Loan Agreement
Borrower: Nanyang
Universal Solar Technology Co., Ltd. (Hereinafter referred to
Party A)
Lender: Zhuhai
Yuemao Laser Facility Engineering Co., Ltd. (Hereinafter referred to
Party B)
Considering:
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1.
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Party
A is a Macau sole proprietorship enterprise registered in Nanyang City of
Henan Province with the registered capital of USD 3,000,000. Party A is
urgently in demand of funds for the purpose of plant construction and
equipment purchasing.
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2.
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Party
B agrees to, by using its own funds, make loans to Party
A.
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3.
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Party
A has provided B with all the information about the construction projects
and made commitment that all the provided information is true, accurate,
complete, without omission or fraud. Party A shall undertake all the
responsibilities for breach of this commitment. Party A has made statement
for information not included in the provided documents and already taken
initial survey. Party A is required to take further survey under
requirement.
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Therefore,
Party A and Party B reached the following loan agreement on the basis of
equality and voluntariness.
I. Amount
of Loans: RMB 22,200,000.00.
II.
Period of Loans: The minimum loan period is a half year and the maximum loan
period is 3 years. Party B is entitled to decide the next loan period by one
month ahead of the term loan maturity date according to the agreement
fulfillment conditions and Party A’s business status. Loan starts
on December 1, 2009
III. Time
of Receiving Loan, Interest Rate and Method of Calculation of
Charges:
1.The
loans shall reach Party A’s account in demanded installments.
2.The
loan interest rate is equal to the one-year term bank loan interest rate for the
corresponding period.
3.The
loan interest shall be paid in full on maturity.
IV.
Purpose of Loan: The principal of loan is only limited to fund construction
preparation, equipment purchase and plant construction. The loan shall be used
exclusively for its designated purpose and shall not be used for any other
purpose without the
accommodator’s consent.
V. Use of
Loan: Party A shall make real-time loan utilization report and provide essential
contracts of purchasing and constructions since the date of signing this
agreement.
VI.
Repayment of Loan: If the borrower is not able to repay the loan in time, the
borrower shall provide a written Application for Deferment of Loan Repayment to
the lender at least 15 days before the loan maturity date. Under this
circumstance, the accommodator can take further acts following related
regulations.
VII.
Breach of Contract and Dealing with Breach of Contract:
1.
Following the borrower’s breach of contract:
1.1 The
Borrower is not able to use the loan as planed installments or repay the
principal and interest following this agreement.
1.2．The Borrower does
not use the loan for its designated purpose or use it for other purposes without
the Accommodator’s consent.
1.3．The Borrower
resells the goods purchased with the loan without the Lender’s
consent.
1.4．The Borrower
breaches other contract terms in this agreement.
2. The
Lender is entitled to take the following acts according to the Borrower’s
breaches:
2.1．Cancel the
untapped loan to the borrower.
2.2．Surcharge 50%
interest fine to the default loan.
IX. This
Agreement shall be effective as of the date of execution and shall expire when
both Parties has fully performed their obligations under this agreement. This
agreement is in duplicate and each party has one copy. Both parties can consult
and decide supplementary terms further if this agreement has some
omit.
The
Borrower: Nanyang Universal Solar (Seal)
The
Lender: (Seal)
Date: December
1, 2009
