Document:

Exhibit 10.29

No.2B7504200900000005

Maximum Value Guaranty Contract

Prepared by Shanghai Pudong Development Bank

 

  

  

  

The Maximum Value Guaranty Contract is made by and between Mr. Zheng Chuantao and Ms. Sun Lihua (collectively as “Guarantors”), and Shanghai Pudong Development Bank Dalian Branch, the address of which is #3 Zhongshan Square (as “Creditor”).

Whereas in order to facilitate Debtor’s execution of the Master Contract (detailed in Article 7 hereunder) and to materialize Creditor’s debt right, Guarantors agree to provide a guaranty against all the obligations under the Master Contract.

NOW, THEREFORE, the parties hereto agree as follow:

Article 1 Principal Creditor’s Right

See Article 7 for detail

Article 2 Obligations

	
1.

	
Scope

The guaranty contemplated under the Contract shall be extended to (a) Principal Creditor’s Right as specified herein, (b) interests generated from such Principal Creditor’s Right (including interest, punitive interest and compound interest), (c) defaulting imbursements, (d) damages, (e) expenses for processing procedures, (f) expenses arising from Creditor’s effort to excising its guarantee rights and debt rights (including but not limited to disposal expenses, taxes, legal cost, auction, attorney cost, accommodation), and (g) the guaranty amount required by Creditor but not executed by Guarantors upon the Master Contract entering into force.

	
2.

	
Means

Guarantors shall bear joint liabilities towards the guaranty.

Guarantors hereby agree that Creditor shall have the right to require Guarantors to execute their obligations subject to the Contract with priority over other guarantors for their executions, regardless whether Creditor possesses other guaranty rights towards the debt rights under the Master Contract (including guaranty, pledge, mortgage and others), provided that Debtor fails to executes the Master Contract as agreed.

Guarantors explicitly express to relinquish the defense right of requesting to executing Debtor’s guaranty prior to theirs.

	
3.

	
Term

Guarantee term is two years as of the maturity of liabilities specified under each debt contract till the second anniversary date thereafter. Guarantee term of each debt contract shall be calculated separately.

Guarantors shall assume guarantee obligations towards each installment under each and single contract during the term. Guarantee term shall be calculated as of the maturity date of each debt obligation till the second anniversary date after the last installment maturity date.

For the purpose of the Contract, “maturity” shall include the circumstances that Creditor announces the debt to mature.

Should principal creditor’s right announced by Creditor for accelerated maturity be part or whole of debt rights under the Master Contract, the announcement date shall be deemed as the maturity of such part or whole of debts.

If Creditor and Debtor enter a credit extension contract, Guarantee term shall be renewed as of the maturity date of credit extended till the second anniversary date thereafter. Such credit extension may not obtain Guarantors’ consents. But Guarantors shall still bear joint guaranty liabilities.

 

  

  

  

 

	
4.

	
Change to Master Contract

Creditor’s rights and interests under the Contract shall remain intact against any grace period granted by Creditor, delayed payments, or any changes/ revision/ replacement to any terms and provisions of the Master Contract. If the foresaid circumstances occur, Guarantors shall be deemed to give consents in advance and their guaranty obligations shall not be decreased or waivered.

If the Master Contract requires Creditor to open letters of credit, letter of guarantee or standing L/C to Debtor, any changes to such L/C, L/G or standing L/C shall be made without Guarantors’ consent or necessity to inform Guarantors. If the foresaid circumstances occur, Guarantors shall be deemed to give consents in advance and their guaranty obligations shall not be decreased or waivered.

Article 3 Representations and Warranties

Guarantors shall make representations and warranties as follow:

	
(1)

	
Guarantors are independently legitimate entity with all the necessary rights and capabilities to execute the obligations hereunder and bear civil liabilities arising.

	
(2)

	
Guarantors have the right to sign the Contract and obtain all the authorizations necessary to sign the Contract and execute the obligations hereunder.

	
(3)

	
Guarantors are law-binding. The signing and execution of the Contract is (a) lawful subject to any rules, regulations, constitutions, competent authorities’ documents, rulings and verdicts, and (b) free from any conflicts from any contracts or agreements signed with Guarantors.

	
(4)

	
Any and all the financial reports issued by the Guarantors are developed subject to China’s laws and regulations (excluding regions of Hong Kong, Macaw and Taiwan), truly and fairly reflecting Guarantors’ financial standings in completeness. All the documents and information involved are true, effective, accurate and complete, free from any concealment.

	
(5)

	
Guarantors undertake to process all the paper work required to effectuate and execute the Contract, and to bear the payment of relevant taxes and expenses.

	
(6)

	
There are no significantly adverse changes to Guarantors’ operations and financial positions since issuance of Guarantor’s latest audited financials.

	
(7)

	
Guarantors promise that they have disclosed any material facts and conditions that Creditor know or should know and such facts and conditions may decide whether Creditors will sign the Contract.

	
(8)

	
Guarantors confirm that there are no delayed payment of employee’s salaries, medical cares, injury subsidy, pension, damages or among others occurred during the contract execution period or will occur.

	
(9)

	
Guarantors represent that there are no significant adverse situations or events that may hamper Guarantors’ capabilities of execution.

Article 4 Agreed Items

	
1.

	
Guarantors agree

	
(1)

	
not to employ the following actions without obtaining Creditor’s written consent:

	
  

	
 ̈

	
disposing significant assets in part or whole by means of sales, gifts, lease, borrowing, transferring, pledge, mortgages and others.

	
  

	
 ̈

	
incurring significant changes to forms of Guarantors’ organizations, including but not limited to leasing, contracting, stock transfer, M &A, joint venture, spin-off, establishment of subsidiaries, transfer of ownership, decrease of registered capitals.

 

  

  

  

	
  

	
 ̈

	
changes to Company’s article of associations, scope of business or primary business.

	
  

	
 ̈

	
providing guaranty to any third party that results in significant adverse impact to Guarantors’ capability of executing the Contract or their financial performances.

	
  

	
 ̈

	
filing applications for bankruptcy, reorganization or dismiss.

	
  

	
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signing any contract or arrangement that have material adverse impact to Guarantors’ capability of executing the Contract; or bearing any liabilities that will cast such impact.

	
(2)

	
In case of the following events incurred, Guarantors undertake to give notice to Creditor at the date of incurrence and to deliver the original written notice (attached with seals if non-natural person, signatures if nature person) to Creditor upon five (5) bank days upon the incurrence of such event.

	
  

	
 ̈

	
any event that leads to untruth or inaccurateness in Guarantors’ representations and warranties under the Contract.

	
  

	
 ̈

	
Guarantors or their controlling shareholders, actual shareholders or related person are involved in law suits, arbitrations, asset detention/ confiscation/ mandatory execution and other equally powerful measures. Or Guarantors’ legal representatives, directors, supervisors, senior managers are involved in prosecutions, arbitrations or other mandatory measures.

	
  

	
 ̈

	
There are any changes to Guarantors’ legal person, authorized agent, incumbent, CFO, mailing address, company name, place of business; or for a natural person, changes to its home address, employer, permanent living city, name or incomes.

	
  

	
 ̈

	
Other Creditors appeal for Guarantors’ bankruptcy or reorganization. Or Guarantors are deregistered by superior authority.

	
(3)

	
Guarantors agree to furnish financial reports or income statements with Creditor from time to time during the period of signing and executing the Contract.

	
(4)

	
If the subject contemplated under the Contract is letter of credit, letter of guarantee or standing letter of credit, Guarantors agree to bear joint liabilities to deposit adequate fund provided that Debtor fails to provide enough deposit as required. Guarantors’ behavior of providing deposit shall not be considered as waiver of their guaranty obligations hereunder. In case of any loss or damage arising from such deposit made by Guarantor subject to the Contract, including interest loss, Guarantors shall bear the consequences by itself.

	
(5)

	
Guarantors confirm that prior to settlement of all the liabilities under the Master Contract, Guarantors shall not excise any recourse right and others due to execution of the Contract, towards Debtor.

	
(6)

	
If Debtor reimburses the payment in part or whole, Guarantors shall be jointly held liable to any unpaid debts upon such repayment.

	
2.

	
Withdrawal and Deduction

	
(1)

	
Should Guarantors have accounts payables or deposit payables, Guarantors shall authorize Creditor to deduct fund directly from Guarantors’ any SPD bank account, in order to settle payable accounts.

	
(2)

	
Unless otherwise specified by China’s component authorities, the order of settlement shall be prioritized to cover Guarantors’ and Debtor’s due payment, subsequently due interest, and last due principal. In case of multiple unpaid debts, Creditor shall have the right to determine the order of payment.

	
(3)

	
If fund deducted is a different currency from debts unpaid, Creditor shall have the right to determine exchange rate at its discretion. The currency risk arising thereof shall be borne by Guarantor itself.

	
3.

	
Evidence of Debt

The debts guaranteed by Guarantors shall be effectively evidenced by accounting documents issued by Creditor.

 

  

  

  

	
4.

	
Notice and Service

	
  

	
(1)

	
Correspondences between parties hereto shall be sent to mailing address specified on the signing page thereafter, unless such mailing address is changed upon notice. If sent to the foresaid mailing address, the notice shall be deemed to be serviced at (a) the seventh business day after sending registered mails; (b) the day that addressee receives and signs the notice if personal deliver; or (c) the sending date if notice is given by fax or emails. But any notices, requirements or other forms of correspondences to Creditor shall only be deemed to be serviced at the date that Creditor actually receives such notice, requirement or other correspondence. If the abovementioned correspondence is sent through fax or email, Guarantors shall personally deliver the original notice, requirement or correspondence (attached by seals if non-natural person, or signature if natural person) to Creditor for confirmation.

	
  

	
(2)

	
Guarantor agree that the subpoena and notice of any legal action shall be deemed to be serviced as long as such subpoena and notice are sent to the mailing addresses specified at the signing page thereafter. Changes to the foresaid mailing addresses shall not be valid without giving notice to Creditor in advance.

	
5.

	
Effect, Change and Termination

	
  

	
(1)

	
The Contract shall enter into force upon signatures and seals by Guarantors and Creditor. The Contract shall be terminated provided that all the guaranteed debts are fully settled.

	
  

	
(2)

	
The Contract shall be independent from the Master Contract, thus shall not be deemed as invalid or revocable if the Master Contract is deemed invalid or revocable.

	
  

	
(3)

	
When the Contract enters into effect, neither party hereto shall change or terminate the Contract in advance at its own discretion. If there is a necessity to change or terminate the Contract, parties hereto shall negotiate and agree on a written supplement.

Article 5 Default Events and Liabilities

	
1.

	
Default Events

If any of the following events incur, Guarantors shall be deemed to have violated the Contract towards Creditor.

	
  

	
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(a)Any representations, statements, guaranty made by Guarantors under the Contract, or (b) any notices, authorizations, approvals, arrangements, certifications or other documents related to or made subject to the Contract, are incorrect or misleading, or prove to be incorrect or misleading, or prove to be null, terminated or deprived of legal force.

	
  

	
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Guarantors violate any of agreed items set forth in Article 4.

	
  

	
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Guarantors experience stoppage, close-off, reorganization, delinquency, dismiss, revoke of business license, deregistration, or bankruptcy.

	
  

	
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Guarantors, if nature persons, are dead or claimed to be dead.

	
  

	
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Guarantors transfer or intend to transfer their assets through fake matrimonial relationships.

	
  

	
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Guarantors experience worsened financial positions, hardship operations, or other events that may cast adverse impacts to Guarantors’ normal operations, financial situations and capability to pay debts.

	
  

	
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Guarantors or their controlling shareholders, actual shareholders or related person are involved in law suits, arbitrations, asset detention/ confiscation/ mandatory execution and other equally powerful measures. Or Guarantors’ legal representatives, directors, supervisors, senior managers are involved in prosecutions, arbitrations or other mandatory measures, that cause adverse impact to Guarantors’ capabilities of payment.

	
  

	
 ̈

	
Guarantors have other default behaviors that may hamper the normal execution of the Contract or Creditor’s justified interest.

 

  

  

  

	
2.

	
Liabilities

If any of the abovementioned events incur, Creditor shall have the right to (a) claim an early maturity date of Principal Creditor’s Right or debt right, (b) require Guarantors to assume their guaranty liabilities or pay adequate deposit, (c) and require Guarantor to pay damages (calculated as per Article 7). However, if the damages paid by Guarantors are not enough to make up Creditor’s loss, Guarantors shall cover all the loss and damages incurring.

Article 6 Others

	
1.

	
Applicable Laws

The Contract is governed by laws of People’s Republic of China (excluding regions of Hong Kong, Macaw and Taiwan)

	
2.

	
Disputes

All the disputes arising shall be settled on a friendly basis. Otherwise the people’s court at Creditor’s place shall have exclusive jurisdiction right. Parties hereto shall continue to execute undisputed provisions under the Contract during the period of dispute.

	
3.

	
Miscellaneous

	
(1)

	
For any unsettled matters, parties hereto may covenant and record in Article 7 hereunder, or may enter a written supplement as the schedule to the Contract. The schedule of Contract is inseparable to the Contract and with equal legal force as the Contract context.

	
(2)

	
Unless otherwise specified under the Contract, all the terms and expressions herein have same meanings.

Article 7 Essence of Contract

	
1.

	
Mater Contract Guaranteed by the Contract

	
(1)

	
The Mater Contract is the Financing Capital Agreement signed on August 14th 2009, or a series of contracts signed during the period as of September 1st 2009 till September 1st 2010, by and between the Debtor, Dalian TOFA New Materials Development Co., Ltd.  and the Creditor. Mater Contract is referred to E0750009000515. “Creditor” specified herein is defined as “Financing Bank” in the Master Contract.

	
(2)

	
Principal Creditor’s Right (echoes Article 1)

For the purpose of Master Contract, the Principal Creditor’s Right contemplated herein means a credit line extended by Creditor to Debtor during a period as of September 1st 2009 and ended at September 1st 2010. Such credit line includes but not limited to various types of loans. Residue of the foresaid Principal Creditor’s Right during the foresaid period shall not exceed twenty million (20,000,000) yuan only.

	
(3) 

	
Reimbursement for violation equals twenty (20) percentage of Principal Creditor’s Right.

	
(4) 

	
Schedules: None

	
(5)

	
Others: None

	
(6) 

	
The Contract is made in duplicates, one with each party, having equal legal force.

Below is left blank intentionally.

 

  

  

  

 

(This is Signature Page)

The Contract is signed on August 14th 2009 by and between Guarantors and Creditor. Guarantors hereby confirm that parties hereto have carried out explanations and discussions on all the terms and provisions herein and thus hold no doubts thereof and correct understanding to parties’ rights, liabilities, limitations and waivers.

Guarantors

/s/ Zheng Chuantao

/s/ Sun Lihua

Creditor

Shanghai Pudong Development Bank

By: /s/ Xin Hao WangExhibit 10.30

Financing limit agreement

 

(Large and medium enterprise)

 

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

 

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

 

Legal representative:  Zheng Chuan-tao

 

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

 

Address: Dalian Zhongshan District Zhongshan square, #3

 

Legal representative: Wang Xinhao

 

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

 

Article 1. Credit limit

 

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

 

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

 

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

 

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

 

Article 2. Credit period

 

Credit period is 1 year, namely from September 1, 2010 to September 1, 2011. During the period party A should apply for service application .Party B don’t accept any cases party A proposed out of credit period.

 

Article 3. Use of credit line

 

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

  

  

  

Article 4.Intrerst and fees

 

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

 

Article 5. Warranty

 

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

 

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

 

Article 6 Rights and responsibilities of party A

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

  

  

  

 

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

 

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

 

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

 

Article 7. Rights and responsibilities of party B

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 8 party A provide the following specific promises

 

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

 

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

 

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

 

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

 

8.5 comply with national laws and regulations. Run the business under《business license》

 

and, finish registering annual inspection procedures.

 

  

  

  

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

 

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

 

Article 9. Other fees

 

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

 

Article 10 Defaults and solutions

 

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

 

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

 

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

 

3. Violate to6.5, don’t use the sheet and off sheet credit as is ruled to.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5. Excusing recourse based on clause 13

 

Article 11 Exchanges and removes

 

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

 

  

  

  

 

Article 12 Others

 

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

 

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

 

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

 

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

 

12.5 Other promised articles

 

Article 13 Laws and solutions to disputes

 

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

 

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

 

Article 14 .Protocol validation

 

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

 

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

 

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

 

The unpaid practice of financing credit limit Code number ED75009000515 should be restricted by this agreement, it engrosses the credit limit of the contract.

 

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

 

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

 

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

 

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

 

Date:  August 12, 2010

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