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LOAN CONTRACT

LOAN CONTRACT

  article 10 guaranty

  1. (the 'guarantor') shall be the guarantor for the loan under this contract and take jointly liabilities.

  2. during the term of this contract, if the guarantors financial status become deteriorated or the liabilities for repayment of debts become weak, the lender shall have right to request the borrower changes guarantor or provide mortgage and pawn secured for this loan under this contract.

  article 11 representations and warranties

  i. the borrowers represents and warrants as follows:

  1. the borrower is a company duly organized and validly existing under the law of the peoples republic of china and has the power and authority to own its property to consummate the transactions contemplated in this contract and join the litigation. the borrower has the power to handle it assets used in operation.

  2. the borrower is at its option to sign and perform this contract.it is the borrowers true meaning and has the power to sign this contract and it is not breach it article of association or regulations or contracts. the procedure for signature and performance of this contract has been gone through and fully effectiveness.

  3. the all documents, materials, reports and certificates provided to the lender by the borrower for consummation of this contract is true, real, compete and effective

  4. the borrower shall not conceal the following events which is being happened or have been happened which will cause the lender refuse to extend the loan:

 。1) the borrower or the principal executives of the borrower involve in material events which breach regulations, laws or compensation to others;

 。2) pending actions and arbitration;

 。3) the borrowers debts or proposed debts or liens and other encumbrances;

  (4) the other matters will impact the financial status or abilities of repayment for the debts;

 。5) the borrower breached contract which is between the borrower and other creditors.

  ii. the borrower hereby warrants as follows:

  1. using the capital of the loan as usage set forth in this contract, the borrower will not use the loan as equity investment; the borrower will not use the capital of the loan invest in security, future, real estate etc. the borrower will not lend to the others privately or involving other maters which is prohibited by the country. the borrower will not misusing or appropriation of the loan.

  2. making payment and related expenses in accordance with the provisions set forth in this contract;

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