Document:

LOAN
AGREEMENT

     

    Contract
No. 23101201000000916

     

    The
Borrower (Full Name): Heilongjiang Lanxi Sunrise Linen Textile Industry Co.,
Ltd.

    The
Lender (Full Name): Lanxi Branch, Agricultural Bank of China

    Subject
to the related state laws and regulations, the Parties hereto enter into the
following Agreement through negotiation:

     

    ARTICLE 1
LOAN

     

    1. Type
of Loan: short-term loan

    2.
Purpose of Loan: purchase of raw materials

    3.
Amounts and Currency: RMB 7,000,000

    4. Loan
Term:

    a) The
loan term shall be detailed in the following chart:

    

    
      
        
          	
                  Commencement
      Date

                	 
      	
                  Expiration
      Date

                
	
                  Year

                	 
      	
                  Month

                	 
      	
                  Day

                	 
      	
                  Amount

                	 
      	
                  Year

                	 
      	
                  Month

                	 
      	
                  Day

                	 
      	
                  Amount

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  2010

                	
                    

                	
                  March

                	
                    

                	
                  30

                	
                    

                	
                  RMB
      7,000,000

                	
                    

                	
                  2011

                	
                    

                	
                  March

                	
                    

                	
                  29

                	
                    

                	
                  RMB
      7,000,000

                

        

      

    

     

    (Supplementary
chart adding related contents, if any, shall be part of this
Agreement)

     

    
      	
              b)

            	
              If
      the amount, commencement or expiration date of loan listed herein is
      inconsistent with those indicated in the loan note, the stipulations of
      loan note shall prevail. Loan note shall be part of this Agreement and
      have the same legal effect.

            

    

     

    
      	
              c)

            	
              If
      any loan hereunder is made in foreign currency, the Borrower shall pay the
      principal and interests in such currency to the
  Lender.

            

    

     

    5.
Lending Rate

     

    Lending
rate for the loan in RMB shall be the following manners:

     

    Fixed
Rate: the rate shall be 30% higher than the base rate, which is 6.903% till the
expiration date.

     

    6. Settle
Interests

     

    The
interest of loan hereunder shall be settled in quarterly and the expiry date for
interest shall be the 20th day of each quarter. The interests shall be paid by
the Borrower at each expiry date. If the last interest payment date is not the
date for the payment of principal, the remaining interests calculated daily as
1/30 of the month’s interest rate shall be paid with principal at the date for
the payment of principal.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE 2
PRECONDITIONS

     

    The
Lender shall provide the loan hereunder only after:

     

    1. The
bank account, i.e., basic bank account, has been established by the Borrower at
the Lender;

     

    2. The
Borrower has provide the related instruments and fulfill the appropriate
formalities as required by the Lender;

     

    3. The
Borrower has acquired all approvals, registrations and fulfilled all other
formalities necessary for the loan hereunder if the same is related to the
foreign currency; and

     

    4. The
guarantees or insurances required for the loan hereunder have been fulfilled and
effective pursuant to the related requirements of laws, in addition, the surety
agreement necessary for the loan hereunder, if any, has been concluded and come
into effect.

     

    ARTICLE 3
RIGHTS AND OBLIGATIONS OF THE LENDER

     

    1. The
Lender may be entitled to access the information of the Borrower concerning the
business operation, financial activities, inventory and use of loan and may
require the periodic provision of financial statement or other materials,
instruments or information by the Borrower.

     

    2. The
Lender may be entitled to suspend the provision of loan or require the early
recovery of loan if any event occurred, particularly but not limited to the
events listed in Article 4.7, 4.8, 4.10 herein, which may prejudice the safety
of loan.

     

    3. Any
early-recovered principal, interests, penalties, compound interests and any
other payment due to the Lender may be deducted by the Lender directly from the
bank account of the Borrower.

     

    4. If the
amount paid by the Borrower fails to satisfy the requirements hereunder, the
Lender may, at its sole discretion, use such amount for the payment of
principal, interests, penalties, compound interests or other
expenses.

     

    5. The
Lender may disclose the breach of the Borrower if the Borrower fails to make the
due payment hereunder.

     

    6. The
Lender shall provide loan to the Borrower in accordance with this
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE 4
RIGHTS AND OBLIGATIONS OF THE BORROWER

     

    1. The
Borrower may obtain and use loan in accordance with this Agreement.

     

    2. The
Borrower shall make settlement and deposit related to the loan hereunder in the
bank account referred in Article 2 hereof.

     

    3. The
Borrower shall acquire all approvals, registrations and fulfill all other
formalities necessary for the loan hereunder if the same is related to the
foreign currency.

     

    4. The
Borrower shall pay the principal and interests when due. Any renewal to the loan
term shall be subject to the written application at least 15 days prior to the
expiration date and shall be effective only upon the approval of the
Lender.

     

    5. The
Borrower shall use such loan in accordance with this Agreement and may not use
the same for any other purposes.

     

    6. The
Borrower shall provide the complete and accurate financial statement and other
related materials and information to the Lender on a monthly basis, and shall
provide assistances to the inspection made by the Lender on the business
operation, financial activities and the use of loan hereunder.

     

    7. The
prior written notice to and approval by the Lender shall be necessary for the
leasing, joint-stock, partnership, merger, consolidation, separation, joint
venture, assignment of assets, shutting down, dissolution, bankruptcy or any
other activities conducted or threatened to be conducted to or by the Borrower
which may prejudice the safety of loan hereunder.

     

    8. The
prior written notice to the Lender and the appropriate protection measures shall
be necessary for any other events except those listed above, which including but
not limited to the production stopping, suspension of business operation,
cancellation of business licenses, the involvement of illegal activities by the
legal representative or principal of the Borrower, the pending arbitration or
other legal proceedings, the substantial difficulties for business operation and
the deterioration of financial conditions.

     

    9. Any
guarantee or mortgage provided by the Borrower for debts of any third party,
which may prejudice the Repayment of loan hereunder may, be subject to the prior
written notice to and approval by the Lender.

     

    10. The
Borrower may not surreptitiously withdrawn funds, transfer assets or shares to
escape the payment due to the Lender.

     

    11. Any
change to the name, legal representative, address, business scope of the
Borrower shall be notified to the Lender as quickly as possible.

     

    12. The
Borrower shall provide other appropriate protection measures at the satisfaction
of the Lender if the warrantor hereunder suspends its business operation or is
shutting down, cancelled of business licenses, bankrupt or suffering losses
which prejudice it’s competent for the guarantee hereunder or the values of
subject matters of guarantee, pledge or lien have been
decreased.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    13. The
related lawyer fees and costs of transport, insurance, evaluation, registration,
storage, appraisal or notarization hereunder shall be borne by the
Borrower.

     

    ARTICLE 5
EARLY REPAYMENT OF LOAN

     

    The early
repayment of loan shall be subject to the consent of the Lender. If agreed by
the Lender, the interest rate of such early repayment shall be the first of the
following manners:

    (1) The
interest rate shall be calculated in accordance with the loan term hereunder and
the interest rate agreed by the Parties.

    (2) The
interest rate shall be floated ____ % higher than the base interest rate
stipulated herein during the term of the loan.

    

    ARTICLE 6
LIABILITY

     

    1. If any
losses suffered by the Borrower due to the delay supply of loan by the Lender by
violating the stipulation herein, damages shall be paid to the Borrower in
accordance with the amounts of such loan and the days delayed, the calculation
methods of such damages shall be those used for the calculation of interests for
delay repayment of loan.

     

    2. if the
Borrower fails to repay the due principal by violating the stipulation herein,
the default interest (“default interest of delay”) shall be imposed at the
interest rated agreed by the Parties plus 5% commencing from the due payment
date until the full payment of principal and interest including such default
interest, during such period, if the loan is made in RMB, the interest rate
shall be escalated accordingly when the benchmark interest rate is escalated by
the People’s Bank of China.

     

    3. if the
Borrower fails to use the loan hereunder for the purposes mentioned herein, the
default interest (“default interest of breach”) shall be imposed at the interest
rated agreed by the Parties plus 5 % commencing from the due payment date until
the full payment of principal and interest including such default interest,
during such period, if the loan is made in RMB, the interest rate shall be
escalated accordingly when the benchmark interest rate is escalated by the
People’s Bank of China.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4. The
compound interest may be imposed by the Lender on the interest due and unpaid in
accordance with the rules of the People’s Bank of China. “Compound Interest”
mentioned above include the interest (including the default interest of breach)
due and unpaid occurred during the loan term and the interest (including the
default interest of breach and default interest of delay) due and unpaid
occurred upon the expiration of loan term. The compound rate of the interest due
and unpaid occurred during the loan term shall be calculated on the basis of
interest rate agreed by the Parties during the loan term, and shall be
calculated on the basis of delay repayment upon the expiration of loan
term.

     

    5. If any
provisions herein has been violated by the Borrower, the Lender may be entitled
to require the rectification by the Borrower with the appropriate time limit, to
suspend the supply of loan, to make early recovery of loan supplied, or to
announce that any other loans under any other loan agreement between the Lender
and the Borrower become due immediately or to take any other appropriate
protection measures.

     

    6. If any
of the warrantors violating any provisions under the corresponding surety
agreement entered into by such warrantor, the Lender may suspend the supply of
loan, to make early recovery of loan supplied or take any other appropriate
protection measures.

     

    7. if the
creditor’s rights of the Lender hereunder have to be fulfilled in the form of
arbitration or any other legal proceedings due to the breach of the Borrower,
all expenses suffered by the Lender therefrom, including but not limited to the
lawyer fees, travel expenses or any other costs, shall be indemnified by the
Borrower.

     

    ARTICLE 7
GUARANTEE

     

    The loan
hereunder shall be guaranteed in the form of maximum pledge guarantee with a
separate guarantee agreement to be executed separately.

     

    ARTICLE 8
DISPUTE RESOLUTION

     

    Any
dispute between the Parties arising out of the performance hereof shall be
settled thorough amiable negotiation or in the first of the following
manners:

     

    1.
Litigation with the exclusive jurisdiction by the People’s Court where the
Lender is incorporated; or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.
Arbitration in accordance with its arbitration rules.

     

    During
such litigation or arbitration, any other parts of this Agreement unrelated to
such dispute shall be performed uninterrupted.

     

    ARTICLE 9
MISCELLANEOUS

     

    None.

     

    ARTICLE
10 EFFECTIVENESS

     

    This
Agreement shall come into effect on the date signed or sealed by the Parties
hereto.

     

    ARTICLE
11 COPIES

     

    This
Agreement shall be executed in three copies, each Party shall have one and each
warrantor shall have one copy, all those shall have the same legal
effect.

     

    The
Lender has noted that the Borrower shall make thorough reading and comprehensive
understanding on the provisions herein and has made the corresponding
explanation and interpretation at the request of the Borrower. Finally, there is
not any dispute or controversy on this Agreement between the Parties
hereto.

     

    
      
        	
                /s/ GAO Ren

              	 
      
	
                Legal
      Representative: GAO Ren

              
	
                Heilongjiang
      Lanxi Sunrise Linen Textile Industry Co., Ltd.

              
	
                Dated:
      March 30, 2010

              
	 
      
	
                /s/ ZHAO Yongyang

              	 
      
	
                Legal
      Representative: ZHAO Yongyang

              
	
                Lanxi
      Branch, Agricultural Bank of China

              
	
                Dated:
      : March 30, 2010MAXIMUM
PLEDGE AGREEMENT

    

    Contract
No.: Max Collateral 2008-0001

    

    
      	
              Pledgee
      (full name):

            	
              Agricultural
      Bank of China Lanxi Branch

            

    

    

    
      	
              Debtor
      (full name):

            	
              Heilongjiang
      Lanxi Sunrise Linen Textile Industry Co.
Ltd

            

    

    

    
      	
              Pledgor
      (full name):

            	
              Heilongjiang
      Lanxi Sunrise Linen Textile Industry Co.
Ltd

            

    

    

    Whereas
the Debtor and the Pledgee will enter a series of credit/debt agreements (the
“Master Contract”), the Pledgor is willing to provide guarantee on the debt
obligations that the Debtor bears pursuant to the aforementioned Master
Contract.  In order to insure the realization of the Pledgee’s right,
the Parties, through friendly negotiations and consultations, have entered into
this Agreement (the “Agreement”) in accordance with our country’s “Guarantee
Law” and other relevant laws and regulations of China.

    

    Article
I            Maximum
Principal Debt Obligation Guaranteed

    1. The
Pledgor shall willingly provide guarantee, from March 21, 2008 to March 21,
2011, on the debt obligation, incurred in the stipulated transactions conducted
by the Debtor on the location of the Pledgee to a maximum of RMB
30,000,000.  The aforementioned period refers only to the period
during which the debt obligation occurred, excluding the due period of the debt
obligation.  Transaction in foreign currency shall be converted
according to the exchange offer rate on the day of the
transaction.   The aforementioned businesses
include:

    (x)
wiring of RMB/Foreign currency

    (x)
reduction or waiver of security deposit for issuing credit
certificate

    2. During the period and within the
maximum provided for herein, the Debtor may apply to use the aforementioned
credit funds and bank credit on a revolving basis. The commencement date, due
date, interest rate and amount shall be based on the loan certificate or a debt
claims under the Master Contract.  The due date for all transactions
that occur during the period stipulated herein shall not be beyond March 21,
2011.

    3. During the period and within the
maximum provided for herein, the Pledgee need not process guarantee procedures
each time when issuing loan and providing other bank credit.

    4. The Pledgor shall assume guarantor’s
responsibility for all transactions, irrespective of which currency, that occur
during the period and within the maximum provided for herein.

    

    Article
II          Scope of
Guarantee

    The scope
of the guarantee shall include the principal amount as well as the interests,
penalty interests, compound interests, damages for breach of the contract and
indemnifications and any and all costs and expenses,  including fees
for litigation, legal counsel and disposition of pledged property, incurred in
realizing the Pledgee’s creditor right.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
Pledgor shall be responsible for all amount in excess of the maximum due to
foreign exchange effect.

    

    Article
III         The Pledged
Items

    1. The
Pledgor agree to have ___Machinery Equipment and Real
Estate Property__ as pledged items; the list of the aforementioned
pledged items is the integral part hereof.

    2. The aforementioned pledged items
have the provisional assessed value of RMB 48,287,900, and their final value
shall be determined by the net proceeds when they are actually disposed to
realize the Pledgee’s right.

    

    Article
IV         Effect of the Pledgee
Right

    The effect of pledgee right extends to
the subordinate items, subordinate rights, subrogation rights, attached items,
co-mingled items, processed items and yield of the pledged items.

    

    Article
V          Possession of the
Pledged Items

    1.  The
pledged items remain in the possession of the Pledgor.  The Pledgor
has the responsibility to properly maintain the pledged items and the Pledgee
has the right to inspect the management of the pledged items.

    2. During the term of effectiveness
hereof, the Pledgor shall not gift, transfer, sell, lease, repledge or dispose
of the pledged items in any other form without the written consent of the
Pledgee.  The proceeds from the transfer, lease and sale of the
pledged items after obtaining the consent from the Pledgee shall be used to
repay the debt under the Master Contract or shall be placed in escrow with a
third party mutually agreed to by the two parties hereto.

    3. The Pledgor must take all effective
measure to control the damage or mitigate loss of the pledged items, should it
occur, during the terms of effectiveness hereof and must at the same time
promptly notify the Pledgee; all the compensation received by the Pledgor in
connection with such damage or loss shall be used first to satisfy the debt
obligation under the Master Contract.

    4. During the term of effectiveness
hereof, the Pledgor shall restore the reduction of the value of the pledged
items, should it occur, or provide additional guarantee on an amount determined
by the Pledgee corresponding to the reduction of the value of the pledged
items.

    

    Article
VI         Insurance on the Pledged
Items

    1. The pledged items must be carry
adequate insurance with the Pledgee as the primary beneficiary.  The
Pledgor must place the original documents of the insurance policies on the
pledged items into the care of the Pledgor.

    2. During the term of effectiveness
hereof, the Pledgor shall not suspend or cancel such insurance for any
reason.  If such insurance is suspended, the Pledgee shall have the
right to apply for insurance policies on behalf of the Pledgor and the Pledgor
shall bear responsibility for all the fees.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    3. If any risk event occurs to the
pledged items during the terms of the insurance policies, all insurance
compensation shall be used first to satisfy the debt obligation under the Master
Contract or be placed in escrow with a third party mutually agreed to by the two
parties hereto.

    

    Article
VII        Registration of
Pledge

    The Pledgor must process pledge
registration with the relevant registration organization within 5 days after the
execution hereof and hand over to the care of the Pledgee the original copies of
the associated right certificates and pledge registration documents on the
pledged items and all other rights certificates.

    

    Article
VIII      Realization of the Pledgee’s
Rights

    1, If at the end of the term of
fulfilling the debt obligations under the Master Contract, the Pledgee has not
been paid in full, the Pledgee shall have the right to be compensated first by
the proceeds from discounting the value of the pledged items in accordance with
the law or from auctioning or selling the pledged items.  The
aforementioned “the end of the term” includes circumstances in which the Pledgee
announces, pursuant to the provisions of the Master Contract or to the State
laws and regulation, to move forward the due date of the debt obligations under
the Master Contract.

    2, The Pledgee has the right to dispose
of the pledged items of any Pledgor if there are more than one
Pledgor.

    

    Article
IX         Breach of
Contract

    1. If, effectuation hereof, the Pledgee
and the Pledgor shall both carry out the obligations herein.  If any
one party that fails to carry out the obligations herein shall bear the
liability for the breach of contract and compensate the other party for all the
resulting loss.

    2. In the event of the occurrence of
any of the following, on the part of the Pledgor, that result in economic loss
to the Pledgee, the Pledgor shall make full compensation:

    (1) Withholding information on joint
ownership of, disputes on, seizure of, custodianship of and existing pledge on
the pledged items.

    (2) Disposing of the pledged items
without prior written consent from the Pledgee.

    (3) Other acts in violation of the
provisions herein.

    

    Article
X          Responsibility for
the Fees

    All the fees associated with the
registration, assessment, insurance, inspection and notary of the pledged items
hereunder shall be born by the Pledgor.

    

    Article
XI         Resolution of
Disputes

    Any
dispute arising out of the performance hereof may be settled through
consultation; if it needs to be submitted to legal proceedings, it shall be in
the jurisdiction of the Pledgee.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Article
XII       Miscellaneous

    The Master Contract, loan certificates
or other relevant claims certificate hereunder need not be delivered to the
Pledgor.

    

    Article
XII       Effectuation of the
Contract

    

    This
Contract shall be established when duly signed or sealed by the parties hereto
and shall become effective on the day of completion of the pledge
registration.

    

    Article
XIV

    This
Agreement is made in three duplicates with equal binding power. Each of the
Pledgee, Debtor and Pledgor shall hold one copy.

    

    Article
12 Notice

    The
Pledgee has caused the Pledgor and the Debtor to thoroughly and accurately
understand the provisions printed herein and has explained the provisions upon
the request of the Pledgor and the Debtor. The Parties have the same
understanding of the meaning herein.

    

    Pledgee:           Agricultural
Bank of China, Lanxi Branch (seal):

    Representative
or authorized agent:  ZHAO Yongyang (signature)

    

    Pledgor:           Heilongjiang
Lanxi Sunrise Linen Textile Industry Co. Ltd

    Representative
or authorized agent:  GAO Ren (signature)

    

    Date of
Execution:        March 21,
2008

    Place of
Execution:       Lanxi County
Branch

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