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RMB Short-Term Loan Agreement

Loan Agreement

RMB Short-Term Loan Agreement | Document Parties: WONDER AUTO TECHNOLOGY, INC | Bank of China | Jinzhou Halla Electrical Equipment Co, Ltd You are currently viewing:
This Loan Agreement involves

WONDER AUTO TECHNOLOGY, INC | Bank of China | Jinzhou Halla Electrical Equipment Co, Ltd

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Title: RMB Short-Term Loan Agreement
Date: 11/1/2007

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EXHIBIT 10.2
RMB Short-Term Loan Agreement

  (This document is an English summary from the original Chinese version)


The Borrower : Jinzhou Halla Electrical Equipment Co., Ltd.

The Lender: Bank of China (Jinzhou Tiebei Branch)

Date of the Agreement: September 27, 2007

1.
The amount of loan is RMB 30 million.
 
2.
The term of the loan is 6 months, commencing on the drawdown date and ending on the last payment date.
 
3.
The loan shall be used for the purpose of purchasing raw materials. Without written consent of the Lender, the Borrower can not change the use of the loan. The loan can not be used to buy stocks, real estates in violation of regulations and other items prohibited by laws and regulations.
 
4.
The semiannual interest rate is 6.48% and cannot be adjusted within the term of this Agreement. The Borrower shall make the interest payment on a quarterly basis on March 20 th , June20 th , September 20 th , and December 20 th , respectively.
 
5.
Conditions of Drawing Loan
 
The Lender is entitled to refuse the Borrower’s drawing money before the following conditions are satisfied:
 
 
(1)
The Borrower submits a written application for the loan and documents proving the use of the loan five days before it draws money;
 
 
(2)
This Agreement and other relevant documents attached have taken into effect;
 
 
(3)
The Mortgage Agreement specified under Section 9 has taken into effect;
 
 
(4)
The Borrower has opened bank account in accordance with the requirements of the Lender for drawing money, paying interests and fees;
 
 
(5)
The Borrower has submitted to the Lender the resolutions of the board of director of the Borrower or the other competent authorities approving the execution and performance of this Agreement;
 
 
(6)
The Borrower has submitted to the Lender the lists of personnel who have the power to execute this Agreement and relevant documents to this Agreement and their sample of signature; and
 
 
 

 
 
 
(7)
No occurrence of event of default specified under Section 11.
 
6.
The Borrower shall draw the whole amount of the loan on September 29, 2007.
 
7.
The Borrower shall submit an application for the loan when drawing the money and go through respective formalities.
 
8.
On March 28, 2008, the Borrower shall pay back the principal of RMB 30 million. Prepayment is permitted, but a 15-day advance notice to the Lender is required. On such occasion, the Borrower shall be subject to a penalty equal to 2% of the interests that otherwise would be accrued on the portion of the principal that is pre-paid.
 
9.
The Borrower shall provide mortgage to secure the full payment of its obligation under this Agreement. The Borrower and the Lender entered into a Mortgage Agreement, the number of the agreement is 2007 Jin Zhong Yin Tie Ya Zi No. 001 .
 
10.
Representations and Warranties
 
 
10.1
The Borrower represents that:
 
 
(1)
It is duly registered and validly existing;
 
 
(2)
It has obtained all necessary authorization to execute this Agreement;
 
 
(3)
All documents, financial statements, and other materials provided by the Borrower to the Lender are true, complete, accurate and valid;
 
 
(4)
The Borrower has not disguised any of the following events which has already occurred or is occurring and will affect the performance capabilities of the Borrower:
 
 
(ii)
any material violation of discipline and laws or claims to be made involving the Borrower or its main leaders;
 
(iii)
breach of contract by the Borrower under other agreements;
 
 
(iv)
obligations, contingent obligations or mortgage or pledge to a third party which the Borrower shall bear;
 
 
(v)
pending litigation or arbitration; and
 
 
(vi)
other events which will affect the financial status and performance capabilities of the Borrower.
 
 
10.2
The Borrower hereby warrants:
 
 
(1)
To provide the Lender the latest financial statements on a monthly basis in accordance with the requirements of the Lender, provide the Lender the audited financial statements of the previous year in the first quarter, and to provide any time upon the request of the Lender other related materials including but limited to the financial statements;
 
 
2

 
 
 
(2)
To accept and fully coordinate the examination and supervision by the Lender to the use of the loans;
 
 
(3)
To inform the Lender in advance of decrease of registered capital, or any material change of equity interest and adjustment of operation, including but not limited to joint venture or cooperation with foreign investors, division,

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