LOANCONTRACT.doc

LOANCONTRACT contractnumber： borrower： address： lender： address： inaccordancewithprovisionsofcontractlawofthepeoplesrepublicofchinaandbankofchinaafterreviewingthestatusandtherequestoftheborrowerthelenderagreestogranttheborroweralineofcrediton.theborrowerlenderandguarantorthroughfriendlynegotiationhaveexecutedthiscontractasfollows：article1currencyamountandtermoftheloan： 1.thecurrencyunderthisloanisreiminbi. 2.thelineoftheloanisyuan. 3.theperiodofthisloanis12monthsfromthedateofeffectivenessofthiscontract.article2thepurposeoftheloan： 1.thepurposeofthisloanisusedforworkingcapitalturnover. 2.withoutwrittenapprovalofthelendertheborrowercouldnotusetheloanoutofthescopeofthepurpose. article3interestrateandcalculationofinterest： 1.interestrate：theinterestrateshallbeduringtheloantermifthecountrysrelatedauthorityadjustedtheinterestrateorthemannerofcalculationofinteresttheinterestofthiscontractshallbeadjustedaccordinglyafteroneyearfromthedateofexecutionofthiscontract. theadjustmentshallbeconductedwhentheinterestrateareexecutedoneyear.itisnotobligedtoinformtheborrowerwhentheadjustmentofinterest. 2.theinterestshallbecalculatedfromthedateoffirstdrawdownandtheactualdaystheborroweruse.oneyearshallbecalculatedas360days. 3.thepaymentofinterests：heeventthattheborrowerfailstopaytheinterestsontimeandthebalanceoftheaccountoftheborrowerisnotenoughforthepaymentofinterestthelendershallhaverightstocollectapenaltybeingoftheoutstandingamountperdayfortheborrowersbreachofcontract. article4overdueinterestsandmisusinginterests 1.iftheborrowerfailstorepaytheloanandcannotreachaagreementwiththelenderregardingtheextensionthelendershallcollectanoverduepenaltyforoftheoverdueamountperday. 2.iftheborrowerfailstousestheloaninaccordancewiththeprovisionssetforthinthiscontractthelendershallhaverighttochargeainterestsforthemisusingpartatarateofperday. article5account theborrowershallopenreiminbibasicaccountand/orforeigncurrencyaccountatthelenderorlendersbranchfortheuseofdrawdownrepaymentpaymentofinterestsandfees. article6drawdown 1.theloanunderthiscontractisrevolvingthebalanceofthiscontractshallnotmorethanthelineofcredit. 2.theborrowershallsendadrawdownapplicationastheformhereinattachedinthiscontract7daysbeforethedateofdrawdown. 3.theborrowershallnotdrawtheloanlessthan1million. article7conditionsfordrawdown thefollowingconditionsshallbesatisfiedinadvanceofthedrawdowndate： 1.theborrowerhasopenedforeignaccountandreiminbiaccountattheofficeofthelenderorthebranchofthelender； 2.thiscontractandtheappendiceshavebeeneffective； 3.theborrowerhasprovidedtherecognitionoftheinvestmentorcertificateoftheinvestmenttothelender； 4.theborrowerhasprovidedtheboardresolutionandpowerofattorneyregardingthisloancontract； 5.theborrowerhasprovidedthelistandthesignaturesampleoftheauthorizedpersonwhoempowertosignthiscontractanddocuments； 6.theguarantyunderthiscontracthasbeeneffective； 7.theborrowerhasbeensatisfiedthewarrantsunderarticle11ofthiscontract； 8.theotherrequirementforthedrawdownhavebeensatisfied. article8repaymentplanandprepayment 1.theborrowershallrepaytheloaninaccordancewiththestatusofitscash.theborrowershallinformthelenderthepaymentamountanddatepriortomakethepayment.theborrowershallbeobligedtorepaytheprincipalandrelatedinterestsonduedatewithoutanycondition. 2.thepaymentmadebytheborrowerandthedeductionfromtheaccountoftheborrowershallbeusedforrepayingtheinterestatfirstandthenforrepayingtheprincipal. 3.intheeventtheborrowerfailstorepaytheloanthelendershallhaverightstodeductthedebtfromthebankaccountoftheborroweratthelenderorempowerthebranchesofthelendertodeductthedebtfromthebankaccountoftheborroweratthelendersbranches； 4.theinstallmentofrepaymentshallnotlessthan1million. article9debtcertificate thelendershallkeeprecordinthelendersaccountfortheprincipalinterestsandfeesandotherfeesoftheborrowerunderthiscontract；theabovementionedrecordandthedocumentationforthedrawdownrepaymentandpaymentofinterestisthecertificatesofthedebtsbetweentheborrowerandthelender. article10guaranty 1.（theguarantor）shallbetheguarantorfortheloanunderthiscontractandtakejointlyliabilities. 2.duringthetermofthiscontractiftheguarantorsfinancialstatusbeedeterioratedortheliabilitiesforrepaymentofdebtsbeeweakthelendershallhaverighttorequesttheborrowerchangesguarantororprovidemortgageandpawnsecuredforthisloanunderthiscontract. article11representationsandwarranties i.theborrowersrepresentsandwarrantsasfollows： 1.theborrowerisapanydulyorganizedandvalidlyexistingunderthelawofthepeoplesrepublicofchinaandhasthepowerandauthoritytoownitspropertytoconsummatethetransactionscontemplatedinthiscontractandjointhelitigation.theborrowerhasthepowertohandleitassetsusedinoperation. 2.theborrowerisatitsoptiontosignandperformthiscontract.itistheborrowerstruemeaningandhasthepowertosignthiscontractanditisnotbreachitarticleofassociationorregulationsorcontracts.theprocedureforsignatureandperformanceofthiscontracthasbeengonethroughandfullyeffectiveness. 3.thealldocumentsmaterialsreportsandcertificatesprovidedtothelenderbytheborrowerforconsummationofthiscontractistruerealpeteandeffective 4.theborrowershallnotconcealthefollowingeventswhichisbeinghappenedorhavebeenhappenedwhichwillcausethelenderrefusetoextendtheloan： （1）theborrowerortheprincipalexecutivesoftheborrowerinvolveinmaterialeventswhichbreachregulationslawsorpensationtoothers； （2）pendingactionsandarbitration； （3）theborrowersdebtsorproposeddebtsorliensandotherencumbrances； （4）theothermatterswillimpactthefinancialstatusorabilitiesofrepaymentforthedebts； （5）theborrowerbreachedcontractwhichisbetweentheborrowerandothercreditors. ii.theborrowerherebywarrantsasfollows： 1.usingthecapitaloftheloanasusagesetforthinthiscontracttheborrowerwillnotusetheloanasequityinvestment；theborrowerwillnotusethecapitaloftheloaninvestinsecurityfuturerealestateetc.theborrowerwillnotlendtotheothersprivatelyorinvolvingothermaterswhichisprohibitedbythecountry.theborrowerwillnotmisusingorappropriationoftheloan. 2.makingpaymentandrelatedexpensesinaccordancewiththeprovisionssetforthinthiscontract； 3.providingupdatedfinancialstatementorfinancialbulletineveryquarter；providingtheauditedfinancialreportatthefirstquartofeachyear；providingoperationreportfinancialreportorotherfilesandmaterialsandshallwarranttherealitycorrectandeffectivenessforthefilesandmaterials； 4.anyantiguarantyorothersimilardocumentswillnotmakeanyimpactontherightsandbenefitsofthelenders； 5.acceptingthesupervisionofthelenderprovidesassistanceandcooperationforthelenderssupervisions； 6.willnotreducetheregistrationcapital；priorapprovalfromthelendershallberequiredwhentheborrowerchangesofshareholdersandoperationmanner（includingbutnotlimitedtojointventurecooperationjointlycooperation；dissolutionclosedownliquidationtransformation；merger；changetosharepanyusethehousingmachineryorotherrealassetsortrademarkintellectualpropertyknowhowlandingusingrightsorotherintangibleassetstoinvestinsharepanyorinvestmentpanytradingofoperationrightorownrightbycontractingjointoperationtrusteeship） 7.theborrowershallinformthelenderandwarrantstheliabilityunderitssecuritywillnotmorethannetassetsoftheborrowerwhentheborrowerguaranteeforotherpartyormortgageitsassets.theborrowerwarrantsthatwillnotdisposetheassetswhichwillmakeadverseimpactonitsabilityofpayingdebts. 8.theborrowerwillnotpaytheothersimilarloanspriortothelender； 9.theborrowerwarrantstoinformthelenderimmediatelywhenthefollowingeventsoccurred： （1）theeventofbreachofcontractunderthiscontractorotherloanorguarantycontractsbetweentheborrowerandanybranchesofbankofchinaorotherbanksnonbankfinancialorganization； （2）theborrowerchangesshareholdersorrevisethearticleofassociation； （3）theborrowersufferdifficultiesandbadresultinfinancialandoperation； （4）theborrowerinvolvesinmaterialactionsorarbitration； 10.theborrowershallkeepsufficientbalanceforrepaymentpriortotheduedate. 11.theborrowershallkeepitsbanktransactionsregardinginecollectionsellforeigncurrencyorbuyforeigncurrencyect.shallbeconductedatthelenderorotherbranchesofthelender.theturnoverforthecapitalshallsatisfythedemandofthelender； iii.theborrowersrepresentationsandwarrantshereunderthiscontractshallbeeffectiveeventhoughanymendmentsupplementsorrevisedtobemadetothiscontract. article12representationsandwarrantsofthelender i.thelenderrepresentsandwarrantsasfollows： 1.thelenderisastateownedmercialbankorbranchdulyorganizedandvalidlyexistingunderthelawofp.r.candapprovedbytheindustryandmercialadministrationandholdsthefinancialinstitutionslegalpersonlicensesandfinancialinstitutionsoperationlicensetobequalifiedtooperatefinancialbusiness. 2.thelenderhastakenallnecessaryactiontoauthorizetheexecutionofthiscontractandperformanceofitsobligationsunderthiscontract.thelenderisdulyauthorizedtoextendthisloan. ii.thelenderwarrantsasfollows： 1.thelendershallextendtheloaninaccordancewiththeprovisionssetforthinthiscontract. 2.collectinterestsinaccordancewiththeregulationsofthepeoplesbank. article13eventsofbreachcontractandsettlement： i.settlementoftheborrowerbreachofcontract 1.eventofbreachofcontract： （1）theborrowerfailstousetheloaninaccordancewiththeagreedusageoftheloan； （2）theborrowerfailstorepaythedueprincipalandpaytheinterestsexpensesorotherpayableinaccordancewiththeagreedtermofthiscontract； （3）theborrowerbreachestherepresentationandwarrantssetforthinarticle11. （4）theborrowerbreachesotherloanagreementsorguarantyagreementsortheguarantorbreachtheguarantyagreementwhichmaymakeimpacttheborrowertoperformtheobligationsunderthiscontract. （5）conclusiveevidencetoshowthattheborrowerlosethecapacityofcreditorduringperformanceoftheobligationunderthiscontractthefinancialconditionsoftheguarantorareseriouslydeterioratingorotherreasonscausedtheguarantorthecapacityofcreditdecline. （6）theborrowerbreachestheotherobligationsunderthiscontract. 2.undertheabovecircumstancesthelendershallhaverightto： （1）requesttheborrowertorectifywithintheperioddesignedbythelender；（2）ceaseinextendingtheloanorcancelthecredit； （3）declaretheloanunderthiscontractisdueandthelendershallhaverighttodeducttheoutstandingamountfromtheaccountoftheborrower.theborrowershallnotappealagainstthelender. （4）declaretheloanisdueunderotherloanagreementsbetweenthelenderandtheborrowerrequesttheborrowertorepaytheloanprincipalsinterestsandotherexpenses. ii.thesettlementforthelenderbreachofthecontract 1.thelenderfailstoextendtheloanasagreedinthiscontractwithoutanyreasons； 2.thelenderbreachestheagreedinterestrateandcollectionaddinterestsorotherfees； 3.thelenderbreachestheprovisionssetforthinarticle12； 4.undertheabovecircumstancestheborrowershallhaverightto： （1）requestthelendertorectify； （2）repaytheloanaheadoftimeandrefusetopayanypensationforprepayment. article14deduction theborrowershallpayinfullforthepaymentwithoutanycounteractionoranycondition. article15assignmentofthedebtandcredit 1.theborrowershallnotassignitsrightandliabilityunderthiscontracttootherthirdpartywithoutanywrittenapprovalofthelender； 2.intheeventtheborrowerassignitsrightandliabilityunderthiscontracttootherthirdpartyunderthewrittenconsentofthelenderthethirdpartyshallabidethiscontractwithoutanycondition. article16performanceofobligationandwaiverofrights 1.theborrowerisindependentcontractorunderthiscontractitwillnotimpactbyanyotherrelationsbetweentheborrowerwithotherpartyexcepttheotherprovisionssetforthinthiscontract. 2.thelendergiveanyextensiontolerationfavortotheborrowerorpermittheborrowertodelayofperformanceanyobligationunderthiscontractshallnotimpairanyrightsofthelenderinaccordancewiththiscontractandlawsregulationitshallbedeemedtohavewaiveditsrightsunderthiscontractandtheobligationshallbeperformedbytheborrowerunderthiscontract. article17amendmentsupplementandinterpretationofthecontract 1.thiscontractcouldbeamendedandsupplementeduponthewrittenagreementsconcludebytheparties.anyaamendmentandsupplementshallbeintegralpartyofthiscontract. 2.intheeventchangeoflawsregulationsorlegalpracticewhichwillcauseanytermscontainedinthiscontractbeeillegalinvalidorlossofpracticetheotherpartofthiscontractshallnotbeimpairedbyit.thebothpartiesshallmakeeffortstochangetheillegalinvalidorlossofpracticepart. 3.forthemattersnotreferredinthiscontractshallbeconstruedinaccordancewiththeprovisionsofthepeoplesbankofchina. article18disputeresolutiongoverninglawandwaiverofexemption 1.theconclusioninterpretationanddisputeresolutionshallbesubjecttothelawsofthepeoplesrepublicofchin.thedisputesarisingfromtheexecutionofthiscontractshallbesettledthroughfriendlyconsultationbybothparties.incasenosettlementcanbereachedthedisputesshallbesubmittedtothepeoplescourtofthelocationofthelenderforjudgment. 2.theborrowershallnotrejectanyobligationduringthesettlementofdisputes. 3.theexecutionandperformanceofthiscontractandtherelatedtransactioniscivilbehavior.theborrowershallnotappealtotakeactiontoexemptfromtheobligationunderthiscontract. ifbothpartiesagreetoapplyarbitrationtheabovetermshallbe： 1.theconclusioninterpretationanddisputeresolutionshallbesubjecttothelawsofthepeoplesrepublicofchin.thedisputearisingfromtheexecutionofthiscontractshallbesettledthroughfriendlyconsultationbybothparties.incasenosettlementcanbereachedthedisputesshallbesubmittedtochinainternationaleconomicandtradearbitrationmissionforarbitration. 2.thearbitrationshallbeconductedinaccordancewiththearbitrationlawofpeoplesrepublicofchinaandprovisionalrulesofprocedureofchinainternati