Document:

f10q0612ex10i_kirinint.htm

Exhibit 10.1

 

Cooperation Agreement

 

On

 

theProject of HeibeiLangfang Technology Valley Commercial and Residential Building

 

 Between

 

Hebei Zhongding Real Estate Development Co., Ltd.

 

And

 

Beijing ShengshiChengmei Investment and Management Co., Ltd.

 

Date: May 31, 2012

  

1

  

 

This Cooperation Agreement (this “Agreement”) is made and entered into as of May 31, 2012, in the place of Chaoyang District, Beijing, PRC, by and between the following parties:

 

Party A: Heibei Zhongding Real Estate Development Co., Ltd. (hereinafter referred to as “Party A”)

 

Business License Number: 130500000001150

 

Registered Address: Southeast Corner of North Gangtie Road and Yongjun Street, West Bridge District, Xingtai

 

Authorized Representative: Longlin Hu

 

Photocopy of Party A’s Business License see Attachment I.

 

Party B: Beijing ShengshiChengmei Investment and Management Co., Ltd. (hereinafter referred to as “Party B”)

 

Business License Number: 110106013408824

 

Registered Address: East Building (Lugou Bridge Enterprises Concentrated Office), No.13 Building, Xiu Garden, Dachengli Community, Fengtai District, Beijing

 

Authorized Representative: Xiaobin He

 

Photocopy of Party B’s Business License see Attachment II.

 

  

2

  

 

Whereas,

 

	
a.  

	
Party A and Party B intend to cooperatethe development of the Project of HeibeiLangfang Technology Valley Commercial and Residential Building (the “Project”), and to obtain the use right of the target land for the development of real estate;

 

	
b.  

	
On the basis of the principle of equality and mutual benefit, and through friendly consultations, both parties agree to try their best to obtain the use right of target land so that to promote further cooperation.

 

Both Parties hereby reach the Agreement as follows:

 

	
1.  

	
Purpose of the Agreement and general information of target land

 

	
1.1  

	
the purpose of the Agreement is to confirm and consolidate the common cooperation intention on obtaining the use right of target land, and the responsibility, obligation and interest in the development of the project;

 

	
1.2  

	
the target land is located in North Weiyi Road and West Jingqi Road, Technology Valley, Langfang, which commands a floor space for about 113 Mu (1 Mu equals to 666.67 Square Meters), the nature of land usage is commercial and residential, the total plot ratio is 2.2.

 

	
2.  

	
Responsibilities of Both Parties

 

	
2.1  

	
Responsibilities of Party A

 

	
2.1.1  

	
Party A shall fully cooperate Party B with obtaining the land use right after the execution of this Agreement;

 

	
2.1.2  

	
In the prophase of obtaining land use right, Party A needs to cooperate Party B with project planning, concept and scheme designing, reporting, project investigating and client receiving, group purchase product show meeting and establishment of project company, Party A will bear the cost first, and then the cost will be credited into the cost of Joint Venture Company;

 

	
2.1.3  

	
At the execution date of Confirmation Letter on Land Use Right Transfer by and between the government and Joint Venture Company or company accepted by both parties, Party A shall pay Party B the amount of RMB 3 million once as consultation service fee, which will be credited into the development cost of Joint Venture Company.

 

  

3

  

 

 

	
2.2  

	
Responsibilities of Party B

 

	
2.2.1  

	
After the execution of this Agreement, Party B shall not activate or carry through any discussion or negotiation with any third party with respect to the project land, unless the termination matters of this Agreement occur;

 

	
2.2.2  

	
Party B shall cause the government to make the target land use rightavailable for bidding within five months after the execution of this Agreement;

 

	
2.2.3  

	
Party B needs to communicate in depth with both the government and Party A, and reach reasonable consensus with respect of the planning and land use right bidding conditions, and to endeavor to obtain preferential policy and support as much as possibleto the maximum extent permitted by applicable laws and policies.

 

	
2.2.4  

	
Party B makes the commitments that:

 

	
a.  

	
The price of the target land use right obtained by the Joint Venture Company will not exceed RMB 1.95 million per Mu of the net land;

 

	
b.  

	
The total plot ratio of target land will not be less than 2.2;

 

	
c.  

	
Party B will make every effort to achievethe goal that the capital amount of RMB 85 millionwill be in place around the time of target land bidding.

 

	
3.  

	
Joint Venture Company

 

	
3.1  

	
Before the transfer of land use right, both parties need to jointly establish a local project company, which is referred to as a JV hereinafter.

 

	
3.2  

	
The share equity structure of JV is:

 

Party A: 70%

 

Party B: 30%

 

Among which Party B contributes consultation service for share equity, and Party A pays Party B corresponding consideration of share equity for Party B’s contribution. In the event that the capital is contributed for installment or further increased, Party A also needs to pay Party B corresponding consideration of share equity for Party B’s contribution.

 

	
3.3  

	
In order to obtain the target land use right, JV will participate in bidding for the target land. The prerequisite for Party B to enjoy and obtain any rights and fees under this Agreement is that, JV can obtain the target land use right in full compliance with Article 2.2.4 of this Agreement as undertook by Party B.

 

  

4

  

 

	
3.4  

	
Both parties agree that the total minimum estimated profit of the Project is RMB 300 million.

 

	
3.5  

	
As Party B will not participate in the operation of JV, Party A will be responsible for all the operation of JV (except for any matter that must be approved by the shareholders’ meeting in accordance with the Articles of Association). Both parties agree that:

 

	
a.  

	
within 730 days as of the date on which JV and the government enter into a land use right transfer agreement, Party A shall provide a written offer to Party B to acquire 8.33% of the share equity of JV as held by Party B at a price not less than RMB 25 million in cash;

 

	
b.  

	
between the 730th day and 1095th day of the date on which JV and the government enter into a land use right transfer agreement, Party A shall provide a written offer to Party B to acquire 8.33% of the equity of JV as held by Party B at a price not less than RMB 25 million in cash;

 

	
c.  

	
between the 1095th day and 1460th day of the date on which JV and the government enter into a land use right transfer agreement, Party A shall provide a written offer to Party B to acquire 13.34% of the equity of JV as held by Party B at a price not less than RMB 40 million; As per Party B’s written request, such consideration can be paid by cash and the area of the building.

 

	
d.  

	
All interest that Party B holds in JV should and only should be the income from the transfer of all Party B’s equity at a price of RMB 90 million as mentioned above.

 

	
3.6  

	
As this is a strategic cooperation between both parties, both parties can use the funds of JV for new projectsupon the approval of shareholders’ meeting. The shareholding ratio of new project will be determined by both parties separately. The used fund, which belongs to Party B, shall be deducted from the total income from the transfer of RMB 90 million share equityby Party B.

 

	
4.  

	
Termination of the Agreement.

 

If any of the following occurs, any party to this agreement could send a written notice to the other party to terminate this agreement unilaterally:

 

  

5

  

 

	
a.  

	
After 5 months as of the execution date of this Agreement, the government does not make the target land available for biding. If both parties agree to extend such period, a supplementary agreement should be signed.

 

	
b.  

	
Any of the parties to this Agreement or the following established JV fails to obtain the target land use right through the biding process.

 

	
5.  

	
Breach of Contract

 

	
5.1  

	
If any party breaches any provision or condition of this Agreement, the breaching party shall compensate the non-breaching party, and shall hold the non-breaching party harmless from any fees, expenses, debts or damages. This remedy is not exclusive, and this is an additional remedy to any existing or then effective remedies as provided under laws or regulations.

 

	
5.2  

	
Under no circumstances shall one party be responsible for any indirect, incidental, punitive, consequential losses (including but not limited to profit loss, operating loss, estimated deposit loss) of the other party in connection with this Agreement.

 

	
6.  

	
Governing Law

 

	
6.1  

	
This Agreement shall be governed and interpreted in accordance with the laws of People’s Republic of China. If any matter under this Agreement that is not provided under PRC laws, such matter shall be referred to international custom.

 

	
7.  

	
Settlement of Dispute

 

	
7.1  

	
Any disputes under the Agreement shall be settled at first through friendly consultation between the parties hereto. The consultation shall be commenced within 5 days as of the date on which a notice is sent by one party to the other. In case no settlement can be reached through consultation within 30 days as of the date on which the abovementioned noticed is sent, each party shall have the right to submit such disputes to the people’s court where Party A is located.

 

	
8.  

	
Appendix

 

This Agreement contains two attachments, Attachment I is Party A’s Business License and Attachment II is Party B’s Business License.

 

	
9.  

	
This Agreement shall become effective after execution. This Agreement shall be executed in four copies, each party shall hold two copies, and each copy shall have the same legal effect.

 

Above is the main body of the Agreement

 

  

6

  

 

Party A: Hebei Zhongding Real Estate Development Co., Ltd.

Representative: Longlin Hu

Date: June 6, 2012

 

Party B: Beijing ShengshiChengmei Investment and Management Co., Ltd.

Representative: Xiaobin He

Date: June 6, 2012

 

  

7

  

 

Appendix I:

 

 

  

8

  

 

Appendix II:

 

  

9

  

 

Appendix III: New company’s license

 

 

 

10f10q0612ex10ii_kirinint.htm

Exhibit 10.2

 

Individual Loan Agreement

(Cheng Jiao) Nong Xin Jie Zi (2012) No. 07102012708671

Borrower (Party A): Limin Huang

Address: No.27-3-5, North Community, Guo Shoujing Street, West Bridge District, Xingtai

Tel: 

 

Valid Identification Certificate: 130503197104300612

Lender (Party B): Xingtai Chengjiao Rural Credit Cooperative Union

Responsible Person): Jingliang Dong

Address: No.406 Shoujing Street, West Bridge District, Xingtai

Tel: 2260001

In accordance with related laws and regulations, Party A and Party B enter into this Agreement through mutual consultation.

	
Article 1  

	
Loan Amount

The amount lent by Party B to Party A is RMB 9,000,000.

	
Article 2  

	
Usage of the Loan

The Loan shall be used for the purchase of steel materials.

	
Article 3  

	
Term of the Loan

Term of the Loan shall be from June 28, 2012 to June 27, 2013.

In the event that, the first day of the Term is inconsistent with the date on the receipt, the first release day of the Loan as shown on the receipt shall be prevailing, and the due date of the Loan shall be adjust accordingly.

The receipt is part of this Agreement and has the same legal effect with this Agreement.

	
Article 4  

	
Interest Rate and Interest

The interest rate of the Loan shall be 10.5167‰ monthly. During the Term of the Loan, in the event that the interest rate is adjusted, the interest rate shall be subject to the regulations of the State and Hebei Credit Union.

The adjustment date of interest rate shall be the first day after the adjustment is published by the People’s Bank of China.

 

  

1

  

	
Article 5  

	
Calculation of the Interest

	
1.  

	
the interest of the Loan shall be calculated from the date on which the loan is transferred to Party A’s account. The Interest of the Loan under the this Agreement shall be calculated on a daily basis. Daily interest rate = monthly interest rate/30. If party A cannot pay the interest on the settlement date in accordance with the Agreement, the compounded interest shall be calculated from the following day of the due date.

	
2.  

	
For the Loan with a fixed interest rate, the interest shall be calculated by the interest rate as agreed. For the loan with a floating interest rate, the interest shall be calculated by the interest rate of each floating term. Where there are multiple floating interest rate within a settlement period, the interest of each floating term shall be calculated first, and all interests shall be added up for the calculation of the interest within the settlement period.

 

	
Article 6  

	
If any of the following occurs, Party B has the right to refuse to provide Loan under the Agreement.

 

	
1.  

	
Party A and the Guarantor cannot provide relevant document, materials, receipts and complete relevant procedure as required by Party B;

	
2.  

	
In case the Loan is secured by mortgage, the legal procedure for relevant registration and/or insurance, etc. hasn’t been competed or such guarantee or insurance is still invalid.

	
3.  

	
Any material adverse events affects the safety of the Loan that caused by Party A or Guarantor.

 

	
Article 7  

	
Remitment and Payment

 

	
1.  

	
 Party B will remit the Loan to Party A’s account which is opened at Party B’s office in accordance with the time as agreed in each Loan receipt. Account number: 6210210020100417222.

Party A agrees that as of the effectiveness of this Agreement, Party B has right to monitor and manage the remitment of the Loan in the settlement account or disbursement/drawdown account by means of entrusted payment and self payment in order to supervise the Loan used pursuant to this Agreement.

 

  

2

  

	
2.  

	
Entrusted Payment

	
a.  

	
Except as otherwise provided in this Agreement, Loan under this Agreement shall use the method of entrusted payment.

	
b.  

	
Where the method of entrusted payment applies, Party A shall submit specific drawing application, payment entrustment and relevant transaction documents to Party B.

	
c.  

	
Where the method of entrusted payment applies, Party A shall provide proven documents as required by Party B, including but not limited to:

	
i.  

	
 documents to prove that the discharge purpose meets the requirement of this Agreement;

	
ii.  

	
commercial agreements signed by and between Party A and any third party or documents related to payment by Party A;

	
iii.  

	
corresponding invoices or receipts. If such document cannot be obtained when the payment is made, Party A shall provide the invoices or receipts in a timely manner after the payment is completed;

	
iv.  

	
lawful and valid payment instruments;

	
v.  

	
other proven documents as required by Party B

	
d.  

	
Party B shall have the right to review whether the corresponding party and amount are in line with the commercial agreement and other documents pursuant to the Loan purpose.

	
e.  

	
Party B shall transfer the Loan to the party who meets the purpose of related agreements through the settlement account or disbursement/drawback account.

	
f.  

	
Party B has right to deduct the commission fee arising from the Loan transfer when such fee occurs.

 

  

3

  

 

	
3.  

	
Self Payment

	
a.  

	
Party A can adopt the method of self payment after approved by Party B in any of following events:

	
i.  

	
Party A cannot confirm the trading party before the transaction and the amount of payment less than RMB 300,000;

	
ii.  

	
Trading party of Party A cannot charge without cash payment;

	
iii.  

	
Loan used for operation and the amount is less than RMB 500,000;

	
iv.  

	
Other situations as provided by laws and regulations;

	
b.  

	
Where the method of self payment applies, Party A shall report or inform Party B the condition of use of Loan. Party B has the right to inspect whether the payment of Loan is in line of the purpose for use of Loan through account analysis, check of receipt, on-site inspection, etc.

 

	
Article 8  

	
Conditions for Withdrawing

 

	
a.  

	
Party A shall submit drawing application to Party B along with the method of payment (either entrusted payment or self payment) one business day prior to the draw date. Party A confirms that Party B has the right to check wither the documents provided by Party A meets the conditions of payment, and has the right to deicide the method of payment.

	
b.  

	
During the process of release and payment, Party B has right to ask Party A to provide additional document to meet the conditions of payment, or change the method of payment or suspend the payment if any of the following event occurs:

	
i.  

	
Decrease of credibility;

	
ii.  

	
Abnormal use of Loan;

	
iii.  

	
Violation of other obligations of the Agreement;

 

	
Article 9  

	
Repayment

 

	
a.  

	
Party A and Party B agree to adopt the second method to repay the principal and interest:

	
i.  

	
Repay the principal and interest on the due date;

	
ii.  

	
Repay the interest on a monthly basis, and repay the principal on the due date. The settlement date shall be the 20th date of each month. Party A shall repay the interest on the settlement date. If the repayment date for last repayment is not within the settlement date, Party A shall repay the principal along with the interest on the due date.

 

  

4

  

 

	
iii.  

	
Other method of repayment: N/A

	
b.  

	
Party A shall deposit sufficient money in the account as described in Article 6 above before each repayment date, and Party A agrees that Party B can deduct the principal and interest in the account directly. If the money in the account is not sufficient, Party B has the right to decide whether or not to deduct. If Party B decide not to deduct, all principal and interest shall be regarded as overdue; If Party B decide to deduct, the insufficient amount of principal and interests shall be regarded as overdue. Party B’s consent is needed, if Party A requires to change the repayment account during the term of this Agreement.

	
Article 10  

	
Rights and Obligations of Party A

 

	
a.  

	
Withdraw and use the Loan in accordance with the Agreement;

	
b.  

	
Repay the principal and interest in full and in a timely manner;

	
c.  

	
Payment of the Loan shall be in line of the condition and method as provided in this Agreement;

	
d.  

	
Provide related document, materials and receipts honestly as required by Party B;

	
e.  

	
Inform Party B promptly in connection with the change of address, mailing address, contact number, job, salary, etc.

	
f.  

	
when material adverse effect against the safety of Loan occurs, Party A shall inform Party B promptly in written, and adopt necessary method as confirmed by Party B to secure the credit.

	
Article 11  

	
Rights and Obligations of Party B

 

	
a.  

	
has the right to know and inspect the basic situation and use of Loan of Party A;

	
b.  

	
when material adverse effect occurs that caused by Party A, Party B may suspend the release of Loan or retrieve the Loan in advance;

	
c.  

	
retrieve or retrieve in advance the principal, interest, default interest, compounded interest, penalty, damage, attorney fees and other fees use to realize the credit; Party agrees that Party B can deduct such fee directly from Party A’s account.

 

  

5

  

 

	
d.  

	
Party B can disclose the default of Party A or Guarantor in public if Party A cannot perform its repayment obligation or Guarantor fails to perform guarantee obligation;

	
e.  

	
If repayment made by Party B is insufficient to repay the payable amount under this agreement, Party B may choose to use such amount to repay the principal, interest, default interest, compounded interest or fees.

	
f.  

	
Release the Loan to Party A in accordance with the Agreement.

	
Article 12  

	
Repayment in Advance

 When Party A intents to repay in advance, Party A shall submit the application to Party B one business day in advance. After approved by Party B, Party can repay part or all of the principal in advance. If Party A repays in installment, and intents to repay part of principal and interest in advance, Party A shall repay the Loan in accordance with the repayment schedule. The interest rates shall be same as provided in the Agreement. After the repayment, the remaining amount shall be repaied in accordance with this Agreement. If Party A repay all principal and interest in advance, the interest may be calculated based on the actual loan term and interest rate as provided in this Agreement. If repayment in advance is made, the paid interest shall not be affected.

	
Article 13  

	
Guarantee of the Loan

        If the loan is secured, __________ shall be adopted as detailed in the guarantee agreement.

	
Article 14  

	
Undertaking and Warranty of Party A

 

	
a.  

	
 During signing and performing this Agreement, Party A abides by the code of good faith, and all the materials, documents and information of Party A and the Guarantor provided to Party B are real, effective, accurate, complete and are without any concealment or omission

	
b.  

	
Party A guarantees good credit and no significant adverse record;

	
c.  

	
Party A guarantees that the loan, if it is current funds loan, will not be used for the investment of fixed assets or share equity, and will not be used for production or operation that prohibited by the laws and regulations;

 

  

6

  

 

	
d.  

	
Party A confirms that actions such as equity transfer, foreign investment, substantial increase in debt financing won’t be taken without Party B’s written consent;

	
e.  

	
Party B has the right to take on-site or off-site due diligence to check Party A’s operating conditions, financial conditions and the conditions of use and repayment after loan, Party A has the obligation to actively cooperate with Party B for the management of disbursement, management after loan, and related inspections;

	
f.  

	
Party B will be informed timely when material adverse events which could affect the ability of repayment occur;

	
Article 15  

	
Obligations of Default

 

	
a.  

	
If Party B fails to release the Loan in full and in a timely manner, which cause losses of Party A, Party B shall pay the penalty to Party A based on the default amount and the overdue days. The calculation of penalty shall be the same as overdue payment.

	
b.  

	
If the Loan is overdue, the default interest rate shall equal to 150% of the current applicable interest rate. If the interest rate adjusted during the overdue period, the default interest rate shall be adjusted accordingly.

	
c.  

	
If the Loan is misappropriated, the default interest rate shall equal to 200% of the interest rate. If the interest rate adjusted during the overdue period, the default interest rate shall be adjusted accordingly.

	
d.  

	
As to the overdue interest, Party B charge compounded interest in accordance with the regulations promulgated by People’s bank of PRC;

	
e.  

	
If Party A violates the obligations under this Agreement, Party B has right to ask Party A to rectify in reasonable period, or suspend the release of Loan, or retrieve the Loan in advance or take other measures to protect the assets, or declare that all agreement signed by and between Party A and Party B is terminated and due.

	
f.  

	
Any of the Guarantor violates the obligations under this Agreement, arty B has right suspend the release of Loan, or retrieve the Loan in advance or take other measures to protect the assets.

	
g.  

	
If Party B adopts ligation or arbitration to realize the credit due to Party A or Guarantor, Party A and Guarantor shall assume relevant fees arising from the realization of credit.

 

  

7

  

 

	
Article 16  

	
Undertake of the Fees

Any fees arising from the realization of credit shall be borne by Party A

	
Article 17  

	
Party B shall have right to provide the Party A’s information to credit information system of Central Bank of China as required by laws or rules of financial regulators, which will be inquired and used by qualified institutions and individuals.

	
Article 18  

	
Announcement Collection

In the event that Party A has not fully repay the loan due, pay the interest due, pay the penalty and compound interest, or any other outstanding, Party B has the right to circulate a notice to relevant authorities and to disclose to the media, Party A agrees that the notice or disclosure has the effectiveness of interruption of limitation.

	
Article 19  

	
Application for Extension

In the event that Party A is not able to repay the debt on time due to special circumstances, Party A shall apply to Party B in written thirty (30) days before the due date. Only through Party B’s consent and reaching extension agreement can the term be extended, and the interest rate shall be determined by accumulative total time

	
Article 20  

	
Disputes Settlement

Any dispute arising from the performance of this Agreement shall be settled by consultation. If the consultation fails, the dispute shall be settled according to 1).

	
1)  

	
Submit to the people's court where Party B is located.

	
2)  

	
submit to the __________ arbitration commission which shall arbitrate in accordance with the arbitration rules in force. The arbitration award shall be final and binding on the Parties.

During the litigation or arbitration, the provisions hereunder which are not involved in such dispute shall still be performed.

 

  

8

  

 

	
Article 21  

	
Miscellaneous

 

	
a.  

	
“Due” or “Due date” under this Agreement shall include situation of acceleration of maturity as provided under this agreement or regulations and laws of the PRC.

	
b.  

	
“material adverse events” shall include but not limited to the following: Party A has entirely or partially lost the ability to repay; significantly decrease the ability to guarantee by Guarantor; the mortgage property is  damaged, lost or devalued.

	
Article 22  

	
This Agreement shall become effective upon exaction by both parties

	
Article 23  

	
This Agreement shall be executed in triplicate, and each party shall hold one original, and each original has the same effect.

	
Article 24  

	
Attention

Party B has notified Party A to pay attention to each of the provision of the Agreement and explained to Party A as required. Both parties have the same acknowledge to the Agreement at the time of execution.

 

Borrower (Party A)  (signature): Limin Huang

Lender (Party B) (Seal): Xingtai Chengjiao Rural Credit Cooperative Union (Seal)

Legal Representative or Authorized Representative (SIGNATURE): Jingliang Dong

 

Signing Date: June 28, 2012

 

 

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00207-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00207-of-00352.parquet"}]]