Bank Acceptance Agreement for Commercial Draft Jiaozuo City Commercial Bank

2.  

The Applicant provides related documents, materials and finishes relevant processes in response to the Acceptor’s requests.

3.  

If there are any mortgages and pledges existing under this Agreement, related legal processes of registration and/or insurance have been in accordance with the request of the Acceptor, and such guarantee and insurance shall have a continuing legal effect.  If there is any guaranty existing under this Agreement, a contract of guarantee has come into effect.

1.  

The commercial drafts applied for acceptance shall be based upon business transactions that are both true and legal.

2.  

Any disputes between the holder of the drafts(the “Holder”)  and the Applicant shall not constitute a reason for rejecting the performance of the debt under this Agreement, the Applicant shall pay to the acceptor in full the total amount of draft value before the due date.

3.  

The Applicant shall submit all true financial statements as well as all account numbers of all account banks in response to the requests of the Acceptor.

4.  

The Applicant shall be responsible for paying back the advance made by the Acceptor and overdue penalty interest.

5.  

The Applicant shall timely notify the Acceptor in a written form if any of the following happens:  name change, legal representative change, increasing or decreasing registered capital, place of operation change, and changes regards its operation mode and property right type.

6.  

The Applicant shall make a notice to the Acceptor in a written form in advance if it adopts any of the following actions: contracting, leasing, shareholding reform, Co-operation, combination, merger, separation, joint venture, assets transfer, applying for suspension, applying for dissolution, applying for bankruptcy as well as other actions that can change the relation of credit and debt under this Agreement or affect the Acceptor’s ability to realize the credit. Unless approved by the Acceptor and repayment obligation has been settled or debt has been paid off in advance, the Applicant cannot engage in the aforementioned activities.

7.  

Besides aforementioned activities, if the Applicant has gone through any other situation that may have a substantial adverse effect on its performance of the debt under this Agreement, it shall immediately notify the Acceptor in a written form and provide debt secure measures approved by the Acceptor, such other situation includes: suspending operation, shutdown, cancellation of registration, suspension of business license, legal representative or major responsible person is engaged in illegal activity, be involved in substantial litigation or arbitration, experiencing serious difficulties in operation  and the financial conditions are deteriorating, etc.

8.  

The Applicant shall notify the Acceptor in a written form in advance and request permission from the Acceptor with respect to the following events: guaranteeing other person’s debt or mortgage or pledge its major assets to any third party which may affect the Applicant’s ability to repay its debt under this Agreement.

9.  

The Applicant and its investors shall not draw out capital in any means, transfer assets or transfer shares without permission to evade debt owed to the Acceptor.

10.  

The Applicant shall timely provide with the Acceptor approved security measures if guarantor under this Agreement appears to suspending its operation, shutdown, cancelling its registration, suspending its business license, put into bankruptcy as well as suffering from operating loss, its security ability has been partially or completely lost, or the values of mortgaged property, pledged property and pledged rights has decreased under this Agreement.

11.  

The Applicant shall sustain other obligation under laws and regulations

1.  

When the drafts are due, the Applicant is unable to pay off the draft value, unless laws and regulations provide otherwise that a rejection is allowed, the Acceptor shall pay to the Holder based on the draft without any condition.

2.  

The advance to any Holder made by the Acceptor shall be regarded as an overdue loan of the Applicant starting from the date the amount has been paid. Such advance shall be counted into the subject of advance payment, and shall be subject to the overdue interest calculated on 5 out of ten thousands per day of the advance amount, a separate loan agreement is not necessary in this scenario. The Acceptor shall be entitled to transfer directly the draft value and corresponding overdue interest from any account set up by the Applicant.

3.  

If the Applicant commits fraud or other substantial changes which may impair the interest of the Acceptor, and where the Applicant violates the obligation under this Agreement, the Acceptor is entitled to request the Applicant submit the draft value in advance or adopt corresponding secure measures.

1.  

Litigation. The jurisdiction shall belong to the People’s Court where the Acceptor resides.

2.  

Arbitration. Submit to ____________(arbitration organization) for arbitration according to its rules of arbitration.

1.  

The Applicant shall be responsible for the fees related to attorney service, insurance, transportation, evaluation, registration, storage, appraisal, notarization.