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Exhibit 10.3
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English Summary of Maximum Amount
Guarantee Agreement
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Contract No.: (2009) Lai City Gao Bao zi
020101-2
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The Guarantor:
Qingdao Free Trading Zone Sentaida International Trade Co., Ltd
(“F.T.Z. Sentaida”)
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The Creditor:
Commercial Bank of Laiwu (“the Bank”)
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The Debtor:
Shandong Huitong Tire Co., Ltd (“the Debtor”
or “Huitong”)
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In order to ensure performance of the Underlying
Contract as set forth in Section 1, the Guarantor agrees to provide
joint liability guarantee to the Creditor for the Debtor’s
indebtedness. The Guarantor and the Creditor upon consultation have
reached the following agreement (the “Agreement”).
Defined terms used herein that are not defined herein have the
meaning as defined in the Underlying Contract.
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1.
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There is a trade finance agreement entered into between the Debtor and
the Bank. That trade finance agreement and other agreements
subordinated to the agreement constitute the Underlying Contract.
Trade finance includes letter of credits, export bill purchase,
import bill advance, package loan, delivery against bank guarantee,
discounting acceptance bill under letter of credit and issuing bank
guarantee or standby letter of credit.
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2.
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This guarantee is irrevocable to
the Creditor for the Debtor’s indebtedness including
principal, interest and other relevant expenses under the
Underlying Contract. The term of the Underlying Contract is from
February 1, 2009 to February 1, 2010. The term of the guarantee
period under this Agreement is two years starting from the due date
of indebtedness under the Underlying Contract.
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3.
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The maximum amount of the
principal guaranteed by the Guarantor hereunder is RMB20,000,000.
Any interest, compound interest and interest penalties relating to
the principal and any expenses relating to the implement ation of
the Bank’s rights and enforcement of the Debtor’s and
the Guarantor’s obligations are all guaranteed by the
Guarantor.
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4.
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The Guarantor has the joint
guarantee liability to the Debtor’s indebtedness under the
Underlying Contract. When the Debtor is in default of its repayment
obligation on the due date the Bank has the absolute right to
require the Guarantor to assume the repayment obligation. The due
date of the interest and principal is determined under the
Underlying Contract.
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5.
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In the event of default by the
Debtor, the Guarantor shall perform its guarantee obligation
according to the written notice of repayment delivered or caused to be delivered
by the Creditor. The written notice shall be delivered to the
Guarantor by registered mail, express or other currier service. The
notice shall be deemed given once the notice is sent out by the
Creditor in one of the ways described in this section.
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6.
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The Guarantor
may not refuse to fulfill its guarantee obligation under any
circumstances during the term of the Agreement.
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7.
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This Agreement is an independent
guarantee. If the Underlying Contract becomes invalid or revocable
because of any reasons, this Agreement will remain valid and the
Guarantor has guarantee obligation to the Bank for any indebtedness
and any expenses already incurred by the Debtor.
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8.
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There is no need to obtain the
Guarantor’s written consent if the content of the Underlying
Contract is amended or t
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