EXHIBIT 10.5
AGREEMENT LETTER
Zhaoqing South China Bicycle Winfill Co., Ltd. (SCBW) has the following
borrowings amounting to RMB 49,997,028.41 which is warranted by the lands
and buildings of Zhaoqing South China Bicycle (Holdings) Co., Ltd. (SCH).
Meanwhile the two parties agree that the amounts due from SCH to SCBW should
be settled. Hence the two parties agree to transfer the repayment obligations
of the following borrowings from SCBW to SCH and deduct the same amount
due from SCH to SCBW simultaneously. Any interest occurring afterward from
the borrowings will be the responsibility of SCH.
Lending Bank Amount(RMB) Period Warranted by
------------ ----------- ------ ------------
Zhaoqing Agricultural Bank 7,000,000 short-term Buildings of Steel Tube Factory
Zhaoqing China Bank 23,549,927 short-term Buildings of Steel Tube Factory
Zhaoqing Finance Bureau 500,000 short-term Lands of Golden China Factory
Zhaoqing Finance Bureau 500,000 short-term Lands of Golden China Factory
Guangdong China Bank 2,000,000 short-term Buildings of Golden China Factory
Zhaoqing Duanzhou People's Bank 5,000,000 short-term Lands of Seven Stars Equipment
Zhaoqing State Asset Office 247,101.41 short-term Buildings of Seven Stars Factory
Zhaoqing Beinin Jiangshe Bank 1,600,000 short-term Buildings of Seven Stars Factory
Zhaoqing Agricultural Bank 7,600,000 short-term Lands of the headquarters of SCH
-------------
TOTAL 49,997,028.41
xxxxxxxxxxxxx
Xxxxxxxx Xxxxx Xxxxx Bicycle Winfill Co., Ltd. Zhaoqing South China Bicycle (Holdings) Co., Ltd.
(SCBW) (SCH)
Dated on October 2, 1997