Loan Agreement Between the Company and Agricultural Bank Dated March 28, 2006
This agreement is between the Company and Agricultural Bank, under which the Bank lends the Company 41 million RMB at a fixed annual interest rate of 5.22%. The loan term is from March 28, 2006, to August 28, 2006, and is intended for purchasing raw materials. Interest is paid monthly. If the Company breaches the contract, penalties may include early repayment, asset attachment, and legal costs. The agreement also covers conditions for drawing the loan, rights and obligations of both parties, and dispute resolution.
Exhibit 10.5
Loan Agreement (3)
Summary of Loan Agreement by and between the Company and Agricultural Bank dated March 28, 2006
Main contents:
| • | Contract No: No. (81101200600000539) |
| • | Loan Amount (RMB) 41 million |
| • | Contract Term: March 28th, 2006 ~ August 28th, 2006 |
| • | Interest rate: fixed annual rate of 5.22%; |
| • | Payment of Interest: The interest of the principal shall be paid monthly, and the interest settlement date is on the twentieth date of each month. |
| • | Purpose of the loan is to purchase raw materials for the Company. |
| • | Liabilities of Breach of Contract Breach of contract penalty; withdrawal of loan, prepayment of principal and interest before maturity, attachment of assets; imposition of compound interest; lawyer’s fee and travel cost in case of litigation due to the Company ‘s breach of contract etc. |
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| Headlines of the articles omitted | |
| • | Outline of the loan |
| • | Condition precedent to the drawing of the loan |
| • | Rights and obligations of the lender |
| • | Rights and obligations of the borrower |
| • | Prepayment of the loan |
| • | Breach of Contract |
| • | Guaranty for the loan |
| • | Dispute settlement |
| • | Miscellaneous |
| • | Effectiveness |
| • | Validity |
| • | Attention |
