Document:

f8k0411a1ex10x_wester.htm

Exhibit 10.10

 

Real Property Leasing Agreement

Leasor (Party A): Jinliang Ding

Leasee (Party B): Fujian Province Jinjiang City Chendai Ansheng Shoe and Fashion Co., Ltd.

(collectively, the parties)

Pursuant to the Contract Law of the People’s Republic of China and related laws and regulations and based on the principle of equality and voluntarily, upon the friendly consultation and negotiation, the parties agree to enter the following terms with respect to the real property leasing from Party A to Party B:

1.   Party A represents and warrants that the leased real property is in compliance with the related national laws and regulations regarding leasing the properties.

2.   Location, Size, Renovation and Personal Properties Attached to the Leased Premises

1)   The Real Property locates in Quanzhou City, Fujian Province.

2)   Total are of the leased premises is 800 square meters (usable area)

3.   Leasing Term and Purpose

1)   Total leasing term is 36 months, from 01/01/2011 to 12/31/2013.

2)   The leasing is for office(warehouse) use only.

3)   Upon the expiration date, Party A shall have right to take possession of the premises and Party B shall promptly vacate the premises.

Party B shall notify Party A in writing one (1) month prior to the expiration date to request the renewal of the lease and upon Party A’s consent, the parties can renew the leasing agreement.

4.   Rent and Payment

1)   Monthly rent: ¥25,000

2)   Payments: the annual rent payment shall be payable on a monthly basis on the 25th day of each month; after receiving the payment, Party A shall issue Party B the receipt.

5.   Other Related Fees and Taxes

1)   Fees payable by Party A: During the lease term, the real property tax and land tax shall be payable by Party A under the laws.  In the event that the government authorities charge any fees not described in this Agreement in connection with the leased premises, Party A shall be responsible for the charges.

2)   Fees payable by Party B:

a)   Party B shall pay any fees incurred by Party B at a timely basis

b)   Annual rent payments

c)   Costs and expenses for renovation of the leased premises

 

  

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6.  Transfer and Sublet of the Leased Premises

1)   During the lease term, Party A shall have right to transfer the ownership of the leased premise under the laws and this Agreement shall be binding on the succeeding owner(s) and Party B after the ownership transfer.

2)   Party B shall not sublet the leased premises without Party A’s consent.

3)   Party A shall notify Party B in writing one (1) month prior to Party A’s intended sale of the leased premise and under the same condition Party B shall have to right of first refusal.

 

7.   Amendment, Cancellation and Termination

1)   The parties may amend or terminate this Agreement upon negotiation.

2)   Party B shall have the right to terminate this Agreement in the event that Party A has the following situations:

a)   Failure to provide the leased premises at the agreed conditions or the condition substantially has affected the lease purpose.

b)   Failure to perform the repair and maintenance obligations and the failure to perform has substantially has affected the lease purpose.

3)   During the lease term, Party A shall have the right to terminate this Agreement in the event that Party A has the following situations:

a)   Sublet the leased premises without Party A’s consent in writing.

b)   Changed the construction structure of the leased premises without Party A’s consent in writing.

c)   Caused damages to the leased premises and failed to correct within the reasonable time as Party A requested.

d)   Changed the lease purpose without Party A’s consent in writing.

e)   Placed hazardous materials or conducted illegal activities in the leased premises.

f)   Failed to pay the payable fees due and caused Party A’s severe losses.

4)   Party B shall notify Party A in writing one (1) month prior to the expiration date to request the renewal of the lease and upon Party A’s consent, the parties can renew the leasing agreement.  In the event Party A intends to continue leasing the premise, under the same condition Party B shall have to right of first refusal.

5)   Upon the expiration of this Agreement, this Agreement shall automatically terminate.

6)   In the event of the Force Majeure that renders this Agreement not executable, this Agreement shall terminate.

8.   Surrender of the Possession and Walk-Through Inspection

1)   Party A shall represent and warranty that the real property and any and all personal properties attached to it shall be in good working order.

2)   Upon Party B vacates the premises, the parties shall conduct the walk-through inspection and any comments on the facilities and properties shall be made to the other party during the walk-through inspection. The parties shall raise the claim to the other within _____ days for the issues that can not be determined at the inspection time.

3)   Upon the expiration of this Agreement, Party B shall surrender the leased premises and attached personal properties to Party A.

4)   At the time of vacating, Party B shall keep the leased premises and attached personal properties in the good condition at broom-clean condition and shall not affect the normal use of the leased premises.  Party A shall have right to dispose any personal properties left by Party B at the leased premises upon expiration at Party A’s discretion.

  

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9.   Liabilities Waiver

1)   In the event that there is a Force Majeure that renders this Agreement not executable that may incur losses to the parties, the parties shall not be liable for such losses to the other party.

2)   In the event that the leased premises shall be demolished or renovated pursuant to a national policy that may incur losses to the parties, the parties shall not be liable for such losses to the other party.

3)   In the event that this Agreement is terminated under the above situation, the rent shall be calculated on a pro rata basis on the actual leased days.

4)   The Force Majeure means unforeseeable extraordinary event or circumstance beyond the control of the parties.

10. Any matters not described in this Agreement shall be subject to the negotiation between the parties by separate addendums to this Agreement.  Any addendums to this Agreement shall be part of this Agreement with same legal effects.

11. Resolutions of Disputes

Any disputes between the parties under this Agreement shall be resolved through amicable negotiations in good faith or through mediation by related offices.  In the event that the disputes can not resolved through negotiation or mediation, either party shall have the right to sue the other in the local courts with proper jurisdiction.

12. This Agreement shall be effective upon the following seals of the parties.

13. This Agreement with addendums shall be executed in two copies with one copy to each party.  Each copy shall have the same legal effectiveness.

 

	
Party A: 

	/s/Jinliang Ding	 
	 	Jinliang Ding	 
	 	 	 
	 Date: 	 12/26/2010	 

 

	
Party B: 

	/s/Fujian Province Jinjiang City Chendai Ansheng Shoe and Fashion Co., Ltd.	 
	 	Fujian Province Jinjiang City Chendai Ansheng Shoe and Fashion Co., Ltd.	 
	 	 	 
	 Date: 	12/26/2010	 
	 	 	 

  

 

3f8k0411a1ex10xiv_wester.htm

Exhibit 10.14

Fujian Jinjiang Chendai Ansheng Shoes and Clothing Co., Ltd.

Share Transfer Agreement

Party A: Ding Jiaobiao

Party B: Ansheng (HK) Holdings Limited

Legal Representative: Lam Chiu Ming

Fujian Jinjiang Chendai Ansheng Shoes&Clothing Co., Ltd.("Company") was founded by Party A, with registered capital of RMB 12,580,000 (fully-contributed). Party A currently owns 100% of the Company.

Based on negotiation, the Parties have mutually agreed on the followings:

1.Party A agrees to sell 100% shares of the Company to Party B, with consideration of RMB12,580,000, and Party B agrees to purchase the 100% shares of the Company. Party B shall pay all the consideration to Party A in cash within 3 months after this Agreement is approved by the government.

2.As a limited liability company, shareholder of the Company bears limited liability to the Company within the scope of the registered capital.

3.This Agreement is construed and governed by PRC Laws.

4.The Parties shall comply with this Agreement. In the event any of the Parties breaches the Agreement, the party shall compensate the other party for damages and losses.

5.Dispute Settlement: if any dispute inccurs from this Ageement, the Parties shall settle the dispute by equal consultation. If failed, any of the Parties may file a lawsuit with the local people's court.

6.This Agreement shall take effect after the Agreement is approved by the government.

7.There are five counterparts of this Agreement. Party A and Party B each holds one, the Company keeps one and three are filed with the government.

	Party A: 	 Ding Jinbiao	 
	
 

	/s/Ding Jinbiao	 

 

	Party B: 	 Ansheng (HK) Holdings Limited	 
	
By: 

	/s/ Lam Chiu Ming	 
	 	Lam Chui Ming	 
	 	Legal Representative	 

    

Executed in the meet room of the Company, as of September 15, 2010f8k0411a1ex10xv_wester.htm

Exhibit 10.15

No.: 14080272-2010 CHIDIAN No. 0070

 

 

 

Circle Loan Agreement for Small-cap Enterprises

(2009 Version)

 

 

 

 

 

 

 

 

Special Notice: This Agreement is entered into based on mutual and volunteer consultation. All the provisions hereunder reflect true minds of the Parties. To protect the Borrower’s legal rights, the Lender particularly remind the Borrower to pay full attention to the terms concerning both parties’ rights and obligations, especially the part with boldface.

  

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Lender: Industrial and Commercial Bank of China, Jinjiang Chidian Branch

	 Authorized Person: Wang Jianping	 Contact Person: Chen Shuqiang	 
	 Address:            	 ZIP:	     
	 Tel: 	 Fax: 	Email:

 

Borrower: Fujiang Jinjiang Chengdai Ansheng Shoes and Clothing Co., Ltd.

	 Legal Representative: Ding Jianbiao    	 Contact Person:	 
	 Address:   	 ZIP:	 
	 Tel:  	 Fax:   	Email:

Based on mutual and equal consultation, the Parties have agreed on the following regarding the loan from the Lender to the Borrower.

Part I Condition of the Loan

Section 1 Use of Proceeds

The loan hereunder shall be used as working capital. The Borrower shall not use it for any other purposes without prior written consent of the Lender. The Lender has right to supervise the use of the proceeds.

Section 2 Amount and Term

2.1 The currency hereunder is Renminbi (“RMB”), the amount of the loan is RMB5 million (“Loan Facility”).

2.2 The term of the loan facility is from the effective date of this Agreement to August 10, 2012. During the term, the Borrower may use the abovementioned amount as facility, but the Borrower shall withdraw the loan with amount of at least RMB5 million, and the total amount withdrew shall be no more than the facility at any time.

2.3 The term for each trench of the loan withdrawn by the Borrower shall be from the date the Borrower withdraws the loan to provided repayment date, subject to the note. The term for each trench of loan shall not be shorter than one day, and longer than half a year, and expiration date of which shall not be later than the expiration date of the loan facility.

Section 3 Interest Rate, Interest and Expenses

3.1 Method to decide the RMB interest rate

The RMB interest rate shall be decided according to the 2nd method:

	
(1)  

	
Fixed interest rate, yearly rate is -%, the interest rate shall be not change during the term hereunder.

 

  

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(2)  

	
Float interest rate, the interest rate shall be decided according to benchmark interest rate and floating rate. The benchmark interest rate shall be according to the benchmark interest rate circulated by the Central Bank of China at the effective date of this Agreement with respect to the loan with the same term hereunder. The floating rate is 15% (floating upward). The floating rate hereunder shall not be changed during the term. After the loan is released, the RMB interest rate will be changed each 6 months (“Period”). The interest rate of the second Period shall be decided according the RMB interest rate at the date of the last day of the last Period, and so on. If the loan is released by multiple trenches, the RMB interest rate shall be adjusted according to the    of the following:

	
A.  

	
Within one Period, each trench of loan shall use the same RMB interest rate for that Period, and the RMB interest rate shall be changed at the same time for all trenches of loan in the following Periods.

	
B.  

	
The RMB interest rate of each trench shall be decided and changed separately.

	
(3)  

	
Other provision

3.2 Method to decide foreign exchange interest rate (not applicable)

The foreign exchange interest rate shall be decided according to - method:

	
(1)  

	
Fixed interest rate, yearly rate is -%, the interest rate shall be not change during the term hereunder.

	
(2)  

	
Float interest rate.

3.3 The interest hereunder shall be calculated from the date when the loan is released, and be paid monthly. The loan and the interest shall be paid off at the maturity date of the term. The daily interest rate equals to yearly interest rate divided by 360.

3.4 The penalty interest rate for delay of payment of interest is the interest rate hereunder plus another 30% of the interest rate. The penalty interest rate for using the loan for any other purposes is the interest rate hereunder plus another 50% of the interest rate.

3.5 Other than the interest, the Borrower shall pay a commitment fee to the Lender. The commitment fee shall be paid according to the 1st method as below:

(1) 1% of the amount of the loan facility, shall be fully paid at the effective date of this Agreement.

Section 4 Withdrawal of the Loan

The Borrower shall withdraw the loan according to the 2nd method as below:

	
(1)  

	
at the branch designated by the Lender;

	
(2)  

	
through the internet banking system.

Section 5 Repayment

5.1 The money to be used to repay the loan and interest hereunder can be from, including but not limited to, the Borrower’s sales revenue and other source.

5.2 If the Borrower repays the loan before the maturity date of the term hereunder, the amount of the loan shall be no less than RMB5 million. The Borrower shall pay compensation to the Lender equal to 1% of the amount of loan repaid before the maturity date of the term.

Section 6 Account

The Borrower shall designate the following bank account to be used to obtain and repay the loan:

1408027219008002043

 

  

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Section 7 Guarantee

7.1 The type of guarantee hereunder is mortgage.

 

7.2 The guarantee agreement is:

Title of the maximum guarantee agreement: Mortgage Agreement

(No.: 16080272-2009Jinjiangdi No.0164)

Guarantor: Jinjiang Qiuzhi East Asia Shoes and Clothing Co., Ltd.

Section 8 Financial Provision (Optional, not applicable)

Section 9 Dispute Settlement

The method of dispute settlement shall be the 1st one as follows:

	
(1)  

	
Any dispute occurred hereunder shall be submitted to Xiaman Arbitration Committee and arbitrated with its valid arbitration rules. The arbitration award is final and shall bind the Parties.

If any dispute hereunder is submitted to arbitration committee, the Parties agree to apply for summary procedure. Any related legal instruments shall be deemed as delivered if the legal instrument is presented to the courier with the receiver’s address is the same with the address hereunder. The Parties agree if any part of the credit or debt is clear, this part of credit or debt can be arbitrated in advance. If there only exists the Lender’s mortgage right, the Parties shall authorized the arbitration committee to auction the collateral, the income of the auction shall be used to settle the debt hereunder with the first priority.

	
(2)  

	
The dispute shall be filed to the Lender’s local People’s Court.

Section 10 Miscellaneous

10.1 There are two counterparts of this Agreement with the same validity, the Lender and Borrower each holds one.

10.2 The following attachments and other attachments mutually confirmed by the Parties shall constitute part of this Agreement with the same validity:

Exhibit 1: Notice of Withdrawal (format)

Section 10 Other provision

  

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Part II Terms and Conditions of Circle Loan for Small-cap Enterprise

Section 1 Interest rate and interest

1.1 In foreign currency borrowings, LIBOR is the foreign currency interest rate that shows on “LIBO=” on Reuters terminal (London 11:00 am) two business days before the withdrawal date or the base rate adjustment date. HIBOR is the HKD rate that shows on “HIBO=” on Reuters terminal (HK time 11:15 am) two days before the withdrawal date or the base rate adjustment date.

1.2 If this agreement use floating rate, the interest will adjust according to original rule after overdue.

1.3 The payment date is 20th if the interest payment are due by month, the payment date is 20th of the last month of each quarter if the interest payment are due by quarter. The payment date is June 20th, and Dec. 20 if the payment are due semiannually.

1.4 The first interest period is the period from the withdrawal date to the first interest payment date. The last interest period is from the last interest payment date to the final loan maturity date.

1.5 If the People’s bank of China adjusts interest for loans, we change accordingly, and the Borrower might not be notified.

Section 2 Loan issuance

2.1 The Borrower needs to satisfy the following conditions, otherwise the Lender doesn’t have any obligations to issue any loans, except for the ones that the Lender agrees to issue first:

(1) Upon withdrawal, the Borrower confirms the statements and guarantees under this agreements are true, correct and complete, and the Borrower are not in breach of this and other agreements with the Lender.

(2) The Borrower has already provided collaterals and guarantees and the collaterals has not been compromised or changed towards against the Lender.

(3) If the Borrower claims the loans through ICBC online banking, the <ICBC online banking service agreement for enterprise clients> are also valid.

2.2 If the Borrower claims the loans through our branches, he/she should submit notification 5 working days before. The notification cannot be cancelled after submission without the consent of the Lender.

2.3 If the Borrower claims through ICBC online banking, the Borrower needs to sign the <ICBC online banking service agreement for enterprise clients> and promise to obey the rules. The claim notification submitted through online banking upon the Lender confirmation should be regarded as debt receipt.

2.4 When the Borrower satisfied above conditions, the Lender shall transfer the loan to Borrower, and this is regarded as loan issued.

  

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2.5 According to related rules and regulations, as well as Lender management requirement, if the Borrower requests the Lender to send the loan directly to the related party for specific purpose, the Lender should do according to the request. For this purpose, the Borrower should sign a authorization letter with the Lender as an attachment for this agreement.

 

Section 3 Payback

3.1 The Borrower should pay back all principal, interest and other payables. On the final principal payment date and the day before each interest settlement date, the Borrower should deposit enough current period interest and principal and other payables in the account appointed by the Lender. The Lender should have rights to take the payment on the payment date, or request the Borrower to cooperate with related procedures. If the balances in the accounts are not enough to pay all payments due, the Lender has the claim rights.

3.2 If the Borrower applies for all or part of the loans in advance, he/she should submit paper application, or submit payment in advance notice to online banking, and after the Lender’s approval, should make compensation payment to the Lender.

3.3 Upon the approval of Lender for payment in advance, the Borrower should make all payment on that date, including principal, interests and other payables.

3.4 If the time period shorted because of the Borrower’s payment in advance or the Lender’s action according to this agreement, interest rate doesn’t change.

Section 4 Guarantees and collaterals

4.1 The Borrower should provide legitimate collaterals approved by the Lender. A collateral agreement should be signed additionally.

4.2 If the collaterals has been damaged, depreciated, and has property rights dispute or has been sealed up, or the person who hand in the collaterals does things that makes the Lender at disadvantage position, the Borrower should notify the Lender, and provide other collateral for approval.

4.3 Upon the approval of Lender, those loans guaranteed by accounts receivables, the Lender has the right to request the Borrower to repay part or all of the principal and interest if any of the following happens, or the Borrower add more legitimate, effective and sufficient collateral:

(1) Accounts receivable pledger has experienced two months increasing bad loan rate.

(2) The pledger has more than 5% of the total accounts receivable overdue not received.

(3) The pledger has trade conflicts with the pledgee or other third parties (including but not limited to quality, technology and service, etc) or debt dispute, all of which could lead to the delay receipt or write off of account receivable.

 

  

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Section 5 Representations and Warranties

5.1 The Borrower has the representations and warranties as follows, which will keep valid during the term of this Agreement:

5.1 Qualified to be a borrower, to sign and perform this Agreement.

5.2 Authorized to sign this Agreement. Signing of this Agreement will not conflict with its bylaws, investment contract, joint venture contract, partnership contract, relevant laws and regulations, and obligations under any other agreements.

5.3 Any of other outstandings due have been paid off on time. No record of delaying to pay back loan or interest.

5.4 No material non-compliance action regarding the business or operation was taken within one year. There is no material bad record of current management of the company.

5.5 All the documents and information provided to the Lender are true, accurate, complete and valid. There is no false record, material omission or misrepresentation.

5.6 Has not concealed any lawsuit, arbitration or claim event.

5.7 Has understood all the rules on internet banking system related to this Agreement.

 

Section 6 Borrower’s Commitment

6.1 The Borrower shall use the loan hereunder solely for the usage according to the schedule provided hereunder. The proceeds shall not be used in securities market, future market, real estate market or for any other usage restricted or prohibited by relevant laws and regulations.

6.2 The Borrower shall repay the loan, interest and other expenses according to the provisions hereunder.

6.3 The Borrower shall accept the Lender’s supervision on usage of the loan by account analysis, voucher inspection and site visit, and report the usage of the loan regularly to the Lender.

6.4 The Borrower shall accept the Lender’s credit inspection, provide true, accurate and complete financial statement and other material that can prove the Borrower’s capability to repay the loan, including bank name where the Borrower has bank account(s), account number, balance of the deposit. The Borrower shall cooperate with the Lender to inspect, understand and supervise the Borrower’s operation and finance.

6.5 The Borrower shall obtain the Lender’s prior written consent before the Borrower’s merge and separation, decrease of registered capital, change of shareholder structure, joining in or exiting a partnership, transfer of material assets or creditor’s right, material external investment, substantial increase of debt financing, if any of the actions will impact the Lender’s interest.

 

  

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6.6 In the event any of the following circumstances is occurred, the Borrower shall notify the Lender:

(1) change of company name, seal, bylaws, address, legal representative and mailing address.

(2) recession, dismissal, liquidation, suspension, license being cancelled, being canceled, or bankruptcy.

(3) has been(or will) involved in material economic dispute, lawsuit, arbitration or assets sealed, detained, enforced or punishment by judiciary, tax authority or AIC.

(4) Shareholder, director, management, partner or investor of the Borrower has involved in material lawsuit or economical dispute.

 

6.7 The Borrower shall disclose complete and accurate affiliates relationship and related party transaction on time to the Lender.

6.8 The Borrower shall accept the Lender’s notice sent by mail or other ways on time.

6.9 The Borrower shall not dispose its assets by way of worsening its capability to repay the loan, or provide guarantee to any third party to impact the Lender’s interest.

6.10 The Borrower shall bear all the expenses for signing and performance of this Agreement, and expenses for the Lender to collect the loan and interest hereunder, including but not limited to expenses of lawsuit, arbitration, property preservation, lawyer, enforcement, appraisal, auction, public notice.

6.11 The repayment of the loan is prior to the Borrower’s debt to its shareholder, legal representative, partner, main investor or key management, and at least at the same sequence with the Borrower’s other debt to other creditors.

6.12 The Borrower has fully understood the rules on the internet banking system relating to this Agreement, shall keep the client certificate and PIN well. Anyone usage of the client no, PIN or client certificate to access to the internet banking system shall be deemed as the Borrower’s action, the electronic record generated therefrom will the proof of performance of this Agreement.

 

Section 7 Lender’s Commitment

7.1 The Lender shall release the loan to the Borrower according to this Agreement.

7.2 The Lender shall keep the Borrower’s information on financials, operation and any non-public materials confidential, unless as required by laws or regulations or otherwise provisions hereunder.

Section 8 Breach of Contact

8.1 In the event of any following circumstances occurs, the Borrower breaches this Agreement:

(1) the Borrower fails to repay the loan and interest or other outstandings hereunder, or perform the other obligations, or comply with the warrants and representations hereunder;

(2) in the event that the guarantee hereunder has change which is not in favor of the Lender, but the Borrower fails to provide supplementary guarantee as required by the Lender;

(3) the Borrower fails to repay any other debt (other than the loan hereunder) due, or perform other obligations under other agreements, which has impacted or will impact the Borrower’s performance hereunder;

 

  

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(4) any of the Borrower’s profitability, ability to repay the debt, operation ability, cash flow is lower than the standard, or worsening, which has impacted or will impact the Borrower’s performance hereunder;

(5) any of the Borrower’s operation, external investment has changed, which has impacted or will impact the Borrower’s performance hereunder;

(6) the Borrower or any of the Borrower’s shareholder, legal representative, partner, main individual investor or key management has been involved or will involve in material economical dispute, litigation, arbitration, assets sealed-up, detained or enforced, investigation or punishment by judiciary or government, or disclosure of the Borrower’s breach of laws or regulations by media, which has impacted or will impact the Borrower’s performance hereunder;

(7) any change of the Borrower’s shareholder structure, partnership, joint venture, management, which has impacted or will impact the Borrower’s performance hereunder;

(8) the Borrower gets the loan by fake contract or transaction, or avoids to repay the loan through related transaction;

(9) the Borrower has (or will) terminated, dismissed, liquidated, business suspension, been cancelled the business license, bankrupted;

(10) the Borrower has breached any of the rules on food safety, production safety and environmental protection, which has impacted or will impact the Borrower’s performance hereunder;

(11) the Borrower or any of Borrower’s legal representative, partner, main individual investor or key management has involved in mafia-style organization activity, drug taking, gambling, smuggling, etc;

(12) the Borrower frequently delays to pay tax, expense, and employee’s salary;

(13) any other circumstances which has impacted or will impact the Borrower’s performance hereunder.

8.2 In the event the Borrower has breached the contract, the Lender has right to take one or more of the following actions:

(1) requiring the Borrower to correct its performance hereunder;

(2) stopping to release the loan under this Agreement or any other agreement;

(3) declaring that the undue outstanding loan is due;

(4) requiring the Borrower to compensate the Lender’s damages and losses;

(5) any other actions provided by this Agreement, laws or regulations or deemed as necessary by the Lender.

8.3 In the event that the Borrower has not fully repay the loan due, the Borrower shall pay a penalty according the provision hereunder to the Lender. In the event that the Borrower has not fully pay the interest due, the Borrower shall pay a penalty with compound interest rate.

8.4 In the event that the Borrower has used the loan for purpose other than that provided hereunder, the Borrower shall pay a penalty interest with penalty interest rate from the date when the Borrower used the loan for purpose other that provided hereunder. If the Borrower has not fully pay the interest during the period when the Borrower used the loan for purpose other that provided hereunder, the Borrower shall pay a penalty with compound interest rate.

 

  

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8.5 If the Borrower has breached the provisions in Section 8.3 and 8.4, the penalty interest rate shall be the higher one, but not the combined.

8.6 In the event that the Borrower has not fully repay the loan due, pay the interest due or any other outstandings, the Lender shall have right to disclose it to the media.

8.7 In the event that the Borrower and its affiliates have changed their controlling relationship, or the Borrower’s affiliates have involved in any circumstances provided in Section 8.1 (except for item 1 and 2), which has impacted or will impact the Borrower’s performance hereunder, the Lender shall have right to take any action provided hereunder.

 

Section 9 Deduct

9.1 In the event that the Borrower has not fully repaid the loan due, the Lender shall have right to deduct the same amount from the Borrower’s bank account in ICBC until the entire loan due has been paid off.

9.2 If the currency of the deducted money is different from the currency of the loan hereunder, the exchange rate shall be applied to the exchange rate circulated by the Lender. The Interest, other expenses and exchange rate difference incurred from the date of deduction to settlement date shall be borne by the Borrower.

9.3 If the money deducted by the Lender is not enough to pay off the loan due, the Lender shall have right to determine the settlement order.

Section 10 Transfer of Right and Obligation

10.1 The Lender shall have right to transfer all its rights and obligations to any third party without consent of the Borrower. The Borrower shall not transfer any of its rights or obligations to any third party without the Lender’s written consent.

10.2 The Borrower agrees that the Lender or ICBC may authorize other branch to perform the rights and obligations hereunder, or manage the loan hereunder. The authorized branch shall have rights to perform this Agreement and file law suit, arbitration or enforcement for any dispute hereunder.

Section 11 Validity, Modification and Termination

11.1 This Agreement shall take effect upon execution, and shall be terminated until the Borrower has completed all obligations hereunder.

11.2 Any change of this Agreement shall be made in written based on mutual consultation. Any change will be part of this Agreement with the same validity. The provisions other the change shall continue be effective, and the original provisions before the change takes effect shall be effective.

 

  

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11.3 The change or termination of this Agreement shall not impact the Parties’ rights to claim for damages and losses hereunder. The termination of this Agreement shall not impact the validity of the provisions on dispute settlement.

Section 12 Law Governance and Dispute Settlement

12.1 This Agreement shall be governed and construed by laws of PRC.

12.2 Any dispute hereunder shall be settled by consultation. If the consultation fails, the dispute shall be settled according to the provisions hereunder.

 

Section 13 Entire Agreement

The Part I and Party II of this Agreement shall constitute the entire agreement, and the terminology therein shall have the same meaning. The Borrower shall be bond by the entire agreement.

Section 14 Notice

14.1 Any notice hereunder shall be sent in written. The Parties’ address hereunder shall be the mail address for the notice, if there is no other provision. If any Party’s address has been changed, the Party shall notice the other Party in written.

14.2 In the event that any Party refuses to accept the mail of the notice or the notice can not be delivered for any other reason, the other Party shall have right to notice the Party through notarization or public announcement.

Section 15 Miscellaneous

15.1 The Lender’s non-performance of any rights hereunder shall not be deemed as waive or change of the rights, or impact its future performance of the said rights.

15.2 If any of provisions hereunder is deemed as invalid or unenforceable, validity of the other provisions or the entire agreement shall not be impacted.

15.3 The Lender shall have right to provide the Borrower’s information to credit information system of Central Bank of China as required by laws or rules of financial regulators, which will be inquired and used by qualified institutions and individuals. The Lender shall have right to inquire the Borrower’s information from the credit information system on purpose of this Agreement.

15.4 The definition of “affiliates”, “affiliates relationship”, “related transaction”, “main individual investor”, “key management” are the same with that in “Accounting Standards 36 – Related Party Disclosure” and amendments, circulated by the Ministry of Finance.

15.5 Any receipts and documents produced according to this Agreement and the Lender’s operation rules shall constitute the proof of the debtor-creditor relationship between the Lender and the Borrower, which bind the Borrower.

 

  

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15.6 In this Agreement, (1) anywhere “this Agreement” is mentioned, any amendment shall be included; (2) the headlines hereunder are just for reference, not explanations of the provisions, which shall not restrict the content and scope of the provisions thereunder.

 

The Parties hereby confirm: the Parties have full consultation for all provisions hereunder. The Lender has reminded the Borrower to pay full attention to and accurately understand all provisions regarding the Parties’ rights and obligations, and explained all relevant provision as required by the Borrower. The Borrower has fully read and understood all provisions (including the Part I “Condition of the Loan” and Party II “Terms and Conditions of the Circle Loan for Small-cap Enterprises”). The Parties have unanimous understandings to the content of this Agreement.

 

The Lender (Seal): Industrial and Commercial Bank of China, Jinjiang Chidian Branch

	
By: 

	/s/ Wang Jianping	 
	 	Wang Jianping	 
	 	Authorized Signatory	 

 

The Borrower (Seal): Fujiang Jinjiang Chengdai Ansheng Shoes and Clothing Co., Ltd.

	
By: 

	/s/ Ding Jinbiao	 
	 	Ding Jinbiao	 
	 	Authorized Signatory	 

 

Signing Date: August 12, 2010

 

 

 

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