Renminbi Loan Contract
Renminbi
Loan Contract
(Loanee)
Party A: Changxing Chisen Electric Co., Ltd.
Address:
Jingyi Road, Changxing Economic Development Zone
Legal
Representative: Xx Xxxxxxx
Zip
Code:
313100
Loaner
(Party B): China Construction Bank Corporation Changxing Branch
Address:
Huaicheng Road, Changxing
Zip
Code:
313100
WHEREAS,
Party
A
applies to Party B for a loan and Party B agrees such loan to Party A, and
in
accordance with the relevant laws and regulations and after friendly
consultation, both parties hereby agree to enter into this Contract to evidence
the aforesaid.
NOW
IT IS agreed
as
follows:
Article
1 Loan
Amount
The
loan
amount under this Contract shall be twenty-three million Yuan Renminbi.
Article
2 Loan
Purpose
Party
A
shall use the loan to purchase raw
materials,
and may
not change such loan purpose without the written consent of the loaner.
Article
3 Loan
Period
The
loan
period under this Contract shall be one
year
commencing from April
11, 2008
and
ending on April
10, 2009.
Article
4 Loan
Rate, Penalty Rate, Interest Charge and Interest Settlement
|
(1)
|
The
loan rate under this Contract shall be annual interest rate of
7.8435%
that keeps constant within the loan period.
|
|
(2)
|
Provided
that Party A fails to use the loan according to the purpose of this
Contract, the penalty rate shall be 100%
raised loan rate.
|
|
(3)
|
The
penalty rate on overdue repayment shall be 50%
raised loan rate.
|
|
(4)
|
The
interest date herein shall refer to the date of first offering of
loan to
the account designated by Party A.
|
|
(5)
|
The
loan interest shall start since the date on which the loan is transferred
to the account designated by Party A. The loan shall be calculated
interest per day, daily interest = annual interest date/360. Provided
that
Party A fails to pay the interest according to the expiry date of
interest, double interest will be collected since the pursuing date
thereof.
|
|
(6)
|
The
interest under this Contract shall be settled by month, the expiry
date
for interest shall be the 20th
day of each month.
|
Article
5 Offer
and
Use of Loan
|
(1)
|
Premises
|
On
the
premises that the following conditions are satisfied one after another, Party
B
shall be amenable to offer the loan thereto except its waiver in whole or in
part,
|
1)
|
Party
A has completed all approvals, registrations, deliveries, insurance
and
other legal procedures in connection with the loan under this
Contract;
|
|
2)
|
The
guarantee, if any under this Contract, has taken effect and continue
to be
effective;
|
|
3)
|
Party
A has opened the account to draw and repay money pursuant
hereto;
|
|
4)
|
Party
A has no any one of breach of this Contract or any situation possibly
to
damage Party B’s creditor’s right as have been specified herein.
|
(2) Use
of
fund
The
loan
under this Contract shall be offered in full and at one time.
Article
6 Repayment
(1) Principal
of repayment
Party
B
shall be entitled to use Party A’s repayment to repay the expenses that should
be paid by Party A but has been paid by Party B in advance and the balance
shall
be recovered in accordance with the principle firstly interest, then principal,
settlement of interest with pricipal.
(2) Interest
Party
A
shall pay Party B the expired interest at the expiry date for interest. The
first date to pay interest shall be the first expiry date for interest after
the
offer of loan.
(3) Principal
recovery plan
The
principal shall be paid off in full at the expiry date.
(4) Recovery
method
By
automatic transfer to Party B’s account, also, Party B shall be entitled to
transfer the fund from Party A’s account.
(5) Advance
repayment
In
the
event of advance repayment, Party A shall submit a written application to Party
B 30
working
days in advance and may repay, in whole or in part, the principal after Party
B’s approval thereof.
Article
7 Party
A’s
Right and Obligation
(1) Rights
Party
A
shall be entitled
|
1)
|
to
require Party A to offer the loan pursuant to this
Contract;
|
|
2)
|
to
use the loan pursuant to this
Contract;
|
|
3)
|
to
apply to Party B for an extension of loan subject to the condition
set
forth thereby;
|
|
4)
|
to
require Party B to keep Party A’s financial information and business
secrete in confidence, unless there is otherwise requirement in
law;
|
|
5)
|
to
refuse Party B and its employee’s act of asking for
bribes.
|
(2) Obligations
Party
A
shall
|
1)
|
to
draw the loan and repay the principal and interest thereof pursuant
to
this Contract and undertake the fees incurred
thereby;
|
|
2)
|
to
produce financial and accounting data and situation relating to production
and operation;
|
|
3)
|
to
use the loan according to the purpose specified herein, not to
misappropriate the loan to illegal
trading;
|
|
4)
|
not
to use the assets formed by the loan under this Contract as guarantee
for
the third person without the consent of Party B before full repayment
of
the principal and interest of the
loan.
|
Article
8 Party
B’s
Right and Obligation
(1) Party
B
shall be entitled to require Party A to repay the principal, interest and fees
on time, exercise other rights as have been specified herein and require Party
A
to perform the obligations thereof under this Contract;
(2) Party
B
shall offer the loan pursuant to this Contract, exclusive of the delay as a
result of Party A’s mistake or other reasons unattributable to Party
B;
(3) Party
B
shall keep Party A’s financial information and business secrete in confidence,
unless there is otherwise requirement in law;
(4) Party
B
may not acquire or require bribes from Party A or the employees
thereof;
(5) Party
B
may not engage any act untruthful or harmful to Party A’s lawful
interest.
Article
9
Liability for Breach of Contract
|
(1)
|
Party
B’s breach of contract
|
|
1)
|
Provided
that Party B fails to offer the loan without good cause, Party A
may
require Party B to offer the loan pursuant to this
Contract;
|
|
2)
|
Provided
that Party B, in violation of the law or regulation, charges on Party
A
the interests and fees that shall not be collected, Party A shall
be
entitled to require the return thereof by Party
B.
|
(2)
Party
A’s breach of contract
|
1)
|
Party
A violates any provision set forth herein or any legal
liability;
|
|
2)
|
Party
A, expressly or by act, make clear not to perform any one of the
obligations set forth herein.
|
Article
10 Miscellaneous
(1)
Dispute Resolution
1)
Any
dispute arising from or in connection with the performance of this Contract
shall preferable be settled through friendly consultation. If no settlement
can
be reached through such consultation, any party may refer such dispute to the
court of the place in which Party B is located.
(2) Effectiveness
This
Contract shall come into effect since being signed and sealed by both
parties.
(3) Counterpart
This
Contract shall be executed in three
copies,
each of which shall be equally authentic.
Article
11 Statement
(1) Party
A
is clearly aware of Party B’s business scope and authorization limit.
(2) Party
A
has read all provision of this Contract. Upon Party A’s request, Party B has
made construction of relevant provision set forth herein and Party A has known
well and fully understands the meanings of the provisions and relevant legal
consequence.
(3) Party
A’s
signing on and performance of the obligations set forth in this Contract comply
with the law, administrative rule, regulation and Party A’s articles of
association or international file and have been approved by internal authority
department and/or national competent department.
Party
A:
Changxing Chisen Electric Co., Ltd. (seal)
Legal
representative: /s/ Xx Xxxxxxx (signature)
Date:
April 11, 2008
Party
B:
China Construction Bank Corporation Changxing Branch (seal)
Authorized
representative: /s/ Xxxx Xxx (signature)
Date:
April 11, 2008
