Document:

ex102.htm

EXHIBIT 10.2

 

Security Agreement

[Unofficial Translation]

 

    Code: CD110421

Party A: GOLDRIVER INDUSTRIAL HOLDING LIMITED

 

Party B: CHUANGDING INVESTMENT CONSULTING (SHENZHEN) CO., LTD.

Address:

To ensure the implement of the agreement (CD110421) (“main contract”) between NEW ENERGY SYSTEMS GROUP (“Debtor”) and Party B, Party A is willing to provide collateral to the debt formed in accordance with the main contract between Party B and the Debtor. Based on the relevant laws, regulations and rules, both Parties negotiated and reached the following agreement.

	
1.  

	
Collateral

Party A’s security is based on the Article 13 “Collateral List” of this agreement.

Party A warrants that it has ownership and disposition rights of the collateral.

Party A warrants that there is no ownership dispute on the collateral, nor is the collateral closed down or detained.

	
2.  

	
The scope of security

Debt principal of RMB 30 million and interest (including compound interest and penalty interest), penalty, damages, relevant expenses paid by Party B and all expenses which Party B spent to achieve debt and security (including but not limited to legal fees, arbitration fees, property preservation fees, travel expenses, implementation fees, assessment fees, auction fees and etc).

When the debtor fails to fulfill its obligations, Party B shall be entitled to request Party A to bear the responsibility within the scope of its guarantee, whether or not it claims any other security under the main contract (including but not limited to guarantee, mortgage, pledge, standby letter of credit and others).

 

	
3.  

	
The duration of the security

The duration of the security shall be terminated two years after the statute of limitations during which Party B can claims the outstanding debt.

  

1

  

 

	
4. 

	
Change of the main contract

Party A confirms that if Party B and the debtor agree to change the main contract, Party A shall be deemed to consent to such change in advance and Party A does not thereby waive its guarantee obligations, except the changes that:

	
a.  

	
Extend the debt performance period; or

	
b.  

	
Increase the principle amount of debt.

	
5.  

	
The independence of the effect of contract

The validity of this agreement is independent from the main contract. The main contact’s effect doesn’t affect this agreement. If the main contract is recognized as invalid, Party A bears the responsibility to the loss when the debtor returns the collateral.

	
6.  

	
Custody of collateral

During the duration of the security, Party A shall have the obligation to take care of the collateral, to keep the collateral in good condition and ready to accept Party B’s inspection. If any damage, loss or other situation caused the collateral’s value to decrease significantly, Party A shall inform Party B immediately and provide other collaterals of the same value within 7 business days.

	
a.  

	
With Party B’s consent to fix the collateral to recover its value;

	
b.  

	
To deposit with third party designated by Party B;

	
c.  

	
After Party A provides the new collateral in accordance with Party B’s request, the insurance compensation can be freely disposed of.

	
7.  

	
Third party’s damage compensation

During the duration of the security, if the decrease of collateral’s value is caused by a third party, the compensation shall be deposited into Party B’s designated account. Party A agrees that Party B has the following options and should assist with the relevant process:

	
a.  

	
Discharge or early repayment  of the debt principal, interest and related cost under the main contract;

	
b.  

	
Transfer to deposit and use the deposit certificate as collateral;

	
c.  

	
With Party B’s consent, repair the collateral to recover its value;

	
d.  

	
Deposit to Party B’s designated third party;

	
e.  

	
After Party A provides the new collateral in accordance with Party B’s request, the insurance compensation can be freely disposed of.

During the security period, any third party’s activity caused the insufficient value of collateral, Party A should re-provide new collateral which Party B agreed. Part of collateral whose value did not decrease shall remain as collateral of debt.

 

  

2

  

 

	
8.  

	
Disposal of collateral

	
a.  

	
During the duration of the security, without Party B’s permission, Party A shall not grant, transfer, lease, use as collateral for another debt, transfer or otherwise dispose of the collateral under the contract.

	
b.  

	
During the duration of the security, Party A shall obtain written consent from Party B before disposition of the collateral. Party A agrees that Party B has the right to choose between the following ways of disposal:

	
1)  

	
Settle or early repayment of debt principal, interest and related costs under the main contract;

	
2)  

	
Transfer into deposit and use the deposit certificate as collateral;

	
3)  

	
Deposit to Party B’s designated third party;

	
4)  

	
After Party A provides the new collateral in accordance with Party B’s request, the insurance compensation can be freely disposed of.

	
9.  

	
The realization of the right to collateral

When the following situation happened, Party A agrees that Party B shall have the right to auction, to sell at a discount or to sell the collateral:

	
a.  

	
The repayment of all or part of the principal or interest under the main contract are due and Party B does not receive the repayment;

	
b.  

	
Other situations where Party B can realize its debt claims ahead of schedule under the main contract.

Whether through sell at a discount or auction of the collateral, if the sale value of the collateral is lower or higher than the agreed value, the scope of the security is based on the realized value of the collateral. Party B shall have the priority right.

   

	
10.  

	
Default and process

During the duration of the security, if Party A breaches the first, sixth, seventh, eighth, and ninth articles, Party B shall have the right to ask Party A to correct within a specific period, provide appropriate security, compensate for the damages, and the right to dispose the collateral in advance.

Party A agrees that Party B shall choose the following methods:

	
a.  

	
Settle or early repayment of debt principal, interest and related costs under the main contract;

	
b.  

	
Transfer into deposit and use the deposit certificate as collateral;

	
c.  

	
Deposit to Party B’s designated third party;

	
d.  

	
After Party A provides the new collateral in accordance with Party B’s request, the insurance compensation can be freely disposed of.

	
11.  

	
Expenses

The assessment, notary, insurance, registration, identification, storage, and escrow and other expenses under this agreement shall be borne by Party A.

	
12.  

	
The applicable law and dispute resolution

The agreement is governed the laws of PRC.

The dispute shall be settled through negotiation. Otherwise, it shall be resolved by the method 1 of the following:

	
a.  

	
File a suit in Party B’s local court.

	
b.  

	
File for arbitration with Shenzhen Arbitration Commission (the place of arbitration is in Shenzhen) based on the Commission’s current regulation.

	
c.  

	
File for arbitration with China International Economic and Trade Arbitration Commission (the place of arbitration is in Shenzhen) based on the Financial Disputes Arbitration Rules.

During the arbitration, the articles of the contract which are involved in the dispute shall be performed.

 

  

3

  

 

	
13.  

	
Collateral lists

As following:

   Collateral list

	
Name

	
Certificate and number

	
Location

	
Value shown on the invoice of collateral

	
Appraisal value of collateral

	
The value which has been set up for other security

	
Note

	
New Energy Systems Group

	  	  	  	  	  	  

 

	
14.   

	
The contact shall become effective after fulfilled the following conditions

a. This agreement shall be signed and sealed by both Parties

b. The “Collateral list” in this agreement which need to register has been registered.

 

	
15.   

	
This agreement has 4copies.

 

	
16.   

	
Statement terms

a. Party A is clearly aware of the scope of Party B’s business and authorized scope of business.

b. Party A has read all the terms of the agreement and paid particulate attention to the contract terms in black font. Based on Party A’s request, Party B has made the corresponding explanations. Party A fully understands the terms of this agreement and the legal consequences.

c. Party A is authorized to sign this agreement.

Party A (Official Seal):

Legal representative or Authorized person: Weihe Yu

 

	 	 	 	4/21/2011	 

 

Party B (Official Seal):

Legal representative or Authorized person: Qin Liu

 

	 	 	 	4/21/2011	 

 

 

 

 

4ex103.htm

EXHIBIT 10.3

Guarantee Letter

(Natural Person Guarantee)

[Unofficial Translation]

 

 

To: CHUANGDING INVESTMENT CONSULTING (SHENZHEN) CO., LTD. (Lender)

In order to ensure the implement of the loan contract (Contract number: CD110421) between the lender and New Energy Systems Group (Borrower) on April 21, 2011 (Hereinafter referred to as “Main contract.” The amount of the loan is RMB 30 million with a term of 730 days. The annual interest rate is 10%, starting from the borrowing date.), the guarantor (Weihe Yu) is willing to act as the guarantor of the main contact and bear joint responsibility. The content of the guarantee is as following:

 

	
1.  

	
The scope of the guarantee: include the principal of the loan (according to the amount disclosed in the main contract), interest, penalty, damages and litigation or arbitration fees which the lender pays to realize its creditor’s rights, property preservation costs, evidence preservation costs, enforcement costs, assessment fees, auction fees, appraisal fees, legal fees, travel expenses, investigation, evidence collection fees, and etc.

	
2.  

	
The guarantor promises: if the borrower fails to pay back all the debt in accordance with the time and method in the main contract, the guarantor shall bear joint responsibility in accordance with the scope indicated in section 1 (including, but not limited, to loan principal, interest, and penalty) after receiving “Guarantee Responsibility Notice” from the lender. If the borrower cannot pay back the debt within the period above, the guarantee shall legally bear joint responsibility to the debt within the scope of guarantee.

	
3.  

	
This guarantee is independent. It shall not be affected by the invalidity of the main contract or partial invalidity of the main contract. It shall not be affected or become invalid due to any modification, supplementation or deletion of the main contract. The guarantor shall still bear joint responsibility for the debt occurred under the main contract. The guarantor has received, read, and understood the main contract. The guarantor has no objection to the main contract. The guarantor does not have any defense right to the main contract.

	
4.  

	
The term of this guarantee is two years, starting from the date of maturity of the main contract. (If any matters caused the main contact to become due earlier than the date of maturity pursuant to laws, regulations and main contract, the two year term of this guarantee shall start from the date when the main contract becomes due.)

	
5.  

	
The guarantor confirms and guarantees:

	
a.  

	
The guarantor’s financial position is sufficient to assume the responsibilities listed in this guarantee letter;

	
b.  

	
The guarantor is willing to use all his assets (including family property) to assume the joint guarantee responsibilities;

	
c.  

	
The guarantor agrees to provide a list of all properties to the lender and ensure that he has the full ownership or disposing rights for all the listed property. Beginning on the signature date of this guarantee letter, without lender’s permission, the guarantor cannot dispose the above mentioned property (including mortgage, pledge, transfer, lease and etc). If the lender deems necessary, he can implement insurance, mortgage, pledge, and lease to parts of the property. The guarantor promises to assist with the registration procedures (if a mortgage or pledge is set on the properties, then the parties shall enter into a separate mortgage or pledge guarantee contract);

	
d.  

	
If all the assets listed above are insufficient to guarantee the responsibility owed to the lender, the guarantor promises to bear the responsibility to pay back the insufficient part until all the items stated in section 1 of this guarantee letter are cleaned.

	
6.  

	
The responsibilities listed in this letter shall not be changed if the borrower’s civil capacity is lost or restricted. It shall not be limited by any contract, agreement, and document which the borrower enters into with others. It shall not be changed due to bankruptcy, insolvency, the loss of corporate status, the amendment of article of corporation of the borrower. It shall not be affected due to the lender’s forfeiture or change of the other guarantee rights listed under the main contract. This guarantee shall remain in effect during the guarantee term.

	
7.  

	
If there are any dispute arising out of the implementation of this guarantee letter, both sides should actively negotiate a settlement. Otherwise, either party shall have the right to start a proceeding in the people court with jurisdiction of the main contract (the local court where this guarantee letter was signed).

	
8.  

	
This guarantee letter shall become effect once the guarantor signed.

 

	 	Guarantor: Weihe Yu (Signature, finger print)
	 	 
	 	Date: 4/21/2011
	 	 
	 	Signature Location: Futian District, Shenzhen City
	 	 
	 	 

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]