RMB Borrowing Contract

China Construction Bank Fujian Branch

Article 1

Borrowed Amount

Article 2

Use of Borrowing

Article 3

Term of Borrowing

Article 4

Loan Rate, Penalty Rate, Interest Accruals, Interests Settlement

 

I.

Loan Rate

 

II.

Penalty Rate

 

III.

The “Interests Commencement Date” as mentioned in this Article shall mean the date when the initial loan hereunder is transferred to the account as designated by Party A.

 

IV.

The loan interests will be added from the date when the loan is transferred to the account as designated by Party A. The loan interests hereunder will be added on a daily basis at the daily rate equaling to annual rate/360. If Party A fails to pay the interest accruals on the Interests Commencement Date as specified in this Contract, the compound interests will be added from the day following such Interests Commencement Date.

 

V.

Interests Settlement

 

(I)

  If the loan is granted at a fixed rate, the interest accruals will be added according to the rate as agreed by the parties when such interest accruals are settled. If the loan is granted at the floating rates, the interest accruals will be added according to a floating rate determined for a certain period; and if there is more than one floating rate in a single interest settlement period, it is required to figure out the interest accruals of each floating period in the first instances, and then to count the sum of interest accruals of all floating periods in such single interest settlement period on the Interests Commencement Date.

 

(II)

Please refer to Article 18 hereof.

Article 5

Issuance and Drawing of Borrowing

 

I.

Precedent Conditions for Issuance of Borrowing

 

II.

Plan of Use (“Use Plan”)

 

III.

Party A shall use the loan subject to the Use Plan as specified in II above. Unless otherwise agreed by Party B in writing, Party A shall not get in advance, delay, divide or cancel the drawing in any way.

 

IV.

If Party A use the loan by installment, the expiry date of the term of borrowing shall be determined subject to Article 3 hereof.

Article 6

Repayment

I.

Principles of Repayment

II.

Payment of Interest Accruals

III.

Principals Repayment Schedule

IV.

Repayment Method

V.

Advance Repayment

 

(I)

Party A may repay the principals in whole or part in advance upon consents of Party B by sending a written application to Party B twenty working days in advance.

 

(II)

Please refer to Article 22 hereof.

Article 7

Rights and Obligations of Party A

I.

Rights of Party A

(II)

Party A shall be entitled to use the borrowing subject to this Contract.

(III)

Party A shall be entitled to apply to Party B for extension of the borrowing provided that requirements of Party B have been satisfied.

(IV)

Party A shall be entitled to request Party B to keep confidential relevant financial information and trade secrets concerning the production and operation as provided by Party A, unless otherwise as provided by laws and regulations, or as required by competent authorities, or as agreed by the parties hereto.

(V)

Party A shall be entitled to reject any bribes as requested by Party B and its work personnel, and to report to competent authorities any such request or violation of laws and regulations concerning applicable credit loan rate and service charges by Party B.

II.

Obligations of Party A

(I)

Party A shall draw the borrowing and pay the principals and interest accruals thereon in full subject to this Contract, as well as bear all applicable fees hereunder.

(II)

Party A shall provide all information concerning its finance and accounting, production and operation at the request of Party B, including but not limited to providing Party B with its balance sheets, profit and loss statements (income and expenditure statements in the event of a public institution) as at the end of the immediately preceding quarter within the first twenty working days in the beginning of the first month of each quarter, as well as providing its cash flow statements of the year at the end of such year in a timely manner. Furthermore, Party A shall ensure that all the information provided by it is lawful, true, complete, accurate and valid, free of false information, or without concealing material operating and financial matters.

(III)

If Party A changes or replaces its name, legal representative (responsible officer), registered address, scope of business, registered capitals or articles of association by completing any such change and/or replacement in the registration with the Administration for Industry and Commerce, it shall send a written notice to Party B together with the information concerning such change or replacement within five working days upon occurrence of any such change or replacement.

(IV)

Party A shall use the borrowing according to this Contract other than engaging in any transactions in violation of laws and rules by embezzling, misusing or misappropriating the borrowing; meanwhile, it shall coordinate and accept the inspection and monitoring by Party B over its production, operation, financial activities and use of borrowing hereunder. And it shall not avoid its obligations owed to Party B by taking out capitals, transferring assets or taking advantage of related transactions, nor make banking discount or create charges for getting capitals or credits from a bank by taking advantage of false contracts with its related parties, or receivable notes and receivables lack of actual transactions.

(V)

Party A shall comply with applicable environment protection regulations of the PRC if it conducts manufacture and engineering construction by using the borrowing hereunder.

(VI)

Before paying the principals and interest accruals thereon to Party B, Party A shall not create a guarantee in favor of a third party on the assets created by using the borrowing hereunder without prior consents of Party B.

(VII)

If Party A is a group company, it shall report to Party B its related transactions accounting for more than 10% of its net assets in a timely manner, including (i) related relationships among trading parties; (ii) trading projects and nature; (iii) trading amount or corresponding proportions; (iv) pricing policies (including transactions lack of consideration or nominal transactions).

(VIII)

If the loan hereunder is issued as the fixed-asset loan or project loan, Party A shall ensure that (i) the proposed project has been obtained with approvals of relevant government authorities and will not violate any laws and regulations, (ii) capitals or other raisings will be contributed in full subject to the specified deadline and proportions, and (iii) the project will be completed according to the schedule.

Article 8

Rights and Obligations of Party B

I.

Party B shall be entitled to request Party A to pay the principals, interest accruals thereon and fees therefrom as scheduled, and to exercise other rights hereunder, and to request Party A to perform other obligations hereunder.

II.

Party B shall issue the loan subject to this Contract, unless otherwise delayed for the reasons attributed to Party A or other reasons not attributed to Party B.

III.

Party B shall keep confidential relevant financial information and trade secrets concerning the production and operation as provided by Party A, unless otherwise as provided by laws and regulations, or as required by competent authorities, or as agreed by the parties hereto.

IV.

Party B shall not bring, nor get or accept any bribe to and from Party A and its work personnel.

V.

Party B shall not create any bad faith that may damage the legal benefits of Party A.

Article 9

Breaching Liability, Remedies in the event of circumstances that may endanger Party B's claims

I.

Breach by and Breaching Liability of Party B

(I)

Party A may request Party B to continue to issue the loan subject to this Contract provided that Party B fails to issue the loan subject to this Contract without any justified reasons.

(II)

In the event Party B charges any interest accruals and fees from Party A by violating laws, regulations or limitations of the PRC, Party A shall be entitled to request Party B to refund any such interest accruals and fees.

II.

Breach by Party A

(I)

Party A has breached any provision hereof, or any of its legal obligations.

(II)

Party A will not perform any of its obligations hereunder by express or through other acts.

III.

Circumstances that may endanger Party B's claims

(I)

Party B may consider that its claims are endangered under any of the following circumstances in relation to Party A: contracting, trusts (take-over), release, shareholding reforms, reduction of registered capitals, investments, joint operation, consolidation, merger, acquisition and restructuring, division, joint venture, petition (or being petitioned) for shut-down for reorganization, dissolution, cancellation and/or bankruptcy, replacement of controlling shareholders/actual controllers, transfer of material assets, suspension of production, out-of-business, penalties in high amount by competent authorities, cancellation of registration, withdrawal of business license, involvement in material legal disputes, material difficulty in manufacture and operation, or  worse conditions of finance, incapability of performing their duties by legal representative or main responsible officer.

(II)

Party B may consider that its claims hereunder are endangered under any of the following circumstances: Party A fails to perform other due obligations (including the obligations due and payable to all institutions of China Construction Bank or other third parties); or it transfers its properties in a low price or without any consideration, or reduces or releases the obligations of a third party; or it fails to exercise its credit rights or other rights, or grants a guarantee in favor of a third party.

(III)

Party A's shareholders avoid the obligations by abusing the independent standing of the legal person or the limited liability of shareholders, according to which Party B considers that its claims hereunder are endangered.

(IV)

Any of the precedent conditions hereunder for issuance of the borrowing has not been satisfied at any time.

(V)

Party B may consider that its claims hereunder are endangered under any of the following circumstances of the guarantor:

i.

The guarantor has breached any provision hereof, or any of its statements and warranties is false, wrong or missing.

ii.

The guarantor has met any of the followings: contracting, trust (take-over), release, shareholding reforms, reduction of registered capitals, investments, joint operation, consolidation, merger, acquisition and restructuring, division, joint venture, petition (or being petitioned) for shut-down for reorganization, dissolution, cancellation and/or bankruptcy, replacement of controlling shareholders/actual controllers, transfer of material assets, suspension of production, out-of-business, penalties in high amount by competent authorities, cancellation of registration, withdrawal of business license, involvement in material legal disputes, material difficulty in manufacture and operation, or  worse conditions of finance, incapability of performing their duties by legal representative or main responsible officer that may affect its guarantee capability.

iii.

Other circumstances in which the guarantor loses or may lose its guarantee capability.

(VI)

Party B may consider that its claims hereunder are endangered if the mortgage and/or pledge meets any of the following circumstances:

i.

The mortgaged and/or pledged properties are damaged or lost, or their values are reduced by virtue of acts of a third party, or expropriation, forfeit, confiscation, withdrawal without any consideration and/or removal by the State, or changes of marketing conditions or any other reasons.

ii.

The mortgaged and/or pledged properties are sealed, detained, frozen, deducted or created with a lien, or under the monitoring of administrative authorities, or under disputes concerning the titles of the same.

iii.

The mortgagor and/or pledger have breached any provision of the mortgage and/or pledge contract, or any of their statements and warranties is false, wrong or missing.

iv.

Other circumstances that may endanger the mortgage or pledge rights of Party B.

(VII)

The guarantee is not created, does not come into effect, becomes null and void, or is cancelled or rescinded, or the guarantor breaches this Contract or will not perform its guarantee liability through its express acts, or the guarantor loses its guarantee capability in part or whole, or the value of collaterals is reduced, according to which Party B considers that its claims hereunder are endangered; or

(VIII)

Other circumstances in which Party B considers that its claims hereunder may be endangered.

IV.

Remedies by Party B

(I)

Cease the issuance of loan;

(II)

Declare the loan to become due with immediate effect, and request Party A to immediately pay all due and undue principals, interest accruals thereon and fees therefrom under this Contract;

(III)

Please refer to Article 23 hereof;

(IV)

Charge interest accruals and compound interests at the penalty rate and according to the interests settlement methods as specified in this Contract for the borrowing misappropriated by Party A from the date when the loan is not used pursuant to this Contract, to the date when all principals and interest accruals thereon have been paid in full, provided always that, Party A fails to use the borrowing pursuant to this Contract;

(V)

In the event of overdue repayment, charge interest accruals and compound interests at the Penalty Rate and according to the interests settlement methods as specified in this Contract for the principals and interest accruals thereon that have not been paid by Party A as scheduled (including such principals and interest accruals thereon as are declared by Party B to become due earlier in whole or part), from the date of such overdue repayment, to the date when all principals and interest accruals thereon have been paid in full. “Overdue Repayment” shall mean that Party A fails to repay the borrowing as scheduled or repays the principals by going beyond the repayment schedule for each installment.

(VI)

Other remedies, including but not limited to:

i.

Take applicable amount in RMB or other currencies from accounts of Party A opened with China Construction Bank, without any further advance notice to Party A;

ii.

Exercise its rights on the guarantees;

iii.

Request Party A to provide new guarantees conforming to Party B's requirements for all of its obligations hereunder;

iv.

Terminate this Contract.

Article 10

Miscellaneous

I.

Bearing of Fees

II.

Use of Party A's Information

III.

Collection by Announcement

IV.

Validity of Evidences of Party B's Records

V.

Reservation of Rights

VI.

If Party A bears other due obligations to Party B in addition to the obligations hereunder, Party B shall be entitled to take any amount in RMB or other currencies from the accounts of Party A opened with China Construction Bank for paying any due obligations in the first instance, to which Party A has agreed to have no objection.

VII.

Party A shall promptly notify Party B in writing of its changed mailing address or contact details, and shall bear the losses arising out of its failure to send the above notice in a timely manner.

VIII.

Drawing of Payables

IX.

Conditions for Effectiveness

X.

Party A represents that it has not conducted any activity or met any circumstance in violation of any laws, regulations and rules concerning environmental protection, energy savings or emission reduction, pollution reduction as at the execution of this Contract, and undertakes to strictly comply with such laws, regulations and rules after this Contract is signed. If any of the above representations is false or if any of the above undertakings is not performed, or if Party A may meet energy consumption or pollution risks, Party B shall be entitled to cease its credits to Party A (including but not limited to rejecting in issuing the loan, providing finances, opening L/G or L/C or bank acceptance drafts), or to declare the loaned principals and interest accruals thereon (including but not limited to loans, finances, advances that have been or may be made) to become due earlier, or to take other remedial measures as provided in this Contract or laws.

Article 11

Representations

I.

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

II.

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

III.

Execution of this Contract and performance of its obligations hereunder by Party A meet laws, administrative regulations, rules or its articles of association or internal organization documents, and have been obtained with approvals from its internal authorized department and/or competent authorities of the State.

Article 12

Particulars of Contractors

Article 13

Provision for Article 1

Article 14

Provision for Article 2

Article 15

Provisions for Article 3

Article 16

Provisions for I of Article 4

(I)

Fixed rate, i.e.,        %, which will remain unchanged during the term of borrowing;

(II)

Fixed rate, i.e., down (“up” or “down”) by 10  % from prime rate of the Interests Commencement Date, which will remain unchanged during the term of borrowing;

(III)

Floating rate, i.e.,        (“up” or “down”) by        % from prime rate of the Interests Commencement Date, which will be adjusted according to the prime rate of the date when the rate is adjusted (“Rate Adjustment Date”) and the above up/down rate every       month from the Interests Commencement Date to the date when the borrowing hereunder is repaid in full. The Rate Adjustment Date, corresponding to the Interests Commencement Date, shall be the date in the month in which the rate is adjusted. If there is no such date in the month corresponding such Interests Commencement Date, the final day of such month shall be treated as the Rate Adjustment Date.

Article 17

Provisions for II of Article 4

(I)

If Party A fails to use the loan pursuant to this Contract, the penalty rate will be increased by 100% based on the loan rate. If the loan rate is adjusted according to (III) of I of this Article, the penalty rate will be adjusted according to the adjusted loan rate and the above increase.

(II)

The penalty rate is increased by 50% based on the loan rate for the overdue repayment. If the loan rate is adjusted according to (III) of I of this Article, the penalty rate will be adjusted according to the adjusted loan rate and the above increase.

(III)

In the event of simultaneous overdue repayment and misappropriation, the penalties and compound interests shall be added according to the above rates, whichever is higher.

Article 18

Provisions for (II) of V of Article 4

i.

Monthly interests settlement: The Interests Settlement Date shall be the 20th day of each month;

ii.

Quarterly interests settlement: The Interests Settlement Date shall be the 20th day of the final month of each quarter;

iii.

Other methods Not Applicable.

Article 19

Provisions for I of Article 5

i.

Party A has obtained and/or completed approvals, registration, delivery, insurance and other legal formalities in relation to the loan hereunder.

ii.

If a guarantee is created in favor of this Contract, such guarantee meeting Party B's requirements has come into effect and will keep effective all the times.

iii.

Party A has opened an account to be used for drawing and repaying the loan at the request of Party B.

iv.

Party A has not caused any breach as specified in this Contract, nor met any circumstance as specified in this Contract that may endanger the claims of Party B.

v.

Party B is not prohibited or limited from issuing the borrowing hereunder by laws, administrative regulations, rules or competent authorities.

vi.

Other conditions: Not Applicable.

Article 20

Provisions for II of Article 5

Article 21

Provisions for III of Article 6

Article 22

Provisions for (II) of V of Article 6

i.

Compensations = Principals repaid in advance x number of advance months x 1‰. In the event of less than one month, one month shall prevail for the purpose of such compensations.

ii.

Article 23

Provisions for (III) of IV of Article 9

Article 24

Dispute Resolutions

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 25

This Contract is made in three counterparts.

Article 26

Other Provisions

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

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

Signed by Legal Representative (Responsible Officer) or Authorized Agent: Wu Licong    

Signed by Responsible Officer or Authorized Agent: Chen Yixin

September 16, 2010

September 16, 2010

Article 1

Guaranteed Scope and Maximum Claims

 

I.

The Maximum Guarantee covers all the obligations under the principal contracts, including but not limited to all the principals, interests accruals thereon (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), 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 11 hereof.

 

III.

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

Article 2

Method of Guarantee

Article 3

Period of Guarantee (“Guarantee Period”)

 

I.

The Guarantee Period hereunder shall be independently and separately determined subject to a single credit granted to the debtor by Party B, namely, the Guarantee Period shall be two years from the date of the signing of a principal contract on a single credit business, to the due date of the debtor's obligations under such principal contract.

 

II.

If Party B and the debtor enter into an extension agreement for performance of obligations under the principal contract, the Guarantee period shall be two years from the due date of performance of obligations under such extension agreement. It is not required to obtain the Guarantor's consents for such extension, and the Guarantor shall still bear the joint and several liabilities as before.

 

III.

If Party B declares the obligations to become due earlier by virtue of occurrence of circumstances as provided in laws, regulations or principal contracts, the Guarantee Period shall be two years from the date when the obligations become due earlier.

Article 4

Independence of Guarantee Contract

Article 5

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 to the extent of the Maximum Guarantee and the guaranteed scope hereunder.

 

II.

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, the guarantees hereunder shall be transferred as well.

 

IV.

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

Article 6

Guarantee Liability

 

I.

Please refer to Article 12 hereof.

 

II.

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 the principal contracts by a third party, or of other guarantees granted by the debtor.

 

III.

If the Maximum Guarantee hereunder is less than the balance of the actual claims under the principal contracts, and if the claims under the 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.

(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 the 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.

 

IV.

Party A has fully recognized the 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 the principal contracts or based on changes of national rate policies, Party A shall bear joint and several liability for the extra part.

 

V.

If the debtor, in addition to the obligations under 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 7

Other Obligations of Party A

 

I.

Party A shall monitor the use (application) of borrowings by the debtor, and shall allow Party B to monitor its funds, properties and operating conditions. Meanwhile, Party A shall provide relevant information such as financial statements, documents, data at the request of Party B, and shall ensure the accuracy, truth, completeness and validity of the same. Without prior written consents of Party B, Party A shall not grant any guarantee to a third party beyond its capacity.

 

II.

Party A shall send a written notice to Party B in a timely manner, and make sure the bearing, transfer or succession of its guarantee liability hereunder at the request of Party B, or provide new guarantees acceptable to Party B in favor of the performance of principal contracts if Party A conducts contracting, trusts (hand-over), leases, shareholding reforms, reduction of its registered capitals, investments, joint operation, consolidation, merger, acquisition and restructuring, division and joint venture, or if it petitions (is petitioned) for suspension for reorganization, or if it applies (is applied) for dissolution or bankruptcy, or if it is cancelled, or if its controlling shareholders/actual controllers are replaced, or if its material assets are transferred, or if it meets shut-down or out-of-business, or if heavy fines are imposed against it by the competent authorities, or if its registration or business license is cancelled, or if it is involved in material legal disputes, or if it meets severe difficulty in its production and operation, or if its financial conditions become worse, or if its legal representative or main responsible officer is unable to perform their duties, or if it loses or may lose its guarantee capability for any reasons.

 

III.

If Party A changes or replaces its name, legal representative (responsible officer), residence, scope of business, registered capitals, articles of association or other registered items, it shall send a written notice to Party B within five business days upon any such change or replacement, together with information and materials in relation any such change or replacement.

Article 8

Miscellaneous

 

I.

Drawing of Payables

 

II.

Use of Party A's Information

 

III.

Collection by Announcement

 

IV.

Validity of Evidences of Party B's Records

 

V.

Reservation of Rights

 

VI.

Dissolution or Bankruptcy of Debtor

 

VII.

Dissolution or Bankruptcy of Party A

VIII.

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

 

IX.

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.

 

X.

Conditions for Effectiveness

Article 9

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 the losses caused to Party B.

 

IV.

Party A confirms that it has fully known and understood the 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 the principal contracts.

Article 10

Particulars of Contractors

Article 11

Provisions for II of Article 1

Article 12

Provisions for I of Article 6

Article 13

Dispute Resolutions

 

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 14

This Contract is made in three counterparts.

Article 15

Miscellaneous