Loan Agreement between Shandong Xiangrui and China Everbright Bank (Qingdao Jiaozhou Branch), October 18, 2011
Shandong Xiangrui and China Everbright Bank, Qingdao Jiaozhou Branch, entered into a loan agreement for RMB 40 million on October 18, 2011. The loan is for six months, intended for vendor payments, and requires Shandong Xiangrui to deposit half the loan amount as restricted cash, effectively providing RMB 20 million in usable funds. There is no interest during the loan period, but late payments incur a 0.05% daily penalty. The loan is guaranteed by Ruixing Group and secured by Shandong Xiangrui’s land use rights and RMB 20 million in cash collateral.
Exhibit 10.54
Loan Agreement between Shandong Xiangrui and China Everbright Bank, Qingdao Jiaozhou Branch, dated October
18, 2011, for a RMB 40 million loan
Main contents:
| • | Contract No.: Guan Yin Jiao Yin Zi No. ###-###-#### |
| • | Loan Amount (RMB): RMB 40,000,000 Yuan |
| • | Purpose of the Loan: payment to vendor |
| • | Contract Term: 6 months, from October 18, 2011 to April 18, 2012 |
| • | Interest Rate: |
| • | The processing fee is 0.05%; |
| • | Shandong Xiangrui is required to deposit 50% of the loan amount as restricted cash so that Shandong Xiangrui obtained net of RMB 20 million cash from this loan. |
| • | No interest during the 6 month loan period |
| • | Penalty interest rate for delayed repayment: 0.05% per day |
| • | Guarantee |
| • | Ruixing Group provided a guarantee for this loan |
| • | Shandong Xiangrui used its land use rights as collateral for this loan (collateral agreement # 2011076) |
| • | Shandong Xiangrui also used RMB 20 million ($3.2 million) cash as collateral for this loan. |
