Loan Agreement between Merit Crown Limited and Hongkong Takung Assets and Equity of Artworks Exchange Co., Ltd.
Merit Crown Limited is lending US$1.5 million to Hongkong Takung Assets and Equity of Artworks Exchange Co., Ltd. to support the borrower's working capital needs. The loan starts when the funds are transferred (tentatively July 15, 2016) and ends on December 31, 2016. The borrower pays 8% annual interest, which is deducted upfront from the loan amount. At the end of the term, the borrower must repay the full principal of US$1.5 million. Both parties may agree to change the loan period. The agreement is effective upon signing by both parties.
Exhibit 10.1
Loan Agreement
Lender: Merit Crown Limited (a company registered in Hong Kong, company No.: 2174556).
Borrower: Hongkong Takung Assets and Equity of Artworks Exchange Co., Ltd. (a company registered in Hong Kong, company No.: 1801348).
The two parties enter into this Agreement after full consultations.
Article 1. The Borrower borrowers US$1.5 million from the Lender to meet the Borrower’s working capital needs. The loan period shall commence from the date when the Lender pays the full amount to the Borrower after deduction of the interest according to Article 2 (tentatively 15 July 2016) and end on 31 December 2016.
Article 2. The Borrower shall pay interest to the Lender at the annual interest rate of 8% based on the actual loan period. The interest for the actual loan period shall be paid on the commencement date of the loan period, and will be deducted from the loan amount by the Lender.
Article 3. Upon expiry of the loan period, the Borrower shall repay the principal and interest to the Lender in a lump sum at the amount of US$1.5 million. The parties can agree in advance to shorten or extend the loan period.
Article 4. This Agreement has two original copies, each of the Lender and the Borrower will keep one original copy, which shall have equal legal effect.
Article 5. This Agreement shall take effect on the date when the two parties sign thereon.
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