall not have any objection
only based on the facts that the above records, documents and vouchers are
produced or remained by Party B unilaterally.

    
      	
            	
              VI.

            	
              Reservation
      of Rights

            

    

    Party B's
rights under this Contract shall be without any prejudice to any of its other
rights as provided in laws, regulations and other contracts. Any tolerance,
grace, favor to any breach, delay, or any extension for exercise of rights
hereunder shall not be deemed to waive any rights or benefits hereunder, nor to
acknowledge or accept any breach of this Contract, nor affect, prevent or hinder
any further exercise of such rights or exercise of any other rights, nor cause
Party B to bear obligations or liabilities to Party A.

    

    Even if
Party B fails to exercise or delays in exercising any rights under principal
contracts or fails to exhaust any remedies under principal contracts, Party A's
guarantee liability hereunder shall not be reduced or released. However, Party
A's guarantee liability hereunder shall be reduced or released accordingly if
Party B reduces or releases the obligations under principal
contracts.

    
      	
            	
              VII.

            	
              Party
      B shall be well notified promptly if Party A is divided or dissolved, or
      goes into bankruptcy proceedings, or its registration is withdrawn or
      cancelled, or its business license is cancelled, or the Collaterals are
      destroyed, lost, damaged or apart from Party A's control due to natural
      factors or a third party's acts, or ownership of the Collaterals is under
      dispute or the title certificates (certifications) are
      cancelled.

            

    

    
      	
            	
              VIII.

            	
              Dissolution
      or Bankruptcy of Debtor

            

    

    If Party
A becomes aware of dissolution or bankruptcy proceedings against the debtor, it
shall promptly inform Party B to report is claims. Meanwhile, it shall take part
in such dissolution or bankruptcy proceedings in a timely manner for
pre-exercising its recourse rights. If Party A becomes aware of, or should have
become aware of, such dissolution or bankruptcy proceedings, but if it fails to
pre-exercise its recourse rights in a timely manner, it shall bear losses caused
to it arising therefrom.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding
the provision of the second paragraph of VI of this Article, if Party B and the
debtor enter into an arrangement or agree on restructuring plans in the
bankruptcy proceedings against the debtor, Party B's rights hereunder shall not
be damaged by virtue of any such arrangement or restructuring plans, and whereby
Party A's guarantee liability hereunder shall not be reduced or released. Party
A shall not defense against Party B's claims based on any such arrangement or
restructuring plans. Party B shall have the right to request Party A to pay off
the claims that have been compromised by Party B in any such arrangement or
restructuring plans, but not paid by the debtor.

    
      	
            	
              IX.

            	
              Dissolution
      or Bankruptcy of Party A

            

    

    If Party
A is dissolved or becomes bankrupt, Party B shall be entitled to take part in
dissolution or bankruptcy proceedings against Party A, and to report its claims,
even if Party B's claims under the principal contracts do not become
due.

    

    
      	
               
      

            	
              X.

            	
              Party
      A shall send a timely written notice to Party B specifying any change of
      its mailing address or contact methods, and shall bear losses arising out
      of its failure to send such notice in a timely
  manner.

            

    

    
      	
            	
              XI.

            	
              If
      Party A or the debtor fails to comply with laws, regulations or rules
      concerning environmental protection, energy savings or emission reduction,
      pollution reduction, or may meet energy consumption or pollution risks,
      Party B shall be entitled to perform its guarantees hereunder in advance,
      and to take other remedial measures as provided in this Contract or
      laws.

            

    

    
      	
            	
              XII.

            	
              Effectiveness

            

    

    This
Contract comes into effect after it is signed, or affixed with common seal, by
Party A's legal representative (responsible officer) or authorized agent, and
signed, or affixed with common seal, by Party B's responsible officer or
authorized agent.

    

    
      	
              Article
      12

            	
              Collaterals
      List

            

    

    Please
refer to Article 19 hereof.

    

    
      	
              Article
      13

            	
              Representations
      and Warranties by Party A

            

    

    
      	
               
      

            	
              I.

            	
              Party
      A has clearly known and understood the scope of business, and authorized
      powers, of Party B.

            

    

    
      	
               
      

            	
              II.

            	
              Party
      A has already read this Contract and all terms of principal contracts.
      Meanwhile, Party B has made interpretation for certain terms of this
      Contract and principal contracts at the request of Party A. And Party A
      has fully known and understood the meanings of, and legal consequences
      that may arise from, the terms of this Contract and principal
      contracts.

            

    

    
      	
            	
              III.

            	
              Party
      A is eligible to act as a guarantor, and its guarantees hereunder conform
      to laws, administrative regulations, rules, and its articles of
      association or internal organization documents. Meanwhile, its guarantees
      hereunder have been approved by its internal authoritative organizations
      and/or authoritative authorities of the State. Party A shall be liable for
      all liabilities arising out of unauthorized execution of this Contract by
      it, including but not limited to full indemnifications for losses caused
      to Party B.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	
              IV.

            	
              Party
      A confirms that it has fully known and understood assets, obligations,
      operation, credit and reputation of the debtor, and eligibility and
      authorities of the debtor to sign the principal contracts, and all
      contents contained in principal
contracts.

            

    

    
      	
               
      

            	
              V.

            	
              Party
      A owns and has the right to dispose the Collaterals according to law. The
      Collaterals are not the public facilities, which are not allowed to be
      circulated or transferred; and no dispute on the ownership of the
      Collaterals exists.

            

    

    
      	
            	
              VI.

            	
              The
      Collaterals are not co-owned, or the mortgages hereunder have been agreed
      on by other co-owners in writing if the Collaterals are
      co-owned.

            

    

    
      	
            	
              VII.

            	
              The
      Collaterals are free of any defect or encumbrance that has not been
      notified to Party B in writing, including but without limitation as
      follows: the Collaterals are limited for circulation, sealed, seized,
      monitored, leased or created a lien; or the acquisition prices, repair and
      maintenance fees, construction prices, national taxes, considerations for
      the grant of land use right, damages, of and arising out of the
      Collaterals are owed in arrears; or any guarantees are created on the
      Collaterals in favor of a third
party.

            

    

    
      	
            	
              VIII.

            	
              All
      data and information provided to Party B by Party A in relation to the
      Collaterals is true, lawful, accurate and
  complete.

            

    

    
      	
            	
              IX.

            	
              The
      grant of the mortgages by Party A shall not damage legal benefits of any
      third party, nor go against legal and agreed obligations of Party
      A.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Special
Terms and Conditions

    

    This
Maximum Mortgage Contract is numbered as “2009 Jian
Quan Shi Gao Di Zi, No. 28”.

    

    
      	
              Article
      14

            	
              Particulars
      of Contractors

            

    

    

    Mortgagor
(Party A): Shishi Feiying Plastic Co., Ltd.

    Residence:
Longshan Development Area, Hanjiang Town, Shishi City

    Zip Code:
362700

    Legal
Representative (Responsible Officer): Wu Licong

    Fax:
88682828

    Tel:
88681828

    

    Creditor
(Party B): China Construction Bank Shishi Branch

    Residence:
No. 1865, 87 Road, Shishi City

    Zip Code:
362700

    Responsible
Officer: Chen Yixin

    Fax:
0595-88595137

    Tel:
0595-88595195

    

    Whereas,
Party B and the Debtor will sign and/or have signed RMB borrowing contracts,
foreign exchange borrowing contracts, bank acceptance agreements, L/C opening
contracts, L/G issuance agreements and/or other legal documents for consecutive
credit business under (I), (II), (III) and
(V) below in favor of Shishi Feiying Plastic Co.,
Ltd. (“Debtor”)
from December 02,
2009 to December 02, 2011
(“Period for Determining
Claims”). The above contracts, agreements and/or other legal documents
signed in the Period for Determining Claims shall be collectively referred as
“Principal
Contracts”.

    
      	
              (I)

            	
              Issue
      loans in RMB/foreign exchanges;

            

    

    
      	
              (II)

            	
              Accept
      commercial drafts;

            

    

    
      	
              (III)

            	
              Open
      L/C;

            

    

    
      	
              (IV)

            	
              Issue
      L/G;

            

    

    
      	
              (V)

            	
              Other
      credit business: domestic factoring,
      trade financing facility.

            

    

    

    Party A
is willing to grant the Maximum Mortgage for all of the Debtor's obligations
under the Principal Contracts. This Contract is entered into by Party A and
Party B in accordance with applicable laws, regulations and rules through
negotiation for common compliance.

    

    
      	
              Article
      15

            	
              Provisions
      for II of Article 2

            

    

    The
maximum amount under the Maximum Mortgage hereunder shall be RMB Thirty-five Million
(in words) only. If Party A has performed its guarantee obligations pursuant to
this Contract, such maximum amount shall be reduced accordingly based on the
amount paid.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              Article
      16

            	
              Other
      Provisions

            

    

    
      	
              i.

            	
              Not
      Applicable

            

    

    

    
      	
              Article
      17

            	
              Dispute
      Resolutions

            

    

    Any
dispute arising out of performance of this Contract may be resolved through
negotiation by the parties; if not reached, any such dispute shall be resolved
subject to the method as specified in i below. During the
lawsuit or arbitration, the terms not involved in the dispute shall be continued
to be performed.

    
      	
               
      

            	
              (I)

            	
              To
      be judged and resolved by the People's Court at the location of Party
      B;

            

    

    
      	
               
      

            	
              (II)

            	
              To
      be arbitrated by                  arbitration
      commission in                       
      in accordance with its rules in force and effect at the time of
      applying for arbitration; the awards shall be final and binding upon the
      parties.

            

    

    

    
      	
              Article
      18

            	
              This
      Contract is made in three
      counterparts.

            

    

    

    
      	
              Article
      19

            	
              Provisions
      for Article 12

            

    

    

    The
Collaterals List under this Contract is as follows:

     

    Collaterals
List

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	
                                                Name of

                                                Collaterals

                                              	 
      	
                                                Numbers of Title

                                                Certificates and Other

                                                relevant Certificates

                                              	 
      	
                                                Location

                                              	 
      	
                                                Areas or

                                                Quantity

                                              	 
      	
                                                Values of

                                                Collaterals

                                                (RMB 10

                                                Thousand)

                                              	 
      	
                                                Mortgaged

                                                Amount

                                                for Other

                                                Claims

                                                (RMB 10

                                                Thousand)

                                              	 
      	
                                                Remarks

                                              
	
                                                Properties

                                              	
                                                  

                                              	
                                                Property
      Title Certificates numbered as Shi Jian Fang Quan Zheng Han Zi No. 00103,
      00104, 00105 and 00106; Land Certificate Number of State-owned Land Use
      Right Certificate: Shi Han Guo Yong (2005) No. 0046

                                              	
                                                  

                                              	
                                                Building
      A, B, C and D on Land Parcel A of Jiulongshan Development Zone, Hongjue
      Village, Hanjiang Town, Shishi City

                                              	
                                                  

                                              	
                                                Land
      areas: 32,203.27 m2; building areas:
      21,283.76 m2

                                              	
                                                  

                                              	
                                                4021.70

                                              	
                                                  

                                              	
                                                0

                                              	
                                                  

                                              	
                                                Blank

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                Party
      A (common seal): Shishi Feiying Plastic Co., Ltd.

              	 
      	
                Party
      B (common seal): China Construction Bank Shishi Branch

              
	 
      	 
      	 
      
	
                Signed
      by Legal Representative: Wu Licong

              	 
      	
                Signed
      by Responsible Officer:

              
	 
      	 
      	 
      
	
                December
      02, 2009

              	
                  

              	
                December
      02, 2009Unassociated Document

     

    Exhibit
10.12

    

    Contract
No.: 2009 Shishi, Zi No. 0545

    

    Working
Capital Borrowing Contract

    

    This
Working Capital Borrowing Contract (“Contract”) is entered into by
and between:

    

    Borrower
(Party A): Shishi
Feiying Plastic Co., Ltd.

    Residence
(Address):

     

    Legal
Representative: Wu
Licong

    

    And

    

    
      Lender
(Party B): Industrial
and Commercial Bank of China, (Shishi City Branch)

    

    Residence
(Address): ICBC
Building, 87 Road, Shishi City

    Legal
Representative (Responsible Officer): Zhuang
Wencong

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Table
of Contents

     

    
      
        
          
            	
                    Article
      1

                  	 
      	
                    Type
      of Borrowing

                  	
                     3

                  
	 
      	 
      	 
      	 
      
	
                    Article
      2

                  	 
      	
                    Use
      of Borrowing

                  	
                     
      3

                  
	 
      	 
      	 
      	 
      
	
                    Article
      3

                  	 
      	
                    Borrowed
      Amount and Term

                  	
                     
      3

                  
	 
      	 
      	 
      	 
      
	
                    Article
      4

                  	 
      	
                    Borrowing
      Rate and Interest Accruals

                  	
                     
      4

                  
	 
      	 
      	 
      	 
      
	
                    Article
      5

                  	 
      	
                    Sources
      and Methods of Repayment

                  	
                     
      5

                  
	 
      	 
      	 
      	 
      
	
                    Article
      6

                  	 
      	
                    Guarantee

                  	
                     
      6

                  
	 
      	 
      	 
      	 
      
	
                    Article
      7

                  	 
      	
                    Rights
      and Obligations of Parties

                  	
                     
      6

                  
	 
      	 
      	 
      	 
      
	
                    Article
      8

                  	 
      	
                    Breaching
      Liability

                  	
                     
      7

                  
	 
      	 
      	 
      	 
      
	
                    Article
      9

                  	 
      	
                    Effectiveness,
      Modification, Rescinding and Termination

                  	
                     
      9

                  
	 
      	 
      	 
      	 
      
	
                    Article
      10

                  	 
      	
                    Dispute
      Resolutions

                  	
                     
      10

                  
	 
      	 
      	 
      	 
      
	
                    Article
      11

                  	 
      	
                    Miscellaneous

                  	
                     
      10

                  
	 
      	 
      	 
      	 
      
	
                    Article
      12

                  	
                      

                  	
                    Supplementary
      Provisions

                  	
                     
      12

                  

          

        

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Party A
hereby applies to Party B for satisfying its needs as set forth in Article 2.1
hereof, and Party B agrees to grant the borrowing to Party A (“Borrowing”). This Contract is
entered into by and between Party A and Party B in order to define their
respective rights and obligations hereunder, through negotiation based on equal
footing, in accordance with the Contract Law, the General Loan Rules and other
applicable laws and regulations.

     

    
      Article
1    Type
of Borrowing

    

    

    
      	
              1.1

            	
              The
      Borrowing hereunder is a kind of short-term (medium-term or short-term)
      working capital borrowing.

            

    

    

    
      Article
2    Use
of Borrowing

    

    

    
      
        	
                2.1

              	
                The
      Borrowing hereunder shall be used as short-term working capitals (“Use”)

              
	 	 
	 	
                .

              

      

    

          

    
      	
              2.2

            	
              Party
      A shall not change the Use as determined in this Contract without prior
      written consents of Party B.

            

    

    

    
      Article
3    Borrowed
Amount and Term

    

    

    
      	
              3.1

            	
              The
      borrowed amount hereunder shall be RMB Four Million Seven
      Hundred and Fifty Thousand (in words), i.e., RMB 4,750,000.00
      (in number). The amount in words shall prevail in the event of any
      difference between the amount in words and in
  number.

            

    

    
      	
              3.2

            	
              The
      term of Borrowing hereunder shall be months
      from December
      21, 2009 to November 20,
      2010 (“Term”).

            

    

    
      	
              3.3

            	
              Party
      A shall draw the Borrowing in a lump sum pursuant to Article 3.2 hereof.
      In the event of special circumstances, the drawing may be advanced or
      extended for  /  days
      upon written consents of Party B. Both actual drawing date and repayment
      date shall be subject to the dates as recorded on the IOUs between Party A
      and Party B. Either IOUs or borrowing drawing vouchers shall be integral
      to this Contract. Save for the dates, this Contract shall prevail in the
      event of any difference between other records and this
      Contract.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      Article
4    Borrowing
Rate and Interest Accruals

    

    

    
      	
              4.1

            	
              The
      Borrowing will be added interest accruals on a daily basis at the daily
      rate (equaling to annual rate/360) during the Borrowing from the actual
      drawing date. The interest accruals shall be paid every month
      (month/quarter) on
      the 20th day of each
      month (the 20th
      day of each month/the 20th day of the last
      month of each quarter). If the expiry date of interest
      accruals (“Interest
      Expiry Date”) is not a business day of a bank, the interest
      accruals shall be paid on the next business day. Both principals and
      interest accruals thereon shall be paid together when the Borrowing
      becomes due and payable.

            

    

    
      	
              4.2

            	
              The
      Borrowing rate hereunder shall be determined subject to Article 4.2.1
      below:

            

    

    

    
      	
               
      

            	
              4.2.1

            	
              The
      annual rate shall be 5.31% which
      shall be fixed during the Term.

            

    

    
      	
               
      

            	
              4.2.2

            	
              The
      rate hereunder shall be floated / (up/down)
      for / %
      based on applicable basic rate of the People's Bank of China (“PBOC”). The contractual
      rate will be adjusted every term, and it will be adjusted every / (year/half a
      year/quarter/month) for purpose of this Contract. The rate for the initial
      term shall be determined on the effective date of this Contract (“Effective Date”), and it
      shall be determined by Party B based on applicable basic rate of the PBOC
      on the Effective Date and the floating rate as agreed by the parties,
      i.e.,  / %
      for annual rate. The rates for the second term and succeeding terms shall
      be determined on the Corresponding Date (defined below), and they shall be
      determined by Party B based on applicable basic rates of the PBOC on the
      Corresponding Date and the floating rate as agreed by the parties. If
      there is not such a Corresponding Date in the month in which the rate will
      be adjusted, the final date of such month shall
  prevail.

            

    

    

    If the
Borrowing is drawn by installment, it is required to apply the rate to be
determined on the Effective Date or its Corresponding Date, irrespective of
whatever number of installments. And the rate will be adjusted on the
Corresponding Date in the next term.

    

    “Corresponding
Date” shall mean the corresponding date upon expiry of a term from the Effective
Date. For example, if the Effective Date is May 9, and if a term will be a
month, the Corresponding Date of the second term shall be June 9; if a term will
be a quarter, the Corresponding Date of the second term shall be August 9 of
such year; and if a term will be a half year, the Corresponding Date of the
second term shall be November 9 of such year; if a term will be a year, the
Corresponding Date of the second term shall be May 9 of the next year; and so
forth.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                4.2.3

              	
                Other
      methods:_______________________________________________________________________

              
	 	 	 
	 	 	 

      

    

    Party B
shall send a written notice to Party A thirty days after the rate is changed;
however, such changed rate shall be applied, irrespective of service of such
notice.

    
      	
              4.3

            	
              If
      the PBOC adjusts the rate or the rate-related determination measures,
      applicable regulations of the PBOC shall
  prevail.

            

    

    

    
      Article
5    Sources
and Methods of Repayment

    

    

    
      	
              5.1

            	
              Payment
      of the Borrowing and interest accruals thereon by Party A shall be sourced
      including but without limitation:

            

    

    

    
      
        	
                 
      

              	
                5.1.1

              	
                Revenues generated from its
      sales

              

      

    

            

    
      
        	
                 
      

              	
                5.1.2

              	
                Other funds
  sources

              

      

    

           

    
      	
              5.2

            	
              Any
      other contracts to which Party A is a party binding upon repayment sources
      of Party A shall not affect Party A's obligations to make repayment
      hereunder in any way. Meanwhile, Party A shall not reject performing its
      obligations of making repayment by referring to Article 5.1 in any
      way.

            

    

    
      	
              5.3

            	
              Party
      A shall pay interest accruals as scheduled in full pursuant to this
      Contract, as well as repay the Principals subject to Article 5.3.1
      below:

            

    

    
      	
               
      

            	
              5.3.1

            	
              Party
      A shall repay all the Principals in a lump sum on November 20,
      2010;

            

    

    
      	
               
      

            	
              5.3.2

            	
              Party
      A shall repay all the Principals by installment as
  follows:

            

    

    
      	
               
      

            	
              5.3.2.1

            	
              RMB          
      (in words), i.e., RMB               
      (in number), to be repaid on
[●];

            

    

    
      	
               
      

            	
              5.3.2.2

            	
              RMB          
      (in words), i.e., RMB               
      (in number), to be repaid on
[●];

            

    

    
      	
               
      

            	
              5.3.2.3

            	
              RMB          
      (in words), i.e., RMB               
      (in number), to be repaid on
[●];

            

    

    
      	
               
      

            	
              5.3.2.4

            	
              RMB          
      (in words), i.e., RMB               
      (in number), to be repaid on
[●];

            

    

    
      	
               
      

            	
              5.3.2.5

            	
              RMB          
      (in words), i.e., RMB               
      (in number), to be repaid on
[●];

            

    

    (additional
pages for additional installments)

    
      	
              5.4

            	
              Party
      A shall deposit the money in the account opened with Party B enough to
      cover due interest accruals or Principals before the Interest Expiry Date
      or the Principals repayment date as specified in this Contract; meanwhile,
      it shall authorize Party B to take such due interest accruals or
      Principals from such account on the Interest Expiry Date or the Principals
      repayment date.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      Article
6    Guarantee

    

    

    
      	
              6.1

            	
              The
      Borrowing hereunder shall be guaranteed by mortgages.

            

    

    
      	
              6.2

            	
              Party
      A shall be obligated to, in an active manner, assist and procure Party B
      to sign a guarantee contract (2008
      Shishi (Di) Zi No. 0080) for the
      guarantees hereunder with the
guarantor.

            

    

    
      	
              6.3

            	
              If
      the guarantees hereunder meet any change unbeneficial to Party B, and if
      required by Party B, Party A shall provide other guarantees satisfactory
      to Party B at the request of Party
B.

            

    

    

    
      Article
7    Rights
and Obligations of Parties

    

    

    
      	
              7.1

            	
              Party
      A's Rights and Obligations:

            

    

    
      	
               
      

            	
              7.1.1

            	
              Party
      A shall draw and use the Borrowing subject to the term and the Use as set
      forth in this Contract;

            

    

    
      	
               
      

            	
              7.1.2

            	
              If
      Party A advances the repayment, it shall obtain prior consents of Party B;
      in such case, it shall indemnify forecasted revenue losses caused to, and
      other costs of Party B;

            

    

    
      	
               
      

            	
              7.1.3

            	
              Party
      A shall be responsible for the truth, accuracy and completeness of the
      information provided for the loans;

            

    

    
      	
               
      

            	
              7.1.4

            	
              Party
      A shall accept if Party B investigates, has access to, and supervises the
      Use hereunder;

            

    

    
      	
               
      

            	
              7.1.5

            	
              Party
      A shall in an active manner cooperate Party B to investigate, have access
      to, and supervise its production, operation and financial information, and
      shall be obligated to provide Party B with income statements, balance
      sheets and other financial statements in relation to each
      term;

            

    

    
      	
               
      

            	
              7.1.6

            	
              Party
      A shall pay the principals and interest accruals thereon pursuant to this
      Contract;

            

    

    
      	
               
      

            	
              7.1.7

            	
              Party
      A shall bear relevant fees hereunder, including but limited to fees and
      expenses arising out of public notary, verification, appraisals,
      registration, etc.;

            

    

    
      	
               
      

            	
              7.1.8

            	
              Party
      A shall send receipts of collection letters or collection documents within
      three days after Party B sends the same by post or through other
      methods;

            

    

    
      	
               
      

            	
              7.1.9

            	
              If
      Party A conducts contracting and lease, shareholding reforms, joint
      operation, consolidation, merger, joint venture, division, reduction of
      capitals, shareholding change, transfer of material assets, or other acts
      enough to impact Party B's benefits, it shall send a notice to Party B at
      least thirty days in advance for Party B's approval; otherwise, Party A
      shall not conduct any of the above acts before it clears all of its
      obligations;

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              7.1.10

            	
              Party
      A shall inform Party B in writing of any change or replacement of its
      residence, mailing address, scope of business or legal representative
      within seven days upon any such
change;

            

    

    
      	
               
      

            	
              7.1.11

            	
              If
      Party A meets any other events, including but not limited to material
      economic disputes, bankruptcy and worse financial conditions, or other
      events endangering its normal business or materially affecting performance
      of its obligations hereunder, it shall promptly inform Party B in writing
      of the same;

            

    

    
      	
               
      

            	
              7.1.12

            	
              If
      Party A meets out-of-business, or if it is dissolved or suspended for
      reorganization, or if its business license is cancelled or withdrawn, it
      shall inform Party B in writing within five days upon occurrence of the
      same, and then procure to promptly pay the Principals and the interests
      accruals thereon.

            

    

    

    
      	
              7.2

            	
              Party
      B's Rights and Obligations:

            

    

    

    
      	
               
      

            	
              7.2.1

            	
              Party
      B shall be entitled to request Party A to provide all information in
      relation to the Borrowing;

            

    

    
      	
               
      

            	
              7.2.2

            	
              Party
      B shall be entitled to take due and payable Principals, interest accruals,
      compound interests, penalties and other fees from Party A's account
      pursuant to this Contract or laws;

            

    

    
      	
               
      

            	
              7.2.3

            	
              If
      Party A avoids the monitoring by Party B, defaults in paying the
      Principals, interest accruals thereon or conducts other material breaches,
      Party B shall be entitled to impose credit sanctions against Party A, to
      report to relevant authorities or entities, and/or to conduct public
      collection through news media;

            

    

    
      	
               
      

            	
              7.2.4

            	
              Party
      B shall provide the Borrowing to Party A as scheduled in full pursuant to
      this Contract, unless otherwise delayed by Party
  A;

            

    

    
      	
               
      

            	
              7.2.5

            	
              Party
      B shall keep confidential the information in relation to obligations,
      finance, production and operation of Party A, unless otherwise agreed or
      provided in this Contract, laws and
regulations.

            

    

    

    
      Article
8    Breaching
Liability

    

    

    
      	
              8.1

            	
              Either
      of the parties shall perform its obligations hereunder after this Contract
      becomes effective. Any party who fails to perform its obligations
      hereunder in part or whole shall bear breaching liabilities pursuant to
      applicable laws.

            

    

    
      	
              8.2

            	
              If
      Party A fails to draw the Borrowing pursuant to Article 3.3 hereof, Party
      B shall be entitled to charge liquidated damages on a daily basis at the
      contract rate.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    
      	
              8.3

            	
              If
      Party B fails to provide the Borrowing pursuant to Article 3.3 hereof, it
      shall pay liquidated damages on a daily basis at the contract
      rate.

            

    

    
      	
              8.4

            	
              If
      Party A repays the Borrowing hereunder in advance without prior written
      consents of Party B, Party B shall be entitled to charge interest accruals
      based on the borrowing term and rate as specified in this
      Contract.

            

    

    
      	
              8.5

            	
              If
      Party A fails to pay the due principals and interest accruals thereon,
      Party B shall be entitled to request it to clear the same within the given
      time limit. In such case, Party A shall authorize Party B to withdraw
      funds under all of its accounts opened with ICBC and all of its branches
      to offset its obligations hereunder. Meanwhile, the outstanding Borrowing
      will be added penalties at the contract rate plus 30% (30-50%),
      and the outstanding interest accruals will be added compound interests at
      the contract rate plus 30%
      (30-50%).

            

    

    

    If the
funds to be drawn are foreign exchanges, it is required to purchase and convert
such foreign exchanges at the exchange rate published by Party B on the date of
such drawing.

    

    
      	
              8.6

            	
              If
      Party A fails to use the Borrowing subject to this Contract, Party B shall
      be entitled to suspend the issuance of Borrowing, to withdraw the
      Borrowing in part or whole or rescind this Contract earlier, to charge
      penalties for the use of Borrowing in violation of this Contract by Party
      A on a daily basis at the contract rate plus 50% (50-100%),
      and to charge compound interests for outstanding interests at the contract
      rate plus 50%
      (50-100%).

            

    

    
      	
              8.7

            	
              Interest
      accruals unpaid by Party A on time during the Term shall be added compound
      interests at the rate as specified in this Contract, and added compound
      interests at the rate as specified in Article 8.5 after the Borrowing is
      not repaid within the given time
limit.

            

    

    
      	
              8.8

            	
              If
      Party A meets any circumstances as set forth in Article 8.5 and 8.6
      concurrently when using the Borrowing, Party B shall not concurrently
      impose those penalties and compound interests as set forth in Article 8.5
      and 8.6, but select the one whichever is
higher.

            

    

    
      	
              8.9

            	
              Party
      A shall make a correction and take remedial measures satisfactory to Party
      B within seven days upon receipt of notice from Party B under any of the
      following circumstances; otherwise, Party B shall be entitled to withdraw
      the part or whole of the Borrowing in advance, and the part which cannot
      be withdrawn will be added liquidated damages at the rate imposed on the
      outstanding Borrowing on a daily
basis.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              8.9.1

            	
              Party
      A provides Party B with false or misunderstanding balance sheets, income
      statements and other financial information in any material
      respect;

            

    

    
      	
            	
              8.9.2

            	
              Party
      A fails to coordinate or rejects the supervision on the Use and its
      production, operation and financial activities by Party
  B;

            

    

    
      	
            	
              8.9.3

            	
              Party
      A transfers or disposes, or threatens to transfer or dispose any of its
      material assets without prior consents of Party
  B;

            

    

    
      	
            	
              8.9.4

            	
              The
      material part or whole of its properties are possessed by other creditors,
      or appointed with trustees, receivers or similar officials, or seized or
      frozen, which may cause material losses to Party
  B;

            

    

    
      	
            	
              8.9.5

            	
              Party
      A, without prior consents of Party B, conducts contracting, lease,
      shareholding reforms, joint operation, consolidation, merger, joint
      venture, division, reduction of capitals, shareholding change, transfer,
      or other acts enough to impact Party B's benefits and
    claims;

            

    

    
      	
            	
              8.9.6

            	
              Party
      A changes or replaces its residence, mailing address, scope of business or
      legal representative, or conducts external material investments that
      materially impact or threaten Party B's
claims;

            

    

    
      	
            	
              8.9.7

            	
              Party
      A is involved in material economic disputes or its financial conditions
      become worse, which materially impacts or threatens Party B's claims; or
      Party A meets any other circumstances that may impact or threaten Party
      B's claims in relation to the Borrowing or cause material losses to Party
      B;

            

    

    
      	
            	
              8.9.8

            	
              Any
      other circumstances that may impact or threaten Party B's claims in
      relation to the Borrowing or cause material losses to Party
    B.

            

    

    

    
      Article
9    Effectiveness,
Modification, Rescinding and Termination

    

    

    
      	
              9.1

            	
              This
      Contract comes into effect after it is signed and sealed by the parties;
      in the event of a guarantee, it shall come into effect after the guarantee
      contract becomes effective. And it shall be terminated up to the date when
      all the Principals, interest accruals, compound interests, penalties,
      liquidated damages and other payable fees are
  paid.

            

    

    
      	
              9.2

            	
              Party
      B shall be entitled to rescind this Contract, and to request Party A to
      pay the principals and interest accruals thereon in advance and indemnify
      losses caused to it under any of the following
    circumstances:

            

    

    
      	
               
      

            	
              9.2.1

            	
              Party
      A meets out-of-business, or it is dissolved or suspended for
      reorganization, or its business license is cancelled or
      withdrawn;

            

    

    
      	
               
      

            	
              9.2.2

            	
              Any
      change of the guarantees hereunder is unbeneficial to Party B's claims,
      and Party A fails to provide other guarantees at the request of Party
      B;

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
    

    
      	
               
      

            	
              9.2.3

            	
              Party
      A fails to repay the Borrowing as scheduled or to conduct the Use as
      specified in this Contract, or to pay the due interest accruals, or it has
      other material breaches.

            

    

    
      	
              9.3

            	
              If
      Party A intends to extend the repayment of the loan, it shall apply to
      Party B and provide a written form specifying that the guarantor is
      willing to continue to secure such loan in writing thirty days prior to
      expiry date of this Contract. Upon the reviewing by, and the consents of
      Party B, an extension agreement may be signed, according to which the
      Borrowing hereunder can be extended. This Contract shall be applied before
      such extension agreement is signed.

            

    

    
      	
              9.4

            	
              Neither
      party shall modify or rescind this Contract earlier at its own discretions
      after this Contract becomes effective, unless otherwise provided in this
      Contract. If it is required to modify or rescind this Contract, Party A
      and Party B shall enter into a written agreement on any such modification
      or rescinding through negotiation. This Contract shall be applied before
      such written agreement is signed.

            

    

    

    
      Article
10    Dispute
Resolutions

    

    

    
      	
              10.1

            	
              Any
      dispute between Party A and Party B arising out of performance of this
      Contract shall be resolved through negotiation by the parties; if not
      reached, any such dispute shall be resolved according to the method as set
      forth in Article 10.1.2
      below:

            

    

    

    
      	
               
      

            	
              10.1.1

            	
              To
      be arbitrated by                                                                          ;

            

    

    
      	
               
      

            	
              10.1.2

            	
              To
      be judged and resolved by the court at the location of Party
      B.

            

    

    

    
      Article
11    Miscellaneous

    

    

    
      	
              11.1

            	
              The
      Borrower shall not use the Borrowing for investments to shares, funds,
      options and other shareholding benefits, or other investments inconsistent
      with this Contract.

            

    

    
      	
              11.2

            	
              If the value of
      collaterals is less than the balance of Borrowing upon re-evaluation on
      such collaterals, the Borrower shall repay such balance of Borrowing in
      advance or add other collaterals, and the Lender shall be entitled to
      dispose such collaterals according to
  law.

            

    

    
      	
              11.3

            	
              Protective terms in
      relation to the reminding of related risks shall be applicable to this
      Contract (please refer to Appendix I for
  details).

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              11.4

            	
              If any accidents are
      caused due to violation of applicable laws, regulations, regulatory
      provisions or industrial standards in relation to food and production
      security and environmental protection by the Borrower, or if any such
      violation materially impacts its obligations under this Contract, it shall
      promptly inform the creditor of the same. In such case, the creditor shall
      be entitled to take one or more of the following remedial measures based
      on the affected credit standing and performance capability of the Borrower
      due to any such violation: to cease the Borrowing that has not been
      issued; to declare the Borrowing to become due earlier; to withdraw the
      whole or part of the issued Borrowing in advance; to rescind this
      Contract; or to take other measures as it thinks
    fit.

            

    

    

    
      Article
12    Supplementary
Provisions

    

            

    
      	
              12.1

            	
              The
      Appendix hereto, being integral to this Contract, shall have the same
      force and effect with the text of this
Contract.

            

    

    
      	
              12.2

            	
              If
      a certain drawing date or repayment date is not a business day of a bank
      during performance of this Contract, it is required to extend to the next
      business day.

            

    

    
      	
              12.3

            	
              This
      Contract is made in three
      counterparts with Party A, Party B and the registrant holding one counterpart
      respectively.

            

    

    

    
      
        
          	
                  Party
      A (common seal): Shishi Feiying Plastic
      Co., Ltd.

                	 
      	
                  Party
      B (common seal): Industrial and
      Commercial Bank of China, (Shishi City Branch)

                
	
                  Legal
      Representative: Wu Licong

                	 
      	
                  Legal
      Representative

                  (or
      Responsible Officer): Zhuang Wencong

                
	
                  (or
      Authorized Agent)

                	 
      	
                  (or
      Authorized Agent)

                
	
                  December
      21, 2009

                	 
      	
                  December
      21, 2009

                

        

      

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Appendix
I:

    

    This
Appendix, supplementary to Article 11 “Miscellaneous” of the Working
Capital Borrowing Contract (2009
(Shishi) Zi No. 0545) dated on December 21, 2009, is specified as
follows:

    

    The
Borrower (or other loanees, the same below) shall disclose to the Lender its
relationships and related transactions with its related parties. The Lender
shall be entitled to take remedial measures as provided in this Contract and
laws provided that the Borrower fails to perform its obligations to disclose the
above information, or the Borrower and/or its related parties meet any of the
following circumstances that may adversely impact its capability to perform its
obligations hereunder.

    

    
      	
              I.

            	
              Financial
      conditions of the Borrower's related parties become
  worse;

            

    

    
      	
              II.

            	
              The
      Borrower or any of its related parties are investigated or imposed with
      punishment by judicial bodies, administrative law enforcement authorities
      and administration departments such as taxation authorities and the
      administration for industry and commerce according to
  law;

            

    

    
      	
              III.

            	
              The
      control or the relationship under control between the Borrower and any of
      its related parties is changed;

            

    

    
      	
              IV.

            	
              Any
      of its related parties is or may be involved in material economic
      disputes, suits and arbitration;

            

    

    
      	
              V.

            	
              Major
      investors and key officers of the Borrower are replaced abnormally, or are
      suspected of violation and crime, and then they are investigated or their
      personal freedom is limited by judicial bodies according to
      law;

            

    

    
      	
              VI.

            	
              Related
      parties of the Borrower meet other circumstances that may adversely impact
      the Borrower.

            

    

    

    In
accordance with the “Accounting Standards for
Enterprises –
Relationship with Related Parties and Disclosure of Related
Transactions”, the “Related Parties” in this Appendix shall
mean:

    

    
      	
               
      

            	
              I.

            	
              Other
      enterprises which are, directly or indirectly, controlled by or control,
      or under the common control with, the
Borrower.

            

    

    
      	
               
      

            	
              II.

            	
              Joint
      venture enterprises of the
Borrower;

            

    

    
      	
               
      

            	
              III.

            	
              Joint
      operating enterprises of the
Borrower;

            

    

    
      	
               
      

            	
              IV.

            	
              Major
      investors and key officers of the Borrower or their close family
      members;

            

    

    
      	
               
      

            	
              V.

            	
              Other
      enterprises that are controlled by major investors and key officers of the
      Borrower or their close family
members.

            

    

    

    Other
terms, when used in this Appendix, shall have the same meanings ascertained in
the “Accounting Standards for
Enterprises –
Relationship with Related Parties and Disclosure of Related
Transactions”.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Party
      A (common seal): Shishi Feiying Plastic
      Co., Ltd.

              	 
      	
                Party
      B (common seal): Industrial and
      Commercial Bank of China, (Shishi City Branch)

              
	
                Legal
      Representative: Wu
      Licong

              	 
      	
                Legal
      Representative

                (or
      Responsible Officer): Zhuang
      Wencong

              
	
                (or
      Authorized Agent)

              	 
      	
                (or
      Authorized Agent)

              
	
                December
      21, 2009

              	 
      	
                December
      21, 2009

              

      

    

    

    Industrial
and Commercial Bank of China, (Shishi City Branch)

    Consistent
with the originals

     

    
      
        
        

      

      
        13

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