Exhibit 10.3
 
 
Shaanxi Province Rural Credit Union Loan [       ] No.
 

 

 

 

 

 

 

 

 

 
Loan Agreement
 
(Unofficial Translation)
 

 

 

 

 

 

 
 
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Shaanxi Province Rural Credit Union
 

 
Loan Agreement
 
Shaanxi Province Rural Credit Union Loan [       ] No.
 
Borrower: Fufeng Jinqiu Printing and Packaging Co., Ltd.
 
Residence (address): East Street, Shangsong Village
 
Legal Representative: Yongming Feng
 
Telephone:    5471054                  Post Code:   722205
 
 Deposit Bank:                               Account Number:
 

 
Lender: Fufeng County Credit Union Shangsong Branch
 
Residence (address): Shangsong Village
 
Legal Representative: Fangning Zhou
 
Telephone:    5471045                   Post Code:   722205
 
Borrower applied this loan. Lender agreed to lend money to the Borrower. This
Contract is made under both parties’ voluntary and equal position, in line with
the Contract Law of the People's Republic of China and The General Provisions of
Loans of the People's Bank of China to specify the rights and obligations of
parties involved.
 
Article 1 Borrower Representations and Warranties
 
The Borrower, an entity with legal person qualification (or branch legally
authorized by the legal person) is established by law. According to the law, the
Borrower has the ability to perform this contract.
 
Article 2 Loan Type: Long Term__________________________________________
 
Article 3 Loan Amount: (RMB) _____680000________________________________
 
Article 4 The Purpose of the Loan: ____Turnover____________________________
 
Article 5 Term of the Loan: From March 13th, 2008 to _March 12th, 2011_ (If the
term of IOU is inconsistent with Loan agreement, the IOU time prevail.)
 
The Borrower withdraw the loan amount in _one_ times
 
 
 
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2008 Year _3   Month 13 Date, Amount (Capital) ___Six hundred and eighty
thousand
 
____Year ___ Month ___ Date, Amount (Capital) ________________________
 
____Year ___ Month ___ Date, Amount (Capital) ________________________
 
____Year ___ Month ___ Date, Amount (Capital) ________________________
 
____Year ___ Month ___ Date, Amount (Capital) ________________________
 
Article 6 Interest Rate, Interest and Interest Payment Method
 
I.  
Interest Rate: Monthly Rate: _9.6‰_

 
During the loan term, if the countries related authority adjusted the interest
rate, for short term loan (within one year, including one year), the interest
rate shall be executed according to the contract. For the long term loan (exceed
one year, not including one year), the interest rate shall be determined based
on the following principles:
 
1.  
execute contract agreed rate

 
2.  
Interest rate adjusts yearly, (For the split loans, the interest rate follows
the first loan rate). When the interest rate determined, no change will be made
for one year. After one year, new rate will be determined based on the
corresponding grade of interest rate. It is not obliged to inform the Borrower
when the lender adjusts the interest rate and way of calculation.

 
II.  
The interest shall be calculated from the first date of loans transferred to the
Borrower’s account.

 
III.  
The Borrower shall pay the interests on the 20th of the (month/quarter). If the
Borrower cannot pay the interests on time, the interests shall be deducted from
the bank account of the Borrower.

 
Article 7 Repayment Method and Sources of Funding:
 
I.  
Repayment Method: The Borrower shall be obliged to repay the principal and
related interests on due date according to the agreement. If Borrower cannot
make the repayment on time, the Lender has the right to deduct the due amount
from the Borrower’s bank account.

 
II.  
Repayment Plan:

 
2011Year 3   Month 12   Date, Amount (Capital) Six hundred and eighty thousand_
 
____Year ___ Month ___ Date, Amount (Capital) ________________________
 
____Year ___ Month ___ Date, Amount (Capital) ________________________
 
____Year ___ Month ___ Date, Amount (Capital) ________________________
 
____Year ___ Month ___ Date, Amount (Capital) ________________________
 
 
 
 
 
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III.  
Repayment funding source:

 
1.  
__________________________

 
2.  
__________________________

 
3.  
All Assets

 
4.  
Not limited to the above property source

 
Article 8 Guaranty
 
I.  
Under this contract, the guarantee method is _Mortgage ___ guarantee.

 
II.  
Based on the specific issues of this contract, the Borrower has the obligation
to actively assist Lender and guarantor to sign guarantee contracts
No.   2008031301   as a surety to fulfill the contract obligations.

 
III.  
During the term of this contract, if the guarantor’s financial status becomes
deteriorated or the liabilities for repayment of debts become weak, with the
notification from the Lender, Borrower shall provide other guarantee which can
satisfy Lender’s requirement.

 
Article 9 the Borrower's Warrants
 
I.  
Timely making the payments of interests and loan principal.

 
II.  
Using the capital of the loan as usage set forth in this contract, the Borrower
will not change the original purpose of the loan without authorization.

 
III.  
The Borrower shall provide real balance sheet, income statement and all the bank
accounts and related financial information.

 
IV.  
Accepting and providing cooperation for the Lender’s supervisions of related
operation and financial activities.

 
V.  
When the Borrower uses their own assets to secure others debt, Borrower shall
notify the Lender in advance. It shall not affect the return of loan payment.

 
VI.  
Any change of legal representative, legal person residence or premises and
register capital, the Lender shall be notified.

 
VII.  
In the implementation of contracting, leasing, joint venture, merger and
acquisition, share adjustment, separation, establishment of trusteeship,
property rights transfer, foreign investment, and foreign joint venture
(cooperative) and any related institutional change, Borrower shall notify the
Lender 30 days in advance, and confirm the debt and repayment method.

 
VIII.  
In the event of closure of business, stopping business for internal
rectification, or revocation of business license, Borrower shall inform the
Lender in writing within ___ days after the incident, and return all the loan's
principle plus interest and related costs.

 
IX.  
In the even the Lender could recover the loan's principal and interests under
this agreement on time or in advance, the Lender could deduct the recovery
directly from Borrower's bank accounts.

 
 
 
 
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Article 10 The Lender’s warrants
 
I.  
The Lender shall extend the loan in full and on time.

 
II.  
Keeping the confidentiality of the Borrower’s debt, financial, production and
operation information.

 
III.  
Do not accept any extra payment besides required cost in the contract.

 
Article 11 Breach
 
I.  
Borrower’s Breach

 
1.  
In the event the Borrower fails to use the loan in accordance with the agreed
usage of the loan, the Lender shall have right to cease in extending the loan,
recover part or even the entire extended loan or cancel the whole contract.
Meanwhile, for any violation of the loan use, penalty shall be paid based on the
number of days used by default based on the PBC's regulation. A daily record of
penalty with the interest rate of from the date of breach of contract, the
contract interest rate increase 100% will be made, until the end of the
settlement date. (In case of adjustment of interest rate, the Lender can
calculate interest on multi-stage basis)

 
2.  
If Borrower does not follow the contract to pay back money on time, according to
the PBC's regulation, penalty shall be paid with an interest rate of from the
date of breach of contract, the contract interest rate increase 40%, until the
end of the settlement date. (In case of adjustment of interest rate, the Lender
can calculate interest on multi-stage basis)

 
3.  
If the interests cannot be paid on time, compound interest will be calculated
based on penalty rate.

 
4.  
If Borrower fails to perform Article 9 of the contract, the Lender can cease in
extending the loan which has not yet released. The Lender also has the right to
recover the released part of loan or even the entire loan.

 
II.  
 Lender Breach

 
1.  
If the Lender unilaterally terminates the contract without cause, five in
thousand of the total amounts of loan shall be paid as penalty. If the
termination of contract is caused by Borrower, Lender shall be exempted from the
liability.

 
2.  
If the Lender breach the Article 10 section III, the Borrower shall have the
right to refuse. If the Lender breach the Article 10 section II, the Borrower
shall be entitled to complaints to the banking supervision department.

 
Article 12 Contract effectiveness, modification, dissolution and termination
 
I.  
Contract effectiveness

 
This contract will enter into effect since the day of sealing and signing by
both parties' legal representatives or both parties’ legal representatives
authorized agents.
 
II.  
Termination

 
 
 
 
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The contract will be terminated until the day that all the following debt pay in
full: the loan principal, interest, penalty, compensation, cost of debt claim
and all the other necessary expense (including legal fees, implementation fees,
agency fees, advertising fees, auction fees, insurance, appraisal fee, valuation
fee, registration fee, transfer fee, storage fees, etc.)
 
III.  
Modification and dissolution

 
1.  
Under one of the following circumstances, Lender have the right to terminate the
contract, require the Borrower to repay the loan ahead of schedule and
compensate all the losses:

 
a.  
In the event of closure of business, stopping business for internal
rectification, revocation of business license,

 
b.  
In the event some changes of the guarantee which go against Lender's claim
happened, and the Borrower did not provide the necessary new guarantee required
by the Lender,

 
c.  
In the event the Borrower has other serious violations

 
2.  
If the Borrower wants to extend the loan, the Borrower shall provide the written
agreement from guarantor to continue the guarantee and make the written
application to the Lender ___ days before the expiration of the contract. After
reviewed and approved by the lender and signed an extension agreement, the loan
could be extended correspondently. The interest rate is determined on the
cumulative multi-stage basis. Before the signing of the loan extension contract,
this loan agreement will continue. After the signing of the loan extension
contract, the loan extension contract will become the annex to this agreement.

 
3.  
After the execution of this contract, except the contract has agreed on, neither
Borrower nor Lender can change or terminate of the contract early. If it proves
that it is really necessary to change or terminate this contract, it shall be
agreed by both parties, and reached as a written agreement. Prior the written
agreement is reached, this contract is still valid.

 
       Article 13 Dispute Resolution
 
I.  
The disputes arising from the execution of this contract shall be settled
through friendly consultation by both parties. In case no settlement can be
reached, the disputes shall be submitted to the People's Court of the location
of the Lender for judgment.

 
II.  
After the maturity of the loan, if the Borrower and the guarantor cannot follow
the contract to repay the loan principal and interest, the Borrower shall
voluntarily accept the people's court enforcement.

 
Article 14 Other Matters Agreed by Parties
 
______________________________________________________________________
 
______________________________________________________________________
 
______________________________________________________________________
 
Article 15 Supplementary Provisions
 
I.  
The following appendices shall be an integral part of this contract. It has the
same legal effect as the body of this contract.

 
II.  
During the performance of the contract, if a withdrawal date or a payment due
date is a non-working date for the financial institution, the date will be
postponed to the next working day.

 
III.  
Both parties have fully negotiated and understand the terms of this contract
without any objection, especially the underlining parts.

 
IV.  
There are six copies of this contract.  Borrower, guarantor, notary public,
mortgage registration authorities, each party has one copy, the Lender holds two
copies. Each has the same legal effect.

 
 
 
 
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Article 16 Appendix
 
I.  
Borrower's annually renewed business license (copy)

 
II.  
Borrower's Organization Code Certificate (copy)

 
III.  
Legal Representative‘s identity card

 
IV.  
Proxy's original copy of letter of authority and identity card

 
V.  
Loan card (copy), account number, password

 
VI.  
Board of Directors’ Resolution of lending consent

 
Borrower (official stamped):  Fufeng Jinqiu Printing and Packaging Co., Ltd.
 
Legal Representative (signature and stamped): /s/ Yongming Feng
 
(Authorized agent)
 
Lender (official seal): /s/ Fufeng County Credit Union Shangsong Branch
 
Legal Representative (signature and seal): /s/ Jinghong Zhen
 
(Authorized agent)
 
Signing Date   March 13th, 2008
 
Signing Location: Fufeng County Credit Union Shangsong Branch
 
 
 
 
 
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