Summary of Loan Agreements between PRC Yuhe, Taihong, and Nansun Rural Credit

Contract Categories: Business Finance › Loan Agreements
Summary

PRC Yuhe and Taihong entered into several loan agreements with Nansun Rural Credit between 2005 and 2007, with interest rates ranging from 7.68% to 10.51% per year. As of June 30, 2008, the total outstanding principal was $8,731,337. The loans are secured by land use rights and buildings valued at $12,337,750. Borrowers must pay monthly interest and repay the principal by maturity dates between November 2008 and May 2010. The loans are for working capital, and there are no significant restrictions or covenants attached.

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EX-10.20 16 v127498_ex10-20.htm
Exhibit 10.20
 
Summary of Loan Agreement 
 
Loans from Nansun Rural Credit
 
PRC Yuhe entered into four loan agreements with Nansun Rural Credit on November 28 2005, March 14, 2007, May 17, 2007 and December 10, 2007. Interest rates for the loan agreements range from 7.68% to 8.76% per annum. Nansun Rural Credit also provided four loans to Taihong from November 28, 2005 to December 5, 2007 at interest rates ranging from 9.22% to 10.51% per annum. Loans form Nansun Rural Credit had a total outstanding principal balance of $8,731,337 as of June 30, 2008. PRC Yuhe and Taihong are obligated under these loan agreements to pay interest monthly and repay the loans on their maturity dates from November 28, 2008 to May 17, 2010. The loans are used for financing of working capital. All loans are secured by the land use right and building of PRC Yuhe and Taihong with a net book value of $12,337,750 as of June 30, 2008. There are no material covenants, conditions or restrictions in PRC Yuhe’s loan agreements with Nansun Rural Credit.