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Contract of Maximum Line of Credit
No. A04 1101 0906 0100
028
Party A:
International Business Department, Bank of Nanjing Co.,
Ltd.
Party B:
Ever-Glory International Group Apparel Inc.
In order to
ensure Party A has its loan paid by Party B to the maximum amount,
and to clarify the domain of credit of the guaranty of maximum
amount, Party A and Party B have entered into the Contract for
mutual observance and joint performance, according to governing
laws, regulations and rules, and through negotiation and
agreement.
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1.1
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Maximum Line of
Credit referred to in the Contract is the maximum amount of the
credits (including but not limited to such on-or-off balance sheet
businesses as a loan, a commitment of loan, an acceptance, a
discount cash, a bond buy-back, a business financing, a factor, a
letter of credit, a letter of guarantee, an overdraft, an
inter-bank lending, a guaranty, etc.) that will be determinated in
succession during a given term (i.e. Credit-determination Period).
It is the summation of the balances of a credit Party A grants
Party B during a given term, including the following two portions
of undue balances of credit and due but unpaid balances of
credit:
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(1)
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Undue balance
is the summation of all the credit balances to be paid but not paid
because the term of debt-paying has not expired;
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(2)
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Due but unpaid
balance is the summation of all the credit balances not paid by
Party B despite of the expiration of the debt-paying
term.
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The
above-mentioned Maximum Line of Credit does not include a full
amount pledge provided by a deposit certificate, national debt,
guarantee deposit, Golden Plum Blossom financing product, or a full
amount irrevocable guaranty of joint and several liability provided
by a financial organization recognized by Party A, or a full amount
policy-based credit insurance provided by China Export & Credit
Insurance Corporation, or the credit amount guaranteed by other
measures which are capable of risk compensation to the full amount
and are recognized by Party A.
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1.2
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Credit-determination Period in the Contract is
the period of time when credits occur. The credit of a guaranty of
maximum amount is determinated when this Period expires.
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Article
2 The Maximum Line of Credit and the
Credit-determination Period
The Maximum
Line of Credit under the Contract is RMB40,000,000.00, said Forty
Million RMB Yuan. The Credit-determination Period is from June 1,
2009 to June 1, 2010.
During the
above-mentioned period of Period, the summation of the credit
balances granted to Party B by Party A shall not exceed the Maximum
Line of Credit. When some credits are repaid, Party B may apply for
the re-use of the repaid portion.
Article
3 The Occurrence of Credit
The
above-mentioned Maximum Line of Credit does not mean a public
granting of credit by Party A to Party B, and does not constitute
any commitment of Party A for Party B.
During the
Credit-determination Period and within the Maximum Line of Credit,
Party B applies for specific businesses amount by amount based on
its fund shortage, and only can use the capital after Party A has
audited, ratified, and agreed to its usage. The beginning date of
such a business shall be within the Credit-determination Period,
but the ending date of such a business shall or shall not be within
this Period depending on the specific business contracts,
agreements or the applications related to the business. These
specific business contracts, agreements or the applications
relat
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