FORM OF GUARANTEE AGREEMENT (For Corporation) BANK OF LUOYANG
Exhibit
10.43
Luo Yin
(2010) Nian [Zhengzhou Fen] Hang Bao Zi No. 100202D210001000B
FORM OF
GUARANTEE AGREEMENT
(For
Corporation)
BANK OF
LUOYANG
Guarantor:
Creditor:
Zhengzhou
Branch of the Bank of Luoyang
In order
to ensure the proper performance of the obligation of Henan Shuncheng Group Coal
Coke Co., Ltd (hereafter referred to as “Debtor”) under the principal
Agreement (Luoyin 2010
Zhengzhou Fenhang Jie zi No. 2100010) entered into with the creditor and
to ensure the realization of the creditor’s right of the creditors, the
guarantor intends to provide the security of the debt under the principal
Agreement entered into by the both parties. The guarantor and the creditor, upon
consensus through the consultation on the basis of equality in accordance with
Contract Law of People’s Republic of China, Security Law of People’s Republic of
China and other relevant laws and regulations, enter into this
Agreement.
Article
1 Type and Amount of the Principal Creditor’s Right to be Secured
1.1
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(X)The
principal creditor’s right to be secured hereunder refers to the loan
released by the creditor in accordance with the principal Agreement, under
which the principal is RMB 20,000,000.00.
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1.2
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( )The
principal creditor’s right to be secured hereunder refers to the
difference between the amount of the bank acceptance issued by the bank
and the deposit in the bank acceptance, under which the principal is
RMB /
(please refer to the principal agreement for more
details).
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Article
2 Guarantee Method
2.1
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The
guarantor shall bear the joint and several security
liabilities.
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Article
3 Guarantee Scope
3.1
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The
scope to be secured hereunder shall include the principal and interest
(including compound interest and default interest), liquidated damages,
damage awards and expenses incurred due to the realization of creditor’s
right by the creditor (including but not limited to expenses or fees of
litigation, arbitration, property preservation, assessment, auction,
execution and business travel).
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Article
4 Duration of the Guarantee
4.1
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Two
years commencing from the date the principal coming into effect to
expiration date of the implementation of the
debt.
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4.2
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Where
the guarantor agrees the extension of the credit the duration of the
guarantee shall be two years until the expiration date of the
implementation of the debt provided in the extension
agreement.
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4.3
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In
the event that the creditor calls in the loan in advance in accordance
with the principal Agreement the duration of the guarantee shall be two
years from the second day of the notice issued by the creditor to the
debtor for repayment.
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4.4
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Where
the loan shall be repaid by installments according to the principal
Agreement, the duration of the guarantee shall be two years from the due
date of the whole loan.
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Article
5 Rights and Responsibilities of the Guarantor
5.1
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The
guarantor shall provide the relevant financial and accounting materials
and production and operation situation materials and shall be liable of
the authenticity, integrity and effectiveness of such materials, according
to the requirements of the
creditor.
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5.2
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The
guarantor shall actively cooperate with the creditor to supervise the
usage situation of the xxxx of exchange of the
applicant.
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5.3
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During
the period of the guarantee, in the event that the name of the guarantor,
residential address, legal representative (responsible person),
shareholder, business scope, registered capital change, and cease of
production, business suspension, logout registration, withdrawal of the
business license, illegal activities conducted by the legal representative
or main responsible person, involvement of the major law suits, great
difficulties in the production or business operation or aggravating
financial situation occurs to the guarantor, it shall promptly notice the
creditor in writing.
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5.4
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During
the period of the guarantee, in the event that contract with, lease,
re-organization according to modern corporate system, co-operation, merge
and acquisition, dissolution, joint venture, filling for suspension
business for rectification and bankruptcy and shareholding transfer occurs
to the guarantor it shall notice the creditor 60 days in advance in
writing and obtain the written consent of the
creditor.
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5.5
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During
the period of the guarantee, the guarantor shall not provide the security
which exceed the security ability of the guarantor to any other party
without the written consent of the creditor, or provide the mortgage or
lien on its major assets for itself, which could influence the security
ability under this Agreement.
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5.6
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In
the event that the creditor declares the expiration of the debt in advance
or termination of the Agreement, the guarantor shall bear the security
liabilities according to the requirements of the
creditor.
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5.7
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The
counter guarantee Agreement entered into by and between guarantor and the
debtor with respect to the security hereunder shall not harm the rights of
the creditor under the principal Agreement and this guarantee
Agreement.
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Article
6 Rights and Responsibilities of the Creditor
6.1
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The
creditor shall have the right to require the relevant documentation that
could certify its legality and reflect its financial and credit
situation.
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6.2
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As
for all of the payable funds under the guarantee, the guarantor agrees
that the creditor withdraw the corresponding amount of funds from the bank
account in Bank of Luoyang of the
guarantor.
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6.3
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The
guarantor verifies that in the case that the debtor fails to repay the
debt, whether other securities concerning to the credit under the
principal Agreement exist (including but not limited to the guarantee,
mortgage and lien), the creditor shall have the right to require the
guarantor directly to bear the guarantee liabilities within the extent of
the guarantee.
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6.4
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The
creditor, in accordance with the provisions of the principal Agreement,
have the right to require the guarantor to bear the guarantee liabilities
from the second day on which the creditor declare the expiration of the
debt in advance or termination of the principal
Agreement.
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6.5
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During
the term of this Agreement, in the event that the creditor’s right is
transferred to a third party in accordance with the laws, the creditor
shall notice the guarantor in time and require the guarantor to issue the
written consent certificate.
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Article
7 Effectiveness, Modification, Cancellation and Termination of the
Agreement
7.1
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This
guarantee Agreement will become effective upon the signature of the legal
representative (responsible person) or authorized representative of the
guarantor or affixing of the official seal and the signature of the person
in charge or authorized representative and affixing of the official seal
of the creditor
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7.2
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The
guarantor acknowledges that should the creditor and the debtor agree to
modify the provisions of this Agreement, such modifications shall be
considered to have obtained the consent of the guarantor and the guarantee
responsibilities of the guarantor shall not be affected due to such
modifications.
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7.3
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During
the duration of this guarantee in the event that the interest under the
principal Agreement is changed due to the adjustment of the specified
interest of the government such adjustment shall be considered to have
obtained the consent of the guarantor and the guarantee responsibilities
of the guarantor shall not be affected due to such
adjustments.
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7.4
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The
guarantee responsibilities of the guarantor shall not be affected due to
the invalidity of the principal Agreement, which means that the
effectiveness of this guarantee contact is independent from that of the
principal Agreement. If the principal Agreement is verified to be invalid
the guarantor shall bear the joint responsibilities of the debt incurred
by repayment of the properties or compensation for
loss.
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Article
8 Default Liability
8.1
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The
guarantor warrants that it must obtain the written consent of the creditor
before conducting the following activities, or the creditor has the right
to require the guarantor to bear the security
liabilities:
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Decrease
of the registered capital
Merger,
separation and bankruptcy
Change of
the registered address and the disposal of the major properties
8.2
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In
the event that the debtor is required to repay the principal and interest
earlier (including compound interest and default interest) due to the
failure to repay the debtor in time or default events, the creditor may
have the right to withdraw funds from the bank account in the Bank of
Luoyang opened by the guarantor in order to pay the due debt and damage
thereof. The creditor has the right to require the payment from the
guarantor in accordance with the creditor till the debt is paid
off.
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8.3
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The
warranties and representations hereunder shall be considered to be
continuous and the guarantee responsibilities shall not be delayed or
released due to any preferential policies that the creditor grant to the
debtor nor be considered as made repeatedly due to the amendments,
supplementary, changes of this
Agreement.
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8.4
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Upon
the effectiveness of this Agreement in the event that any party, which
fails to perform or partially fails to perform the obligations hereunder,
shall pay the damage equivalent to the amount of 10% of the
total amount under the guarantee scope and compensate all the loss
incurred to the other party.
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8.5
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If
this Agreement becomes invalid due the misconducts of the guarantor, the
guarantor shall compensate all the loss within the extent of the guarantee
hereunder.
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Article
9 Other Clauses:
Article
10 Resolution of Disputes
10.1 Any
disputes arising out of, or in connection with the execution of this Agreement
shall be settled through the consultations between two parties; where the
agreements fail to be reached through such consultation, such disputes shall be
brought to the court of the legal address of the creditor.
10.2
During the period of the litigation or arbitration, the provisions not related
to the resolution of disputes shall continue to be implemented.
Article
11 Miscellaneous
11.1 The
guarantor understands clearly the business scope of the creditor and
authorization.
11.2 Upon
the requirements of the guarantor the creditor has already made the relevant
interpretation with respect to the provisions herein. The guarantor fully knows
and understands clearly the meaning of the provisions herein and corresponding
results.
11.3 This
Agreement has two originals, which are identical to each other with each of the
parties holding one copy. Each copy has the same legal effect.
The
guarantor (seal)
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The
creditor (seal)
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Legal
Representative (Main Responsible
Officer)
or Authorized Agent:
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Legal
Representative (Main
Responsible
Officer) Authorized Agent:
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Date:
28 January 2010
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Date:
28 January 2010
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