Document:

Nevstar Corporation: Exhibit 10.2 - Prepared by TNT Filings Inc.

  

Exhibit 10.2

Loan Agreement

(English Translation)

 

 
The Borrower: Fuxin Hengrui Technology Co., Ltd.

The Lender: China Construction Bank (Fuxin Branch)

1.  The amount of the loan: RMB32,000,000

 

2.  Borrower can only use the loan for purpose of working capital. 

 

3.  The term of the loan: 12 months, commencing from March 26th , 2007 to March 26th , 2008 (the “Maturity Date”).

 

4.  Interest Rate and Calculation of the Interest Rate

 

4.1 Interest rate

 

i.  The interest rate of this loan in this contract is a monthly interest rate of 0.69225%. 

 

4.2 Increase of Interest Rate

 

i.  If Borrower uses the loan for other purposes not set forth in this agreement, the interest rate shall be increased to 1.3845% per month.

 

ii.  If Borrow defaults in payment when due, the interest rate shall be increased to 1.038375% per month.

 

4.3 Interest shall accrue since the day the loan under this contract was first disbursed to the borrower’s bank account. 

 

4.4 Daily interest rate = monthly interest rate/30 = annual interest rate/360

 

4.5 Interest Payment

 

i.  Interest accrued shall be paid by Borrower monthly on the 20th day of each month. 

 

5.  Borrowing Procedure

 

5.1 Borrower must meet the following prerequisite conditions before withdrawing funding from the loan

 

 

i.      Borrower has furnished required documentation
 

ii.     If the contract has a guarantee term, the guarantee contract or other guarantee tools have to be effective.
 

iii.   Borrower has not breached any term in this contract.

 

5.2 Borrower can request the loan by giving notice to Lender 3 days before the date of borrowing.

 

6.  Method of Payment

 

6.1 Method of Payment

 

i.     If Borrower defaults in the payment for either principal balance or interest, or Borrower ceases its business operation before the payment becomes due, or certain circumstances occur as defined by applicable law, any payment made by Borrower shall first be applied to the amount of the outstanding principal balance and second to unpaid interest.

 

ii.  Except for the circumstances defined in the proceeding paragraph, any payment made by Borrower shall first be applied to the amount of unpaid interest and second to the outstanding principal balance.

 

6.2 Borrower shall make the payment in a timely manner. 

 

6.3 The whole amount of RMB20,000,000 shall become due in 2008. 

 

6.4 Each payment require to be made by the Borrower hereunder shall be made by wire transfer or immediately available funds. If Borrower defaults in any payment, Lender can withdraw funding from any of Borrower’s China Construction Bank accounts to satisfy Borrower’s payment when due pursuant to this agreement. 

 

6.5 Prepayment

 

i.  Prepayment for the unpaid interest shall be made after giving written notice to Lender.

 

ii.  Prepayment for the outstanding principal balance shall be made known to Lender by written application 30 business days before the date of the prepayment, subject to Lender’s approval. All interest accrued shall be calculated on the basis of actual number of days elapsed. 

         

7.  The loan is guaranteed by collateral. 

 

8.  The rights and obligations of Borrower

 

8.1 The rights of Borrower

 

i.

Borrower may request the disbursement of the loan pursuant to this agreement.
 

ii

Borrower may use the loan pursuant to the purpose defined in this agreement.

iii.            Borrower may extend the term of the loan pursuant to this agreement.
 

iv.            Borrower may request Lender to keep confidential any information regarding its financial conditions and business operation.

 

8.2 The obligations of Borrower: 

 

i.  Provide to the Lender, as soon as possible within 15 days after the end of each fiscal quarter of Borrower, certain balance sheet and income statements. 

ii. Use the loan proceeds pursuant to this contract.

iii.  Disclose information regarding financial conditions and use of the loan upon request of Lender.

iv.

Make payment of principal and interest pursuant to this contract

v.

Borrower shall not transfer the capital or assets to evade the obligation of payment to the lender

vi.

Borrower must obtain Lender’s written consent before it acts as guarantor for other third parties’ debt or obligations.
 

vii.          Inform Lender of any material change of the company. 
 

 

9.  Lender’s rights and obligations

 

9.1 Lender’s right

 

i.  Lender may require disclosure of Borrower’s financial status.

 

ii.   Lender may withdraw funding from any of Borrower’s China Construction Bank accounts to satisfy Borrower’s payment when due pursuant to this agreement.. 
 

  

9.2 Lender’s obligations

 

i.   Lender shall disburse the loan in a timely manner  

ii. Lender shall keep confidential any information regarding Borrower that is related to the loan transaction.

 

10.  Remedies for Breaches of the Agreement

 

10.1 Breaches of the Agreement on the part of Borrower occurs upon the occurrence of any of the following: 

 

i.   Misrepresentation of material information regarding Borrower’s financial status.
 

ii.   Use of the loan for purpose other than those set forth in this agreement
 

iii.   Default in payment  

iv.   Unreasonable disposition of Borrower’s properties by Borrower 
 

v.   Material adverse changes occurred during the term of the loan
 

vii.  Change of Borrower’s structure that substantially adversely affects its capacity to make timely payments when due. 

 

10.2 Any occurrence of the following situations, without new guarantee agreement approved by Lender constitutes breaches of this agreement: 

 

i.   Guarantor has material adverse change in its financial status
 

ii.  Guarantor provides guaranty to any other third parties which substantially adversely affects its capability of performance under the guarantee agreement.  

iii.   Guarantor becomes insolvent or incapable to perform its obligation under the guarantee agreement.
 

 

10. 3 Any of the following on the part of Mortgagor without new guarantee agreement approved by Lender constitutes breaches of this agreement

 

i.   Mortgagor does not purchase property insurance for the mortgaged property or Mortgagor use the proceeds obtained in violation of the mortgage agreement. 
 

ii.   The mortgaged property is damaged due to the behavior of the third person, and the mortgagor dispose the payment of damages in violation of the mortgage agreement.
 

iii.   Mortgagor disposes the mortgaged property without Lender’s written consent
 

 

10.4 Breaches on the part of Borrower based on certain conducts on the part of Borrower regarding certain lien.

 

10.5 Remedies for Lender 

 

i.   In the event of breaches of this agreement by Borrower, Lender can declare the entire outstanding principal balance of the loan, together with all accrued but unpaid interest immediate due and payable, or stop disbursement of the loan.
 

ii.   Lender can claim default fine at 1.038375% of loan principle from the borrower
 

iii.   Lender can increase interest rate at the event of Borrower’s default as set forth in this agreement. 
 

 

11.  Reserved

 

12.  Choice of forum

 

 

12.1 Dispute arising from this agreement shall be adjudicated by the court in the jurisdiction where Lender domiciles. 

 

13.  Effectiveness, Modification and Termination of the Agreement

 

14.  There are 7 copies of this agreement. 

 

15.  Acknowledgement

 

i. Borrower has full knowledge of Lender’s scope of business and scope of authorization.

ii. Borrower has carefully read all articles of this Agreement. Upon request of Borrower, Lender has explained each article. As a result, Borrow has had thorough understanding of the articles of this Agreement and the corresponding legal obligations.

ii. Borrow is authorized to execute this Agreement.

 

Borrower

/s/ Lihui Song

Date: March 24, 2007

 

Lender

/s/  

Date: March 24, 2007Nevstar Corporation: Exhibit 10.3 - Prepared by TNT Filings Inc.

  

Exhibit 10.3

Shanghai Pudong Development Bank

(For Short Term Working Capital Loan)

(English Translation)

The number of the contract: 71012007280134

             

Borrower:              FuXin HengRui Technology Co., Ltd

Lender:                Shanghai PuDong Development Bank

 

1.    The Loan

1.1 The amount of the loan: RMB 30,000,000

1.2 The term of the loan: 1 year, commencing from May, 2007 to May, 2008 (the “Maturity Date”)

1.3 Borrower can only use the loan for purpose of business operation in short term. Any other use is prohibited. 

 

2. Interest Rate and Calculation of the Interest Rate

2.1 Interest rate 

   The interest rate of this loan in this contract is 6.39%.  

2.2 The accruals of interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed.

2.3 Interest accrued shall be paid by Borrower monthly on the 20th day of each month. 

3. Draw and Payment

3.1 Borrower must meet the following prerequisite conditions before or Lender is not obligated to provide the loan.

 

1

1) Borrower shall submit a written application for the loan and documents in accordance with the requirement of Lender.

2) Borrower shall acquire/consummate the related approval, registration and other mandatory. requirements, and shall have the Contract notarized under Lender’s request.

3) The guarantee should be kept effective if the bank loan under the Contract is secured loan.

4) No occurrence of the breach of the contract under article seven.

3.2  

1) Borrower can request the loan before three banking days starting on the date when the prerequisite conditions are met.

2) Lender shall disburse the loan in a timely manner.

3.3 Lender can declare the entire outstanding principal balance of the loan provided Borrow defaults in draw in accordance with the drawing procedure aforesaid.

3.4 Borrower shall make the payment in a timely manner.

3.5 The prepayment is subject to Lender’s approval

4 Representative and Warranties

4.1 Borrower is incorporated in consistent with all the applicable laws

4.2 The Contract is binding for Borrower whose authorized representative has executed the contract

4.3 The Borrower is duly organized, validly existing and in good standing under Chinese laws, and is duly qualified to conduct business and the performance of this Agreement and respective specific agreements is within the Borrower’s powers; 

4.4 All the financial statements issued by Borrower truthfully, thoroughly, accurately reflect the financial conditions of which.

4.5 Borrower shall disclose all the necessary information.

 

2

5. Covenants

Borrower hereby covenants:

5.1 Borrower shall use the loan in accordance with the Contract and laws, and disclose the financial information requested by Lender

5.2 Borrower shall not adversely affect the interests of Lender before the debt preservation with written consent of Lender

5.3 Borrower shall not dispose its all or the majority of the assets without written consent of Lender

5.4 Borrower shall pay off its debts according to their legal priorities. Borrower cannot entered into any contract that renders this loan subordinated.

5.5 Borrower must pay the loan interest in RMB.

5.6 Borrower must provide new guarantee in timely manner upon the occurrence of the events that substantially adversely affects its capacity to timely payments when due.

6 Collaterals

6.1 Borrower, FuXin HengRui Technology Co., Ltd, provides its owned land and real estate as collateral, the number of guarantee contract is 207101200728013401.

7. Breaches

7.1 Breaches of the Agreement on the part of Borrower occur upon the occurrence of any of the following:  

i.   Misrepresentation of material information regarding Borrower’s financial status
 

ii.   In breach of Article 5 under the Contract

i.

Default in payment when it is due  

ii.

The debts under other loan contracts are declared to be due caused by the breaches of which

iii.

Investors of Borrowers transfer the assets or transfer the equities without consent

iv.

Breaches of Contract by the Mortgagor  

7.2 Lender do not provide loan to Borrower except the Article 7.1

 

3

8 Remedies  

In the event of breaches of this agreement by Borrower, Lender can declare the entire outstanding principal balance of the loan, together with all accrued but unpaid interest immediate due and payable, or stop disbursement of the loan.

 9. Others

 9.1 Choice of forum

 Dispute arising from this agreement shall be adjudicated by the court in the jurisdiction where Lender domiciles. 

 9.2.  Effectiveness, and Termination of the Agreement

 9.3  There are 2 copies of this agreement. 

FuXin HengRui Technology Co.,Ltd. 

/s/ LiHui Song

Seal

 

Shanghai PuDong Development Bank ShenYang Branch

/s/ GangZhi Wang

Seal  

                              

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]