EXHIBIT 10.42
BANK-ENTERPRISE COOPERATION AGREEMENT
Party A (Bank): Shanghai Songjiang Branch, Agricultural Bank of China
Party B (enterprise): Shanghai Kaihong Electronic Co., Ltd.
After negotiation, regarding the bank-enterprise cooperation from 1st September
2001 to 1st September 2007, Party A and Party B agree upon as follows:
1 Party A provides the following services for Party B:
1.1 In order to support Party B to expand production and marketing, Party A
agrees in principle to offer ceiling of credit at maximum of $12,000,000
(converted in current foreign currency), and the specific fund is used
based on a loan contract.
1.2 Party A and Party B go through loan procedures item by item according to
the loan procedures of Agricultural Bank of China, and the length of
maturity is fixed by Party A according to Part B's production and the
actual usage of funds.
1.3 Within the highest ceiling of credit, based on the application by Party B,
and after review for qualification, Party A handles bank credit extension
businesses for Party B, including L/C opening, commercial xxxx acceptance
and discount, and letter of guarantee etc..
1.4 Party A is willing to provide Party B with multiple consulting services,
including credit, finance, remittance, account settlement, information
etc..
2 Party B will follow and fulfill the following arrangements:
2.1 Party B opens RMB basic account and exchange settlement account at Party
A, and takes Party A as host bank to settle account in current foreign
currency.
2.2 Party B should provide Party A with authentic balance sheet, profit and
loss statement and financial data, and Party B guarantees its credit funds
are used as required.
2.3 Within the ceiling of credit provided by Party A, Party B handles credit
extension business with specimen signature left with the bank, and signs
relative contract.
3 Party A and Party B will further to contact and communicate with each
other, and supervise the fulfillment of this agreement jointly. If Party A
can't satisfy the reasonable requirements proposed by Party B according to
this agreement, then Party B is entitled to terminate the fulfillment of
this agreement. If there is breach of this agreement or major business
abnormality by Party B (Party B doesn't make improvement within 3 months
after reminded by Party A), Party A is entitled to terminate the
fulfillment of agreement and take relative action.
4 This agreement is signed after negotiation by Party A and Party B, which
will mature on 1st September 2007, and can be renewed at maturity. If any
party doesn't agree to renew, then agreement previously signed by both
parties will terminate automatically. Relative terms will not bind any
other party any more.
5 As for matters not covered by this agreement, especially when there is
conflict with related terms of this agreement due to modifications of
national regulations during the performance of agreement, both parties
should modify related terms of agreement in the principle of friendly
negotiation, in order to facilitate the continuous fulfillment of
agreement.
6 This agreement will come into effect after stamped with official seal by
Party A and Party B, and signed by legal representative or representative
designated by legal person. This agreement is done in quadruplicate, and
both parties hold 2 respectively.
Party A: Shanghai Songjiang Branch, Party B: Shanghai Kaihong
Agricultural Bank of China Electronic Co., Ltd.
Official Stamp: Official Stamp:
Responsible person: Zhu Liang Jun Responsible person: Liu Xxxx Xxx
Date: August 30, 2001 Date: August 30, 2001
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