Exhibit 10.7
Comprehensive Credit Line Agreement
Of Guangdong Development Bank
The parties of the agreement:
Accrediting party (Party A): Guangdong Development Bank Ningbo Branch
Legal Representative: Xxxxxxx Xxxx
Position: President of Ningbo Branch
Accredited party (Party B): Ningbo Jiangdong Yonglongxing Special Paper Co.,
Ltd (Yonglongxing)
Legal Representative: Xxxxx Xx Wu
Position: General Manager of Yonglongxing
Guarantor (Party C): (1) Ningbo Long' an Industrial and Trade Co., Ltd.
Legal Representative: Xxxxxx Xxxx Position: General Manager;
(2) Ningbo Hengxin Trade Development Co., Ltd. Legal Representative: Shunli Shi
Position: General Manager
(3)Zhoushan Shunji Construction Material Co., Ltd.
Legal Representative: Xx Xx Position: General Manager
Item 1 Amount of Credit Line
According to the agreement, the highest amount of credit line (excluding
deposit) that Party A provides to Party B is $1.45 million.
Party A agreed that if the balance of the credit line of Party B has not
exceeded the range of the credit line regulated by Party A, Party B can use the
credit line and need not go through formalities of guarantee one by one.
Item 2 Scope of application of the credit line The credit line is mainly used as
the working capital.
Item 3 Term of the credit line
The term is 12 months, from March 23, 2005 to March 22, 2006.
Item 4 Interest rate
The annual interest rate is 6.264% .The interest is monthly calculated and it is
paid on the 20th day every month.
Item 5 Source of the refund
1. The income related to the use of the credit line includes, yet not limited to
the revenue of the sales of the imported products, remittance of the note,
export tax rebate and revenue of exporting.
2. Other revenues.
3. Various kinds of own fund and debt-credit fund.
4. The income from the transferring or arbitrage of different kinds of assets;
5. Guarantee of the payment of the import guarantor;
6. The indemnity from the insurance company of export credit.
7. Others .
Item 6 The credit line of working capital
The highest amount of credit line of working capital is RMB 1.45 million and the
credit line can be circulated.
Item 7 Guarantees
Party C is voluntarily to be the guarantor for the debit of Party B according to
the agreement in order to ensure Party A to realize the creditor's right. Party
A and Party C have signed the "Guangdong Development Bank Highest Amount
Guarantee Agreement " (contract number: A58137). Party C bear the guarantee
responsibilities according to this agreement and the guarantee agreement .If
Party C includes 2 or more than 2 guarantors, then the guarantors bear the
related responsibilities of guarantee. If the guarantee changes, which makes
Party A think it is unfavorable to Party A's credit, Party B must provide other
guarantee acceptable by Party A .
Item 8 the coming into force, altering, canceling and expiring of the agreement
1. The agreement comes into force since the signature (If it is required to
register the collateral, the agreement comes into force after the registration)
and the agreement will expire after all the principal, interest, compound
interest, default interest and other subordinate expenses are paid off.
2. If Party B hopes to extend the term, Party B should provide the written
application to Party A 20 days ahead of the expiring day and Party A will
evaluate whether it can be extended.
Item 9 Notarization
All of the three parties agreed that if the agreement is notarized as the legal
document of Party A's credit right, and if Party B does not return the principle
and the accrued interest, as well as other related expenses, Party A has the
right to apply to the court for compulsory execution, Party B and Party C must
accept the compulsory execution unconditionally and give up the contradicting
right.
Item 10 the applicable law and solutions to disputes
The agreement is applicable to the law of People's Republic of China and solves
the disputes through lawsuit way.
Item 11 Supplementary provisions
1. Representative of Party A: Xxx Xxxx , Tel:0000-00000000
2. Representative of Party B: Xiali Gan, Tel:0000-00000000
There are totally 4 copies of the agreement, Party A holds one, Party B and
Party C hold another two separately, the last one is held by the
registration agency.
