Loan Agreement between Shandong Xiangrui and Bank of East Asia Qingdao Branch (September 7, 2011)
Shandong Xiangrui entered into a loan agreement with the Bank of East Asia Qingdao Branch for a RMB 10 million loan, effective from September 7, 2011 to March 7, 2012. The loan is intended for vendor payments, with a 0.05% processing fee and no interest charged during the 6-month term. Shandong Xiangrui must deposit 50% of the loan as restricted cash, effectively receiving RMB 5 million. The loan is guaranteed by Ruixing Group and secured by production equipment and cash. Late repayments incur a 0.05% daily penalty.
Exhibit 10.59
Loan Agreement between Shandong Xiangrui and Bank of East Asia Qingdao Branch,
dated September 7, 2011, for RMB 10 million loan
Main contents:
| • | Contract No.: No. QDAD11049 |
| • | Loan Amount (RMB): RMB 10,000,000 Yuan |
| • | Purpose of the Loan: payment to vendor |
| • | Contract Term: 6 months, from September 7, 2011 to March 7, 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 5 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 four production equipments with book value of RMB 5.2 million ($0.8 million) as collateral for this loan (collateral agreement # QDAD11049-02) |
| • | Shandong Xiangrui also used RMB 5 million ($0.8 million) cash as collateral for this loan |
