Loan No.: Xi Da Road 2009 Loan
001
Lender:
Address:
Post
Code:
Tel:
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Industrial
Bank Co., Ltd.'s Xi'an branch
No. 258,
Dong Xin Road, Xi’an
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Borrower:
Mailing
Address:
Post
Code:
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Xi’an
TCH Energy Technology Co., Ltd.
No. 86,
Gaoxin Road, Hi-Tch District, Xi’an City
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Signing
City:
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Xi’an
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According to
applicable laws and regulations of the People's Republic of China
(the "PRC"), the Borrower and Lender, after reaching an agreement
through negotiation, hereby enter into this contract pursuant to
Borrower's application to Lender for a working capital loan (the
"Loan")
Loan Amount
(full-form characters): Twenty million Yuan exactly.
Loan Usage:
only for Working Capital Loan purpose
3.1 Term: 12
months, from April 13, 2009 to April 12, 2010
3.2 The funds
release date shall be as recorded in the Loan voucher. If the
actual release date is later than the starting date of the Loan,
the ending date shall be postponed accordingly.
3.3 Loan
release Schedule
On the date of
April 13, 2009, Lender shall transfer an amount of RMB 20 million
in full to Borrower’s account.
3.4 If Lender
requires the Loan to be early terminated according to the
prescription in Article 9, the term shall be ended up to an earlier
due date correspondingly.
Article 4 Interest Rate and Interest
Calculation
4.1 The Loan is
applied at a fixed interest rate of 5.31% per year
4.2 Interests
under this Loan shall be accrued quarterly, due on the 20th day of
at the end of each quarter within the Loan term and payable by
Borrower to Lender each quarter. All principal and outstanding
interests shall be paid in full on the ending date of the Loan
term.
Article 5 Penalty Interest and
Compound Interest
5.1 If Borrower
diverts the fund under this Loan contract to other purposes, or
fails in repayment of any due amounts on due dates, or fails in
reaching an agreement with Lender for extension of the Loan due to
the overdue, Lender shall have the right to charge Borrower for
Penalty Interest by applying Penalty Interest Rate prescribed
hereinafter. For overdue interest, Lender has the right to charge
compound interest at Penalty Interest rate.
5.2 Due to
Borrower’s overdue repayment and the failure in reaching an
agreement on extension of the Loan with Lender, the penalty
interest rate shall be fixed at 1.5 times of the Loan’s
interest rate under this contract.
5.3 Due to
Borrower’s misusing of the loan, the penalty interest rate
shall be fixed at 2 times of the Loan’s interest rate under
this contract.
5.4 Compound
interest shall be applied in calculation of interest of the Loan
under this contract.
6.1 Borrower
shall repay all the due in principal and interests under this Loan
contract in full on the due date.
6.2 Borrower
shall not pre-repay the principal and interest without a prior
notice to Lender and an approval from Lender. Lender shall have the
right to collect all the interests payable under the original Loan
term.
6.3 Borrower
hereby irrevocably authorizes Lender to directly withdraw funds
from Borrower's deposit account for repayment of the principle and
interests, in the event of certain occurrences hereinafter
prescribed under Article 9 and 10.
The following
contract shall serves as the Security Contract under this Loan
Contract:
Serial No:
Industrial Bank Co. Ltd Xida Street Security Contract. 001-1#
2009
Security type:
Guaranty Contract
Guarantor:
Shanxi Zhongze Investment Company Limited
Article 8 Declarations and
Warranties
Borrower hereby
declares to Lender
1. Borrower is
a legally registered company established and existing under the
laws and has all the necessary rights, power and capability to
enter into and perform all the duties and obligations of this
contract.
2. Borrower has
full authorization from the Board to enter this loan contract and
this contract violates no laws, regulations, policies,
by-laws and rules applicable to Borrower. Borrower shall take
full responsibility of its own if the contract violates any
internal policies or by-laws of Borrower.
3. Excepted for
the representations provided by Borrower in the application
documents, Borrower has no mortgage, pledge, lien and contingency
liability on its assets and incomes. Borrower has no outstanding
litigation, arbitration and bankruptcy.
4. Borrower
does not hide from