Document:

Exhibit 4.44

 

Bank of Fushun

 

Comprehensive Facility Contract

Contract No.: Fu Yin Shen Fen [2017] Zong Xin No. 001

 

Applicant: ChinaCache Xin Run Technology (Beijing) Co., Limited

 

Lender: Bank of Fushun Limited, Shenyang Branch

 

 

Instructions

 

1.                  In order to safeguard your credit rights and interests, and prevent any unfavorable credit record caused by any default, please duly perform this Contract and pay the principal of the loan and interest thereon on time in the principles of honesty and good faith.

 

2.                  You expressly acknowledge that you shall be held legally liable for any default committed by you.

 

 

Comprehensive Facility Contract

 

Important

 

The Applicant shall carefully read this Contract, in particular, the terms that exclude or limit the liabilities of the Lender, grant certain rights to the Lender unilaterally, and increase the liabilities of the Applicant or restrict the rights of the Applicant. If the Applicant has any doubt, the Applicant shall ask the Lender to explain in a timely manner.

 

Applicant: ChinaCache Xin Run Technology (Beijing) Co., Limited

Legal representative/ principal: WANG Song

Domicile: Buildings 1# & 2#, No. 1, Zhuyuan 4th Street, Shunyi District, Beijing

Postal code: 101300

 

Lender: Bank of Fushun Limited, Shenyang Branch

Legal representative: MA Jinzhong

Domicile: No. 87, Heilongjiang Street, Huanggu District, Shenyang

Postal code: 110000

 

Considering the Applicant applies to the Lender for a comprehensive facility, in order to define the respective rights and obligations of the Parities, through negotiation, the Parties hereby enter into this Contract in the principles of free will, equality, mutual benefit and good faith.

 

Article 1 Definitions

 

For the purpose of this Contract, unless the context otherwise requires, the following terms shall have the meanings indicated below:

 

“Comprehensive Facility” means more than one of the following types of credit facilities made available by the Lender to the Applicant: working capital loan, fixed asset loan, issue of banker’s acceptance bill, issue of letter of guarantee and other types of credit facility acceptable by the Lender.

 

“Comprehensive Facility Limit” means the maximum amount of the facilities made available by the Lender to the Applicant hereunder.

 

“Separate Limit” means the maximum amount of a particular type of facility made available by the Lender to the Applicant.

 

“Outstanding Facility” means the total amount of the principal of all the debts that arise from the utilization of the facilities granted hereunder and have not yet been repaid by the Applicant to the Lender, and if the facility is provided in the form of banker’s acceptance bill/letter of guarantee/letter of credit, means the aggregate of the amount of the banker’s acceptance bill/letter of guarantee/letter of credit that has been issue by the Lender hereunder and remains valid, and the amount that has been advanced by the Lender under the banker’s acceptance bill/letter of guarantee/letter of credit issued hereunder and has not yet been repaid by the Applicant.

 

“Outstanding Separate Facility” means the total amount of the principal of the debts that arise from the utilization of a particular type of facility granted hereunder and have not yet been repaid by the Applicant to the Lender.

 

“Available Facility” means the balance of the Comprehensive Facility Limit after deduction of the Outstanding Facility.

 

“Available Separate Facility” means the balance of the Separate Limit for a particular type of facility after deduction of the Outstanding Separate Facility for that type of facility.

 

“Facility Limit” means the Comprehensive Facility Limit and/or a Separate Limit.

 

“Availability Period” means the period in which the Lender will make available the facilities to the Applicant pursuant to the provisions hereof, which shall be the period during which the facilities are available hereunder rather than the term of any facility, which shall be determined by the Parties in the relevant separate agreement. Except for the facilities under Article 4.3, the Availability Period for the facilities hereunder shall be from October 30, 2017 to October 27, 2020.

 

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Article 2 Comprehensive Facility Limit

 

2.1.        The Comprehensive Facility Limit shall be two hundred and forty million Yuan (¥240,000,000.00).

 

2.2.        The facility stated in Article 2.1 shall be available in the forms of facilities checked below:

 

þ      Working capital loan

þ      Fixed asset loan

o      Opening of banker’s acceptance bill

o      Opening of letter of guarantee

o                                                                 

 

The Comprehensive Facility Limit shall be further divided into the following Separate Limits:

 

	
Type of facility
    	
 
    	
Amount of Separate Limit
    
	
Working capital loan
    	
 
    	
One hundred and fifty million Yuan (¥150,000,000.00)
    
	
Fixed asset loan
    	
 
    	
Ninety million Yuan (¥90,000,000.00)
    

 

2.3.        The Separate Limits stated in Article 2.2 shall be the maximum amount of the Outstanding Facility for the relevant type of facility. Any type of facility shall be subject to both its Separate Limit as specified in Article 2.2 and the Comprehensive Facility Limit.

 

Article 3 Conditions Precedent to the Utilization of the Facility

 

1)                 The Outstanding Facility shall not exceed the Comprehensive Facility Limit, and the relevant Outstanding Separate Facility shall not exceed the corresponding Separate Limit;

 

2)                 The amount of the facility to be utilized shall not exceed the Available Facility and the relevant Available Separate Facility;

 

3)                 The utilization request shall be made within the Availability Period;

 

4)                 The security contract (if any) under this Contract is and will remain in full force and effec, and if the security contract is a mortgage and/or pledge contract, the security interest provided thereunder is created and will remain in full force and effect ;

 

5)                 The Applicant shall have obtained or effected all the governmental permits, approvals, registrations and other procedures in respect of its utilization of the facility hereunder that are required by the law or the Lender, and such permits, approvals, registrations and procedures shall remain in full force and effect;

 

6)                 The utilization request shall comply with the relevant rules and regulations of the Lender;

 

7)                 The business and financial conditions of the Applicant shall not have experienced any material adverse change;

 

8)                 The Applicant shall not have violated the provisions hereof; and

 

9)                 The utilization request shall meet other conditions precedent for the relevant separate facility, if any.

 

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Article 4 Utilization of the Facility

 

4.1.        The execution of this Contract does not mean that the Lender must make available the facilities within the limit specified herein. If the Applicant wishes to utilize any facility hereunder, the Applicant shall submit a utilization request to the Lender and, if the request is approved by the Lender, enter into a separate agreement with the Lender. The type, amount, purpose, term, interest rate and other matters in respect of the facility actually provided shall be subject to such separate agreement.

 

4.2.        Within the Availability Period specified herein, the Applicant may utilize the facilities within the relevant Separate Limit in the manner stated below:

 

1)                 Revolving utilization

 

Types and limits of facilities:                      .

 

2)                 One-off utilization

 

Types and limits of facilities: Working capital loan, in the amount of one hundred fifty million Yuan (¥150,000,000.00); fixed asset loan, in the amount of ninety million Yuan (¥90,000,000.00).

 

If the Applicant wishes to adjust the Separate Limits set forth in Article 2, the Applicant shall submit an application in writing to the Lender. The Lender shall decide whether or not to approve the adjustment and on the specific method of adjustment, and notify the Applicant of its decision in writing. If the Lender approves the adjustment, the relevant facility limits as adjusted shall no longer be subject to the Separate Limits set forth herein, but shall still be subject to the Comprehensive Facility Limit hereunder.

 

4.3.        This clause shall be o1. Applicable þ2. Not applicable.

 

Special provision: oAll oPart of the outstanding facilities made available by the Lender to the Applicant under the prior Comprehensive Facility Contract or similar contract and the separate agreements thereunder as of the date of this Contract shall be deemed as the facilities provided hereunder, and as having been utilized within the Facility Limit hereunder.

 

Such prior outstanding facilities and the relevant contracts are as follows:                    .

 

Article 5 Security

 

The Parties agree that the debts owed by the Applicant to the Lender under this Contract and separate agreements shall be secured in the forms stated in Paragraphs 1 and 2 below:

 

1)                 Maximum amount guarantee

 

WANG Song will provide a maximum amount guarantee and execute a maximum amount guarantee contract to that effect.

 

2)                 Maximum amount mortgage

 

ChinaCache Xin Run Technology (Beijing) Co., Limited will provide a maximum amount mortgage and execute a maximum amount mortgage contract to that effect.

 

3)                 Maximum amount pledge

 

       will provide a maximum amount pledge and execute a maximum amount pledge contract to that effect.

 

4)                 When the Parties enter into a separate agreement, a security agreement in respect thereof shall be executed .

 

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Article 6 Representations and Covenants of the Applicant

 

6.1.        The Applicant is duly incorporated and validly existing, and has the full civil rights and capacities required to enter into and perform this Contract.

 

6.2.        The Applicant fully understands the content of this Contract, enters into and performs this Contract and separate agreements hereunder based on its true intention, and has obtained all the consents, approvals and authorization necessary for its execution and performance of this Contract and separate agreements hereunder. The execution and performance of this Contract and separate agreements hereunder by the Applicant is free from any legal defect.

 

6.3.        All the documents, statements, data and information provided by the Applicant in conection with execution and performance of this Contract are and will be true, accurate, complete and valid. The Applicant does not withhold from the Lender any information which  may affect its financial condition or solvency.

 

6.4.        The facilities that the Applicant requests from the Lender hereunder have a real and legal business background and will not be used for money laundering or any other illegal purpose.

 

6.5.        If the Applicant enters into any counter guarantee agreement or similar agreement with the security provider hereunder in respect of its obligation of guarantee, such agreement will not damage any right of the Lender hereunder.

 

6.6.        Powers granted by the Applicant: The Lender shall have the right to check the credit reports concerning the Applicant through the basic financial credit database, in the review of the Applicant’s loan application or application for the provision of security or post-loan management or when it otherwise needs to check the credit standing of the Applicant, and may submit the Applicant’s credit information to the basic financial credit database.

 

6.7.        The Applicant covenants that it will comply with the requirements of the Lender and the regulatory authorities regarding green credit; if its business faces any material environmental or social risk, it shall submit an environmental or social risk report to the Lender; it shall enhance management of environmental and social risks, and subject itself to the supervision by the Lender in this regard. The Applicant represents and warranties that its internal management documents of any project operated by it in respect of environmental and social risks comply with the requirements of the applicable laws and regulations and have been duly implemented, and that it is free from any material litigation involving any environmental or social risk. The Applicant covenants that it will properly handle the matters that the Lender deems relevant to the control of environmental and social risks, and report to the Lender any material issues relating thereto in a timely and complete manner.

 

6.8.        Anti-money laundering. The Applicant is willing to give cooperation to the Lender in enforcing the laws, rules and regulations concerning anti-money laundering.

 

Article 7 Obligations of the Applicant

 

7.1.        The Applicant shall obtain or effect all the consents, approvals, reports, filings or registrations required for its performance of this Contract and the separate agreements hereunder.

 

7.2.        The Applicant shall utilize the facilities pursuant to the provisions hereof and for such purpose as contemplated in this Contract and the relevant separate agreements, and may not use any facility to any other purpose.

 

7.3.        The Applicant shall repay its debts under this Contract and the separate agreements hereunder at such time and in such amount as specified in this Contract and the separate agreements.

 

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7.4.        The Applicant shall be responsible for the costs and expenses in connection with this Contract and the separate agreements hereunder, including without limitation the costs of notarization, appraisal and evaluation.

 

7.5.        The Applicant shall abide by the business rules and operating practices of the Lender in respect of facility service, including without limitation, accepting and giving cooperation to the Lender in the supervision and inspection of its utilization of the facilities hereunder and related production, business and financial activities, and promptly providing all the financial statements and other data and information that may be required by the Lender.

 

7.6.        In the event of any of the following on the part of the Applicant, the Applicant shall notify the Lender in writing at least thirty (30) days in advance, and may not take any action in respect thereof until it has paid the debts hereunder and the interest accrued thereon in full, or provided a repayment schedule and security to the satisfaction of the Lender:

 

1)                 any sale, gift, lease, lending, transfer, mortgage, pledge or otherwise disposal of all or substantially all of its assets or material assets; or

 

2)                 any actual or potential material change in its management system or ownership structure, including without limitation transformation into the contract, leasing or shareholding cooperative system or into a joint venture or company, sale of business, consolidation, merger, equity or contractual joint venture, division, establishment of any subsidiary, share transfer, property transfer or reduction of capital.

 

7.7.        In the event of any of the following on the part of the Applicant, whether actual or potential, the Applicant shall notify the Lender in writing within seven (7) days:

 

1)                 any amendment to its articles association, or any change in its business name, legal representative/principal, domicile, mailing address, scope of business or other particulars registered with the administration for industry and commerce, or any decision that has a material effect on its financial or personnel affairs;

 

2)                 where any petition for bankruptcy is filed by the Applicant or its security provider or by the creditors against the Applicant or its security provider;

 

3)                 where the Applicant is involved in any legal, arbitration or administrative proceedings, or its major assets or the security hereunder is subject to any property preservation or other enforcement action;

 

4)                 where the Applicant provides guarantee for any third party, which has a material adverse effect on its financial condition or its ability to perform its obligations hereunder;

 

5)                 where the Applicant enters into any contract that has a material effect on its business or financial condition;

 

6)                 where the Applicant or its security provider suspends production, closes business, is dissolved, suspends business to bring up to standard or is deregistered, or its business license is revoked;

 

7)                 where the Applicant violates the laws or regulations, or its legal representative/principal or major investor or any of its senior officers undergoes any abnormal change, becomes missing, is subject to any investigation or restrictions on personal freedom by judicial organs according to law, or otherwise violates the laws or regulations; or

 

8)                 where the Applicant suffers any serious difficulties in its business operation or deterioration of financial condition, or gets into any other circumstances that have an adverse effect on its business or financial condition or solvency.

 

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7.8.        In case of any change in the security hereunder that is unfavorable to the claims of the Lender, the Applicant shall promptly provide additional security in accordance with the requirements and to the satisfaction of the Lender.

 

For the purpose of this Article 7.8, “change” includes without limitation any consolidation, division, suspension of production, close-down, dissolution, suspension of business to bring up to standard, deregistration or revocation of business license on the part of the security provider; any petition for bankruptcy filed by or against the security provider; any material change in the business or financial condition of the security provider; any legal, arbitration or administrative proceedings involving the security provider; any property preservation or other enforcement action against the main assets of the security provider; any actual or potential depreciation of the security; any property preservation or other enforcement action against the security; violation of the laws or regulations by the security provider or its legal representative/principal or major investor or any of its senior officers; or, if the security provider is an individual, the security provider becoming missing or being or declared dead; any default committed by the security provider under the security contract; any dispute arising between the security provider and the Applicant; request by the security provider for rescission of the security contract; failure of the security contract to take effect or invalidity or revocation thereof; failure to create or invalidity of the security; or other circumstances affecting the security of the claims of the Lender.

 

7.9.        Disclosure of related-party transactions inside the group of the Applicant (o1. Applicable þ2. Not applicable)

 

The Applicant is a group client as defined by the Lender pursuant to the Guidelines for Risk Management of Facility Services Provided by Commercial Banks to Group Clients. The Applicant shall promptly report to the Lender any related-party transaction accounting for more than 10% of its net assets, including the affiliation relationship between the parties thereto, and items, nature, amount or relevant ratios and pricing policies in respect of the transaction, including transactions without consideration or only with a nominal consideration.

 

In the event of any of the following on the part of the Applicant, the Lender shall have the right to unilaterally suspend the provision of the facilities unutilized by the Applicant hereunder, accelerate the repayment of all or part of the facilities hereunder and the interest thereon, and take other actions according to law:

 

1)                 provision of any false information or concealment of any material facts of business or financial condition;

 

2)                 any change in the purpose of the facilities hereunder without the consent of the Lender, or misappropriation of the facilities or using the facilities to engage in any transaction in contravention of the applicable laws and regulations;

 

3)                 by using any false contract with its affiliate, presenting any note receivable, account receivable or other claim without a real trading background to the bank for discount or as collateral, thereby obtaining funds or facilities from the bank illegally;

 

4)                 refusal to accept the supervision and inspection conducted by the Lender on its use of the facilities, business and financial activities;

 

5)                 any material merger, acquisition, reorganization or other circumstances that may in the opinion of the Lender affect the security of the facilities hereunder;

 

6)                 attempting to evade or invalidate the debts owed to the bank through any related-party transaction; or

 

7)                 otherwise materially breaching this Contract as determined by the Lender.

 

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Article 8 Event of Default and Treatment

 

8.1.        The occurrence of any of the following shall be deemed as an “Event of Default” hereunder:

 

1)                 where any representation made by the Applicant in this Contract or any separate agreement is untrue;

 

2)                 where the Applicant fails to fulfill any of its covenants;

 

3)                 where the Applicant violates any provision of this Contract or any separate agreement hereunder;

 

4)                 where any event that should be notified to the Lender under Article 7.7 actually occurs, which would in the opinion of the Lender affect the security of its claims hereunder;

 

5)                 where the Applicant (or any member of the Applicant’s group) delays in the performance of or otherwise breaches any other contract concluded with the Lender or any other department of the Bank of Fushun, and fails to cure such breach after being requested by the Lender to do so; or

 

6)                 where the security provider of the Applicant breaches the security contract or any other contract concluded with the Lender or any other department of the Bank of Fushun.

 

8.2.        Upon the occurrence of an “Event of Default”, the Lender shall have the right to take any or all of the following actions depending on the actual circumstances:

 

1)                 to request the Applicant or the security provider, as the case may be, to cure its default;

 

2)                 to reduce, suspend or cancel all or part of the facilities available hereunder;

 

3)                 to suspend or stop the handling of all or part of the applications filed by the Applicant under this Contract or any separate agreement hereunder or any other agreement concluded between the Applicant and the Lender, and to suspend or stop the provision of all or part of the loans or the handling of all or part of trade financing or letter of guarantee services that would have been available;

 

4)                 to declare the debts owed by the Applicant hereunder or the outstanding loans under any other agreement concluded between the Applicant and the Lender, the advances made under any trade financing or letter of guarantee, or any other sums payable by the Applicant and the interest thereon immediately due and payable, and to request the Applicant to immediately pay such sums and the interest thereon; in case of the facilities provided under any banker’s acceptance bill or letter of guarantee, to request the Applicant to immediately provide such additional security so that the amount of security will reach the amount of the banker’s acceptance bill or letter of guarantee that has already been opened by the Lender under the relevant separate agreement and has not yet been repaid by the Applicant;

 

5)                 to terminate or rescind this Contract, all or part of the separate agreements hereunder or any other agreement concluded between the Applicant and the Lender;

 

6)                 to request the Applicant to indemnify it for the losses caused by the default of the Applicant;

 

7)                 to enforce its security interest;

 

8)                 to request the security provider to perform its obligation of guarantee; and/or

 

9)                 to exercise other legal remedies it deems necessary.

 

8.3.        Where the Applicant fails to pay any debt hereunder or any interest thereon on time and in full, the Lender shall charge default interest and compound interest thereon according to the default interest for overdue facilities from the date following the expiry date (in case of any banker’s acceptance bill or letter of guarantee, from the date that the Lender makes an advance thereunder). Where the Applicant uses the facilities hereunder for any purpose not contemplated in this Contract or the relevant separate agreement, the Lender shall charge default interest and compound interest on the part of the facilities misappropriated according to the default interest for misappropriated facilities.

 

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The default interest for overdue and misappropriated facilities shall be an interest rate which is 50% and 100%, respectively, more than the interest rate specified in the relevant separate agreement. The interest rate for advances made under any banker’s acceptance bill or letter of guarantee shall be subject to the relevant separate agreement. Where a facility is both overdue and misappropriated, the default interest and compound interest shall accrue at the higher of the default rates stated above.

 

For the purpose of this Article 8.3, expiry date means the repayment date, due date or interest payment date, as the case may be.

 

Article 9 Set-off

 

The Lender shall have the right to directly set-off the funds in any account opened by the Applicant with the Bank of Fushun against the principal, interest, default interest, compound interest and other fees then due and payable in respect of the debts of the Applicant hereunder.

 

Article 10 Reservation of Rights

 

Any failure of a Party to exercise any or all of its rights under this Contract or any separate agreement hereunder or request the other Party to perform or assume any or all of its duties and obligations under this Contract or any separate agreement hereunder shall not operate as a waiver of such rights, duties or obligations. Any grace period or extension granted by a Party to the other Party hereto or any delay on the part of a Party in the exercise of its rights under this Contract or any separate agreement hereunder shall not affect any right available to that Party under this Contract or any separate agreement or the applicable laws and regulations, or operate as a waiver of such rights.

 

Article 11 Amendment, Modification and Partial Invalidity

 

No amendment or modification of this Contract shall be valid unless it is made in writing and mutually agreed upon by the Parties. Any amendment or modification of this Contract shall have equal legal effect as this Contract.

 

Unless otherwise provided in the applicable laws and regulations or agreed by the Parties, the invalidity of any provision hereof shall not affect the legal effect of the remaining provisions hereof.

 

Article 12 Governing Law and Dispute Resolution

 

This Contract and separate agreements hereunder shall be governed by the laws of the People’s Republic of China.

 

Unless otherwise agreed by the Parties, any dispute arising from or in connection with the execution or performance of this Contract or any separate agreement hereunder after the date hereof or thereof, as the case may be, shall be resolved by the Parties through negotiation. In case no resolution can be reached, either Party may submit the dispute to the people’s court at the domicile of the Lender for resolution by litigation.

 

When any dispute is pending, the Parties shall continue to perform the provisions of this Contract and separate agreements hereunder, except for the provisions in dispute.

 

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Article 13 Schedules

 

The following schedules and other schedules and separate agreements jointly confirmed by the Parties shall constitute an integral part of this Contract and have equal legal effect as this Contract.

 

Schedule 1:                                     

Schedule 2:                                     

Schedule 3:                                     

 

Article 14 Miscellaneous

 

14.1. Where the Applicant fails to perform any or all of its obligations hereunder, the Applicant shall subject itself to enforcement actions.

 

14.2. Without the written consent of the Lender, the Applicant may not assign any of its rights or obligations hereunder to any third party.

 

14.3. The Applicant agrees that the Lender may, due to the needs of business, authorize another department of the Bank of Fushun to exercise the rights and perform the obligations of the Lender under this Contract and separate agreements hereunder. Such other department of the Bank of Fushun as authorized by the Lender shall have the right to exercise all the rights of the Lender under this Contract and separate agreements hereunder, submit any dispute under this Contract or any separate agreement hereunder to the court for resolution by litigation.

 

14.4. Without prejudice to any other provision of this Contract or any separate agreement hereunder, this Contract shall inure to the benefit of, and be binding upon, the Parties and their respective legal successors and assigns.

 

14.5. Unless otherwise agreed, each Party designates its domicile set out herein as its mailing and contact address, and undertakes to notify the other Party in writing in case of any change in its mailing and contact address.

 

14.6. The titles and service names contained herein are for convenience of reference only, and shall be disregarded in the interpretation of the terms hereof or the rights and obligations of the Parties hereto.

 

14.7. The Lender may assign any and all of its rights and obligations hereunder to any third party, without the consent of the Applicant, and to the extent necessary for such assignment, disclose the information of the Applicant and this Contract to such third party, in which case the Applicant shall complete the relevant procedures necessary for such assignment.

 

14.8. Where the Applicant is unable to perform this Contract or perform its obligations hereunder in accordance with the provisions hereof due to any change in the applicable laws, regulations or regulatory rules or the requirements of the regulatory authorities, the Lender shall have the right to terminate, or according to such changes in the applicable laws, regulations or regulatory rules or the requirements of the regulatory authorities, amend this Contract and separate agreements hereunder. The Lender shall not be liable for its inability to perform this Contract or perform its obligations hereunder in accordance with the provisions hereof due to any termination or amendment of this Contract resulting therefrom.

 

14.9. Where any representation made by the Applicant proves to be untrue or misleading in any material aspect or the Applicant fails to fulfill any covenant made herein, the Lender shall have the right to claim compensation from the Applicant for any losses or costs, including attorney’s fee, of the Lender resulting therefrom.

 

14.10.    Other provisions:                                                                                                                                  .

 

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Article 15 Effectiveness

 

This Contract shall take effect after being signed (or sealed) by the legal representative/principal or authorized agent of the Applicant and stamped with the official seal of the Applicant and signed (or sealed) by the principal or authorized agent of the Lender and stamped with the official seal of the Lender.

 

This Contract shall be made in four counterparts, two counterparts to be held by the Applicant and the Lender respectively with equal legal effect.

 

The Applicant has read all the terms of this Contract, and had an opportunity to request the Lender to offer the relevant explanations and has no dispute over any term hereof. The Parties have arrived at a common understanding on the terms of this Contract.

 

	
Applicant (official   seal):
    	
 
    	
Lender (official seal):
    
	
Legal representative/principal or authorized agent 
    	
 
    	
Principal or authorized agent (signature or seal):
    
	
(signature or seal):
    	
/s/ Song Wang
    	
 (with company seal)
    	
 
    	
/s/ Jinzhong Ma
    	
 (with company seal)
    
	
Responsible person:
    	
 
    	
Responsible person:
    
	
Date of signature: October 30, 2017
    	
 
    	
Date of signature: October 30, 2017
    
						

 

10Exhibit 4.45

 

Bank of Fushun

 

Fixed Asset Loan Contract

Contract No.: Fu Yin Shen Fen [2017] Gu Dai No. 001

 

Borrower: ChinaCache Xin Run Technology (Beijing) Co., Limited

Lender: Bank of Fushun Limited, Shenyang Branch

 

 

Instructions

 

1.                  In order to safeguard your credit rights and interests, and prevent any unfavorable credit record caused by any default, please duly perform this Contract and pay the principal of the loan and interest thereon on time in the principles of honesty and good faith.

 

2.                  You expressly acknowledge that you shall be held legally liable for any default committed by you.

 

 

Fixed Asset Loan Contract

 

Important

 

The Borrower shall carefully read this Contract, in particular, the terms that exclude or limit the liabilities of the Lender, grant certain rights to the Lender unilaterally, and increase the liabilities of the Borrower or restrict the rights of the Borrower. If the Borrower has any doubt, the Borrower shall ask the Lender to explain in a timely manner.

 

Borrower: ChinaCache Xin Run Technology (Beijing) Co., Limited

Legal representative/ principal: WANG Song

Domicile: Buildings 1# & 2#, No. 1, Zhuyuan 4th Street, Shunyi District, Beijing

Postal code: 101300

 

Lender: Bank of Fushun Limited Shenyang Branch

Legal representative: MA Jinzhong

Domicile: No. 87, Heilongjiang Street, Huanggu District, Shenyang

Postal code: 110032

 

Through negotiation on an equal basis, the Lender and the Borrower hereby enter into this Contract with respect to the grant of a fixed asset loan.

 

This Contract is a separate agreement under the Comprehensive Facility Contract (Contract No.: Fu Yin Shen Fen [2017] Zong Xin No. 001) entered into between ChinaCache Xin Run Technology (Beijing) Co., Limited and Bank of Fushun Limited, Shenyang Branch (þ 1. Applicable o2. Not applicable)

 

Article 1 Loan

 

1.1.        Loan amount

 

1.1.1                              The Loan amount is ninety million Yuan (¥90,000,000.00).

 

1.1.2                              If, at the time of actual drawdown of the loan, the facility limit then available under the Comprehensive Facility Contract is lower than the loan amount available to the Borrower hereunder, the Lender shall have the right to reduce the Loan amount hereunder according to the available facility limit. (þ1. Applicable o 2. Not applicable)

 

1.2.        Term of Loan

 

The Term of Loan shall be thirty six (36) months from October 30, 2017 to October 27, 2020, subject to the actual term specified in the Loan Note. If the actual drawdown date of the Loan is later than the commencement date of the Term of Loan specified herein, the Borrower shall still make repayments in accordance with the repayment schedule set forth herein.

 

1.3.        Purpose of Loan

 

1.3.1                              Purpose of Loan: Payment of costs of fitting-out works and equipment.

 

1.3.2                              Without the written consent of the Lender, the Borrower may not change the purpose of the Loan.

 

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Article 2 Interest Rate and Calculation and Settlement of Interest on the Loan

 

2.1.        The interest rate hereunder is a þ fixed interest rate ofloating interest rate, as specified below.

 

2.1.1                              The interest rate hereunder is set forth in Paragraph 2 below.

 

1)                 The interest rate hereunder shall be a floating interest rate, which is othe benchmark interest rate for the loan period specified in the Loan Note applicable on the oeffective date of this Contract oinitial drawdown date oeach drawdown date, oplus    % oless    %.

 

2)                 The interest rate hereunder shall be a fixed interest rate, which is 6.6667‰ per month, and shall remain unchanged during the Term of Loan.

 

2.1.2                              If the interest rate hereunder is a floating interest rate, in case of any adjustment of the benchmark interest rate by the People’s Bank of China, the interest rate adjustment date hereunder shall be determined according to the method described in Paragraph       below. Effective from the interest rate adjustment date, the interest rate hereunder shall be determined according to the benchmark interest rate as adjusted, with the interest margin stated above remaining unchanged.

 

1)                 The interest rate adjustment date shall be identical to the adjustment date of the benchmark interest rate fixed by the People’s Bank of China.

 

2)                 The interest rate adjustment date shall be the date that is omonths oquarters ohalf a year oyears after the actual drawdown date of the Loan (or, the initial drawdown date if the Loan will be available in installments).

 

3)                 The interest rate adjustment date shall be January 1 of the year following such adjustment.

 

2.1.3                              If the People’s Bank of China adjusts the benchmark interest rate into a floating interest rate or cancels the benchmark interest rate, the Parties shall negotiate to adjust the interest rate hereunder, provided that the interest rate as adjusted shall not be lower than then applicable interest rate. If the Parties fail to reach an agreement on the adjustment of the interest rate hereunder within _3_ months following the date of adjustment fixed by the People’s Bank of China, the Lender shall have the right to declare all the outstanding Loan hereunder immediately due and payable. Before the Parties reach an agreement thereon, the interest on the Loan shall continue to accrue according to the original interest rate applicable prior to such adjustment.

 

2.2.        Daily interest rate = monthly interest rate/30; monthly interest rate = annual interest rate/12.

 

2.3.        Calculation of interest

 

2.3.1                              Normal interest = interest rate hereunder X amount of the Loan drawn X number of days of occupation of the Loan funds, in which the number of days of occupation shall be calculated pursuant to the relevant provisions of the People’s Bank of China.

 

2.3.2                              Where the Borrower fails to repay the Loan on the due date specified herein (or the accelerated repayment date, if applicable) or misappropriates the Loan, the Lender shall have the right to charge a default interest on the outstanding or misappropriated amount according to the default rate and the actual number of days of such default or misappropriation, as the case may be. If the Borrower fails to pay any interest or default interest that becomes due, the Lender shall charge a compound interest thereon at the default rate specified in this Article 2.3.2, according to the method of settlement of interest specified in Article 2.4. The default rate for the overdue Loan shall be an interest rate which is 50% more than the interest rate specified herein. The default rate for the misappropriated Loan shall be an interest rate which is 100% more than than the interest rate specified herein. Where a Loan is both overdue and misappropriated, the default interest and compound interest shall accrue at the higher of the default rates stated above. Where a Loan subject to a floating interest rate is overdue or misappropriated, and the People’s Bank of China adjusts the benchmark interest rate during the same period, the Lender shall have the right to adjust the relevant default rate accordingly and apply the new default rate from the date of adjustment fixed by the People’s Bank of China.

 

2

 

2.4.        The interest on the Loan hereunder shall be paid according to the method stated in Paragraph 2 below:

 

1)                 The interest shall be paid on the 20th day of the last month of each quarter and paid on the 21st day of that month.

 

2)                 The interest shall be paid on the 20th day of each month and paid on the 21st day of that month.

 

3)                 The interest and the principal of the Loan shall be paid in one lump sum on the due date of the Loan.

 

If the final repayment date of the principal of the Loan is not an interest payment date, the Borrower shall pay all the interest then due and unpaid on the final repayment date of the principal of the Loan.

 

Article 3 Opening and Supervision of Accounts

 

The Borrower shall open the following accounts with the Lender, for the purposes of, among other things, release and payment of the Loan funds, repayment and settlement of the Loan, preparation for the repayment, and collection of the income of the project.

 

1)                 The release and payment of the Loan shall be handled through the loan account, which shall be solely used for the release and payment of the Loan funds.

 

2)                 The Borrower owill  þwill not open a special loan account.

 

Account number:           

 

3)                 The Borrower will open a loan repayment and settlement account (account number: 1001200001920171026), which will be used for the repayment of the Loan, and accounting and settlement of transfer and other fees in respect of the Loan funds. This account þis ois not a loan account.

 

4)                 The Borrower owill þwill not open a special project income account, which will be used for collecting all the income of the project received prior to the full payment of the principal of the Loan and interest thereon.

 

Account number: 1001200001920171026

 

The terms and conditions for payments by the account are as follows:

 

                                                                                                                                                .

 

Article 4 Release and Payment of the Loan Funds

 

4.1.        The Loan hereunder may be drawn in installments, provided that aggregate amount drawn by the Borrower shall not exceed the amount specified in Article 1.

 

4.2.        At the time of initial drawdown by the Borrower, the Lender shall have the right to refuse the drawdown by the Borrower unless all the conditions set out below have been satisfied:

 

1)                 this Contract and the schedules hereto shall have taken effect;

 

2)                 the Borrower shall have provided the Lender with the instruments, documents, specimen seals, list of related personnel and specimen signatures thereof relating to the execution and performance of this Contract, and completed the relevant vouchers;

 

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3)                 the Borrower shall have obtained or effected all the governmental permits, approvals, authorization, filings, registrations and other legal procedures necessary for the project and matters in respect of the Loan hereunder, and completed other procedures that may be required by the Lender, and such permits, approvals, authorization, filings, registrations and procedures shall remain in full force and effect;

 

4)                 the security contract (if any) under this Contract shall have taken effect and remain in full force and effect, and if the security contract is a mortgage and/or pledge contract, the security interest shall have been constituted thereunder and remain in full force and effect;

 

5)                 the Borrower shall have opened the account(s), if any, for the performance of this Contract, at the request of the Lender;

 

6)                 the business and financial conditions of the Borrower shall not have experienced any material adverse change;

 

7)                 the Borrower shall have provided the Lender with proofs showing that adequate capital in proportion to the Loan hereunder has been in place and the actual progress of the project is consistent with the amount of investment already made, to the satisfaction of the Lender;

 

8)                 the method of payment of the Loan funds shall comply with the provisions hereof, and if the Lender is authorized to make any payment on behalf of the Borrower, the Lender shall have agreed with such payment;

 

9)                 the Borrower shall be of the opinion that no main economic and technical indicator of the loan project has suffered any adverse change and the project has been going smoothly;

 

10)          the initial drawdown date shall not be later than December 31, 2017;

 

11)          no “Event of Acceleration” shall have occurred hereunder; and

 

12)          such other conditions provided by the law or as agreed by the Parties.

 

4.3.        At the time of each subsequent drawdown, the Lender shall have the right to refuse the drawdown unless all the conditions set out below have been satisfied:

 

1)                 the items and documents referred to in Paragraphs 3 and 4 of Article 4.2 shall remain in full force and effect;

 

2)                 the Borrower shall have provided the Lender with proofs showing that adequate capital in proportion to the Loan hereunder has been in place and the actual progress of the project is consistent with the amount of investment already made, to the satisfaction of the Lender;

 

3)                 the method of payment of the Loan funds shall comply with the provisions hereof, and if the Lender is authorized to make any payment on behalf of the Borrower, the Lender shall have agreed with such payment;

 

4)                 the business and financial conditions of the Borrower shall not have experienced any material adverse change;

 

5)                 the Borrower shall be of the opinion that no main economic and technical indicator of the loan project has suffered any adverse change and the project has been going smoothly;

 

6)                 the drawdown date shall not be later than October 27, 2020; and

 

7)                 no “Event of Acceleration” shall have occurred hereunder.

 

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4.4.        The Borrower shall, no later than three (3) banking days prior to each drawdown, go through the relevant drawdown procedures and specify the method of payment. In case of authorized payment through the Lender, the Borrower shall provide the Lender with a Drawdown Request, Payment Authorization Letter, Loan Note, corresponding request for settlement/checks/credit memo and other information that the Lender may require. In case of self-service payment by the Borrower, the Borrower shall, at the time of drawdown, provide the Lender with a Drawdown Request, Loan Note, capital use plan and other information that the Lender may require.

 

4.5.        Method of payment. Any payment of the Loan funds in excess of five million Yuan (¥5,000,000.00) in a single transaction shall be effected by means of authorized payment through the Lender. Any payment of the Loan funds not exceeding the aforesaid limit in a single transaction may be effected by means of self-service payment by the Borrower. The Lender may adjust the method of payment of the Loan funds according to the actual circumstances.

 

4.6.        Change in the method of payment. In case of any change in the conditions for any payment to be made by the Borrower after the submission of a Drawdown Request, if it is a self-service payment by the Borrower and meets the conditions for authorized payment under Article 4.5, the method of payment of the Loan funds shall be changed. In case of any change in the method of payment or in the amount payable, payee, purpose of Loan or otherwise in respect of any authorized payment, the Borrower shall provide the Lender with a statement about such changes in writing, a new Drawdown Request and relevant transaction documents proving the use of the funds.

 

4.7.        The Borrower shall use the Loan funds in such manner as agreed, and may not avoid authorized payment through the Lender by breaking up any large-sum payment into small sums.

 

4.8.        Authorized payment through the Lender means such means of payment in which the Lender credits the Loan funds to the account of the Borrower pursuant to the provisions hereof, and then according to the Payment Authorization Letter issued by the Borrower, directly pays the Loan funds from the account to the counterparties of the Borrower, to the extent that such payments comply with the purpose of the Loan as specified herein.

 

The Lender shall have the right to request the Borrower, independent intermediaries, contractors and other related parties to jointly examine the progress of the fixed asset project, and pay the Loan funds according to the certificate jointly executed by them proving that the relevant conditions set forth herein have been satisfied. The conditions to be satisfied are as follows:

 

                                                                                                                                           .

 

The Lender shall have the right to refuse to make any payment proposed by the Borrower that does not meet the relevant conditions set forth herein.

 

If the Lender agrees to make any payment, but fails to effect the payment or the payment is returned due to any wrong information provided by the Borrower, the Borrower shall re-submit the relevant vouchers and documents containing correct information within the time limit prescribed by the Lender.

 

4.9.        Self-service payment by the Borrower means such means of payment in which the Borrower directly pays the Loan funds credited by the Lender to the account of the Borrower pursuant to the provisions hereof to its counterparties, to the extent that such payments comply with the purpose of the Loan as specified herein.

 

4.10. The Borrower shall report its use of the Loan funds and provide relevant records and documents that can prove the use thereof to the Lender on a regular basis, provided that such reports shall be submitted at least once a month. The Lender shall have the right to inspect whether the payment of the Loan funds complies with the purpose of the Loan specified herein by means of account analysis, audit of vouchers, on-site investigation or otherwise. The Borrower shall give cooperation to such inspections.

 

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Article 5 Repayment of the Loan

 

5.1.        The source of funds for repayment of the Loan shall include without limitation the sales revenue and subsidies received from the loan project and other income of the Borrower. The definition of the source of funds for repayment of the Loan under this Article 5.1 shall in no way affect the obligation of the Borrower to pay the principal of the Loan and the interest thereon pursuant to the provisions of this Contract.

 

5.2.        The Borrower shall repay the principal of the Loan in accordance with the due date specified in Article 1 and the following provisions. Where the due date indicated on the Loan Note is different from the due date specified in Article 1, the Loan Note shall prevail.

 

	
Repayment date
    	
 
    	
Repayment amount
    
	
April 21, 2018
    	
 
    	
Two million five hundred thousand Yuan   (¥2,500,000.00)
    
	
October 21, 2018
    	
 
    	
Two million five hundred thousand Yuan   (¥2,500,000.00)
    
	
April 21, 2019
    	
 
    	
Two million five hundred thousand Yuan   (¥2,500,000.00)
    
	
October 21, 2019
    	
 
    	
Two million five hundred thousand Yuan   (¥2,500,000.00)
    
	
April 21, 2020
    	
 
    	
Two million five hundred thousand Yuan   (¥2,500,000.00)
    
	
October 27, 2020
    	
 
    	
Balance of the principal
    

 

5.3.        Unless otherwise agreed by the Parties, where the Borrower is in arrears with the payment of any principal and interest due, the Lender shall have the right to determine the order of repayment of the principal or interest; in case of repayment in installments, if there are a number of Loans due and overdue Loans hereunder, the Lender shall have the right to determine the order of repayment of any particular Loan; if there are a number of loan contracts between the Borrower and the Lender that have become due, the Lender shall have the right to determine the order of repayment of the loans by the Borrower under such contracts.

 

Article 6 Security for the Loan

 

The security for the Loan hereunder is as stated in Paragraph 1 below:

 

1)                 This Contract is the master contract of _ A\B _ (No: Fu Yin Shen Fen/Zhi 2017 No. Zong Xin 001 Gao Bao No.1\ Fu Yin Shen Fen/Zhi 2017 No. Zong Xin 001 Gao Di No.1) (A. Maximum Amount Guarantee Contract; B. Maximum Amount Mortgage Contract; C. Maximum Amount Pledge Contract) entered into between ChinaCache Xin Run Technology (Beijing) Co., Limited and WANG Song, as the security provider, and the Lender, which provides a maximum amount guarantee for the Loan hereunder.

 

2)                 The security will be jointly provided by                                              .

 

Article 7 Disclosure of Related-party Transactions inside the Group of the Borrower (o1. Applicable  þ2. Not applicable)

 

The Borrower is a group client as defined by the Lender pursuant to the Guidelines for Risk Management of Facility Services Provided by Commercial Banks to Group Clients. The Borrower shall promptly report to the Lender any related-party transaction accounting for more than 10% of its net assets, including the affiliation relationship between the parties thereto, and items, nature, amount or relevant ratios and pricing policies in respect of the transaction, including transactions without consideration or only with a nominal consideration.

 

In the event of any of the following on the part of the Borrower, the Lender shall have the right to unilaterally suspend the provision of the part of the Loan unutilized by the Borrower, accelerate the repayment of all or part of the principal and interest on the Loan, and take other actions according to law:

 

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1)                 provision of any false information or concealment of any material facts of business or financial condition;

 

2)                 any change in the purpose of the Loan without the consent of the Lender, or misappropriation of the Loan or using the Loan to engage in any transaction in contravention of the applicable laws and regulations;

 

3)                 by using any false contract with its affiliate, presenting any note receivable, account receivable or other claim without a real trading background to the bank for discount or as collateral, thereby obtaining funds or facility from the bank illegally;

 

4)                 refusal to accept the supervision and inspection conducted by the Lender on its use of the Loan funds, business and financial activities;

 

5)                 any material merger, acquisition, reorganization or other circumstances that may in the opinion of the Lender affect the security of the Loan hereunder;

 

6)                 attempting to evade or invalidate the debts owed to the bank through any related-party transaction; or

 

7)                 otherwise materially breaching this Contract as determined by the Lender.

 

Article 8 Representations and Covenants of the Borrower

 

8.1.        The Borrower is duly incorporated and validly existing, and has the full capacity for civil rights and capacity for civil conduct to enter into and perform this Contract, and the capacity to invest in and operate the loan project.

 

8.2.        The Borrower fully understands the content of this Contract, enters into and performs this Contract based on its true intention, and has obtained all the consents, approvals and authorization necessary for its execution and performance of this Contract. The execution and performance of this Contract by the Borrower will be free from any legal defect.

 

8.3.        All the documents, statements, data (including the data of transactions with the counterparties) and information provided by the Borrower in the application for the Loan and during the execution and performance of this Contract are and will be true, accurate, complete and valid. The Borrower has not omitted to provide or concealed any information that may affect the Lender’s assessment of its financial condition or solvency or the conditions of the loan project.

 

8.4.        The loan project complies with the industrial, land, environmental protection and other relevant policies of the State, and has completed the legal management procedures in respect of fixed asset investment project. The loan project and the purpose of the loan comply with the requirements of the relevant laws and regulations.

 

8.5.        If the Borrower has entered or will enter into any counter guarantee agreement or similar agreement with the security provider hereunder in respect of its obligation of guarantee, such agreement will not damage any right of the Lender hereunder.

 

8.6.        The Borrower covenants that the loan project will always meet the following requirements prior to the full repayment of the principal of the Loan and interest thereon:

 

1)                 the progress of the project will not fall behind the use of the Loan funds;

 

2)                 other funds for the project will be available on time and be used in the same proportion as the Loan funds;

 

3)                 the environmental protection facilities and the principal part of the project will be designed, constructed and put into use synchronically;

 

4)                 the project complies with all the applicable regulations of the State regarding energy saving and emission reduction; and

 

5)                 after being completed, the project will pass environmental impact assessment in a timely manner.

 

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8.7.        The debts owed to the Lender shall be discharged prior to the loans provided by the shareholders of the Borrower to it.

 

8.8.        Where the pre-tax profit of the Borrower in an accounting year has not yet been applied to pay the principal, interest and other fees in respect of the Loan hereunder payable in that year or is insufficient to pay the principal, interest and other fees payable in the next repayment period, the Borrower may not distribute any dividend or bonus to its shareholders in any manner.

 

8.9.        The Borrower may not dispose any of its assets that will result in any decrease in its solvency.

 

8.10. The Borrower covenants that it will comply with the provisions of the Lender and the regulatory authorities regarding green credit; if its business faces any material environmental or social risk, submit an environmental or social risk report to the Lender; enhance management of environmental and social risks, and subject itself to the supervision by the Lender in this regard. The Borrower represents and warranties that the internal management documents of it and the project operated by it in respect of environmental and social risks comply with the requirements of the applicable laws and regulations and have been duly implemented, and that it is free from any material litigation involving any environmental or social risk. The Borrower covenants that it will properly handle the matters that the Lender deems relevant to the control of environmental and social risks, and report to the Lender any material issues relating thereto in a timely and complete manner.

 

8.11. Anti-money laundering. The Borrower will give cooperation to the Lender in enforcing the laws, rules and regulations concerning anti-money laundering.

 

8.12. From the date of this Contract till the full repayment of the principal of the Loan hereunder and the interest and other fees thereon, the financial indicators of the Borrower shall always comply with the following provisions:

 

                                                                                                               .

 

Article 9 Rights of the Lender

 

9.1.        The Lender shall have the right to recover the principal of the Loan hereunder and the interest (including default interest and compound interest) thereon and receive other fees payable by the Borrower pursuant to the provisions hereof, and exercise other rights provided by the law or this Contract.

 

9.2.        The Lender shall have the right to manage and control the payment of the Loan funds pursuant to the relevant regulatory rules and the provisions hereof, and monitor the relevant accounts pursuant to the provisions hereof.

 

9.3.        The Lender shall have the right to directly set off the funds in any account opened by the Borrower with the Bank of Fushun against the principal, interest, default interest, compound interest and other fees due and payable in respect of the Loan hereunder, and for that purpose, regard any sum in such account that has not yet reached maturity immediately reaches maturity.

 

9.4.        The Lender shall have the right to check the credit reports concerning the Borrower through the basic financial credit database, in the review of the Borrower’s loan application or application for the provision of security or post-loan management or when it otherwise needs to check the credit standing of the Borrower. The Lender shall have the right to submit the Borrower’s credit information to the basic financial credit database.

 

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Article 10 Obligations of the Borrower

 

10.1. The Borrower shall pay the principal of the Loan hereunder and the interest thereon at such time and in such amount as specified herein.

 

10.2. The Borrower shall use the Loan funds in accordance with the provisions hereof, and may not divert the Loan funds to any other purpose not contemplated herein.

 

10.3. The Borrower shall be responsible for the costs and expenses in connection with the Loan hereunder, including without limitation the costs of notarization, appraisal and evaluation, and the settlement fees in respect of the payment of the Loan funds, regardless of whether the method of payment is authorized payment through the Lender or self-service payment by the Borrower, and pay related fees charged by the Lender in such amount and at such time as prescribed by the Lender.

 

10.4. The Borrower shall abide by the business rules and operating practices of the Lender in respect of facility service, including without limitation, giving cooperation to the Lender in the supervision and inspection of its use of the Loan funds and business conditions, and promptly providing all the financial statements and other data and information that may be required by the Lender.

 

10.5. In the event of any of the following on the part of the Borrower, the Borrower shall notify the Lender in writing at least thirty (30) days in advance, and may not take any action in respect thereof until it has paid the principal of the Loan hereunder and the interest thereon in full or provided a repayment schedule and security to the satisfaction of the Lender:

 

1)                 any sale, gift, lease, lending, transfer, mortgage, pledge or otherwise disposal of all or substantially all of its assets or material assets;

 

2)                 any actual or potential material change in its management system or ownership structure, including without limitation transformation into the contract, leasing or shareholding cooperative system or into a joint venture or company, sale of business, consolidation, merger, equity or contractual joint venture, division, establishment of any subsidiary, share transfer, property transfer or reduction of capital; or

 

3)                 any external investment or substantial increase in debt financing.

 

10.6. In the event of any of the following on the part of the Borrower, whether actual or potential, the Borrower shall notify the Lender in writing within seven (7) days:

 

1)                 any amendment to its articles association, or any change in its business name, legal representative/principal, domicile, mailing address, scope of business or other particulars registered with the administration for industry and commerce, or any decision that has a material effect on its financial or personnel affairs;

 

2)                 where any petition for bankruptcy is filed by the Borrower or its security provider or by the creditors against the Borrower or its security provider;

 

3)                 where the Borrower is involved in any legal, arbitration or administrative proceedings, or its major assets, the assets of the loan project or the security hereunder is subject to any property preservation or other enforcement action;

 

4)                 where the Borrower provides guarantee for any third party, which has a material adverse effect on its financial condition or its ability to perform its obligations hereunder;

 

5)                 where the Borrower enters into any contract that has a material effect on its business or financial condition;

 

9

 

6)                 where the Borrower or its security provider suspends production, closes business, is dissolved, suspends business to bring up to standard or is deregistered, or its business license is revoked;

 

7)                 where the Borrower violates the laws or regulations, or its legal representative/principal or major investor or any of its senior officers undergoes any abnormal change, becomes missing, is subject to any investigation or restrictions on personal freedom by judicial organs according to law, or otherwise violates the laws or regulations;

 

8)                 where the Borrower suffers any serious difficulties in its business operation or deterioration of financial condition, or gets into any other circumstances that have an adverse effect on its business or financial condition or solvency;

 

9)                 where the loan project falls under any of the following circumstances during the course of construction: any delay in construction, any quality problem, or the aggregate investment in the project has exceeded the budget;

 

10)          where the loan project falls under any of the following circumstances during the course of operation: the project fails to realize the expected earnings, the cash flows generated from the operation of the project fail to meet the requirements of the project assessment report, or the production, operation or sales of the project faces any abnormal situations; or

 

11)          any adverse change in any main economic or technical indicator of the loan project.

 

10.7. In case of any change in the security hereunder that is unfavorable to the claims of the Lender, the Borrower shall promptly provide additional security in accordance with the requirements and to the satisfaction of the Lender.

 

For the purpose of this Article 10.7, “change” includes without limitation any consolidation, division, suspension of production, close-down, dissolution, suspension of business to bring up to standard, deregistration or revocation of business license on the part of the security provider; any petition for bankruptcy filed by or against the security provider; any material change in the business or financial condition of the security provider; any legal, arbitration or administrative proceedings involving the security provider; any property preservation or other enforcement action against the main assets of the security provider; any actual or potential depreciation of the security; any property preservation or other enforcement action against the security; violation of the laws or regulations by the security provider or its legal representative/principal or major investor or any of its senior officers; or, if the security provider is an individual, the security provider becoming missing or being or declared dead; any default committed by the security provider under the security contract; any dispute arising between the security provider and the Borrower; request by the security provider for rescission of the security contract; failure of the security contract to take effect or invalidity or revocation thereof; failure to create or invalidity of the security; or other circumstances affecting the security of the claims of the Lender.

 

Article 11 Insurance

 

11.1. The Borrower shall purchase such commercial insurance for the fixed asset project as required by the Lender, with the Lender being named as the first-ranking insurance claimant, and leave the original of such insurance policies in the safekeeping of the Borrower.

 

11.2. During the term of this Contract, the Borrower shall pay all the insurance premiums on time and perform other necessary obligations to maintain the validity of such insurance policies.

 

11.3. Where the Borrower fails to purchase or renew any insurance, the Lender shall have the right to purchase or renew the same, pay the insurance premiums or take other actions to maintain such insurance, in which case the Borrower shall give necessary assistance to the Lender and reimburse the Lender for the insurance premiums and other costs incurred.

 

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Article 12 Acceleration of the Loan

 

12.1. The occurrence of any of the following shall be deemed as an “Event of Acceleration” hereunder:

 

1)                 where any representation made by the Borrower in Article 8 is untrue;

 

2)                 where the Borrower violates any provision hereof;

 

3)                 where any event that should be notified to the Lender under Article 10.6 actually occurs, which would in the opinion of the Lender affect the security of its claims hereunder;

 

4)                 where the Borrower breaches any other contract concluded with the Lender or any contract concluded with any third party, or the debts of the Borrower under any other contract concluded with the Lender or any contract concluded with any third party might be or have already been declared immediately due and payable; or

 

5)                 where any member of the Borrower’s group fails to repay or delays in the repayment of its debts owed to any financial institution that become due or are declared immediately due and payable.

 

12.2. Upon the occurrence of an “Event of Acceleration”, the Lender shall have the right to take any or all of the following actions or any combination thereof:

 

1)                 to suspend the provision of the part of the Loan unutilized by the Borrower;

 

2)                 to suspend the payment of the Loan funds that has been released to but has not yet been used by the Borrower;

 

3)                 to request the Borrower to negotiate with the Lender about supplementary conditions for the release and payment of the Loan funds within a prescribed time limit;

 

4)                 to request the Borrower to change the method of payment and open a special loan account in accordance with the requirements of the Lender; and/or

 

5)                 to unilaterally declare the principal of the Loan already drawn hereunder immediately due and payable, and request the Borrower to immediately pay the principal of the Loan and the interest thereon in full.

 

Article 13 Default

 

13.1. Where the Borrower fails to pay any principal or interest on time and in full or use the Loan for the purpose specified herein, the Lender shall charge an interest at the default rate for the overdue Loan or for the misappropriated Loan, as the case may be, and a compound interest on any interest due and unpaid.

 

13.2. Where the Borrower fails to pay any principal or interest on time and in full, the Borrower shall be responsible for the costs of collection, litigation (arbitration), preservation, notification and enforcement, attorney’ fee, travel expenses and other expenses incurred by the Lender in enforcing its claims.

 

13.3. Where the Borrower evades the Lender’s supervision, defaults in the payment of the principal or interest on the Loan, maliciously evades or invalidates its debts or is otherwise in default, the Lender shall have the right to report such acts to the competent authorities and give public notice thereof on the media.

 

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Article 14 Reservation of Rights

 

Any failure of a Party to exercise any or all of its rights hereunder or request the other Party to perform or assume any or all of its duties and obligations hereunder shall not operate as a waiver of such rights, duties or obligations.

 

Any grace period or extension granted by a Party to the other Party hereto or any delay on the part of a Party in the exercise of its rights hereunder shall not affect any right available to that Party hereunder or under the applicable laws and regulations, or operate as a waiver of such rights.

 

Article 15 Amendment, Modification and Partial Invalidity

 

No amendment or modification of this Contract shall be valid unless it is made in writing and mutually agreed upon by the Parties. Any amendment or modification of this Contract shall have equal legal effect as this Contract.

 

Unless otherwise provided in the applicable laws and regulations or agreed by the Parties, the invalidity of any provision hereof shall not affect the legal effect of the remaining provisions hereof.

 

Article 16 Governing Law and Dispute Resolution

 

This Contract shall be governed by the laws of the People’s Republic of China.

 

Any dispute arising from or in connection with the execution or performance of this Contract after it takes effect shall be resolved by the Parties through negotiation. In case no resolution can be reached, either Party may submit the dispute to the people’s court at the domicile of the Lender for resolution by litigation.

 

When any dispute is pending, the Parties shall continue to perform the provisions hereof, except for the provisions in dispute.

 

Article 17 Miscellaneous

 

17.1. Where the Borrower fails to perform any or all of its obligations hereunder, the Borrower shall subject itself to enforcement actions.

 

17.2. Without the written consent of the Lender, the Borrower may not assign any of its rights or obligations hereunder to any third party.

 

17.3. The Borrower agrees that the Lender may, due to the needs of business, authorize another department of the Bank of Fushun to exercise the rights and perform the obligations of the Lender hereunder, or to undertake and manage the loan service hereunder. Such other department of the Bank of Fushun as authorized by the Lender shall have the right to exercise all the rights of the Lender hereunder, submit any dispute hereunder to the court for settlement by litigation or petition the court to enforce this Contract, in each case in its own name.

 

17.4. Without prejudice to any other provision hereof, this Contract shall inure to the benefit of, and be binding upon, the Parties and their respective legal successors and assigns.

 

17.5. Unless otherwise agreed, each Party designates its domicile set out herein as its mailing and contact address, and undertakes to notify the other Party in writing in case of any change in its mailing and contact address.

 

17.6. The titles and service names contained herein are for convenience of reference only, and shall be disregarded in the interpretation of the terms hereof or the rights and obligations of the Parties hereto.

 

17.7. The Lender may assign any and all of its rights and obligations hereunder to any third party, without the consent of the Borrower, and to the extent necessary for such assignment, disclose the information of the Borrower and this Contract to such third party, in which case the Borrower shall complete the relevant procedures necessary for such assignment.

 

12

 

17.8. Where the Borrower is unable to perform this Contract or perform its obligations in accordance with the provisions hereof due to any change in the applicable laws, regulations or regulatory rules or the requirements of the regulatory authorities, the Lender shall have the right to terminate, or according to such changes in the applicable laws, regulations or regulatory rules or the requirements of the regulatory authorities, amend this Contract and the agreements concluded hereunder. The Lender shall not be liable for its inability to perform this Contract or perform its obligations in accordance with the provisions hereof due to any termination or amendment of this Contract resulting therefrom.

 

17.9. Where any representation made by the Borrower proves to be untrue or misleading in any material aspect or the Borrower fails to fulfill any covenant made herein, the Lender shall have the right to claim compensation from the Borrower for any losses or costs, including attorney’s fee, of the Lender resulting therefrom.

 

17.10.                                                                                                     .

 

Article 18 Supplementary Provisions

 

18.1. The Form of Drawdown Request, the Drawdown Request, Payment Authorization Letter and Loan Note executed by the Parties, and other documents and materials confirmed by the Parties shall be an integral part of this Contract and have equal legal effect as this Contract.

 

18.2. This Contract shall take effect after being signed (or sealed) by the legal representative/principal or authorized agent of the Borrower and stamped with the official seal of the Borrower and signed (or sealed) by the principal or authorized agent of the Lender and stamped with the official seal of the Lender.

 

18.3. This Contract shall be made in three counterparts, one counterpart to be held by the Borrower and two counterparts to be held by the Lender respectively with equal legal effect.

 

The Borrower has read all the terms of this Contract, and had an opportunity to request the Lender to offer the relevant explanations and has no dispute over any term hereof. The Parties have arrived at a common understanding on the terms of this Contract.

 

	
Borrower (official seal):
    	
 
    	
Lender (official seal):
    
	
Legal representative/principal or authorized agent
    	
 
    	
Principal or authorized agent (signature or seal):
    
	
(signature or seal):
    	
/s/ Song Wang
    	
 (with company seal)
    	
 
    	
/s/ Jinzhong Ma
    	
 (with company seal)
    
	
Responsible person:
    	
 
    	
Responsible person:
    
	
Date of signature: October 30, 2017
    	
 
    	
Date of signature: October 30, 2017
    
						

 

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Drawdown Request

 

	
 
    	
No.:
    

 

To: Bank of Fushun Limited          Branch (“Lender”)

 

Pursuant to the Fixed Asset Loan Contract (No.:         ) entered into between the Borrower and the Lender (“Contract”), the Borrower hereby requests for a drawdown of the loan under the Contract, as follows:

 

1)                 Amount:       Yuan (¥      )

 

2)                 Method of payment:

 

o                Authorized payment

 

Refer to the Payment Authorization Letter (No.:        ) for details.

 

o                Self-service payment

 

Refer to the Capital Use Plan for the Loan Subject to Self-service payment (No.:        ) for details.

 

1.                  This Request is a supplement to the Contract. Unless otherwise provided herein, the provisions of the Contract shall apply to the rights, obligations and other matters as between the Borrower and the Lender.

 

2.                  If the Lender agrees to provide the Loan, the specific amount, drawdown data and due date of the Loan shall be subject to the Loan Note.

 

3.                  The Borrower covenants that the representations and warranties made by it in the Contract remain in full force and effect.

 

Borrower (official seal):

Legal representative/principal or authorized agent (signature or seal):

Responsible person:

Date of application:    (month)    (day),    (year)

 

The Lender agrees to provide the loan in accordance with the conditions set out above within three (3) banking days following the date of signature hereof.

 

Lender (official seal):

Principal or authorized agent (signature or seal):

Responsible person:

Date of signature:    (month)    (day),    (year)

 

Note: This Request is made in two copies, one copy to be held by the Borrower and the Lender respectively.

 

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