Working Capital Loan Contract
Contract
No:
2007
Cangkou
Zi No.0001
Working
Capital Loan Contract
BorrowerQingdao
Renmin Printing Co., Ltd.
AddressoNo.
00, Xxxxxxx Xxxx, Xxxxxx Xxxxxxxx, Xxxxxxx, Xxxxx
XxxxxxxxxxxxxxxXxxx
Xx Xxx
LenderoIndustrial
and Commercial Bank of China, Qingdao Branch
Licang
No. 2 Sub-Branch
AddressoNo.
00
Xxxxxxxxxx Xxxx, Xxxxxxx, Xxxxx
XxxxxxxxxxxxxxxXx
Xxxxx Xxx
1
Table
of
Contents
|
Article
1
|
THE
CATEGPRY OF THE LOAN
|
|
Article
2
|
CURRENCY,
AMOUNT AND TERM OF THE LOAN
|
|
Article
3
|
THE
PURPOSE OF THE LOAN
|
|
Article
4
|
AMOUNT
AND THE TERM OF THE LOAN
|
|
Article
5
|
INTEREST
RATE AND CALCULATION OF INTEREST
|
|
Article
6
|
THE
SOURCES OF REPAYMENT AND METHODS OF
REPAYMENT
|
|
Article
7
|
GUARANTY
|
|
Article
8
|
THE
RRIGHTS AND OBLIGATIONS OF THE TWO
PARTIES
|
|
Article
9
|
OBLIGATION
OF BREACH OF CONTRACT
|
|
Article
10
|
EFFECTIVENESS,
AMENDMENT AND MODIFICATION OF THIS
CONTRACT
|
|
Article
11
|
SETTLEMENT
OF DISPUTES
|
|
Article
12
|
OTHER
ITEMS
|
2
The
Borrower applies for the loan from the Lender as the demand showing in the
ARTICLE 2.1 of this contract. The Lender agreed to grand the loan to The
Borrower. According to 《Contract
Law》ô 《Lending
General Provisions》and
other
relevant laws and regulations, the two parties have executed this Contract
through au pair negotiation, in order to define the rights and obligations
of
the two parties.
Article
1
THE CATEGORY OF THE LOAN
|
1.1
|
The
loan under the contract is a floating capital borrowings (medium
term loan
or short-term loan).
|
Article
2
CURRENCY, AMOUNT AND TERM OF THE LOAN
2.1
The
Currency under this loan is Renminbi.
2.2
The
Line of the loan is xxxx.
2.3
The
period of this loan is 12 months from the date of effectiveness(2007-02-12)
of
this contract to (2008-02-11).
Article
3
THE PURPOSE OF THE LOAN
3.1
The
purpose of this loan is used for purchasing
materials.
3.2
Without written approval of the Lender, the Borrower could not use the loan
out
of the scope of the purpose.
Article
4
AMOUNT AND THE TERM OF THE LOAN
4.1
The
total amount of the loan shall be up to REIMINBI (Loan amount in letters)
FIVE
MILLIONS YUAN ,
(Loan
amount in numbers) 5,000,000
YUAN (if
loan amount in letters differ from the loan amount in numbers, using loan amount
in letters).
4.2
The
period of this loan is 12 months from the date of 2007-02-12, to the date
2008-02-11.
4.3
The
Borrower should withdraw the loan once only according to the ARTICLE 3.2 of
the
Contract. If there is special reasons with written approval of The Lender,
The
Borrower could withdraw the loan in advance or delayed three
days.
Article
5
INTEREST RATE AND CALCULATION OF INTEREST
5.1
Interest rate: The interest rate shall be calculated on the basis of a three
hundred sixty (360)-day year and paid on each interest Payment Date
(20th
of each
month) based on the actual number of days elapsed. The Loan shall accrue
interest on the outstanding balance, at an monthly rate. If the due date for
any
payment under this Contract shall not be a Business Day, then such payment
shall
be made on the next succeeding Business Day, when the Loan is due, Principal
and
Interest both shall be paid off.
3
5.2
Interest rate shall adopt to article 4.2.1;
5.2.1
Annual Interest Rate is 6.732% which is fixed rate, shall have no adjustment
made during the term of the Loan.
5.2.2
The
Lender shall notify The Borrower within in 30 days when the Interest Rate
modified, the execution shall not be affected whether the notice has been
delivered.
5.3
For
the matters not referred in this contract shall be construed in accordance
with
the provisions of the Peoples Bank of China.
Article
6
THE SOURCES OF REPAYMENT AND METHODS OF REPAYMENT
6.1
The
Principle and Interests are, but not limited from
6.1.1
Sales
Income
6.1.2
Other
Currency Income
6.2
The
Borrower shall repay the loan in accordance with the status of its cash. The
Borrower shall pay the full amount and at date [2008-02-11] to make the
payment.
Article
7
GUARANTY
7.1
The
guaranty under this Contract should be Mortgage.
7.2
(the
"Guarantor") shall be the guarantor for the loan under this contract and take
jointly liabilities with The Lender under a Guaranty Contract of (2007 Cangkou
(Di) Zi 0001)
7.3
During the term of this contract, if the guarantors financial status become
deteriorated or the liabilities for repayment of debts become weak, the Lender
shall have right to request the Borrower changes guarantor or provide mortgage
and pawn secured for this loan under this contract.
Article
8
THE RRIGHTS AND OBLIGATIONS OF THE TWO PARTIES
8.1
The
Borrower is independent contractor under this contract, it will not impact
by
any other relations between the Borrower with other party except the other
provisions set forth in this contract.
8.2
The
Lender give any extension, toleration, favor to the Borrower or permit the
Borrower to delay of performance any obligation under this contract shall not
impair any rights of the Lender in accordance with this contract and laws,
regulation, it shall be deemed to have waived its rights under this contract
and
the obligation shall be performed by the Borrower under this
contract.
Article
9
OBLIGATION OF BREACH OF CONTRACT
9.1
Event
of breach of contract:
9.1.1
The
Borrower fails to use the loan in accordance with the agreed usage of the Loan;
9.1.2
The
Borrower fails to repay the due principal and pay the interests, expenses or
other payable in accordance with the agreed term of this contract;
4
9.1.3
The
Borrower breaches the representation and warrants.
9.1.4
The
Borrower breaches other loan Contracts or guaranty Contracts or the Guarantor
breach the guaranty Contract which may make impact the Borrower to perform
the
obligations under this contract.
9.1.5
Conclusive evidence to show that the Borrower lose the capacity of credit or
during performance of the obligation under this contract, the financial
conditions of the Guarantor are seriously deteriorating or other reasons caused
the Guarantor the capacity of credit decline.
9.1.6
The
Borrower breaches the other obligations under this contract.
9.2
Under
the above circumstances, the Lender shall have right to:
9.2.1
Request the Borrower to rectify within the period designed by the Lender;
9.2.2
Cease in extending the loan or cancel the credit;
9.3
If
the Borrower fails to uses the loan in accordance with the provisions set forth
in this contract, the Lender shall have right to charge a interests for the
misusing part at a rate of [100%] per day.
9.4
If
the Borrower fails to repay the loan and can not reach a agreement with the
Lender regarding the extension, the Lender shall collect an overdue penalty
for
[50%] of the overdue amount per day.
9.5
Declare the loan is due under other loan Contracts between the Lender and the
Borrower, request the Borrower to repay the loan principals, interests, and
other expenses.
Article
10 EFFECTIVENESS, AMENDMENT AND MODIFICATION
OF
THIS
CONTRACT
10.1
Effectiveness: This Contract shall enter into force on the effective Date and
shall remain in effect until all the amounts payable hereunder are paid in
full
to the satisfaction of the Lender.
10.2
Amendment: This Contract may not be amended, changed or modified except in
writing signed by the parties.
Article
11 SETTLEMENT OF DISPUTES
11.1
Any
or all disputes arising from or in connection with the performance of the
Contract shall be settled through negotiation by both parties, failing which
they shall be adopt to article 11.1.1.
11.1.1
Any dispute arising from or in connection with this Agreement shall be submitted
to the local court for arbitration.
Article
12 OTHER ITEMS
12.1
Any
charge includes but not limited to charge of attorney are to be effected by
the
Borrower.
12.2
The
Borrower shall make a prior payment or add Mortgage, when the Mortgage is
reappraised during the Loan and the value of the mortgage is less than the
residual payment, otherwise The Lender has right to dispose the mortgage.
5
Borrower:
Qingdao
Renmin Printing Co., Ltd.
Representative:
Xxxx Xx Xxx
Date:
2007-01-30
Lender:
Industrial and Commercial Bank of China, Qingdao Branch, Licang No. 2
Sub-Branch
Representative:
Xx Xxxxx Xxx
Date:
2007-01-30
6
