EXHIBIT 10.7
LOAN AGREEMENT
Lender: Beijing Xxxxx Technology (Holding) Co., Ltd.
Address: No. 11 Shixing Street, Shijingshan Badachu, Hi-Tech Park,
Beijing, China
Borrower: American Metal Technology Group
Address: 000 Xxxxxxxx Xxxx., Xxxxx 0000, Xxx Xxxxxxx, XX 00000
WHEREAS in order to enable the Borrower to continue implementing its development
of factory facility for its subsidiary, American Metal Technology (Xxxx Xxxx)
Co., Ltd. The Borrower hereby applies for a loan from the Lender.
NOW, THEREFORE, pursuant to mutual consultations, the Parties agree as follows:
1. TYPE OF LOAN: Long-term Free interest loan.
2. AMOUNT OF LOAN: USD Three Hundred Ninety Thousand Dollars ($390,000.00).
3. LOAN PERIOD: The Loan shall be interest free and payable to an account
designated by the Borrower. Loan period shall be from the date of this agreement
till December 31, 2006 ("Maturation date"). The Borrower may apply for an
extension by submit a written notification to the Lender 30 days prior to the
Maturation date. The Lender promise to grant borrow the first right of refusal
should the Borrower applies for an extension. If the Borrower didn't apply for
extension, on the Maturation date, the Borrower shall remit full amount of this
loan to a bank account designated by the Lender. There will be no penalty if the
Borrower chooses to remit part or full capital of the loan prior to maturation.
4. WARRANTIES BY THE PARTIES:
(1). The Lender should wire the Loan into a bank account designated by the
Borrower with the Washington Mutual Bank of Los Angles, California, United
States. The bank account number is 000-000000-0.
(2) The Borrower should utilize the Loan according to the decisions on its
application made by the Board of Directors. The Borrower should report to the
Lender regularly with regard to the manner in which the Loan is applied.
5. PENALTY FOR DEFAULT: The Borrower should utilize the Loan according to the
decisions of the Board of Directors. Otherwise, the Lender can terminate the
Loan Agreement and call back the Loan.
6. ARBITRATION: Should any dispute arise from this Loan Agreement, both Parties
shall resolve them through friendly negotiations, failing which, they should be
submitted to the People's Court where the contract is signed, for solution.
7. LAWS APPLICABLE: The relevant rules and laws of the State and the normal
terms for a bank loan shall apply to such events in case they are not being
covered by this Agreement.
8. MISCELLANEOUS: This Agreement shall become effective upon the date it is
signed by the Parties. This Agreement shall be made in duplicate and each party
shall retain one copy.
Lender: Borrower:
(Beijing Xxxxx Technology (American Metal Technology
(Holding) Co., Ltd.) Group)
Legal representative: /s/ Gao Chen Legal Representative: /s/ Xxxxxxx Xxx
Address: Address:
Telephone number: Telephone number:
Date: March 15, 2005 Date: March 15, 2005
