Contract No.:
Year 2008 Liu Zi No.070
Loan Contract
for Operating Fund
Borrower (party
A): Tianjin Yayi Industrial Company Limited
Address: 9
XingGuang Road, Zhongbei Industrial Park, Xiqing District,
Tianjin
Legal
representative: Li Liu
Lender (party
B): Industrial & Commercial Bank of China, Tianjin Branch,
XiQing Sub branch
Address: 77
XinHua Road, Yangliuqing, XiQing District, Tianjin
Legal
representative (person in charge): Fan Xiaomin
Clause1. Type
of the Loan
Clasue2.
Function of the Loan
Clasue3. Amount
and Term of the Loan
Clause4.
Interest Rate of the Loan and Interest Calculation
Clause5. Loan
Repayment Origin and Manner
Clause7. Rights
and Duties of Both Parties
Clause8.
Responsibilities of Breaching the Contract
Clause9.
Effectiveness, Modification, Termination and Ending of the
Contract
Clause10.
Settlement of Dispute
Clause11. Other
Articles That Both Parties Have Agreed Upon
Clause12.
Supplementary Articles
For the need
stated in Clause2.1 of the contract, party A needs to request for a
loan from party B. Party B agrees to provide party A with the loan.
To make both parties’ rights and duties clear, party A and B
have made this contract after discussion on the basis of Contract
Law, General Rules of Loans and other related laws and
regulations.
Clause1. Type
of the Loan
1.1 The loan
under this contract is (medium-term or short-term) circulating fund
loan.
Clause2.
Function of the Loan
2.1 The
function of the loan under the contract: to purchase raw
materials.
2.2 Without
party B’s written consent, party A may not change the
function of the loan under the contract.
Clause3. Amount
and Term of the Loan
3.1 The amount
of the loan under the contract is RMB(in Chinese characters)
4,000,000.00 (in Arabic numbers) 4,000,000.00 (if the amount in
Chinese characters is different from that in Arabic numbers, take
the one in Chinese characters as standard, and the same is true
below).
3.2 The term of
the loan under this contract is 12 months, from November 14, 2008
till November 11, 2009.
3.3 Party A
should take the loan at one time as stated in Clause3.2 of the
contract. If there is any special reason, party A may take the loan
___ days before or after the expected date with party B’s
written consent. The actual loan taking date and repaying date are
subject to the date recorded on the receipt of loan. Loan receipt
or loan-taking voucher is a indivisible part of the contract. Apart
from date, if there is any item recorded in the loan receipt is
different from the contract, the contract should be taken as
standard.
Clause4.
Interest Rate of the Loan and Interest Calculation
4.1 The loan
interest is calculated by day from the date of the actual
loan-taking day (daily interest rate = annual interest rate/360),
liquidated every month (month/quarter). The liquidating date is the
20 th
of each month (the 20
th of each month/ the 20 th of
the last month of each quarter). If the 20 th is
not a working day of the bank, the liquidation will be postponed
till the next working day of the bank. When it is the day to
liquidate, the interest should be liquidated together with the
principle.
4.2 The
interest rate of the loan under the contract is stated in
Clause4.2.2:
4.2.1 The
annual interest rate is a fixed rate of ____%, which will not be
adjusted within the term of the contract.
4.2.2 The
interest rate of the loan under the contract is 20 % higher
(higher/lower) than the corresponding level interest rate of the
People’s Bank of China. The interest rate will be adjusted by
each period, which is one year (one year/ half year/ one
quarter/ one month). The date of the first period is subject to the
date when the loan contract becomes effective. Then, party B will
fix the interest rate of the first period, which is the annual
interest rate of 7.992 %, on the basis of the standard
interest rate of corresponding level of People’s Bank of
China in the same period and the floating rate agreed by both
parties. For the second the following periods, the interest rate is
fixed on the day corresponding to the date when the contract
becomes effective. Party B will fix the interest rate on the basis
of the standard interest rate of corresponding level of
People’s Bank of China in the same period and the floating
rate agreed by both parties. If there is no corresponding day with
the date when the contract becomes effective, the last day of the
month will be regarded as the corresponding day.
If the loan is
taken at different times, no matter at how many times the loan is
taken within one period, the interest rate will be the fixed
interest rate for the same period, and will be adjusted in the next
period.
The
corresponding day of the date when the loan contract becomes
effective, means the date of the day one period after the
corresponding day. For example, if the effective date of the
contract is May 9 of one year, the corresponding day of the second
period is June 9 of the same year when one period is one month; the
corresponding day of the second period is August 9 of the same year
when one period is one quarter; the corresponding day of the second
period is November 9 of the same year when one period is half year;
the corresponding day of the second period is May 9 of the next
year when one period is one year and so on.
4.2.3 Other
manner:___________________________________________________________________________
Party B should
notice party A in written form about the change of interest rate,
but whether the notice is received or not will not influence the
implementation of the change.
4.3 If during
the term, the People’s Bank of China has adjusted its
interest rate or interest rate fixing method, related regulation of
the People’s Bank of China should be taken as
standard.
Clause5. Loan
Repayment Origin and Manner
5.1 Party A
will repay the principle and interest of the loan from but not
limited to:
5.2 Whatever
limit made in any other contract, which involves party A, about the
source of repayment will not influence party A’s duty in
repaying the loan under this contract. No matter under what
circumstances, party A must not quote Clause5.1 to refuse to
implement its repaying duty under this contract.
5.3 Party A
should pay the interest in full amount timely according to the
contract, and repay the principle of the loan according to the
Clause5.3.1 of the contract:
5.3.1 The
principle should be repaid at one time. Party A should repay all
the principle of the loan on November 11, 2009;
5.3.2 The
principle should be repaid at different times. The detailed amount
and date of repayment is as following:
5.3.2.1 ____ YY
____ MM ____ DD, amount (in Chinese characters) RMB____ (in Arabic
numbers) RMB____;
5.3.2.2 ____ YY
____ MM ____ DD, amount (in Chinese characters) RMB____ (in Arabic
numbers) RMB____;
5.3.2.3 ____ YY
____ MM ____ DD, amount (in Chinese characters) RMB____ (in Arabic
numbers) RMB____;
5.3.2.4 ____ YY
____ MM ____ DD, amount (in Chinese characters) RMB____ (in Arabic
numbers) RMB____;
5.3.2.5 ____ YY
____ MM ____ DD, amount (in Chinese characters) RMB____ (in Arabic
numbers) RMB____.
(If there are
more times, additional pages may be attached)
5.4 Party A
should deposit enough money to its account opened at party
B’s place to repay the interest or principle in the period
before the deadline of interest liquidation or principle repayment,
and should authorize party B to transfer the money actively on the
agreed date of interest liquidation or principle
repayment.
6.1 The
warranty manner of loan under the contract is: guarantee
.
6.2 Party A has
the obligation to actively assist party B and let party B and the
warrantor sign warranting contract with the reference number Year
2008 Bao Zi No.070.
6.3 If there
is any change, negative to party B, of the warranty under the
contract, after party B’s notice, party A should provide
other warrantee, satisfactory to party B, up to party B’s
requirement.
Clause7. Rights
and Duties of Both Parties
7.1 Rights and
duties of party A:
7.1.1 To take
and use the loan according to the term and func
