EXHIBIT 10.16
Agreement Concerning Interest on the Amounts due from
OVM Joint Stock Co. Ltd. and its Affiliates
(LJ9701-B)
Party A: Liuzhou OVM Joint Stock Co., Ltd.
Party B: Liuzhou OVM Construction Machinery Co., Ltd.
WHEREAS Party A and its affiliates have been utilizing the bank loan
facilities and liquid funds of Party B.
NOW THEREFORE, pursuant to mutual negotiation, it is agreed that Party
B shall charge interest to Party A and its affiliates for their use of Party B's
bank loans and liquid funds as follows:
1. Party A and its affiliates agree to pay interest to Party B on their use of
Party B's bank loans and liquid funds;
2. The interest charge shall be calculated based on the prevailing average
bank borrowing rate;
3. The interest shall be paid by Party A and its affiliates to Party B at the
end of each individual fiscal year.
4. This Agreement shall become effective from January 1, 1997.
For and on behalf of
Party A: Liuzhou OVM Joint Stock Co., Ltd.
/s/ Wu Guosen
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Wu Guosen
For and on behalf of
Party B: Liuzhou OVM Construction Machinery Co., Ltd.
/s/ Ching Lung Po
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Ching Lung Po
Dated: December 1, 1997
