Loan agreement and pledge agreement
Exhibit
10.10
This bank
loan agreement and pledge agreement were made among the following parties on 19
December 2008.
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(A)
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Borrower
: Guangxi Liuzhou Baicaotang
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(B)
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Lender/
Mortgagee : Liuzhou City Commercial
Bank
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(C)
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Mortgagor
: Baicaotang Property Development
Limited
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Whereas:
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The
parties are desirous to enter into this agreement and agree as
follows:-
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(1)
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The
purpose of loan is for working
capital
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(2)
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The
loan amount is equivalent of RMB5,000,000 and the term of loan is 12
months from December 19, 2008 to December 19, 2009 which is the due date
of principle loan;
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(3)
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Interest
was monthly charged at 0.6975% and subject to the change in accordance
with the benchmark rates announced by People of Bank of China without
notice, and is monthly accrued and to be settled monthly on 20 th of each
month .
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(4)
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Rights
and obligation
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Borrower
:
i Proper
use of loan in accordance with the terms set as therein
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ii
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Providing
the true and complete financial report and relevant information, and
assist the investigation of the borrower’s business and financial
activities in connection with the use of
fund.
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iv
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Repayment
in accordance with the terms as set out therein and may extend the terms
of loan by written notice before due date by 15 days upon the consent of
lender.
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Lender:
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i
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Have
the right to request Party A to repay the said loan at any time when the
occurrence of any incidence detrimental to the possibility of repayment;
increase the items of pledge should the diminution of the value of the
subject under pledge occur;
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ii
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Have
the rights to request Party B to obtain the information inclusive of the
financial figures, inventory and the use of fund in connection to the loan
.
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iii
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Advance
the loan to Party B at the time in accordance with the terms as set out in
above
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(5)
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When
the borrower fail to repay in accordance with the prescribed period
herewith the terms as set out above, penalty charge will be imposed at a
rate of 150% of the aforesaid interest rate of this contract till the
repayment of principal and interest in arrears and will adjust at the date
of the change of the benchmark rates announced by People of Bank of China.
When the borrower fail to use the fund properly, penalty of
200% of the aforesaid interest rate will be imposed on the part in breach
of the use of fund.
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(6)
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Security
of this loan agreement is in the form of the pledge and the mortgagees
agree to pledge by means of property as follows. The pledge covers the
principle of loan, interest, surcharge, compensation, litigation in
connection with the enforcement of
debts.
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(7)
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Value
of asset under pledge : RMB
11,014,800
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(8)
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Asset
under pledge : 0/X Xxxxx 0, Xxxxxxx Xxxxxx No 000 Xxxxxxxxx Xxxx, Xxxxxxx
Xxxx
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