Working Capital Loan Contract QINGDAO CITY COMMERCIAL BANK
QINGDAO
CITY COMMERCIAL BANK
1
Contract
No.: 802232007oJieoZi
No.00005
Borrower:
Qingdao Renmin Printing Co.,Ltd.
Lender:
Qingdao City Commercial Bank, Xxxxxxxx Xxxxxx.
The
Borrower applies for the loan from the The Lender as the working capital
turnover. The Lender agreed to grand the loan to The Borrower. According to
the
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
|
Short-term
Loan.
|
Article
2
CURRENCY, AMOUNT AND TERM OF THE LOAN
2.1
The
Currency under this loan is Renminbi.
2.2
The
total amount of the loan shall be up to REIMINBI (Loan amount in
letters)SIXTEEN
MILLION YUAN,
(Loan amount in numbers) 16,000,000
YUAN
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
THE TERM OF THE LOAN
4.1
The
period of this loan is 12 Month from the date of 2007-02-12, to the date
2008-02-11.
Article
5
INTEREST RATE AND CALCULATION OF INTEREST
5.1
Interest rate
5.1.1
Float Rate: Annual Interest Rate is 5.61% which is 10% floating.
The
adjustment of the interest shall make once a month
5.1.2
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.
5.1.3
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.
2
5.1.4
This Contract shall adopt to adjustment of People's Bank of China if the
Interest Rate has been modified.
5.2
The
interest rate shall be calculated 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.
5.3
Payment of Interest: The Borrower shall pay the interests per interest Payment
Date (20th
of each
month). If the payment for the last installment is not on the payment date,
the
interests shall deduct the interest from the bank account of the Borrower.
Article
6 GUARANTY
6.1
(the
"Guarantor": house property mortagage) shall be the guarantor for the loan
under
this contract and take jointly liabilities with The Lender under a Guaranty
Contract of (2007 (Di) 00002)
Article
7 THE RIGHTS AND OBLIGATIONS OF THE BORROWER
7.1
The
Borrowers represents and warrants as follows:
7.1.1
The
Borrower is a company duly organized and validly existing under the law of
the
Peoples Republic of China and has the power and authority to own its property
to
consummate the transactions contemplated in this contract and join the
litigation. The Borrower has the power to handle it assets used in
operation.
7.1.2
The
Borrower is at its option to sign and perform this xxxxxxxx.Xx is the Borrowers
true meaning and has the power to sign this contract and it is not breach it
article of association or regulations or contracts. The procedure for signature
and performance of this contract has been gone through and fully effectiveness.
7.1.3
The
all documents, materials, reports and certificates provided to the Lender by
the
borrower for consummation of this contract is true, real, compete and effective
7.1.4
The
Borrower shall not conceal the following events which is being happened or
have
been happened which will cause the Lender refuse to extend the loan:
7.1.4.1
The Borrower or the principal executives of the Borrower involve in material
events which breach regulations, laws or compensation to others;
7.1.4.2
Pending actions and arbitration;
7.1.4.3
The Borrowers debts or proposed debts or liens and other encumbrances;
7.1.4.4
The other matters will impact the financial status or abilities of repayment
for
the debts;
7.1.4.5
The Borrower breached contract which is between the Borrower and other
creditors.
7.1.5
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.
3
7.2
The
Borrower hereby warrants as follows:
7.2.1
Using the capital of the loan as usage set forth in this contract, the Borrower
will not use the loan as Equity investment; The Borrower will not use the
capital of the loan invest in security, future, real estate etc. The Borrower
will not lend to the others privately or involving other maters which is
prohibited by the country. The Borrower will not misusing or appropriation
of
the loan.
7.2.2
Making payment and related expenses in accordance with the provisions set forth
in this contract;
7.2.3
Providing updated financial statement or financial bulletin every quarter;
Providing the audited financial report at the first quart of each year;
Providing operation report, financial report or other files and materials and
shall warrant the reality, correct and effectiveness for the files and
materials;
7.2.4
Any
anti-guaranty or other similar documents will not make any impact on the rights
and benefits of the Lenders;
7.2.5
Accepting the supervision of the Lender, provides assistance and cooperation
for
the Lenders supervisions;
7.2.6
Will not reduce the registration capital; Prior approval from the lender shall
be required when the Borrower changes of shareholders and operation
manner(including but not limited to joint venture, cooperation,jointly
cooperation; dissolution, closedown, liquidation, transformation; merger; change
to share company, use the housing, machinery or other real assets or trademark,
intellectual property, Knowhow, landing using rights or other intangible assets
to invest in share company or investment company, trading of operation right
or
own right by contracting, joint operation, trusteeship)
7.2.7
The
Borrower shall inform the Lender and warrants the liability under its security
will not more than net assets of the Borrower when the Borrower guarantee for
other party or mortgage its assets. The Borrower warrants that will not dispose
the assets which will make adverse impact on its ability of paying
debts.
7.2.8
The
Borrower will not pay the other similar loans prior to the Lender;
7.2.9
The
Borrower warrants to inform the Lender immediately when the following events
occurred:
7.2.9.1
The event of breach of contract under this contract or other loan or guaranty
contracts between the Borrower and any branches of Bank of China or other banks,
non-bank financial organization;
7.2.9.2
The Borrower changes shareholders or revise the article of association;
7.2.9.3
The Borrower suffer difficulties and bad result in financial and operation;
7.2.9.4
The Borrower involves in material actions or arbitration;
7.2.9.5
The Borrower shall keep its bank transactions regarding income collection,
sell
foreign currency or buy foreign currency ect. Shall be conducted at the Lender
or other branches of the Lender. The turn-over for the capital shall satisfy
the
demand of the Lender;
7.3
The
Borrowers representations and warrants hereunder this contract shall be
effective even though any mendment, supplements or revised to be made to this
contract.
4
Article
8
THE RIGHTS AND OBLIGATIONS OF THE LENDER
8.1
The
Lender represents and warrants as follows:
8.1.1
The
Lender is a state-owned commercial bank or branch duly organized and validly
existing under the law of P.R.C and approved by the Industry and Commercial
Administration and holds the financial institutions legal person licenses and
financial institutions operation license to be qualified to operate financial
business.
8.1.2
The
Lender has taken all necessary action to authorize the execution of this
contract and performance of its obligations under this contract. The Lender
is
duly authorized to extend this loan.
8.1.3
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.
8.2
The
Lender warrants as follows:
8.2.1
The
Lender shall extend the loan in accordance with the provisions set forth in
this
Contract.
8.2.2
Collect interests in accordance with the regulations of the Peoples
Bank.
ARTICLE
9
CHARGE
9.1
Any
charge include but not limited to charge of attorney are to be effected by
the
Borrower.
9.2
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.
ARTICLE
10 SETTLEMENT OF DISPUTES
10.1
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
10.1.1
Any dispute arising from or in connection with this Agreement shall be submitted
to the local court for arbitration.
Article
11 EFFECTIVENESS, AMENDMENT AND MODIFICATION OF THIS CONTRACT
10.1
Effectiveness: This Contract shall enter into force on the effective Date and
shall remain in dffect until all the amounts payable hereunder are paid in
full
to the satisfaction of the Lender.
5
Borrower:
Qingdao
Renmin Printing Co.,Ltd.
Representative:
Xxxx Xx Jun
Date:
2007-02-08
Lender:
Qingdao
City Commercial Bank, Xxxxxxxx Xxxxxx.
Representative:
Xxx Xx Zhong
Date:
2007-02-08
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