Guaranty Letter Regarding Dividend Distribution by Shanxi Jianhe Coal Industry Limited Company to Shanxi Puda Coal Group Co., Ltd.

Contract Categories: Business Finance › Guaranty Agreements
Summary

This agreement involves Shanxi Jianhe Coal Industry Limited Company guaranteeing to Shanxi Puda Coal Group Co., Ltd. that at least 80% of the company's annual net profit will be distributed as dividends, with payments made twice a year in January and July, starting from 2009. If the company fails to prepare its financial statements on time, Shanxi Puda Coal Group Co., Ltd. may take over the financial work to ensure dividend distribution. The agreement is part of a share transfer involving Li Jingquan, Feng Ming, and Chen Guang.

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EX-10.2 3 ex10-2.htm GUARANTY LETTER
Exhibit 10.2
Guaranty Letter

On May14, 2009, Assigner Li Jingquan and Feng Ming, assignee Shanxi Puda Coal Group Co., Ltd. (Party B) and Guarantee Chen Guang  sign the Agreement of Shares Transfer, which states that Assigners Li Jingquan and Feng Ming transfer 18% shares of Shanxi Jianhe Coal Industry Limited Company to the Assignee Shanxi Puda Coal Group Co., Ltd., as the main shareholder of Shanxi Jianhe Coal Industry Limited Company, guarantee Chen Guang makes commitments in the Agreement of Shares Transfer that annual dividend distribution shall not less than 80% of net profit in the year from calendar year of 2009; dividend is distributed twice respectively in January and July in each calendar year. To fulfill this commitment, Shanxi Jianhe Coal Industry Limited  Company guarantees that:

1. Annual dividend distribution shall not less than 80% of net profit in the year from calendar year of 2009; dividend is distributed twice respectively in January and July in each calendar year. Financial statement of the company shall be completed prior to January 10 and July 10 in each calendar year.

2. If the company fails to complete financial statement on the date as specified above, the company agrees to hand over financial works to Shanxi Puda Coal Group Co., Ltd. who then shall be responsible for completion of financial statement and distribution of company’s dividend in that period.


Guarantee: /s/ Shanxi Jianhe Coal Industry Limited Company (chop)

Date: May 14, 2009