Entrusted Loan Agreement
No.: Xxxx
Xxx (2009) Nian Xxx Xxx Zi (265)
Borrower
(Party A): Feigeda Electronic (SZ) Co., Ltd.
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Address:
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Xxxxx
0, Xxxxxxxx X0, Xxxxxx Xxxxxxxxxx Xxxx, No.111, Zhoushi Road, Xixiang
Subdistirct, Bao’an District,
Shenzhen
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Lender（Party B）: Shenzhen Branch of
Industrial Bank Co., Ltd.
Address:
Trustor
of the Entrusted Loan (Party C): Shenzhen Small & Medium
Enterprises Credit Guarantee Centre Co., Ltd.
Address: Floor 16, Ping’an Bank
Building, No. 1099 Xxxxxxx Xxxxx Road, Futian District,
Shenzhen
Party C
entrusted Party B to release the loan to Party A. Through
negotiations and consultation, Party A, Party B and Party C, hereby enter into
this Agreement pursuant to relevant laws and the Entrusted Agreement For Loan
Release numbered Xxxx Xxx (2009) Nian Xxx Xxx Zi (265) as jointly executed by
the three parties.
Article
1 Content of the Entrusted Loan
According
to the Entrusted Agreement For Loan Release, Party B determines to release the
entrusted loan to Party A as follows:
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1.
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Loan
Amount: five million RMB (￥5,000,000.00)
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2.
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Use
of the Loan: Funds for Industrial Technology
Progress
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3.
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Interest
Rate: Annual interest
rate 0%.
Settlement of interest is to be calculated per month starting from the
loan release date. The settlement date is the 20th
day of each month. In the event of adjustment of the interest rate by the
People’s Bank of China, the interest rate hereunder shall be subject to
automatic adjustment accordingly.
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4.
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Loan
Term: Two
years. The commencement date and the due date of the loan term
shall be subject to the record in the borrowing
voucher.
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5.
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Party
A shall repay the loan in the 1st means of
the followings:
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(a)
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Party A shall repay the loan in lump sum on the
due date；
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(b)
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Party
A shall repay RMB
prior to every 30th
day starting from the loan release date and the balance shall be repaid on
the due date in lump sum;
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(c)
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Other repayment means: Party
A shall repay the same amount of RMB350,000.00 on a monthly basis starting
from the 18th
month upon the loan release date, and the balance shall be repaid on the
due date in lump
sum.
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6.
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Liquidated
Damages: In the event of late repayment of the principal (including late
repayment of the amounts specified above) or interest, whether prior to or
after the due date of the loan，Party B
shall be entitled to claim the liquidated damages on a amount of 0.05% of
the late repayment amount per day starting from the occurrence date of the
late repayment until the repayment
date.
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Article
2 Account
Party A
shall open a general settlement account with the business organization of Party
B and use this account for the use of the loan, repayment of the loan and
interest related to the loan hereunder.
Article
3 Security
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1.
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To
secure the creditor’s rights of Party B and Party C hereunder, Party A and
the third party entrusted thereby agree to provide security according the
requirements of Party C.
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2.
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As
agreed and recognized by Party C, the security agreement may be signed
separately.
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3.
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In
the event of a mortgage or a pledge as security, Party A shall be
responsible for completing the legal formalities regarding registration
and/or insurance on its own expense and guarantee the said security and
insurance remain valid consistently through the whole period until the
principal and the interest hereunder is repaid in full, otherwise Party B
shall be entitled to refuse to release the entrusted loan
hereunder.
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Article
4 Cost
Party A
shall be responsible for the costs of the attorney fee, insurance, assessment,
registration and notarization in connection with this Agreement and the security
hereunder.
Article
5 Basic Obligations of Party A
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1.
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Party
A shall truthfully provide Party B and Party C with the materials required
thereby and all the information regarding the bank, accounts and balance
of the loan and cooperate with the investigation, examination and check of
Party B and Party C;
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2.
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Party
A shall subject itself to Party B and Party C’s supervision of the use of
the loan,, relevant business operation and financial conditions and
provide Party B and Party C with financial statements and other
relevant materials as required
thereby;
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3.
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Party
A shall use the loan according to the purpose provided
herein;
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4.
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Party
A shall duly repay the principal and the interest according to the
agreement hereunder;
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5.
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In
the event of a threat of Party A’s ability to repay the loan and the
security of the Party B and Party C’s creditor’s rights, Party A shall
promptly notify Party B and Party C and take relevant preservation
measures;
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Article
6 Repayment of Principal and Interest in Advance
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1.
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With
the determination or consent of Party C, Party B shall be entitled to
recover the principal and interest in advance under any of the following
circumstances:
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(a)
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Due
to the improper operation and mismanagement of Party A or its guarantor,
Party A or its guarantor suffers a severe loss, or actual loss with
fabricated profit occurs;
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(b)
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Party
A or its guarantor transfers assets and surreptitiously withdraws capitals
so as to evade debt;
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(c)
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Party
A’s guarantor died;
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(d)
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Party
A or its guarantor has been or is to be merged, reconstructed, closed,
dissolved, bankrupt or revoked
legally;
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(e)
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Party
A or its guarantor is involved in significant litigation or arbitration
which is likely to result in the loss of Party A’s repayment or its
guarantor’s guarantee capacity;
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(f)
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Without
the written consent of Party C and Party B, the mortgagor or the pledgor
sells, transfers or re-mortgages the mortgage property or pledge property
or dispose of the same in any other
way;
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(g)
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Other
reasons of Party A, mortgagor or pledgor that may result in decrease of
the value of or loss of the collateral or the
pledge;
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(h)
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Party
A delays to repay the interest for more than 30
days;
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(i)
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Other
circumstances where Party A or its guarantor loses or may lose its
performance capacity;
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(j)
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Party
A or its guarantor is in breach of relevant
agreements.
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Article
7 Authorization of Direct Deduction
Party A
irrevocably agrees that Party B or Party C is entitled to directly transfer and
deduct the equal amounts from any accounts of Party A correspondingly in the
event that Party A fails to repay the principal and interest
hereunder.
Article
8 Repayment
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1.
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Party
A and its entrusted payer shall repay to Party B the principal and the
interest (including default
interest).
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2.
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Upon
receipt of the written notice of change of the recipient by Party C, Party
A shall directly repay the principal and interest to Party C or the third
party designated by Party C according to the
notice.
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Article
9 Rights of Party C
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1.
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Party
B acknowledges that Party B entered into the entrusted loan agreement and
the security agreement in the name of the Party B according to the
intention of Party C and the actual creditor of the loan under the
Entrusted Loan Agreement is Party C. Therefore, Party C is
directly entitled to all the rights to which Party B is entitled under the
Entrusted Loan Agreement and the security agreement based
thereon. No matter whether or not Party B exercises relevant
rights under the Entrusted Loan Agreement and the security agreement based
thereon, Party C is entitled to directly institute legal actions or other
legal proceedings at its discretion against Party A and its guarantor
according to the Entrusted Loan Agreement and the guarantee agreement
based thereon. Party B shall actively provide assistance at the
time of Party C’s exercise of the said
rights.
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2.
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Party
A acknowledges that Party B entered into the entrusted loan agreement and
the security agreement in the name of the Party B according to the
intention of Party C and the actual creditor of the loan under the
Entrusted Loan Agreement is Party C. Therefore, Party C is
directly entitled to all the rights to which Party B is entitled under the
Entrusted Loan Agreement and the security agreement based thereon. Party C
is entitled to directly institute legal actions, arbitrations or other
legal proceedings at agreed in the Entrusted Load Agreement and the
security agreements based thereof against Party A and its
guarantor.
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Article
10 Dispute Settlement
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1.
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In
the event that Party A fails to perform its repayment obligation herein,
Party B shall be entitled to institute legal actions in its own name
against Party A and its guarantor; Party C is also entitled to institute
legal actions in its own name against Party A and its guarantor according
to the relevant agreements.
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2.
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This
Agreement shall be governed by the laws of People’s Republic of China. The
parties may negotiate to resolve the disputes arising out of the
performance hereof; If the dispute cannot be resolved by negotiation, it
may be resolved by the 1st
means of followings:
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(a)
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Litigation:
to institute a legal action with the People’s Court with
jurisdiction;
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(b)
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Arbitration:
to institute an arbitration proceeding with the
arbitration organization of the followings and the effective arbitration
rule of the arbitration organization when the arbitration application is
filed is applicable:
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(1)
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South
China Sub-commission of China International Economic and Trade Arbitration
Commission;
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(2)
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Shenzhen
Arbitration Commission
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Article 11 Other Clauses
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1.
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The
loan application form, the borrowing voucher and the notice of the loan
release shall be part of this
Agreement;
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2.
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In
the event of modification of the clauses hereof or termination hereof by
any party after this Agreement becomes effective, all the parties shall
negotiate to reach a consensus and enter into a written
agreement.
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3.
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This
Agreement shall become effective when it is signed by the authorized
signatories and affixed with the official stamps of the parties hereto and
when relevant guarantee agreements become
effective.
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4.
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This
Agreement has five originals
with the same force and effect and each party and registration authority
hold one.
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5.
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Any
open matters in this Agreement that are not chosen hereby shall be
determined according to the principle of favoring Party C’s creditor’s
right.
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Party
A: Feigeda Electronic
(SZ) Co.,
Ltd. （Official Stamp）
Legal
Representative or Authorized Agent: [illegible signature]
(Signature)
Signature
Date: ____Year ____Month ____ Day
Party B:
Shenzhen Branch of
Industrial Bank Co., Ltd. （Official Stamp）
Legal
Representative or Authorized Agent: [illegible signature]
(Signature)
Signature
Date:____ Year ____ Month ____ Day
Party C:
Shenzhen Small &
Medium Enterprises Credit Guarantee Centre Co., Ltd. （Official Seal）
Legal
Representative or Authorized Agent: [illegible
signature] (Signature)
Signature
Date: ____ Year ____ Month ____ Day
