Form of Guarantee Agreement Number: 2009 Nian 6310517131 Bao Zi NO. 003-[_]
Exhibit
10.34
Form
of Guarantee Agreement
Number:
2009 Nian 6310517131 Bao Zi NO. 003-[_]
Guarantor:
[Business
License NO.:
Legal
Representative/Manager:]
[Identification
NO.:]
[Domicile:]
[Residential
Address:]
Telephone: Fax::
Creditor:
Anyang Branch, Bank of China
Legal
Representative/Manager: Shi Lei
Domicile:
Wenfeng Road, Anyang City Postal Code:
455000
Telephone:
0000-0000000 Fax: 0000-0000000
To
guarantee the fulfillment of debt under the “Principal Agreement” as stipulated
in Article 1 hereunder, the Guarantor are willing to provide guarantee to the
Creditor, the Agreement is enacted by equal negotiation of two parties. Unless
as otherwise provided herein, terms hereof shall be interpreted in accordance
with the Principal Agreement.
Article
1
|
Principal
Agreement
|
The
Principal Agreement of the Agreement is:
RMB Loan Agreement (short
term) (Agreement Number: 2009 Nian 6310517131 Zi NO. 003) and its
amendment or supplement signed between the Creditor and Henan Shuncheng Group
Coal Coke Co., Ltd.
Article
2
|
Principal
Creditor’s Rights
|
Creditor’s
Rights under the Principal Agreement constitute the Principal Credit hereof,
including principal, interests (including legal interest, contract interest,
compound interest, default interest), liquidated damages, compensation, fees to
realize the Creditor’s Rights (including but not limited to legal fees, lawyer's
fees, notarization fees, enforcement fees), losses caused to the Creditor due to
the Debtor’s breach of contract and other dues.
Article
3
|
Type
of Guarantee
|
Type of
guarantee hereof is the [first] option hereunder: (Note: selection shall be
based on the actual condition; if left without selection, it will be considered
that the first option is selected)
1.
|
Guarantee
with joint and several liabilities
|
2.
|
General
Guarantee
|
Article
4
|
Commence
of Guarantee Liability
|
If the
Debtor does not pay off to the Creditor in any normal due date or due date ahead
of schedule, the Creditor is entitled to require the Guarantor to fulfill
guarantee liability.
The
normal due date in the paragraph above is the date, as stipulated in the
Principal Agreement, to repay the principal and interest or the date on which
the Debtor shall effect any payment to the Creditor according to provisions
thereof, and etc.
The due
date ahead of schedule in the paragraph above is the date as proposed by the
Debtor and agreed by the Creditor, and the date on which the Creditor requires
the Debtor to repay the principal and interest of loans and/or any other fees
ahead of the due date in accordance with provisions thereof.
In case
the Principal Debt is secured by any other guarantee or mortgage in addition to
Guarantee hereof, such additional guarantee or mortgage shall not constitute an
argument for the Guarantor to defense the Creditor, and shall in no way affect
any creditor’s rights and its exercise.
Article
5
|
Guarantee
Period
|
The
guarantee period of the Agreement is two years from the deadline of the
repayment period of the Principal Credit.
If the
Principal Credit is to be repaid in installments, then the guarantee period two
years from the date on which the Agreement taking into effect to the deadline of
repayment period of the last debt.
Article
6
|
Limitation
of action for the Guaranteed Debt
|
In case
the Principal Credit are not paid off and the guarantee is of joint and several
liabilities, then if the Creditor require the Guarantor undertake guarantee
liability as stipulated in Article 5 hereof prior to the deadline of the
Guarantee Period, on and from the same date that the Creditor require the
Guarantor undertake guarantee liability, guarantee liability occurs and
commences while the limitation of action is applied.
In
circumstances of general guarantee, the Creditor files a lawsuit or applies for
arbitration against the Debtor before the deadline of the guarantee period as
stipulated in Article 5 hereof, on and from the same date on which the judgment
or arbitration award taking into effect, the guarantee liability will commence
and the limitation of action is applied.
Article
7
|
Relation
between the Agreement and Principal
Agreement
|
In case
two parties to the Principal Agreement terminate or make the Principal Agreement
due ahead of the schedule, the Guarantor shall take the guarantee liability for
interest of the Principal Credit in effect according to the Principal
Agreement.
Two
parties to the Principal Agreement agree to change the Principal Agreement,
except for circumstances of change of currency, interest rate, amount, term, and
others leading to amount of Principal Credit increased, or to extend the
fulfillment period thereof, the consent of the Guarantor is not necessary and
the Guarantor shall take guarantee responsibility for the changed Principal
Agreement.
In
circumstances that the Guarantor’s consent are necessary, and if there is no
written consent from the Guarantor or the Guarantor refuses, the Guarantor shall
not take guarantee liability for the increased amount of Principal Credit and
the guarantee period shall be the original period if extending the fulfillment
period of the Principal Agreement.
If two
parties do the inward documentary credit business after the Creditor issues the
Sight L/C to the Debtor, or two parties do the inward documentary credit
business after the Creditor issues the Usance L/C to the Debtor and the
documentary credit period is no later than the valid period of L/C, there is no
need to obtain the Guarantor’s written consent, the Guarantor shall take
guarantee of joint and several liabilities for the inward documentary credit
financing or other consecutive financing in other forms, guarantee period will
be two years from the date on which the documentary credit agreement taking into
effect to the deadline of repayment period of the creditor’s
rights.
If two
parties do the inward documentary credit business after the Creditor issues the
Usance L/C to the Debtor and the documentary credit period is longer than the
validity period of L/C, it needs to obtain the Guarantor’s written consent, then
the Guarantor shall take guarantee of joint and several liabilities for the
inward documentary credit financing or other consecutive financing in
other forms, guarantee period shall be two years from the date on which the
documentary credit agreement taking into effect to the deadline of repayment
period of the creditor’s rights.
Article
8
|
Declaration
and Commitment
|
The
Guarantor states and undertakes as follows:
1.
|
The
Guarantor is legally established and exists in good standing; the
Guarantor has the civil rights and utter capability to execute and perform
this Agreement.
|
2.
|
The
Guarantor fully understands the content of the Principal Agreement; the
execution and performance of this contract is based on the Guarantor’s
real intent and free will while the Guarantor has already obtained all the
legal and valid authorization as required by its Articles of Association
or other inner management files.
|
If the
Guarantor is a company, the Guarantee hereof has already been passed by the
board of directors and shareholders meeting according to the provisions of its
Articles of Association; If there are limitation provisions applicable to the
guaranteed total amount and separate guarantee amount in the Articles of
Association, the guarantee hereof shall not exceed the stipulated
limit.
Legal
representative or authorized representative signing the Agreement on behalf of
the Guarantor shall sign this Agreement with legal, valid authorization from the
company; execution and performance of this Agreement shall not cause the
Guarantor to breach any contracts, agreements or other legal documents
constraining the Guarantor.
3.
|
The
Guarantor shall provide all the accurate, real, complete and valid
documents and materials to the
Debtor;
|
4.
|
The
Guarantor shall accept the Creditor’s supervision and inspection as of the
production and operation condition, financial condition, and the Guarantor
shall provide assistance and
coordination;
|
5.
|
The
Guarantor does not conceal any already-taken significant liability as to
the execution date hereof;
|
6.
|
If
there are some circumstances that may affect the Guarantor’s financial
condition and performance capability, including but not limited to the
division, merger, joint operation, joint venture with foreign investment,
cooperation, contract operation, reorganization, restructuring, going
public and other changes of operation forms, decrease in registered
capital, transfer of significant asset or stock equity, undertaking of
significant liabilities, dissolution, revocation, bankruptcy application
(or be applied), or involved in major litigation or arbitration, the
Guarantor shall notify the Creditor in a timely
manner.
|
Article
9
|
Disclosure
of the Inner Related Parties of the Group and Related
Transaction
|
Two
parties agree to adopt the [first]/[second] paragraph hereunder:
1.
|
The
Guarantor doesn’t belong to the group customer determined by the Creditor
according to Guidelines
to the Risk Management of Giving Credit of the Commercial Bank Group
Customers,( ‘Guidelines’ for
short)
|
2.
|
The
Guarantor belongs to the group customer determined by the Creditor
according to Guidelines, the
Guarantor shall report to the Creditor the related transaction with an
amount of more than 10% of its net asset in a timely manner according to
Article 17 of Guidelines, including
the relation among transaction parties, transaction items and nature of
the transaction, transaction amount or its proportion, pricing policies
(including transaction without any price or only with nominal
amount).
|
Article
10
|
Breach
and its Disposition
|
The
Guarantor shall constitute a breach by one of the following
circumstances:
1.
|
The
Guarantor doesn’t fulfill guarantee liability timely according to the
provisions of the Agreement;
|
2.
|
The
Guarantor makes fraudulent statement in the Agreement or breaches its
commitment made hereof;
|
3.
|
There
happens any incident stipulated in paragraph 6 of Article 8 hereof which
severely affects the Guarantor’s financial condition and fulfillment
capability;
|
4.
|
The
Guarantor terminates operation or there happens dissolution, revocation or
bankruptcy;
|
5.
|
The
Guarantor breaches other provisions hereof regarding to the parties’
rights and duties;
|
6.
|
There
happens breach of any contract among the Guarantor and the Creditor or
other institutions such as Bank Of China
Limited.
|
In case
there occurs any breach as above mentioned, then the Creditor is entitled to
adopt following measures respectively or jointly as of each separate
circumstance:
1.
|
Require
the Guarantor to correct the breaches within a time limit and fulfill the
guarantee liability timely;
|
2.
|
Decrease,
suspend or terminate the line of credit to the Guarantor totally or
partly;
|
3.
|
Suspend
or terminate, totally or partly, to accept the Guarantor’s loan
application under other contracts; Suspend or terminate, totally or
partly, loan release of trade financing in
process;
|
4.
|
Declare
due immediately, totally or partly, the Guarantor’s unpaid principal,
interests and other payables in connection with loan or trade financing
loan under other contracts ;
|
5.
|
Terminate
or relieve the Agreement, terminate or relieve other contracts between the
Guarantor and the Creditor totally or
partly;
|
6.
|
Require
the Guarantor to compensate losses caused to the Creditor resulting from
the breach of contract;
|
7.
|
It
only needs to send notice beforehand or afterwards for the Creditor to
deduct the money saved in the account that the Guarantor opens with the
Creditor for purpose to pay off all or part of debt that the Guarantor
owned to the Creditor. The undue money in the account shall be considered
as due ahead of time. If the currency in the account is different from the
pricing currency of the Creditor’s business, it shall be calculated by the
exchange settlement or sales rate then adopted by the Creditor as of the
deduction.
|
8.
|
Other
measures the Creditor taking for
necessary.
|
Article
11
|
Rights
Reserved
|
If one
party doesn’t exercise the rights according to the provisions hereof totally or
partly or require the other party to fulfill and undertake duty and obligation
totally or partly, it shall not constitute abandonment to such right or
exemption to the other Party’s duty and obligation.
In case
one party grant the other party any tolerance, grace period or delay to exercise
rights hereof, it shall not affect such party to exercise any rights according
to this contract, laws and regulations, and it shall not be considered as
abandonment to such right as well.
Article
12
|
Changes,
Amendment and Termination
|
The
contract is agreed by both two parties, and can be revised or amended in
written; any revision or amendment shall be an inseparable part to this
Agreement.
Except
for otherwise provided by laws and regulations or conventions by parties, the
Agreement shall not be terminated before completion of fulfillment of all the
rights and duties hereunder.
Except
for otherwise provided by laws and regulations or conventions by parties, any
invalid provision of the Agreement shall not affect the legal effect of other
provisions.
Article
13
|
Governing
Laws and Settlement of Disputes
|
The
Agreement is governed by laws of the People’s Republic of China.
Both
parties may first resolve all the disputes and argues through negotiation; if
negotiation fails, both parties agree to adopt the same dispute resolution
manner as stated in the Principal Agreement.
During
the dispute resolution process, if the dispute doesn’t affect the fulfillment of
other provisions of the Agreement, other provisions shall continue to be
performed.
Article
14
|
Expenses
|
Except
for otherwise provided by law or parties, the expenses arising from execution
and performance of the Agreement and resolution of any dispute (including
attorney fees), shall be afforded by the Guarantor.
Article
15
|
Attachment
|
The
attachment confirmed by both parties constitutes inseparable part to the
Agreement with the same legal effect.
Article
16
|
Others
|
1.
|
Without
the Creditor’s written consent, the Guarantor shall not transfer any
right, duty of the Agreement to a third
party.
|
2.
|
If
the Creditor, due to business demand, needs fulfill the rights and duties
hereof through assigning other institutions of Bank of China Limited, the
Guarantor shall agrees with such arrangement; such institutions of Bank of
China Limited will have authority to implement all the rights hereof and
have authority to file a lawsuit to the court or an arbitration to the
arbitration body as of disputes arising from or related to the
Agreement.
|
3.
|
Without
affecting other terms and conditions hereof, the Agreement is legally
binding to both parties and their own legal successor and
assignee.
|
4.
|
Except
for otherwise provided, the domicile both parties designated hereof is the
correspondence and communication address, and both party commits to inform
the other party in written notice when and if its correspondence and
communication address is changed.
|
5.
|
The
titles and business names in the Agreement are used for convenience, which
cannot be used as interpretation of summary of the Articles herein as well
as interpretation of rights and responsibilities of both
parties.
|
Article
17
|
Agreement
Coming Into Effect
|
This
Guarantee Agreement shall come into effect as soon as the legal representative,
manager or authorized representative of both parties signing their names and
making the company’s seal.
The
contract is in triplicate, each party and the Debtor holds one, with the same
legal effect.
Guarantor:
[Signature
of the authorized representative:]
Date:
June 30th,
2009
Creditor:
Anyang Branch of Bank of China Limited
Signature
of the authorized representative:
Date:
June 30th,
2009