Document:

Unassociated Document

 

Exhibit 10.1

 

 

 

 

 

LOAN AGREEMENT

 

between

 

UTAH COUNTY, UTAH,

as Issuer

 

and

 

UNITED STATES STEEL CORPORATION

 

$32,375,000

Utah County, Utah

Environmental Improvement Revenue Refunding Bonds, Series 2011

(United States Steel Corporation Project)

 

Dated as of November 1, 2011

 

 

 

  

  

  

 

TABLE OF CONTENTS

 

	  	  	
Page

	  	  
	
ARTICLE I

	  
	
DEFINITIONS

	  
	  	  
	
Section 1.01.

	
Use of Defined Terms

	
2

	
Section 1.02.

	
Definitions

	
2

	
Section 1.03.

	
Interpretation

	
4

	
Section 1.04.

	
Captions and Headings

	
4

	  	  
	
ARTICLE II

	  
	
REPRESENTATIONS

	  
	  	  
	
Section 2.01.

	
Representations and Covenants of Issuer

	
4

	
Section 2.02.

	
Representations and Covenants of Company

	
5

	  	  
	
ARTICLE III

	  
	
COMPLETION OF PROJECT FACILITIES; ISSUANCE OF THE BONDS

	  
	  	  
	
Section 3.01.

	
Completion of Project Facilities

	
6

	
Section 3.02.

	
Issuance of Bonds; Application of Proceeds

	
6

	
Section 3.03.

	
Company Required to Provide Additional Moneys in Event Moneys Insufficient to Redeem Refunded Bonds

	
6

	
Section 3.04.

	
Investment of Fund Moneys

	
7

	
Section 3.05.

	
Issuer’s Fees

	
7

	  	  
	
ARTICLE IV

	  
	
LOAN BY ISSUER; REPAYMENT OF LOAN INCLUDING ADDITIONAL PAYMENTS

	  
	  	  
	
Section 4.01.

	
Loan of Proceeds; Installment Payments

	
7

	
Section 4.02.

	
Additional Payments

	
8

	
Section 4.03.

	
Deposit of Moneys in Bond Fund; Moneys for Purchase and Redemption

	
8

	
Section 4.04.

	
Obligations Unconditional

	
9

	
Section 4.05.

	
Assignment by Company

	
9

	
Section 4.06.

	
Assignment by Issuer

	
9

	  	  
	
ARTICLE V

	  
	
ADDITIONAL AGREEMENTS AND COVENANTS

	  
	  	  
	
Section 5.01.

	
Lease, Sale or Grant of Use by Company

	
10

	
Section 5.02.

	
Indemnification of Issuer and Trustee

	
10

	
Section 5.03.

	
Company Not to Adversely Affect Exclusion from Gross Income of Interest on Bonds

	
11

	
Section 5.04.

	
Company to Maintain its Existence; Mergers or Consolidations

	
11

	
Section 5.05.

	
Reports and Audits

	
12

	
Section 5.06.

	
Insurance

	
12

	  	  
	
ARTICLE VI

	  
	
OPTIONS; PREPAYMENT OF LOAN

	  
	  	  
	
Section 6.01.

	
Options to Terminate

	
12

 

  

  

  

 

	
Section 6.02.

	
Option to Prepay Upon Extraordinary Optional Redemption Under Indenture

	
13

	
Section 6.03.

	
Actions by Issuer

	
13

	
Section 6.04.

	
Release on Exercise of Option To Prepay Loan

	
13

	  	  
	
ARTICLE VII

	  
	
EVENTS OF DEFAULT AND REMEDIES

	  
	  	  
	
Section 7.01.

	
Events of Default

	
13

	
Section 7.02.

	
Remedies on Default

	
14

	
Section 7.03.

	
No Remedy Exclusive

	
14

	
Section 7.04.

	
Agreement to Pay Fees and Expenses

	
15

	
Section 7.05.

	
No Waiver

	
15

	
Section 7.06.

	
Notice of Default

	
15

	  	  
	
ARTICLE VIII

	  
	
MISCELLANEOUS

	  
	  	  
	
Section 8.01.

	
Term of Agreement

	
15

	
Section 8.02.

	
Amounts Remaining in Funds

	
15

	
Section 8.03.

	
Notices

	
15

	
Section 8.04.

	
Extent of Covenants of Issuer; No Personal Liability

	
16

	
Section 8.05.

	
Binding Effect

	
16

	
Section 8.06.

	
Amendments and Supplements

	
16

	
Section 8.07.

	
Execution Counterparts

	
16

	
Section 8.08.

	
Severability

	
16

	
Section 8.09.

	
Governing Law

	
16

	
Section 8.10.

	
Further Assurances and Corrective Instruments

	
16

	
Section 8.11.

	
Issuer and Company Representatives

	
16

	
Section 8.12.

	
Immunity of Incorporators, Stockholders, Officers and Directors

	
17

	
Section 8.13.

	
Section Headings

	
17

	 	 	 
	EXHIBIT A	PROJECT FACILITIES	 

 

  

ii

  

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT (this “Agreement”) made and entered into as of November 1, 2011, by and between the UTAH COUNTY, UTAH (the “Issuer”), a body corporate and politic and a political subdivision of the State of Utah (the “State”), acting through its duly appointed board, duly organized and validly existing under and by virtue of the Utah Industrial Facilities and Development Act, Title 11, Chapter 17 of the Utah Annotated Code 1953, as supplemented and amended, (the “Act”) and UNITED STATES STEEL CORPORATION, a corporation duly organized and existing under and pursuant to the laws of the State of Delaware, and duly qualified to own property and transact business in the State (the “Company”), under the following circumstances summarized in the following recitals (capitalized terms not defined in the recitals being used therein as defined in Article I):

 

WHEREAS, by virtue of the Act, the Issuer is authorized to enter into this Agreement and to do or cause to be done all the acts and things herein or in the Indenture, as defined herein, provided or required to be done by it, to issue the Bonds, as defined herein, and to loan the proceeds of such Bonds to the Company (which had assumed the obligation for the hereinafter-defined Refunded Bonds from Marathon Oil Corporation, formerly known as USX Corporation, and the successor by merger to the previously existing USX Corporation, from which the Company separated on December 31, 2001), for the purpose of refinancing the outstanding Utah County, Utah Floating Rate Environmental Improvement Revenue Bonds (USX Corporation Project), Refunding Series of 1995 (the “Refunded Bonds”), the proceeds of which were used to refund the Utah County, Utah Floating Rate Environmental Improvement Revenue Bonds, 1980 Series A (United States Steel Corporation Project) (the “1980 Series A Bonds”) and the Utah County, Utah Floating Rate Environmental Improvement Revenue Bonds, 1980 Series B (United States Steel Corporation Project) (the “1980 Series B Bonds”), which 1980 Series A Bonds and 1980 Series B Bonds were issued to finance or refinance the acquisition, construction, equipping and installation of certain air and water pollution control facilities in order to better ensure compliance with environmental standards, and which financing will promote the economic welfare of the citizens of the State; and

 

WHEREAS, in order to provide the funds necessary to refund the Refunded Bonds, the Issuer has determined to issue and sell its Bonds in the aggregate principal amount of $32,375,000 pursuant to the terms of a Trust Indenture (the “Indenture”) dated as of November 1, 2011, between the Issuer and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), for the purposes described therein and has determined to enter into this Agreement and secure the Bonds by the pledge and assignment of Installment Payments to be made hereunder; and

 

WHEREAS, the Company has also agreed under this Agreement to pay, or cause to be paid, when due certain expenses and other costs incurred by the Issuer and the Trustee in connection with this Agreement and the issuance of the Bonds; and

 

WHEREAS, all acts and things have been done and performed which are necessary to make the Bonds, when executed and delivered by the Issuer, the legal, valid and binding limited obligations of the Issuer in accordance with the terms thereof;

 

  

  

  

 

NOW, THEREFORE, for and in consideration of the premises, the respective representations and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties hereto, recognizing that under the Act this Agreement shall not in any way obligate the State or any agency or political subdivision thereof, including, without limitation, the Issuer, to raise any money by taxation or use other public moneys for any purpose in relation to the Project or Project Facilities and that neither the State nor any agency or political subdivision thereof, including, without limitation, the Issuer, shall pay or promise to pay any debt or meet any financial obligation to any Person at any time in relation to the Project or the Project Facilities, except from moneys received or to be received under the provisions of this Agreement or derived from the exercise of the rights of the Issuer hereunder, agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01. Use of Defined Terms.  In addition to the words and terms defined elsewhere in this Agreement, or by reference to another document, the words and terms set forth in Section 1.02 shall have the meanings set forth therein unless the content or use clearly indicates another meaning or intent.  In addition, all capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Indenture.

 

Section 1.02. Definitions.  The following terms shall have the following meanings:

 

“Additional Payments” means payments due hereunder in addition to the Installment Payments.

 

“Agreement” means this Loan Agreement as amended or supplemented from time to time.

 

“Bonds” means the Issuer’s $32,375,000 Utah County, Utah Environmental Improvement Revenue Refunding Bonds, Series 2011 (United States Steel Corporation Project).

 

“Event of Default” means any of the events described as an Event of Default in Section 7.01.

 

“Indenture” has the meaning set forth in the recitals to this Agreement.

 

“Issuer” has the meaning set forth in the first paragraph of this Agreement.

 

“Loan” means the loan of Bond proceeds from the Issuer to the Company as provided in Section 4.01.

 

“Notice Address” means:

 

(a) As to the Issuer:

 

  

2

  

 

Utah County, Utah

Utah County Administration Building

100 East Center Street, Suite 2400

Provo, UT  84606

Attention:  Chief Civil Deputy County Attorney

Facsimile:  (801) 851-8009

 

(b) As to the Company:

 

United States Steel Corporation

Room 1311

600 Grant Street

Pittsburgh, PA  15219–4776

Attention:  Assistant Treasurer–Finance and Risk Management

Facsimile:  (412) 433–4765

 

(c)  As to the Trustee:

 

The Bank of New York Mellon Trust Company, N.A.

525 William Penn Place

38th Floor

Pittsburgh, PA 15259

Attention:  Corporate Trust Administration

Facsimile:  (412) 236–0870

 

or such additional or different address, notice of which is given under Section 8.03.

 

“Person” or words importing persons mean any individual, corporation, partnership, joint venture, association, joint–stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“Prior Bonds” means the 1980 Series A Bonds and the 1980 Series B Bonds, as defined in the recitals to this Agreement.

 

“Project” means the refinancing of the costs of the Project Facilities through the current refunding of the Refunded Bonds, as defined in the recitals to this Agreement.

 

“Project Facilities” means, generally, the pollution control facilities financed or refinanced from the proceeds of the Prior Bonds, which were refunded from the proceeds of the Refunded Bonds, as such Project Facilities are listed and described in Exhibit A hereto, and may also be limited, when appropriate in the context, to those specific capital assets and equipment, if any, remaining in the ownership of the Company and in the physical state, condition and manner of operation existing on the date of issuance of the Bonds.  At the date of this Agreement, the Company does not own or operate any of the Project Facilities.

 

“Refunded Bonds” shall have the meaning given in the first recital hereof.

 

  

3

  

 

“Refunded Bonds Trustee” means The Bank of New York Mellon, successor trustee to PNC Bank, National Association, as trustee for the Refunded Bonds.

 

“Tax Regulatory Agreement” means that certain Tax Regulatory Agreement and No Arbitrage Certificate in respect of the Bonds and dated as of the date of delivery of the Bonds, and any permitted amendments or supplements thereto.

 

All other terms used in this Agreement that are defined in the Indenture have the same meanings assigned them in the Indenture unless the context clearly requires otherwise.

 

Section 1.03. Interpretation.  Unless the context clearly indicates otherwise, the capitalized terms defined in this Article I and in the Indenture, for all purposes of this Agreement and all agreements supplemental hereto, have the meanings hereby ascribed to them.  Such terms, together with all other provisions of this Agreement, shall be read and understood in a manner consistent with the provisions of the Act.  Words or phrases importing the masculine gender shall be read and understood to include the feminine and neuter genders and those importing number shall include singular or plural, both as appropriate to the context.

 

Any reference herein to the Issuer, to its board or to any designated officer includes entities or officials succeeding to their respective functions, duties or responsibilities pursuant to or by operation of law or lawfully performing their functions.

 

Any reference to a section, provision or chapter of the laws of the State or to any statute of the United States of America includes that section, provision or chapter or statute as amended, modified, revised, supplemented or superseded from time to time; provided, that no such amendment, modification or similar change shall apply solely by reason of this provision, if it constitutes in any way an impairment of the rights or obligations of the Issuer, the Bondholders, the Trustee or the Company under this Agreement.

 

Section 1.04. Captions and Headings.  The captions and headings in this Agreement are solely for convenience of reference and in no way define, limit or describe the scope or intent of any articles, sections, subsections, paragraphs, subparagraphs or clauses hereof.

 

ARTICLE II

 

REPRESENTATIONS

 

Section 2.01. Representations and Covenants of Issuer.  The Issuer represents that (a) it is duly organized and validly existing under the Constitution and laws of the State, including the Act; (b) it has duly accomplished all conditions necessary to be accomplished by it prior to the issuance and delivery of the Bonds and the execution and delivery of this Agreement, the Indenture and the Tax Regulatory Agreement; (c) it is not in violation of or in conflict with any provisions of the laws of the State which would impair its ability to carry out its obligations contained in this Agreement, the Indenture or the Tax Regulatory Agreement; (d) it is empowered to enter into the transactions contemplated by this Agreement, the Indenture and the Tax Regulatory Agreement; (e) it has duly authorized the execution, delivery and performance of this Agreement, the Indenture and the Tax Regulatory Agreement; (f) to the best of its knowledge and belief, based upon the application submitted by the Company, and other representations made, information presented and testimony given by the Company, the Bonds will further the public purposes of the Act and of the Issuer; and (g) it will do all things in its power in order to maintain its existence or assure the assumption of its obligations under this Agreement, the Indenture and the Tax Regulatory Agreement by any successor public body.

 

  

4

  

 

Section 2.02. Representations and Covenants of Company.  The Company represents and covenants that:

 

(a) It is a corporation duly organized and existing under and pursuant to the laws of the State of Delaware.  The Company is qualified to do business in the State.

 

(b) It has full power and authority to execute, deliver and perform its obligations under this Agreement and the Tax Regulatory Agreement and to enter into and carry out the transactions contemplated by those documents; such execution, delivery and performance does not, and will not, violate any provision of law applicable to the Company or the Company’s articles of incorporation, code of regulations, bylaws or other corporate charter or similar instrument each as may be amended, and does not, and will not, conflict with or result in a default under any agreement or instrument to which the Company is a party or by which it is bound; this Agreement and the Tax Regulatory Agreement have, by proper action, been duly authorized, executed and delivered by the Company and all steps necessary have been taken to constitute this Agreement and the Tax Regulatory Agreement valid and binding obligations of the Company.

 

(c) Each of the Project Facilities was, at the time originally placed in service, a “pollution control facility” used in whole or in part to control, reduce, abate or prevent, air, noise, water or general environmental pollution, and was designed to meet applicable federal, state and local requirements for the control of air or water pollution in effect at or about the time the Prior Bonds were issued.  The Project Facilities were constructed, for no significant purpose other than the control of air or water pollution, and not principally designed to result in any increase in production or capacity, or in a material extension of the useful life of a manufacturing or production facility or a part thereof that is owned, operated or used by the Company.

 

(d) At the times of issuance of the Prior Bonds, and at the time of issuance of the Refunded Bonds and at all times subsequent thereto, the Company has complied with all applicable requirements of the Internal Revenue Code of 1954, as amended, the Internal Revenue Code of 1986, as amended, and all applicable regulations, rulings and successor laws necessary to ensure the continuing tax–exempt status of such Prior Bonds and of the Refunded Bonds.

 

(e) All of the proceeds of the Bonds will be used exclusively to retire the Refunded Bonds within 90 days of the date of issuance of the Bonds.  None of the proceeds of the Bonds will be used to provide working capital or pay costs of issuance of the Bonds.

 

  

5

  

 

(f) Each one and all of the representations and warranties of the Company contained in the Tax Regulatory Agreement, as executed and delivered simultaneously with this Agreement, are true and correct.

 

(g) The Company will comply with the applicable requirements of Rule 15c2-12 as promulgated by the Securities and Exchange Commission and recognizes that the Issuer is not an “obligated person” within the meaning of said Rule.

 

ARTICLE III

 

COMPLETION OF PROJECT FACILITIES;

ISSUANCE OF THE BONDS

 

Section 3.01. Completion of Project Facilities.  The Company represents that the acquisition and/or construction of the Project Facilities have been completed and that the proceeds derived from the sale of the Prior Bonds and the Refunded Bonds used to refund the Prior Bonds, including any investment thereof, were expended in accordance with the provisions of all bond authorization, security and tax regulatory agreements and/or certificates executed in respect of all such bonds, including the Refunded Bonds, and in respect of the installation, operation or use of the Project Facilities and the refunding of the Prior Bonds.

 

Section 3.02. Issuance of Bonds; Application of Proceeds.  To provide funds for the purpose of refunding the Refunded Bonds, the Issuer will issue, sell and deliver the Bonds.  The Bonds will be issued in accordance with and pursuant to the Indenture in the aggregate principal amount, will bear interest at the rate or rates, will mature and will be subject to redemption as set forth therein.  The Company hereby approves the terms and conditions of the Indenture, and the Bonds, and the terms and conditions under which the Bonds will be issued, sold and delivered.

 

The proceeds from the sale of the Bonds shall be paid to the Trustee and deposited as follows (a) a sum equal to accrued interest, if any, shall be deposited in the Bond Fund and (b) the balance shall be deposited in the Clearing Fund.

 

Disbursements of moneys in the Clearing Fund shall be made by the Trustee in order to defease and/or redeem the Refunded Bonds pursuant to written instructions delivered by the Company to the Trustee and to the Refunded Bonds Trustee, provided, in all events, all moneys in the Clearing Fund shall be fully disbursed for the redemption of the Refunded Bonds on or before 90 days following the date of issuance of the Bonds.  Upon deposit of adequate funds with the Refunded Bonds Trustee, the Company shall be permitted to seek a release of the lien of any and all documents providing for the payment of the Refunded Bonds, including particularly the trust indenture and the loan agreement securing the same, and may seek repayment of any unrequired funds on deposit in the Clearing Fund, pursuant to Section 5.07 of the Indenture.

 

Section 3.03. Company Required to Provide Additional Moneys in Event Moneys Insufficient to Redeem Refunded Bonds.  If moneys disbursed from the Clearing Fund to the Refunded Bonds Trustee are not sufficient to defease or redeem the Refunded Bonds, the Company shall, nonetheless, not later than the date fixed for redemption of the Refunded Bonds, pay to the Refunded Bonds Trustee, in immediately available funds, any such additional moneys as shall be needed, including, without limitation, amounts for interest accrued to that date, from its own funds to defease or redeem the Refunded Bonds.  The Company shall not be entitled to any reimbursement therefor from the Issuer, the Trustee or any Holder; nor shall it be entitled to any abatement, diminution or postponement of the Installment Payments as a consequence of such payment.  The Company acknowledges and agrees that there is no implied or express warranty by the Issuer that the proceeds of the Bonds will be sufficient to redeem the Refunded Bonds.

 

  

6

  

 

Section 3.04. Investment of Fund Moneys.  At the written direction of the Authorized Company Representative, any moneys held in the Clearing Fund, the Bond Fund and the Rebate Fund shall be invested or reinvested by the Trustee in Eligible Investments.  Each of the Issuer and the Company hereby covenants that it will restrict any investment and reinvestment and the use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary so that the Bonds will not constitute arbitrage bonds under Section 148 of the Code.

 

The Company shall provide the Issuer with a certificate of an appropriate officer, employee or agent of or consultant to the Company for inclusion in the transcript of proceedings for the Bonds, setting forth the reasonable expectations of the Company on the date of delivery of and payment for the Bonds regarding the amount and use of the proceeds of the Bonds and the facts, estimates and circumstances on which those expectations are based.

 

The Company agrees that at no time shall any funds constituting gross proceeds of the Bonds be used in any manner to cause or result in a prohibited payment under applicable regulations pertaining to, or in any other fashion as would constitute failure of compliance with, Section 148 of the Code.

 

If there is any amount required to be paid to the United States pursuant to Section 148(f) of the Code or Section 5.03 of the Indenture, the Company shall pay such amount to the Trustee for deposit to the Rebate Fund created under Section 5.03 of the Indenture, who will submit the payment to the United States.

 

Section 3.05. Issuer’s Fees.  The Company will pay the Issuer’s closing fee in the amount of $20,000.00, including disbursements, on the date of issuance of the Bonds.  The Company will also pay any other administrative expenses incurred in connection with the refinancing of the Refunded Bonds, and any such additional fees and expenses (including reasonable attorney’s fees) incurred by the Issuer or the Trustee in connection with inquiring into, or enforcing, the performance of the Company’s obligations hereunder, within 30 days of receipt of a statement from the Issuer requesting payment of such amount.

 

ARTICLE IV

 

LOAN BY ISSUER; REPAYMENT OF LOAN

INCLUDING ADDITIONAL PAYMENTS

 

Section 4.01. Loan of Proceeds; Installment Payments.  The Issuer agrees, upon the terms and conditions contained in this Agreement, to lend to the Company the proceeds received by the Issuer from the sale of the Bonds.  Such proceeds shall be disbursed to or on behalf of the Company as provided in Section 3.02.

 

  

7

  

 

On each date on which any payment of principal of or interest on the Bonds shall become due (whether at maturity, or upon redemption or acceleration or otherwise), the Company will pay or cause to be paid to the Trustee, in immediately available funds, an amount which, together with other moneys held by the Trustee under the Indenture and available therefor, will enable the Trustee to make such payment in full in a timely manner (“Installment Payments”).

 

In furtherance of the foregoing, so long as any Bonds are outstanding, the Company will pay or cause to be paid all amounts required to prevent any deficiency or default in any payment with respect to the Bonds, including any deficiency caused by an act or failure to act by the Trustee, the Company, the Issuer or any other Person.

 

The Issuer assigns all amounts payable under this Section by the Company to the Trustee pursuant to the Indenture for the benefit of the Bondholders.  The Company assents to such assignment.  Accordingly, the Company will pay directly to the Trustee at its designated office all payments payable by the Company pursuant to this Section.

 

Section 4.02. Additional Payments.  The Company will also pay the following upon demand after receipt of a bill therefor:

 

(a) The reasonable and documented out–of–pocket fees and expenses, including reasonable attorneys’ fees, of the Issuer incurred in connection with this Agreement, the Indenture, the Tax Regulatory Agreement and the Bonds, and the making of any amendment or supplement thereto, including, but not limited to: (i) those described in Section 3.05 (which includes, among other fees and expenses, the fees and expenses associated with the initial drafting, execution and delivery of this Agreement,  the Indenture, the Tax Regulatory Agreement and the Bonds), (ii) those described in Section 7.04 and (iii) any other payments or indemnification required under Section 5.02; and

 

(b) The fees and expenses of the Trustee under the Indenture, including reasonable attorneys’ fees of the Trustee for any services rendered by it under the Indenture, including those described in Section 7.04, and any other payments or indemnification required under Section 5.02, such fees, expenses and payments to be paid directly to the Trustee for its own account as and when such fees and expenses become due and payable.

 

The Company further agrees to pay all reasonable and documented out–of–pocket costs and expenses (including reasonable attorney’s fees and expenses) of the Issuer incurred after the initial issuance of the Bonds in the preparation of any responses, reproduction of any documentation or participation in any inquiries, investigations or audits from any Person solely or primarily in connection with the Bonds, including without limitation, the Internal Revenue Service, the Securities Exchange Commission or other governmental agency.

 

Section 4.03. Deposit of Moneys in Bond Fund; Moneys for Purchase and Redemption.  The Company may at any time deposit moneys in the Bond Fund, without premium or penalty, to be held by the Trustee for application to Installment Payments not yet due and payable, and the Issuer agrees that the Trustee shall accept such deposits when tendered by the Company.  Such deposits shall be credited against the Installment Payments, or any portion thereof, in the order of their due dates.  In addition, the Company may at any time deliver moneys to the Trustee in addition to such deposits with written instructions to the Trustee to use such moneys for the purpose of making open market purchases of Bonds.  Such deposits or such delivery of moneys for Bond purchases shall not in any way alter or suspend the obligations of the Company under this Agreement during the term hereof as provided in Section 8.01.

 

  

8

  

 

In addition, the Company may deliver moneys to the Trustee for use for optional redemption of Bonds pursuant to Sections 6.01 and 6.02 and shall deliver moneys to the Trustee for mandatory redemption of Bonds as required by Section 4.02(c) of the Indenture.

 

Section 4.04.   Obligations Unconditional.  The obligations of the Company to make payments required by Sections 4.01, 4.02 and 4.03 and to perform its other agreements contained herein shall be absolute and unconditional, and the Company shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances whatsoever.

 

Section 4.05.   Assignment by Company.  Rights granted to the Company under this Agreement may be assigned in whole or in part by the Company without the necessity of obtaining the consent of the Issuer or the Trustee, subject, however, to each of the following conditions:

 

(a) unless waived by the Issuer or the Trustee, the Company shall notify the Issuer and the Trustee in writing of the identity of any assignee at least 30 days prior to the effective date of such assignment;

 

(b) no assignment shall relieve the Company from primary liability hereunder for its obligations hereunder, and the Company shall continue to remain primarily liable for the payment of the Installment Payments and Additional Payments and for performance and observance of the agreements on its part herein provided to be performed and observed by it;

 

(c) any assignment from the Company must retain for the Company such rights and interests as will permit it to perform its obligations under this Agreement;

 

(d) the Company shall, within 30 days after execution thereof, furnish or cause to be furnished to the Issuer and the Trustee a true and complete copy of each such assignment; and

 

(e) any assignment from the Company shall not materially impair fulfillment of the purposes to be accomplished by operation of the Project Facilities as a project, the financing of which is permitted under the Act.

 

Section 4.06.   Assignment by Issuer.  The Issuer will assign its rights under and interest to this Agreement (except for Unassigned Issuer’s Rights) to the Trustee pursuant to the Indenture as security for the payment of the Bonds.  Otherwise, the Issuer will not sell, assign or otherwise dispose of its rights under or interest in this Agreement nor create or permit to exist any lien, encumbrance or security interest thereon.

 

  

9

  

 

ARTICLE V

 

ADDITIONAL AGREEMENTS AND COVENANTS

 

Section 5.01. Lease, Sale or Grant of Use by Company.  Subject to the provisions of Section 5.03, the Company may lease, sell or grant the right to occupy and use the remaining Project Facilities, in whole or in part, to others, provided that:

 

(a) no such grant, sale or lease shall relieve the Company from its obligations under this Agreement;

 

(b) the Company shall retain such rights and interests as will permit it to comply with its obligations under this Agreement; and

 

(c) no such grant, sale or lease shall impair the purposes of the Act.

 

Section 5.02. Indemnification of Issuer and Trustee.  The Company will indemnify and hold the Issuer and Trustee, their members, officers and employees, and the State of Utah, including its members, officers and employees, free and harmless from any loss, claim, damage, tax, penalty, liability, disbursement, litigation expenses, attorneys’ fees and expenses or court costs arising out of, or in any way relating to, the execution or performance of the Indenture, this Agreement, the Bond Purchase Agreement (the “Bond Purchase Agreement”) among the Underwriter, the Issuer and the Company or any other documents in connection therewith, or any other cause whatsoever pertaining to the Project Facilities (including without limitation any loss, claim, damage, tax penalty, liability, disbursement, litigation expenses, attorneys’ fees and expenses or court costs asserted or arising under any federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating or relating to or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material), or the Bonds, including the issuance or sale of the Bonds, or failure to issue or sell the Bonds, actions taken under the Bonds, the Indenture, this Agreement, the Bond Purchase Agreement or any other documents in connection therewith or any other cause whatsoever pertaining to the Project Facilities, except in any case as a result of the gross negligence or willful misconduct of the Issuer or Trustee.

 

The Company may, at its cost and in its name or in the name of the Issuer, prosecute or take any other action involving third persons which the Company deems necessary in order to ensure or protect the Company’s rights under this Agreement; in such event, the Issuer will reasonably cooperate with the Company, but at the sole expense of the Company.

 

In case any actions or proceedings are brought against the Issuer or the Trustee in respect of which indemnity may be sought hereunder, the party seeking indemnity shall promptly (but in any event, within 15 days of receipt of service), give notice of that action or proceeding to the Company enclosing copies of all papers served, and the Company upon receipt of that notice shall have the obligation and the right to assume the defense of the action or proceeding; provided, that failure of a party to give that notice shall not relieve the Company from any of its obligations under this Section unless that failure materially prejudices the defense of the action or proceeding by the Company.  At its own expense, an indemnified party may employ separate counsel and participate in the defense.  The Company shall not be liable for any settlement made without its written consent.

 

  

10

  

 

Notwithstanding anything contained herein to the contrary, the Company shall not be obligated to indemnify or hold harmless the Issuer or the Trustee for their gross negligence or willful misconduct.

 

The foregoing indemnification is intended to and shall include the indemnification of all affected officials, directors, trustees, officers and employees of the Issuer and the Trustee, respectively.  That indemnification is intended to and shall be enforceable by the Issuer and the Trustee, respectively, to the full extent permitted by law and the foregoing indemnification shall survive beyond the termination or discharge of the Indenture or payment of the Bonds.

 

Section 5.03. Company Not to Adversely Affect Exclusion from Gross Income of Interest on Bonds.  The Company hereby represents that it has taken and caused to be taken, and covenants that it will take and cause to be taken, all actions that may be required of it, alone or in conjunction with the Issuer, for the interest on the Bonds to be and to remain excludable from gross income for federal income tax purposes, and represents that it has not taken or permitted to be taken on its behalf, and covenants that it will not take or permit to be taken on its behalf, any action that would adversely affect such excludability under the provisions of the Code.

 

The Company also covenants that it will restrict the investment and reinvestment and the use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary so that the Bonds will not constitute arbitrage bonds under Section 148 of the Code.

 

The Company hereby covenants that on or before the 90th day following the date any of the Project Facilities are no longer being operated as qualifying exempt facilities under the Code (unless such facilities have simply ceased to be operated), or such later date as provided in the Indenture, the Company shall cause a related amount of Bonds to be redeemed pursuant to the Mandatory Redemption provision of the Bonds.

 

Section 5.04. Company to Maintain its Existence; Mergers or Consolidations.  The Company covenants that it will not merge or consolidate with any other legal entity or sell or convey all or substantially all of its assets to any other legal entity, except that the Company may merge or consolidate with, or sell or convey all or substantially all of its assets to any other legal entity, provided that (a) the Company shall be the continuing legal entity or the successor legal entity (if other than the Company) shall be a legal entity organized and existing under the laws of the United States of America or a state thereof, qualified to do business in the State and such legal entity shall expressly assume the due and punctual payment of the Installment Payments hereunder in order to ensure timely and proper payment of the principal of and  interest on all the Bonds, according to their tenor, and the due and punctual performance and observance of all the covenants and conditions of this Agreement to be performed by the Company and (b) the Company or such successor legal entity, as the case may be, shall not, immediately after such merger or consolidation, or such sale or conveyance, be in default in the performance of any such covenant or condition and no event which with the lapse of time, the giving of notice or both would constitute an Event of Default under Section 7.01 shall have occurred and be continuing.

 

  

11

  

 

In case any such consolidation, merger, sale or conveyance and upon the assumption by the successor legal entity of the obligations under this Agreement and on the Bonds in accordance with the foregoing, such successor legal entity shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as a party hereto, and the Company shall thereupon be relieved of any further obligations or liabilities hereunder and upon the Bonds and the Company as the predecessor legal entity may thereupon or at any time thereafter be dissolved, wound–up or liquidated.

 

Section 5.05. Reports and Audits.  The Company shall as soon as practicable but in no event later than six months after the end of each of its fiscal years, file with the Trustee and the Issuer, audited financial statements of the Company prepared as of the end of such fiscal year; provided that the Company may satisfy this requirement by its filing of such information with the Securities and Exchange Commission (www.sec.gov) and the Municipal Securities Rulemaking Board (www.emma.msrb.org) in accordance with their respective filing requirements.

 

Section 5.06. Insurance.  The Company shall maintain, or cause to be maintained, insurance covering such risks and in such amounts as is customarily carried by similar industries as the Company, and which insurance may be, in whole or in part, self–insurance.

 

ARTICLE VI

 

OPTIONS; PREPAYMENT OF LOAN

 

Section 6.01. Options to Terminate.  The Company shall have, and is hereby granted, an option to prepay and terminate the Loan, upon satisfaction of the following conditions at any time prior to full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Indenture):  (a) in accordance with Article IX of the Indenture, by paying to the Trustee an amount which, when added to the amount on deposit in the funds established under the Indenture and available therefor, will be sufficient to pay, retire and, pursuant to the Indenture, redeem all the outstanding Bonds in accordance with the provisions of the Indenture (including, without limiting the generality of the foregoing, principal of and interest to maturity or the earliest applicable redemption date, as the case may be, and expenses of redemption and the Trustee’s fees and expenses due hereunder or under the Indenture), and in case of redemption making arrangements satisfactory to the Trustee for the giving of the required notice of redemption, (b) by giving the Issuer notice in writing of such termination and (c) by making full payment of Additional Payments due under Section 4.02; thereafter such termination shall forthwith become effective.

 

Any prepayment pursuant to this Section 6.01 shall either comply with the provisions of Article IX of the Indenture or result in redemption of the Bonds within 90 days of the date of prepayment.  Nothing contained in this Section 6.01 shall prevent the payment of part of any of the Bonds pursuant to Article IV or Section 9.02 of the Indenture.

 

  

12

  

 

Section 6.02. Option to Prepay Upon Extraordinary Optional Redemption Under Indenture.  The Company shall also have the option, upon the occurrence of certain extraordinary circumstances described therein, to prepay the loan in whole or in part upon the terms and conditions set forth in Section 4.02(b)(i) of the Indenture.

 

Section 6.03. Actions by Issuer.  At the request of the Company or the Trustee, the Issuer shall take all steps required of it under the applicable provisions of the Indenture or the Bonds to effect the redemption of all or a portion of the Bonds pursuant to this Article VI; provided that, in such event, the Company shall reimburse the Issuer for its reasonable expenses, including attorneys’ fees, incurred in complying with such request.

 

Section 6.04. Release on Exercise of Option To Prepay Loan.  Upon the payment of all amounts due hereunder pursuant to any option to prepay the loan granted in this Agreement, the Issuer shall upon receipt of the prepayment, deliver to the Company, if necessary, a release from the Trustee of the lien of the Indenture.

 

ARTICLE VII

 

EVENTS OF DEFAULT AND REMEDIES

 

Section 7.01. Events of Default.  Each of the following shall be an Event of Default:

 

(a) The Company shall fail to pay the amounts required to be paid under Section 4.01 or 4.02 on the date specified therein;

 

(b) Failure by the Company to observe and perform any covenant, condition or agreement on its part to be observed or performed, other than as referred to in Section 7.01(a), (other than certain representations, warranties and covenants regarding various matters relating to the tax status of the Bonds) for a period of 60 days after written notice specifying such failure and requesting that it be remedied shall have been given to the Company by the Issuer or the Trustee, unless the Issuer and the Trustee shall agree in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, it shall not constitute an Event of Default if corrective action is instituted by the Company within the applicable period and is being diligently pursued until the default is corrected;

 

(c) The dissolution or liquidation of the Company or the voluntary initiation by the Company of any proceeding under any federal or state law relating to bankruptcy, insolvency, arrangement, reorganization, readjustment of debt or any other form of debtor relief, or the initiation against the Company of any such proceeding which shall remain undismissed for 60 days, or failure by the Company to promptly have discharged any execution, garnishment or attachment of such consequence as would materially impair the ability of the Company to carry on its operations, or assignment by the Company for the benefit of creditors, or the entry by the Company into an agreement of composition with creditors or the failure generally by the Company to pay its debts as they become due; or

 

(d) The occurrence of an Event of Default as defined in the Indenture.

 

  

13

  

 

Any declaration of default under subparagraph (c) and the exercise of remedies upon any such declaration will be subject to any applicable limitations of federal bankruptcy law affecting or precluding that declaration or exercise during the pendency of or immediately following any bankruptcy, liquidation or reorganization proceedings.

 

Section 7.02. Remedies on Default.  Whenever an Event of Default shall have happened and be existing, any one or more of the following remedial steps may be taken:

 

(a) if acceleration of the principal amount of the Bonds has been declared pursuant to Section 7.03 of the Indenture, the Issuer or the Trustee shall declare all Installment Payments to be immediately due and payable, whereupon the same shall become immediately due and payable; or

 

(b) the Issuer or the Trustee may pursue all remedies now or hereafter existing at law or in equity to collect all amounts then due and thereafter to become due under this Agreement or to enforce the performance and observance of any other obligation or agreement of the Company under those instruments.

 

Notwithstanding the foregoing, the Trustee shall not be obligated to take any step that in its reasonable opinion will or might cause it to expend time or money or otherwise incur liability unless and until a satisfactory indemnity bond has been furnished to the Trustee at no cost or expense to it.  Any amounts collected pursuant to action taken under this Section (except for amounts payable directly to the Issuer or the Trustee pursuant to Section 4.02, 5.02 or 7.04) shall be paid into the Bond Fund and applied in accordance with the provisions of the Indenture or, if the Outstanding Bonds have been paid and discharged in accordance with the provisions of the Indenture, shall be paid as provided in Section 9.01 of the Indenture for transfers of remaining amounts in the Bond Fund.

 

The provisions of this Section are subject to the further limitation that the rescission by the Trustee of its declaration that all of the Bonds are immediately due and payable also shall constitute an annulment of any corresponding declaration made pursuant to paragraph (a) of this Section and a waiver and rescission of the consequences of that declaration and of the Event of Default with respect to which that declaration has been made, provided that no such waiver or rescission shall extend to or affect any subsequent or other default or impair any right consequent thereon.

 

Section 7.03. No Remedy Exclusive.  No remedy conferred upon or reserved to the Issuer or the Trustee by this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement, now or hereafter existing at law, in equity or by statute.  No delay or omission to exercise any right or power accruing upon any default shall impair that right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient.  In order to entitle the Issuer or the Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than any notice required by law or for which express provision is made herein.

 

  

14

  

 

Section 7.04. Agreement to Pay Fees and Expenses.  If an Event of Default should occur and the Issuer or the Trustee should incur expenses, including attorneys’ fees, in connection with the enforcement of this Agreement or the collection of sums due thereunder, the Company shall reimburse the Issuer and the Trustee, as applicable, from the reasonable expenses so incurred upon demand.

 

Section 7.05. No Waiver.  No failure by the Issuer or the Trustee to insist upon the performance by the Company of any provision hereof shall constitute a waiver of their right to performance and no express waiver shall be deemed to apply to any other existing or subsequent right to remedy the failure by the Company to observe or comply with any provision hereof.

 

Section 7.06. Notice of Default.  The Company shall notify the Trustee immediately and in writing if it becomes aware of the occurrence of any Event of Default hereunder or of any fact, condition or event which, with the giving of notice or passage of time or both, would become an Event of Default.

 

ARTICLE VIII

 

MISCELLANEOUS

 

Section 8.01. Term of Agreement.  This Agreement shall be and remain in full force and effect from the date of issuance of the Bonds until such time as all of the Bonds shall have been fully paid (or provision made for such payment) pursuant to the Indenture and all other sums payable by the Company under this Agreement shall have been paid, except for obligations of the Company under Section 4.02, 5.02 and 7.04, which shall survive any termination of this Agreement.

 

Notwithstanding any termination of this Agreement, any payment of any or all of the Bonds or any discharge of the Indenture, if Bonds are redeemed pursuant to the mandatory redemption upon determination of taxability, the Company shall pay all additional amounts required to be paid under Section 4.01 of the Indenture at the time provided therein.

 

Section 8.02. Amounts Remaining in Funds.  Any amounts in the Bond Fund remaining unclaimed by the Holders of Bonds (whether at stated maturity, by redemption or pursuant to any mandatory sinking fund requirements or otherwise), shall be deemed to belong, and shall be paid, to the proper party pursuant to applicable escheat laws.  Further, any other amounts remaining in the Bond Fund, the Clearing Fund and any other special fund for accounts created under this Agreement or the Indenture after all of the outstanding Bonds shall be deemed to have been paid and discharged under the provisions of the Indenture and all other amounts required to be paid under this Agreement and the Indenture have been paid, shall be paid to the Company to the extent that those moneys are in excess of the amounts necessary to effect the payment and discharge of the outstanding Bonds.

 

Section 8.03. Notices.  All notices, certificates, requests or other communications hereunder shall be in writing and shall be deemed to be sufficiently given when received or upon refusal of delivery at the applicable Notice Address.  The Issuer, the Company or the Trustee may, by providing written notice to each other, designate any further or different addresses to which subsequent notices, certificates, requests or other communications shall be sent.

 

  

15

  

 

Section 8.04. Extent of Covenants of Issuer; No Personal Liability.  All covenants, obligations and agreements of the Issuer contained in this Agreement or the Indenture shall be effective to the extent authorized and permitted by applicable law.  No such covenant, obligation or agreement shall be deemed to be a covenant, obligation or agreement of any present or future member, trustee, officer, agent or employee of the Issuer in other than his official capacity, and no official executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof or by reason of the covenants, obligations or agreements of the Issuer contained in this Agreement or in the Indenture.

 

Section 8.05. Binding Effect.  This Agreement shall inure to the benefit of and shall be binding in accordance with its terms upon the Issuer, the Company and their respective permitted successors and assigns.

 

Section 8.06. Amendments and Supplements.  Except as otherwise expressly provided in this Agreement or the Indenture, subsequent to the issuance of the Bonds and prior to all conditions provided for in the Indenture for release of the Indenture having been met, this Agreement may not be effectively amended, changed, modified, altered or terminated except in accordance with the provisions of Article XI of the Indenture, as applicable.

 

Section 8.07. Execution Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same instrument.

 

Section 8.08. Severability.  If any provision of this Agreement, or any covenant, obligation or agreement contained herein is determined by a court to be invalid or unenforceable, that determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were not contained herein.  That invalidity or unenforceability shall not affect any valid and enforceable application thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law.

 

Section 8.09. Governing Law.  This Agreement shall be deemed to be a contract made under the laws of the State and for all purposes shall be governed by and construed in accordance with the laws of the State.

 

Section 8.10. Further Assurances and Corrective Instruments.  The Issuer and the Company agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for the further assurance, correction or performance of the expressed intention of this Agreement.

 

Section 8.11. Issuer and Company Representatives.  Whenever under the provisions of this Agreement the approval of the Issuer or the Company is required or the Issuer or the Company is required to take some action at the request of the other, such approval or such request shall be given for the Issuer by a Designated Officer and for the Company by an Authorized Company Representative.  The Trustee shall be authorized to act on any such approval or request.

 

  

16

  

 

Section 8.12. Immunity of Incorporators, Stockholders, Officers and Directors.  No recourse under or upon any obligation, covenant or agreement contained in this Agreement or in any agreement supplemental hereto, or in the Bonds, or because of any indebtedness evidenced thereby, shall be had against any incorporator, or against any stockholder, member, officer or director, as such, past, present or future, of the Company or of any predecessor or, subject to Section 5.04, successor legal entity, either directly or through the Company or any predecessor or successor legal entity, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Bonds by the Holders thereof and as part of the consideration for the issuance of the Bonds.

 

Section 8.13. Section Headings.  The table of contents and headings of the various articles and sections of this Agreement are for convenience of reference only and shall not modify, define or limit any of the terms or provisions hereof.  References to article and section numbers are references to articles and sections in this Agreement unless otherwise indicated.

 

 

 

 

[Remainder of page intentionally left blank]

 

  

17

  

 

IN WITNESS WHEREOF, the Issuer and the Company have caused this Agreement to be duly executed in their respective names, all as of the date hereinbefore written.

 

	 	

UTAH COUNTY, UTAH

	 
	 	 	 	 
	
 

	
By: 

	/s/ Gary J. Anderson	 
	 	 	Gary J. Anderson	 
	 	 	

Chair, Board of County Commissioners

	 
	 	 	 	 

 

	

[SEAL]

 

Attest:

	 	 
	
By: 

	/s/ Bryan E. Thompson
	 	

County Clerk/Auditor

 

	 	

UNITED STATES STEEL CORPORATION

	 
	 	 	 	 
	
 

	
By: 

	/s/ John J. Quaid	 
	 	 	John J. Quaid	 
	 	 	

Vice President and Treasurer

	 
	 	 	 	 

 

 

[Signature page to U.S. Steel Loan Agreement]

 

  

18

  

 

EXHIBIT A

 

PROJECT FACILITIES

 

The facilities below were financed in whole or in part by the following Prior Bonds.

 

$16,850,000, outstanding aggregate principal amount of the Utah County, Utah Floating Rate Environmental Improvement Revenue Bonds, 1980 Series A

(United States Steel Corporation Project)

 

	
1. 

	
Geneva No. 1, 2, 3 and 4 Coke Batteries Pushing Emission Controls

Coke pushing emissions from the Nos. 1, 2, 3 and 4 coke batteries were controlled by means of coke side-shed enclosures which contained the pollutants.  They were then evacuated to a medium energy scrubber through appropriate ductwork by means of a draft fan.

 

The facilities below were financed in whole or in part by the following Prior Bonds.

 

$15,525,000, outstanding aggregate principal amount of the Utah County, Utah Floating Rate Environmental Improvement Revenue Bonds, 1980 Series B

(United States Steel Corporation Project)

 

	
1. 

	
Geneva AOC for Open Hearths

Total non-capture technology was installed for the blast furnace, casthouses, plan suppression for taping emissions at the open hearths.

 

	
2. 

	
Geneva Air Pollution Control #2 and # Sinter Line

 

The sinter cooler exhaust gases from the sinter lines were cleaned by means of a recycle system designed to combust some of the hydrocarbons generated in the sintering process.  This system consisted of primary cyclone collectors, fans, hoods and ductwork to collect, clean and recycle gases from the windboxes on each line.

 

	
3. 

	
Geneva Blast Furnace WOC

 

A nonevaporative wastewater cooling and recycle system was installed to treat blast furnace wastewater.  The system includes head exchanges, pumps, chemical feed units, substations, switch gear and associated instrumentation, piping and wiring.Exhibit 10.35

 

ICBC (Industrial & Commercial Bank of China) Beijing Branch

 

Code: 2010 Zhongguanchun 0347

 

Small Business Loan Contract

 

(2009 Edition)

 

ICBC (Industrial & Commercial Bank of China), Beijing Branch

  

  

  

 

Lender: Industrial & Commercial Bank of China (ICBC), Beijing Zhongguanchun Branch

 

Responsible person: Men Yuehong              Contact:              

 

Residence (address):                                     Zip Code:               

 

Phone:          Fax:         E-mail:               

 

Borrower: Beijing Wowjoint Machinery Co. Ltd.

 

Legal representative:  Liu Yabin                   Contact:              

 

Residence (address):                                      Zip Code:              

 

Phone:          Fax:         E-mail:               

 

The Borrower and the Lender through fair consultation agrees on the terms on which the Lender shall grant loans to the Borrower. This contract is entered into so as to reflect such agreements. 

 

Section 1: Loan Terms

 

Article 1: Loan purpose

 

The purpose of the loan under this contract is for procurement. Without written consent of the Lender, the Borrower may not borrow for other purposes. The Lender shall have the right to monitor use of loan funds. 

 

Article 2: Loan amount and term

 

2.1 Currency of borrowing under this contract is RMB. The amount is 10 million.

 

2.2 The loan term is 1 year, starting from the actual date of withdrawal (if withdraw in phases, then start from the date of first withdrawal). The actual date of withdrawal corresponds to the date on the borrowing certificate. 

 

Article 3: Interest rate, interest and fees

 

3.1 Methods to determine interest rates on RMB loans:

 

Interest rates on RMB loans can be determined using the following 2 methods:

(1) fixed interest rate, annual interest rate 5.56% Interest rate remains unchanged during the life of the contract.

  

  

  

 

(2) Floating interest rate, borrowing rates is calculated using the benchmark lending rate plus a floating rate, of which the benchmark lending rate is set on withdrawal date (withdrawal date or contract effective date) and uses the agreed loan period in Article 2.2 corresponding to the People's Bank of China benchmark lending rate for the same period. Floating rate is set for Float upward (Float upward / float downward / zero) by 5%. The floating rate range shall remain unchanged during the life of the contract. After loan withdrawal, the borrowing rate is to set to 12 (1/3/6/12) months for the first loan period for interest rate calculation. The second rate-setting date is corresponding to the date of the end of the first loan period; if at the time of rate setting, the month does not have a corresponding date to the loan withdrawal date, then the date is set to the last day of the month, and so on. If the borrowing is in phases, the borrowing rate is adjusted according to the following A method:

 

A. During the same period, regardless of how many withdrawals, the interest rates are determined on the interest setting date, and all of the loans will be adjusted at the same time during the next period.

 

B. Each withdrawal is determined and adjusted separately.

 

C. Others: N/A

 

3.2 Methods to determine interest rates on foreign currency loans:

 

Interest rates on foreign currency loans can be determined using the following N/A methods:

(1) fixed interest rate, annual interest rate N/A% Interest rate remains unchanged during the life of the contract.

 

(2) Floating interest rate, borrowing rate is set to N/A Months N/A (LIBOR / HIBOR) as the base rate plus N/A Basis points (a basis point = 0.01%) to determine a floating interest rate. During the contract period, basis point spread remains unchanged. If the borrowing is in phases, the borrowing rate is determined separately for each withdrawal. After the withdrawal, base rate is adjusted and calculated based on the following N/A method:

 

A. Base rate is adjusted corresponding to the period. The second rate-setting date is corresponding to the date of the end of the first loan period; if at the time of rate setting, the month does not have a corresponding date to the loan withdrawal date, then the date is set to the last day of the month, and so on. 

 

B. Base rate is adjusted on the first day of each interest period.

 

C. Others: N/A

  

  

  

 

3.3 Interest on borrowing under this contract is accrued daily starting from the actual date of withdrawal, based on monthly (monthly / quarterly / half yearly) interest settlement. At loan maturity, interest and principal must be repaid fully at the same time. Daily interest rate = annual interest rate / 360.

 

3.4 Penalty rate for overdue loans is calculated using the original loan interest rate plus 50% surcharge. Penalty rate for misappropriated loans is calculated using the original loan interest rate plus 50% surcharge. 

 

Article 4: Loan withdrawal

 

The Borrower shall borrow money based on actual needs. The first loan withdrawal must be before 2010.12.31 and the last withdrawal must be before 2011.6.30. Otherwise the Lender shall have the right to cancel all or part of the loan. 

 

Article 5: Loan repayment

 

5.1 The Borrower shall choose the following 2 ways to repay loans:

 

(1) One-time loan repayment on final maturity date.

 

(2) Amortization in accordance with the following repayment plans (if there is more content, additional pages can be attached): 

 

Planned repayment time 2011.08.25

Planned repayment amount (in RMB’00000) 100

 

5.2 Under the following circumstances, the Borrower shall repay loans immediately after funds are available. The Borrower is not required to pay compensation due to early repayment:

 

        N/A                                            

 

5.3 Except circumstances outlined in Clause 5.2, the Borrower is required to pay N/A% of prepayment amount to the Lender as compensation. 

 

Article 6: Guarantee

 

6.1 This is a secured loan, the security for the loan is guarantee.

 

6.2 The loan guarantee is for maximum amount guarantee, the corresponding maximum guarantee contract is as follows:

 

Maximum guarantee contract name:                  (Code:            )

 

Guarantor: Beijing Zhongguanchun Sci-tech Guaranty Co., Ltd.

  

  

  

 

Article 7: Financial Covenants (optional provision, applicable □ not applicable X)

 

During the life of the contract, the Borrower shall comply with the following financial covenants:

 

            N/A                                          

 

Article 8: Dispute Resolution

 

The dispute settlement shall adopt method (2):

 

(1) Submit the dispute to N/A arbitration commission, using the arbitration rules in force at the time of arbitration application submission, in N/A (arbitration venue) for arbitration. Arbitration award is final and binding on both parties.

 

(2) Litigation on the court where the Lender is located. 

 

Article 9: Other matters

 

9.1 The contract shall have ______ copies, of which the Borrower and the Lender each hold ______ copies. All copies are legally valid.

 

9.2 The following annexes and other mutually agreed upon annexes form an integral part of this contract. These annexes are as legally valid as the contract:

 

Annex 1: Notice of Withdrawal (format)

 

Annex 2: Entrust Payment Agreement

 

Article 10: Other matters agreed by both parties

 

              N/A                                                                                                  

 

Section 2: Small Business Loan Contract Terms

 

Article 1: Interest rates and interest

 

1.1 In foreign currency borrowings, LIBOR is set two banking days prior to the withdrawal date or the benchmark interest rate adjustment date (11:00am London time) using the same currency interbank offered rate displayed on the Reuters Financial Telecommunication Terminal "LIBOR=" page. HIBOR is set two banking days prior to the withdrawal date or the benchmark interest rate adjustment date (11:15am Hong Kong time) using Hong Kong Dollar interbank offered rate displayed on the Reuters Financial Telecommunication Terminal "HIBOR=" page. 

  

  

  

 

1.2 If the contract loan interest rate uses floating interest rate, original loan interest rate adjustment rules apply to overdue loans.

 

1.3 If loan interest is settled on a monthly basis, interest settlement date is the 20th day of each month; if quarterly interest settlement, interest settlement date is the 20th day of quarter-end month; if settled on a half-year basis, interest settlement date is June 20th and December 20th.

 

1.4 The first interest period is from the actual loan withdrawal date to the first interest settlement date; the last interest period is from the prior interest settlement date to the final maturity date; remaining interest period is from the prior interest settlement date to the next interest settlement date.

 

1.5 The Lender shall adjust lending rates in accordance with the regulations of the People's Bank of China, and the Lender shall not give separate notice to the Borrower. 

 

Article 2: Loan withdrawal and payment

 

2.1 The Borrower must meet the following prerequisites before loan withdrawal, otherwise the Lender has no obligation to make loans to the Borrower, unless the Lender agrees otherwise:

 

(1) except credit loans, the Borrower has provided corresponding guarantee as requested by the Lender, which has been duly prepared and executed. Furthermore no adverse change to the guarantee that may impact the Lender has occurred.

 

(2) Upon each withdrawal, the representations and warranties made by the Borrower remain true, accurate and complete; and there has not been any breach of this contract or other contracts, which the Borrower and the Lender have signed.

 

(3) Evidence provided for the loan purposes is in line with the agreed loan purposes.

 

2.2 If the Borrower uses the loans for fixed asset investment, in addition to meet the prerequisites as described in Section 2.1, the Borrower must also meet the following prerequisites:

 

(1) The project that uses the loans has been examined, approved or filed with the authorized governmental departments (if needed).

 

(2) Capital and other matching funds required for the project have been contributed in terms of percentage and timing according to plan.

 

(3) No cost overruns have occurred or the cost overruns have been resolved internally.

 

(4) The project has been progressed according to plan, and actual project progress has matched the actual amount of investment to date.

  

  

  

 

2.3 The Borrower shall submit withdrawal notice to the Lender at least five banking days before withdrawal date. Once the withdrawal notice is submitted, without the written consent of the Lender, it shall not be revoked.

 

2.4 After the Borrower meets the prerequisites for withdrawal or the Lender consents to make loans beforehand, once the Lender transfers the loan funds to the Borrower’s designated account, the Lender is deemed to have made loans to the Borrower in accordance with the contract.

 

2.5 According to the relevant regulatory requirements and management requirements of the Lender, the Lender shall pay to the transaction counterparties based on the Borrower’s withdrawal request and payment authorization for any loans using the entrust payment method. To this end, the Borrower and the Lender shall enter into a separate entrust payment agreement as an annex to the contract, and the Borrower shall open or designate an account at the Lender’s branch to handle such entrust payments. 

 

Article 3: Loan repayment

 

3.1 The Borrower shall repay the loan principal, interest and other payables in full and on time in accordance with the contract. On the last banking day prior to the loan repayment date and the interest payment date, the Borrower shall deposit the full amount of current interest payable, principal payable and other payables at the repayment account opened at the Lender. The Lender shall have the right to initiate deduction on the loan repayment date and interest payment date, or require the borrower to coordinate with the payment deduction procedures. If the amount in the repayment account was insufficient to pay all amounts due, the Lender shall have the right to determine the repayment order.

 

3.2 If the Borrower wants to apply for early repayment of all or part of the loans, the Borrower shall 10 banking days in advance submit a written application to the Lender. After the Lender consents, the Borrower shall pay compensation to the Lender in accordance with the contract.

 

3.3 If the Lender consents to early repayment, the Borrower shall pay the loan principal, interest and other payments due and payable up to the prepayment date on that date.

 

3.4 The Lender shall have the right to demand loan prepayment based on the Borrower’s collection of funds for repayment.

 

3.5 The interest period is shortened due to early loan repayment by the Borrower or early recovery of loans by the Lender in accordance with the contract, the interest rate level is not adjusted accordingly and remains the same as the original loan rate. 

  

  

  

 

Article 4: Guarantees

 

4.1 Except credit loans, the Borrower shall provide to the Lender acceptable, legitimate and effective guarantee as required performance of its obligations under this contract. A separate guarantee contract is to be signed.

 

4.2 If the collateral suffers any damage, depreciation, ownership disputes, seizure or detention, unauthorized disposition of collateral by the collateral provider, or the guarantor suffers adverse changes in its financial position or other changes which have unfavorable impact on the security claims of the Lender, the Borrower shall promptly notify the Lender and provide other security approved by the Lender.

 

4.3 The Lender agrees that loans under this contract shall be collateralized by pledge of accounts receivables of the Borrower. During the life of the contract, under one of the following circumstances the Lender shall have the right to declare that the loans are immediately due, and require the Borrower to repay immediately some or all of the loan principal and interest or give additional security which is approved by the Lender as legal, valid and sufficient:

 

(1) Accounts receivables’ bad debt ratio has increased for 2 consecutive months.

 

(2) Overdue accounts receivables make up 5% or more of the total accounts receivables balance for the same customer.

 

(3) The guarantor, the customer and/or other third party are involved in trade disputes (including but not limited to quality, technology and service-related disputes) or debt disputes, resulting in accounts receivable not being able to be paid on time. 

 

Article 5: Account management

 

5.1 The loans are for working capital used by the Borrower in its production and operation, the Borrower shall use the designated account opened at the Lender, which will be used to collect loan repayment funds generated from corresponding sales revenue or planned repayment fund. If the corresponding sales use non-cash settlement, the Borrower shall ensure timely funds transfer to the designated account after receipt of payment.

 

5.2 The Lender shall have the right to regulate the designated account, including but not limited to understanding and monitoring of money transfer in and out. The Borrower shall coordinate accordingly. If requested by the Lender, the Borrower shall enter into a designated account regulation agreement with the Lender. 

 

Article 6: Representations and warranties

 

The Borrower makes the following representations and warranties to the Lender, which shall remain in effect during the life of the contract:

  

  

  

 

6.1 The Borrower shall have the legal qualification and ability to sign and perform under this contract.

 

6.2 Before signing of this contract, all the necessary authorization or approval has been obtained. Signing and performance of this contract is not in violation of the Articles of Association, shareholders and investment agreements, joint venture agreements, partnership agreements and related laws and regulations. Furthermore there is no conflict with other obligations under other contracts.

 

6.3 Other scheduled debt payments have been made on time. There is no malicious behavior in terms of delaying payment of bank loan principal and interest.

 

6.4 In the recent one year of production and operation, there was no major act of violation of laws and regulations, and the current senior management personnel has no serious bad record.

 

6.5 All documents and information provided to the Lender have been true, accurate, complete and effective; there is no false record, major omission or misleading statement.

 

6.6 The Borrower has not concealed from the Lender any litigation, arbitration or damage claim event, which the Borrower has been involved in.

 

6.7 If the loan is used for fixed asset investment, the Borrower shall ensure that the related project and borrowing is in compliance with all legal and regulatory requirements. 

 

Article 7: Borrower’s commitments

 

7.1 The Borrower shall withdraw and use loans in accordance with the contract terms. The loans cannot in any form flow into the stock market, futures market and other areas, which are prohibited or restricted by the relevant laws and regulations.

 

7.2 The Borrower shall repay loan principal, interest and other payables in accordance with this contract.

 

7.3 The Borrower shall accept and actively cooperate with the Lender to do account analysis, certificate inspection, site investigation, etc., for the purpose of inspect and supervise the use of loan funds. Furthermore the Borrower shall provide periodic summary reports of the use of funds as requested by the Lender.

 

7.4 The Borrower shall accept credit check by the Lender, shall timely provide true, accurate, and complete financial information and other information requested by the Lender which reflect the Borrower’s solvency, including all banks, bank accounts, deposits, etc., and shall actively assist and cooperate with the Lender in the investigation, understanding and supervision of its production, operation and financial circumstances.

  

  

  

 

7.5 The Borrower shall not pay dividends and bonuses in any form before paying off the loan principal, interest and other payables under the contract.

 

7.6 Prior to merger, split, capital reduction, changes in ownership, addition of partners, withdrawal of partners, transfer of major assets and debts, major outside investments, substantial increase in debt financing and any other actions which may adversely affect the interests of the Lender, the Borrower shall obtain prior written consent from the Lender.

 

7.7 If one of the following circumstances occurs, the Borrower shall timely notify the Lender:

 

(1) Change of the name, seal, articles of incorporation, domicile, legal representative or responsible person, address and other matters.

 

(2) Going out of business, dissolution, liquidation, being ordered to stop business, revocation of business license, or application (by application) for bankruptcy.

 

(3) Already or may be involved in major economic disputes, litigation, arbitration, seizure, detention or mandatory enforcement of assets, being investigated by judicial, tax, commerce and other government bodies or having been given punitive measures.

 

(4) The shareholders, directors, current senior management personnel or investors have been involved in major cases or economic disputes.

 

7.8 Promptly, fully and accurately disclose to the Lender any related party relationships and transactions.

 

7.9 Sign all notices mailed or delivered using other methods by the Lender in a timely manner.

 

7.10 Not to reduce its solvency through disposal of its own assets; provide guarantees to third parties without prejudice to the interests of the Lender.

 

7.11 Take responsibility for the costs incurred due to establishment and performance of this contract, and the costs already incurred or will incur by the Lender for the realization of claims, including but not limited to litigation or arbitration fees, property preservation fees, legal fees, implementation fees, assessment fees, auction fees, notice fees, etc.

 

7.12 The Borrower’s debt obligation under the contract shall have priority claim before its debt to shareholders, legal representatives or responsible persons, partners, major investors or key management personnel, and shall enjoy equal position as other creditors of similar debt. 

  

  

  

 

Article 8: Lender’s commitments

 

8.1 The Lender shall make loans to the Borrower in accordance with the contract.

 

8.2 The Lender shall keep confidential any non-public data and information related to the Borrower’s finance, production and operation, with the exception of disclosure due to requirements by laws and regulations or otherwise agreed in this contract. 

 

Article 9: Events of default

 

9.1 One of the following events constitutes a default by the Borrower:

 

(1) The Borrower has not paid loan principal, interest and other payables in accordance with the contract, has not fulfilled its obligations or is in breach of any representation, warranty or commitment under the contract.

 

(2) Changes to the guarantee that adversely impact the claims of the Lender have occurred, and the Borrower has not provided the Lender other approved security.

 

(3) The Borrower is unable to pay any other debt due (including debt being declared for early repayment), or other non-performance or breach of obligations under other agreements, which have or may affect its fulfillment of obligations under this contract.

 

(4) The Borrower's profitability, solvency, operations, cash flows and other financial indicators drop below the agreed standards, or deterioration has occurred which have or may affect its fulfillment of obligations under this contract.

 

(5) Major adverse changes to the Borrower’s production, operation, outside investment and so on, which have or may affect its fulfillment of obligations under this contract.

 

(6) The Borrower, its shareholders, legal representatives or responsible persons, partners, principal individual investors or key management personnel have been or may be involved in major economic disputes, litigation, arbitration, seizure, detention or mandatory enforcement of assets, investigation by judicial or administrative authorities or having been given punitive measures, media exposure due to violation of relevant state regulations or policies, which have or may affect its fulfillment of obligations under this contract.

 

(7) Changes in the Borrower’s equity or controlling relationships, partnerships and joint venture relationships, or partners, principal individual investors, key management personnel’s abnormal changes, being missing, being investigated by judicial authorities or being restricted of personal freedom, which have or may affect its fulfillment of obligations under this contract.

 

(8) The Borrower uses bogus contracts between related parties and transactions without actual trade in order to get loans and credit from the Lender, or intends to evade the Lender’s claims through related party transactions.

  

  

  

 

(9) The Borrower has been or may be going out of business, in dissolution, in liquidation, ordered to stop business, in revocation of business license, in application (or by application) for bankruptcy.

 

(10) The Borrower’s breach of food safety, production safety, environmental protection and other related laws, regulations, regulatory requirements or industry standards, results in accidents, which have or may affect its fulfillment of obligations under this contract.

 

(11) The Borrower’s legal representatives, responsible persons, partners, principal individual investors or key management personnel are involved in triad activities, drug abuse, gambling, smuggling and other unlawful offenses.

 

(12) The Borrower has not paid taxes in arrears, not paid fees or regularly not paid wages in arrears.

 

(13) Other situations that may adversely impact the realization of the Lender’s claims under this contract.

 

9.2 If the events of default occur, the Lender shall have the right to take one or more of the following measures:

 

(1) Require the borrower to cure the default within a time limit.

 

(2) Stop loans and other financing instrument under this contract and other contracts entered into between the Lender and the Borrower, and cancel some or all of the undrawn loans and other financing instrument.

 

(3) Declare that all outstanding loans and other financing instrument under this contract and other contracts entered into between the Lender and the Borrower immediately due in order to immediately recover all outstanding amounts.

 

(4) Require the Borrower to compensate for damages caused to the Lender due to its breach of contract.

 

(5) Other measures required by laws, regulations and this contract, or deemed necessary by the Lender.

 

9.3 The Borrower fails to repay loans already due (including being declared immediately due), the Lender has the right to charge penalty interest corresponding to overdue loans starting from the overdue date. If the Borrower fails to pay interest on time, the Borrower shall charge penalty interest on the interest payables using rates corresponding to overdue loans.

  

  

  

 

9.4 If the Borrower fails to use the loans in accordance with agreed purposes, the Lender shall have the right to charge penalty interest rate corresponding to misappropriated loans on the portion of loans that has been misappropriated, starting from the date of misappropriation. If the Borrower fails to pay interest during the misappropriated loan period, the Lender shall charge penalty interest on the interest payables using rates corresponding to misappropriated loans.

 

9.5 If 9.3 & 9.4 occur simultaneously, the Lender shall charge the highest penalty rate, but is not allowed to double charge.

 

9.6 If the Borrower does not repay the loan principal, interest (including default interest and compound interest) and other payments due, the Lender shall have the right to make collection announcements through the media.

 

9.7 If the Borrower's related parties, control relationship between the Borrower and the related parties, circumstances outside of Article 9.1 (1)&(2) occur to the related parties, which have or may affect its fulfillment of its obligations under this contract, the Lender shall have the right to take all measures in accordance with this contract. 

 

Article 10: Deduction

 

10.1 If the Borrower fails to repay debt due in accordance with the contract (including debt declared immediately due), the Lender shall have the right to deduct from all of the Borrower’s RMB and foreign currency accounts with the Lender and/or ICBC’s other branches the corresponding amount until the Borrower has fully repaid all debts under the contract.

 

10.2 If the amount deducted is in a different currency from the debt, the Lender’s applicable exchange rates on the deduction date shall apply. The interest and other costs incurred during the period from the deduction date to the final settlement date (which is the date the Lender in accordance with state foreign exchange management policy deducts the amount, converts to the same currency and clear all debts under the contract), as well as any differences generated due to exchange rate fluctuations during this period shall be borne by the Borrower.

 

10.3 If the deducted amount by the Lender is insufficient to satisfy all debts of the Borrower, the Lender shall have the right to determine the repayment order. 

 

Article 11: Transfer of rights and obligations

 

11.1 The Lender shall have the right to transfer part or all of its rights under this contract to a third party, and it is not necessary for the Lender to obtain the consent of the Borrower for such transfer. Without the written consent of the Lender, the Borrower may not transfer any of its rights and obligations under the contract.

  

  

  

 

11.2 Due to operation and management needs, the Lender or the Industrial and Commercial Bank of China Ltd. ("ICBC") can authorize or delegate ICBC’s other branches to perform the rights and obligations under the contract, or assign claims under this contract to ICBC’s other branches to undertake and manage. The Borrower hereby consents, and it is not necessary for the Lender to obtain further consent from the Borrower. The branch, which undertakes the contract, shall be entitled to exercise all rights under this contract and shall have the right to dispute under this contract through litigation, arbitration or application to enforce claims using its own name. 

 

Article 12: Effectiveness, amendment and termination

 

12.1 The contract shall be effective starting from the date of signing and shall terminate when the Borrower has fulfilled all of its obligations under this contract.

 

12.2 Any changes to this contract shall be agreed in writing by both parties. Amended terms or agreements shall form an integral part of the contract and has the same legal effect as this contract. Except the amended portion, the rest of this contract is still valid, and the original terms are still valid before the effective date of the changes.

 

12.3 The contract amendment and termination does not affect the rights of the parties to seek compensation for losses. The termination of this contract does not affect the validity of the dispute settlement provisions. 

 

Article 13: Application of the laws and dispute resolution

 

PRC laws are applicable to the contract’s formation, validity, interpretation, performance and dispute settlement. For any controversies and disputes arising out of or relating to this contract, both parties shall first resolve through consultation. If both parties cannot negotiate or negotiation cannot reach an agreement, it shall be resolved through the resolution method stipulated in this contract. 

 

Article 14: Complete contract

 

Section 1 "Loan Terms" and Section 2 "Small Business Loan Contract Terms" together form a complete loan contract. The same terms have the same meaning in both sections. Both sections are binding on the Borrower. 

 

Article 15: Notices

 

15.1 All notices under the contract shall be sent in writing. Unless otherwise agreed, the parties set forth in this contract designated home address for communication and contact. If mailing address or other contact information is changed, the party shall in writing promptly notify the other party.

 

15.2 If one of the parties refuses to sign or there occurs other situations that cause the notices not able to be delivered, the party may deliver using notary or public announcement method. 

  

  

  

 

Article 16: Other matters

 

16.1 The Lender’s lack of exercise, partial exercise or delay in exercising any rights under the contract shall not constitute a waiver or change of such rights or other rights, nor shall it affect the further exercise of such rights or other rights.

 

16.2 Any invalid or unenforceable provision of this contract will not affect the validity and enforceability of other provisions, nor affect the validity of the contract. 

 

16.3 Following the provisions of relevant laws and regulations as well as the requirement of the financial regulatory agencies, the Lender shall have the right to provide information relating to this contract and the Borrower to the People's Bank of China’s credit system and other credit information database established by law, for query and use by appropriately qualified agency or individual. The Lender shall also have the right to query information related to the Borrower through the People's Bank of China’s credit system and other credit information database established by law, for the purpose of establishing and performing under this contract.

 

16.4 This contract’s use of terms such as "related parties", "related party relationships", "related party transactions", "major individual investors", "key management personnel" and others shall have the same meaning as in the "Accounting Standards for Enterprises No. 36 - - Related Party Disclosures"(Accounting [2006] 3) issued by the Ministry of Finance as well as subsequent amendments to the guidelines.

 

16.5 The Lender produces and retains loan documents and certificates in accordance with its business practice, which shall constitute effective proof of debtor-creditor relationship between Borrower and Lender and are binding on the Borrower.

 

16.6 In this contract, (1) any reference to this contract shall include any amendment or supplement; (2) Headings are for reference only and does not constitute any interpretation of this contract, nor shall they constitute any restrictions of the content and scope under the headings; (3) during the performance of this contract, if a withdrawal date or repayment date falls on a non-banking day, the date will be postponed to the next banking day. 

 

Both sides confirm that: both Lender and Borrower have fully discussed all the terms of this contract. The Lender has specifically asked the Borrower to pay special attention to the clauses, which outline the rights and obligations of both parties, and to have comprehensive and accurate understanding of all the terms. The Lender has explained the relevant terms as requested by the Borrower. The Borrower has carefully read and fully understood all the terms of the contract (including Section 1 "Loan Terms" and Section 2 "Small Business Loan Contract Terms"). Both Lender and Borrower have the same understanding regarding the terms of this contract, and have no objection to the content of the contract. 

  

  

  

 

Lender (seal): 

 

	
Responsible Person / Authorized Agent: 

	
Zhang Kailiang    

	  

 

Borrower (seal): 

 

	
Legal Representative / Authorized Agent: 

	
Liu Yabin    

	  

 

Contract signed on:  2010.11.30

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