Document:

Jinhao Motor Company: Exhibit 10.15 - Filed by newsfilecorp.com

 Exhibit 10.5

 

	 	SHENZHEN
      DEVELOPMENT BANK 

Loan Contract

 

 

Shenzhen Development Bank 

April, 2010 

Special Reminder 

To safeguard your/your company’s legitimate rights and
interests, please carefully read the following contents and confirm relevant
facts before signing this Contract: 

	1. 	
      All data and materials that your company/you provided are
      authentic, complete, lawful and effective, free from any false record,
      misleading representation or material omission.

	 	 
	2. 	
      Your company/you have carefully read all terms and
      conditions of this Contract, especially those highlighted with bold front,
      and fully understood the meanings and legal implications
thereof.

	 	 
	3. 	
      Before the Contract is signed, your company/you have the
      right to propose changes to the Contract. After the Contract comes into
      effect, your company/you must exercise rights and initiatively perform
      obligations as agreed in the Contract.

	 	 
	4. 	
      For the purpose of protecting your company’s/your
      interest, your company/you must notify the Bank in writing within 10 days
      of any changes to, inter alia, domicile, contact address, telephone,
      business scope, legal representative, etc.

	 	 
	5. 	
      If your company/you have any doubts regarding this
      Contract and relevant matters, please consult the
Bank.

Loan Contract 

Contract No.: Shen Fa Shui Dong Shan Dai Zi No. 20090706001004

	Party A (Lender): 	Shenzhen Development Bank Co., Ltd. Guangzhou Dongshan Branch
  
	 	 
	Address: 	Floors 1&2, Guangzhou Military Culture Building, No. 10, Si
      You Xin Road, Guangzhou 
	 	 
	Telephone: 	020-87616477 	Fax: 	020-87676839 
	 	 	 	 
	Person in Charge: 	Zhang Wu 	Title: 	President 

	 	 
	Party B (Borrower): 	Guangdong Jinhao Motorcycle Co., Ltd. 
	 	 
	Address: 	Dawang Industrial Park, New & Hi-tech Development Zone,
      Zhaoqing, Guangdong 
	 	 
	Telephone: 	0756-3625382 	Fax: 	0756-3625911 
	 	 	 	 
	Legal Representative: 	Tsoi
      Man Hoo 	Title: 	Chairman 

After friendly consultation, Party A and Party B hereby enter
into this Loan Contract on the following terms and conditions: 

	Article 1	Contents of the Underlying Loan 

	 	
       
	1. 	
      Loan Amount: Renminbi Twenty-nine Million, Nine
      Hundred and Eighty Thousand

	 	 	 
	2. 	
      Loan Term: Six months

	 	 	 
		
      The loan term is calculated as follows:

	 	 	 
		
      The term of the loan shall commence on the date when the
      loan is actually released (hereinafter, the “Release Date”); and the
      Release Date and Due Date of the loan shall be subject to the certificate
      of indebtedness (IOU).

	 	 	 
	3. 	
      Lending Rate

	 	 	 
		a. 	
      The lending rate of the Contract shall be determined in
      accordance with the following standards, except that the lending rate of
      the first funding shall be subject to facts recorded in the IOU. (Please
      mark the selected option with "[X]")

	 	[X] 	30% percentage points [X]above [   ]
      below the benchmark rate on loan with the same term set by the People's
      Bank of China as published on the Release Date. 

	 	[   ] 	___ percentage points [   ] above [ 
       ] below the benchmark rate on loan with the same term set by the
      People's Bank of China as published on the Release Date. 
	 	 	 
	 	[   ] 	Benchmark rate on loan with the same term set
      by the People's Bank of China as published on the Release Date. 
	 	 	 
	 	[   ] 	___ percentage points [   ] above
      [   ] below the Libor on the Release Date (applicable to foreign
      currency loans only). 
	 	 	 
	 	b. 	The lending rate of the Contract shall be
      adjusted in the following manner: (Please mark the selected option with
      "[X]") 
	 	 	 
	 	[X]	Floating per day. The interest
      adjustment date shall be: 
	 	 	 
	 	(i) 	The day corresponding to the Release Date
      each month, or if the there is no corresponding day in the month,
      the last day in the corresponding month. 
	 	 	 
	 	(ii) 	January 1 each year. 
	 	 	 
	 	[   ] 	Flat rate. 
	 	 	 
	 	c. 	Conversion of daily interest rate: daily
      interest rate= annual interest rate/360 (days) 

	4. 	
      Intended Use of the Loan

	 	 	 
		
      The underlying loan shall be used for the (i)
      purpose:

	 	 	 
		(i) 	
      Working capital;

	 	 	 
		(ii) 	
      To use the underlying loan to repay the existing loan
      (i.e. transfer loan)/reorganization. In particular, the underlying loan
      shall be applied toward the repayment of credit extension under [insert
      name of the loan contract] numbered Shen Fa ____Zi No._____

	 	 	 
		(iii) 	
      [Insert other purpose]

	 	 
	Article 2	Release and Payment of the Loan 

	 	
       
	 	
       
	1. 	
      Party B may request Party A to release the loan under the
      Contract provided that the conditions set in the "a" Item are
      met:

	 	 	 
		a. 	
      The Contract has come into effect.

	 	 	 
		b. 	
      The Contract has come into effect and the relevant
      guaranty contract has been signed and necessary formalities such as
      registration or record filing and notarization have been
  completed.

	 	 	 
		c. 	
      _____________________________________________

	2. 	
      Payment of Loan proceeds

	(1) 	
      Payment Method

	 	 
		
      The Parties agree that the loan proceeds shall be paid in
      the following manner. (Please mark the selected option with
  "[X]")

	 	[  ] 	Entrusted payment in full amount, which means
      that Party A upon withdrawal request and payment authorization of Party B shall pay,
      through Party B's account, the loan proceeds to Party B's relevant
      counterparty who shall use the proceeds for the agreed purposes. 

	 	 	 
	 	[  ] 	Partial entrusted payment, which means that
      when there is a definite payee and the amount of a single payment is
      equivalent to over RMB _________ Ten Thousand Yuan (inclusive), Party A
      upon withdrawal request and payment authorization of Party B shall pay,
      through Party B's account, the loan proceeds to Party B's relevant
      counterparty who shall use the proceeds for the agreed purposes; the
      balance of the loan proceeds shall be paid by Party B at its own
      discretion(proprietary payment), which means that Party A upon Party B's
      withdrawal request shall release the loan proceeds to the account of Party
      B, who in its sole discretion will pay to its counterparty who shall use
      the proceeds for agreed purposes. 
	 	[X] 	Proprietary payment in full amount, which means
      that Party A upon Party B's withdrawal request shall release the loan
      proceeds to the account of Party B, who in its sole discretion will pay to
      its counterparty who shall use the proceeds for agreed purposes. 
	 	 	 
	 	[  ] 	_____________________________________________.
    

	(2) 	
      Management of Payments

	 	 	 	 
		a. 	
      If entrusted payment is adopted, Party B may request
      Party A to pay the loan proceeds provided that the following payment
      conditions are met:

	 	 	 	 
			(i) 	
      Party B submits the payment request and the business
      contract and/or other supporting documents in accordance with Party A's
      requirements, and the counterparty to the transaction, payment amount,etc
      listed in the payment request are consistent with those set out in the
      supporting documents;

	 	 	 	 
			(ii) 	
      The intended purpose of loan proceeds as set out in the
      payment request is consistent with the agreements in the
  Contract;

	 	 	 	 
			(iii) 	
      Party B has authorized Party A to pay the loan proceeds
      to a specific counterparty;

	 	 	 	 
			(iv) 	
      _____________________________________________.

Party A shall have the right to review and check whether the
payee, payment amount, etc listed in the payment request provided by Party B are
consistent with the information set out in the business contract and/or other
supporting documents, and have the right to refuse payment request in respect of
which the intended purpose of loan proceeds does not comply with the agreements
of the Contract. 

	 	b. 	
      If proprietary payment is adopted, Party B shall provide
      a summary report of loan proceeds payments to Party A each
      week/month/year, etc, and shall provide information of counterparty
      to the transaction, payment amount, etc as well as the relevant business
      contract and/or other supporting documents as requested by Party
  A.

	 	 	 
	 	c. 	
      Party B may not apply the loan proceeds toward
      investments in fixed assets, equity or otherwise, or use them in
      productions, operations or any other purposes which are banned by the
      PRC.

	(3) 	
      Changes to Payment Methods and Triggers of
  Changes

Upon any of the following circumstances, Party A is entitled to
adjust the amount of entrusted payment as agreed in Item (1) above, or may
change the payment method to entrusted payment in full amount: 

	 	a. 	
      In case where proprietary payment is adopted, Party B
      fails to provide summary reports of loan proceeds payments to Party A on a
      periodical basis as agreed, or refuse to provide assistances to Party A in
      account analysis, voucher inspection or on-site investigation or
      otherwise, the purpose of which are to check whether the loan proceeds are
      funded for the agreed purposes;

	 	 	 
	 	b. 	
      Party B, in breach of the Contract, circumvents entrusted
      payment of Party A by breaking up the whole into parts;

	 	 	 
	 	c. 	
      The credit standing of Party B deteriorates or the
      profitability of its primary business is underperforming;

	 	 	 
	 	d. 	
      The loan proceeds are applied in an abnormal
  way;

	 	 	 
	 	e. 	
      _____________________________________________.

	 	 
	Article 3	Account Management and Financial Indicators 

	 	
       
	 	
       
	1. 	
      Upon mutual consultation, Party B agrees to open the
      following account with Party A and accept supervision of Party A with
      respect to the same:

	 	 	 
		a. 	
      Upon request of Party A, Party B agrees to open with
      Party A an account dedicated for release of loan proceeds in the name of
      Guangdong Jinhao Motorcycle Co., Ltd. The account No. is
      11008873930306. The release and withdrawal of loan proceeds shall
      be processed through the account. Party A shall have the right of dynamic
      monitoring over the account and upon discovery of any abnormalcy, shall
      have the right to take measures, including without limitation, freezing
      the account and suspending payment.

	 	 	 
		b. 	
      Upon Party A's request, Party B agrees to open with Party
      A an account dedicated for capital returns.(Please mark the selected
      option with "[X]")

	 	[   ] 	The account dedicated for capital returns is
      the same with the account dedicated for release of loan proceeds as set
      out in Item "a" above; 
	 	 	 
	 	[X] 	The name of the account dedicated for capital
      returns is Guangdong Jinhao Motorcycle Co., Ltd. and the
      account No. thereof is 11008873930301. 

Capital returns to the account shall comply with the following
agreement: _____________________________________________. 

In the event that Party B fails to repay the loan due to Party
A as scheduled, Party A shall have the right to debit the due amount to apply it
toward repayment of principal and interest from the account dedicated for
capital returns and other account(s) that Party B opens with Party A. 

	2. 	
      Before the loan under the Contract is repaid in full, the
      financial indicators of Party B shall complied with the following agreed
      conditions:
  _____________________________________________.

	 	 
	Article 4	Settlement of Loan Interest 

	 	 	
       
	 	 	
       
	 	a. 	
      Interest of the loan shall be accrued from the Release
      Date based on actual release amount and actual term of loan. Interest
      shall be settled in the manner set out in (i) : 

	 	 	 	 
	 	 	(i)	The interest shall be settled once every month on the 20th
    .

	 		(ii) 	
      The interest shall be settled quarterly on the 20th
      of the last month of each quarter;

	 	 	 	 
	 		(iii) 	
      The interest shall be settled annually on the 20th
      of December of the year.

	 	 	 	 
	 	b. 	
      Before each interest settlement date, Party B shall
      deposit the payable interest into the account opened with Shenzhen
      Development Bank for debiting payments, from where Party A may directly
      debit the interest payments. If Party B fails to pay the interest as
      scheduled, Party A shall have the right to accrue compound interest on the
      due interest.

	 	 
	 	 
	Article 5	Repayment by Installment 

If the Parties agree that Party B may repay by installment,
Party B shall repay according to the following arrangements:
_____________________________________________. 

	Article 6	Applicable Law and Dispute Settlement 

This Contract is concluded in accordance with and shall be
governed by the laws of the People's Republic of China. Any dispute arising from
or in connection with the performance of the Contract shall be settled by the
Parties through consultation or mediation, failing which, it shall be settled in
accordance with the following Item "a": 

	 	a. 	
      Referred to the court at the place of Party A for
      litigation.

	 	 	 
	 	b. 	
      Referred to the arbitration commission at__________for
      arbitration.

	 	 	 
	 	c. 	
      _____________________________________________.

	 	 
	 	 
	Article 7	Notarization of Enforceability 

	 	 
	[  ] 	The Parties agree to complete notarization of
      enforceability for the Contract 

After the Parties complete notarization which effects the
enforceability of the Contract, if Party B fails to perform the obligations
hereunder either in part or in entirety, Party A shall have the right to apply
the enforceability certificate with the original notary public, and upon the
notary certificate and the enforceability certificate apply enforcement with the
court with competent jurisdiction (i.e. The court at the domicile or place of
property of the party subject to enforcement). 

	[X]	Notarization of enforceability is not required
      for the Contract. 

	Article 8  	Other matters agreed by the Parties include:	 
	
	 
	 
	 
	 
	 
	 

	 	 
	Article 9	This Contract is made in three originals with
the same legal force and effect. Party A shall hold two copies, each of Party B,
____, ____, ____ shall hold one copy. 
	 	 

	 	 
	Article 10	Interest-bearings Manner of Floating Rate 

In the case of floating rate for loans, the interest shall be
accrued as per the adjusted interest rate as from the date when the adjustment
occurs, provided that if the loan is repaid by installment (including equal
installments at fixed intervals and degressive installments at fixed intervals)
the interest shall not be accrued according to the adjusted rate until the
period immediately following the period during which the adjustment occurs, with
respect to which period the interest rate before adjustment shall still apply.

	Article 11	Credit Repayment 

	 	 	
       
	 	a. 	
      Party B shall repay all the principal and interest of the
      loan on and before the expiry date thereof; Party B shall give a one month
      notice to Party A and discuss with Party A regarding the repayment
      arrangements if it is difficult to make repayment as scheduled.

	 	 	 
	 	b. 	
      Any earlier repayment of Party B shall be applied with
      Party A in advance and subject to mutual agreement.

	 	 	 
	 	c. 	
      Party B hereby irrevocably authorizes Party A to debit
      all principal and interest of the loan that are due and payable, either as
      scheduled or ahead of schedule, from the account that Party B opens with
      Shenzhen Development Bank.

	 	 
	Article 12	Rights of Party B 

Party B has the rights to: 

	a. 	
      Withdraw and apply all loan proceeds in accordance with
      the Contract;

	 	 
	b. 	
      Refuse any additional conditions that are not set out in
      the Contract; and

	 	 
	c. 	
      Assign indebtedness to any third parties with written
      consent of Party A.

	 	 
	Article 13	Obligations of Party B 

Party B has the obligations to: 

	a. 	
      Truthfully provide documents and materials, information
      of all bank accounts and savings and loan balance as requested by Party A,
      and assist Party A in investigation, examination and check;

	 	 
	b. 	
      Provide Party A with the monthly financial statements and
      latest changes of registration in a timely manner;

	 	 
	c. 	
      Accept supervision and check of Party A over its
      application of loan proceeds as well as production, operating and
      financial activities, assist Party A in management of loan payments,
      after-funding management and relevant checks;

	 	 
	d. 	
      Apply the loan proceeds toward purposes agreed in this
      Contract;

	 	 
	e. 	
      Repay principal and interest of the loan in full amount
      in a time manner as agreed in this Contract;

	 	 
	f. 	
      Obtain the written consent of Party A before assigning
      the indebtedness hereunder either in part of in entirety to any third
      parties;

	g. 	
      Obtain the written consent of Party A and take safeguards
      to ensure the safe payment or repayment of principal and interests of the
      underlying loan and all other relevant costs in the event that Party B
      conducts significant property right transfer, system change,
      merger/consolidation, division, equity transfer, significant asset
      transfer, financing activities that materially increase the overall
      indebtedness, investment in other entities and any other acts that are
      sufficient to impact rights and interests of Party A; and

	 	 
	h. 	
      Inform Party A in a timely manner in the event that any
      significantly unfavorable matters that may affect the solvency occur to
      Party B.

	 	 
	Article 14	Special Provisions on Credit Extension to Group
    Clients and Related Transactions 

	 	
       
	1. 	
      A "group client" shall mean an enterprise or institution
      client with legal person status which:

	 	 	 
		a. 	
      Controls or is controlled by, directly or indirectly,
      another enterprise or institution with legal person status through equity
      holding or operation;

	 	 	 
		b. 	
      Is under common control of a third party enterprise or
      institution with legal person status;

	 	 	 
		c. 	
      Is directly under common control of or indirectly
      controlled by the major personal investor and/or any key senior executive
      or any family member who is in close relationship (by "close
      relationship", it shall mean immediate family member within three
      generations and collateral kinship within two generations )with the same;
      or

	 	 	 
		d. 	
      Shall be treated as group client in respect of credit
      extension management because it may be possible that assets and profit are
      not transferred at fair value price owing to other association
      relationship.

	2. 	
      If Party B is a group client, it shall provide a written
      report to Party A within 10 days after any related transaction the value
      of which accounts for over 10% of the net asset value of Party B occurs,
      which report shall contain descriptions of the association relationship of
      the trading parties, subject matter and nature of the transaction,
      transaction amount or relevant percentages and the pricing policy
      (including transactions which involve no amounts or symbolically minor
      amounts).

	Article 15 	Rights of Party A 

Party A has the rights to: 

	a. 	
      Request Party B to provide documents and materials
      related to the loan;

	 	 
	b. 	
      Request Party B to repay and pay principal and interest
      of the loan as scheduled;

	 	 
	c. 	
      Be informed of Party B's production, operating and
      financial activities as well as the plans of operation and repayment, and
      be entitled to after-funding management and relevant checks on Party
    B;

	 	 
	d. 	
      Supervise over Party B to ensure that it applies the loan
      proceeds toward intended purposes under the Contract, conduct management
      of loan payment over Party B, and in the case of proprietary payment, has
      the right to require periodical summary reports of loan proceeds payments
      from Party B and may check whether loan proceeds are paid and applied for
      agreed purposes through account analysis, voucher inspection or on-site
      investigation, etc.

	 	
       

	e. 	
      Directly debit the the principle and interest of the loan
      from Party B's account;

	 	 
	f. 	
      Require earlier repayment of loan from Party B or stop
      release of the part of loan proceeds which Party B has not used if Party B
      fails to perform obligations under this Contract;

	 	 
	g. 	
      Recover the loan ahead of schedule according to the
      capital returns of Party B;

	 	 
	h. 	
      Request Party B to pay and repay all the principal and
      interests of the underlying loan and all other relevant costs, or assign
      the indebtedness hereunder to assignee acceptable to Party A, or request
      Party B to provide guaranty measures acceptable to Party A in the event
      that Party B conducts significant property right transfer, system change,
      merger/consolidation, division, equity transfer, significant asset
      transfer, financing activities that materially increase the overall
      indebtedness, investment in other entities and any other acts that are
      sufficient to impact rights and interests of Party A;

	 	 
	i. 	
      Transfer, at its sole discretion, rights and obligations
      hereunder to third parties. In the case of such transfer, Party B shall be
      deemed given consent to the transfer;

	 	 
	j. 	
      Participate in financing of large amount, sales of
      significant assets, merger and acquisition, division, reformation into
      stock company, bankruptcy or liquidation proceedings, if any, of Party B,
      so as to protect the creditor's rights of Party
A.

	Article 16 	Obligations of Party A 

Party A has the obligations to: 

	a. 	
      Release the loan proceeds in accordance with the
      conditions set out in this Contract; and

	 	 
	b. 	
      Keep financial, production and operation information of
      Party B confidential, unless otherwise required by laws, regulations or
      regulatory bodies.

Article 17 Costs 

	a. 	
      All costs arising from credit standing investigation,
      examinations or checks, notarization, testimony, registration and
      otherwise in connection with this Contract shall be solely borne by Party
      B;

	 	 
	b. 	
      In the event that Party B fails to repay principal and
      interest of the loan when the same fall due, Party B shall bear and/or
      indemnify Party A against all costs necessary for calling the principal
      and interest, including without limitation, cost of releasing public
      announcement, cost for service of documents, appraisal cost, attorney
      fees, litigation cost, travelling expense, evaluation cost, auction cost,
      property preservation cost, and enforcement
cost.

	Article 18 	Party B shall open a settlement account with
      Party A and settle payments and receipts in connection with economic
      matters through the account. 

	Article 19 	Events of Default and Liability for Breach
  

	1. 	
      Events of Default

	 	 	 
		
      Under any one of the following circumstances, an event of
      default shall be deemed having occurred: 

	 	 	 
	 	a.  	Party B breaches any obligation which it should perform
      under this Contract, or explicitly declares or shows with its actions that it will not
      perform any obligation hereunder;

	 	b. 	
      Any relevant certification or document provided by or any
      representation, guarantee or undertaking made by Party B to Party A is not
      authentic, accurate or complete or contains false record, misleading
      representation or material omission;

	 	 	 
	 	c. 	
      Party B conceals the truth of significant circumstance,
      or fails to cooperate in Party A's investigation, examination and
      check;

	 	 	 
	 	d. 	
      Party B changes the intended purposes of the loan
      proceeds without consent, misappropriates the loan or uses the loan
      proceeds for illegal or non-compliant transactions;

	 	 	 
	 	e. 	
      Party B breaches the stipulations of this Contract on
      payment of loan proceeds;

	 	 	 
	 	f. 	
      Party B surmounts the financial indicators agreed in this
      Contract;

	 	 	 
	 	g. 	
      Party B fails to use foreign currency loan in accordance
      with the relevant administrative provisions of the PRC;

	 	 	 
	 	h. 	
      Any considerable change occurs to the preservation or
      custody and value of the mortgaged (pledged) properties;

	 	 	 
	 	i. 	
      Party B breaches any other similar contracts (including
      without limitation, credit extension contracts, loan contracts and
      guaranty contracts) signed with Party A or any third party or any
      securities of debt nature issued by Party B, or becomes involved into
      litigation or arbitration proceedings for any dispute arising from such
      contracts or securities;

	 	 	 
	 	j. 	
      The guarantor of Party B breaches the agreements in the
      guaranty contract (the guaranty contract can be in any such forms,
      including without limitation, contract of guarantee, mortgage or pledge)
      or incurs event of breach under the guaranty contract, or the contract has
      not come into effect, become invalid or revoked;

	 	 	 
	 	k. 	
      Party B is negligent in managing creditor's rights or
      exercising recourse when the same fall due, or has any act of malicious
      property transfer or evading indebtedness by disposing of major properties
      thereof for no considerations or unreasonably low price or with any other
      improper means;

	 	 	 
	 	l. 	
      Party B cheats fund or credit extension from Party A or
      any other banks with false contracts and arrangements with any third
      parties (including without limitation, related parties of Party B), which
      false contracts and arrangements include but are not limited to receivable
      notes not being backed by true deals, and discount on credits rights in
      any other forms or pledges, etc;

	 	 	 
	 	m. 	
      Party B intentionally evades or invalidates creditor's
      rights of the Bank by related transaction or otherwise;

	 	 	 
	 	n. 	
      Party B suffers financial crisis, e.g., the operation
      thereof is faced with significant problem, the financial status thereof
      deteriorates seriously, or significant financial or asset losses
      (including without limitation, asset losses arising from providing
      guaranty to third parties) occur;

	 	 	 
	 	o. 	
      Party B, owing to illegal or non-compliant operations,
      has been subject to administrative punishment or criminal sanction or is
      being investigated by relevant departments and may be possibly subject to
      administrative punishment or criminal sanction;

	 	 	 
	 	p. 	
      Party B is to undergo or subject to division,
      merger/consolidation, significant merger and acquisition, acquisition and reorganization, disposal of
      major assets, capital decrease, liquidation, restructuring or revocation,
      or is dissolved, being declared bankrupt or otherwise;

	 	q. 	
      The controlling shareholder or actual controller of Party
      B is changed, which in the opinion of Party A, has endangered or may
      endanger the realization of creditor's rights hereunder; or any
      significant events occur to the controlling shareholder or actual
      controller, or legal representative or any senior executives of Party B,
      which events including without limitation, having been subject to
      administrative punishment or criminal sanction owing to illegal or
      non-compliant operations or is being investigated by relevant departments
      and may possibly be imposed with administrative punishment or criminal
      sanction, being involved in litigation or arbitration case, serious
      deterioration of financial conditions, or declaring or being adjudicated
      bankruptcy or dissolution;

	 	 	 
	 	r. 	
      Any unfavorable change occurs to the sector that Party B
      engages in, which in the opinion of Party A, has endangered or may
      endanger the realization of creditor's rights hereunder;

	 	 	 
	 	s. 	
      Party B fails to handle settlement, savings or other
      related businesses with Party B in accordance with the agreements of the
      Parties; and

	 	 	 
	 	t. 	
      Other circumstances related to Party B which have
      endangered or may endanger the realization of creditor's rights
      hereunder.

	2. 	
      Liability for Breach

In the case where any event of default under the preceding
Paragraph of this Article occurs, Party B is entitled to one or more of the
following remedies and measures: 

	 	a. 	
      Claim acceleration of loan maturity to recover ahead of
      schedule part or all of the released principal and interest thereon of the
      loan and request payment of relevant costs, including without limitation,
      costs arising from credit standing investigation, examination and
      notarization in connection with this Contract, as well as the attorney
      fees, litigation cost, arbitration cost, travelling expense, announcement
      cost, costs for service of documents, enforcement costs and any other
      costs incurred by Party A in connection with realization of the creditor's
      rights;

	 	 	 
	 	b. 	
      Stop or terminate the release or payment of any monies
      hereunder that have not been released or paid;

	 	 	 
	 	c. 	
      Debit principal, interest and costs of the loan directly
      from the account of Party B or the guarantor;

	 	 	 
	 	d. 	
      Request Party B to furnish, against the creditor's rights
      hereunder, new guaranty satisfactory to Party A;

	 	 	 
	 	e. 	
      Exercise rights in connection with the guaranty,
      requiring the guarantor to perform guaranty duties or realizing the
      creditor's rights by disposing of the mortgaged and/or pledged
      properties;

	 	 	 
	 	f. 	
      Accrue, as from the due date and for the actual number of
      days of delay payment, interest on the principal of the due loan based on
      the lending rate set out herein plus 50% penalty interest rate, and accrue
      compound interest on the interest which fails to be paid as scheduled
      based on the penalty interest rate, in the event that Party B fails to
      repay principal and interest of the loan as agreed when the loan falls due
      as scheduled or ahead of schedule;

	 	 	 
	 		
      Where the repayment of the loan is delayed for not more
      than 90 days (inclusive), the money repaid from Party B shall be applied in the following
      order: (i) interests (including penalty interest and compound interest),
      and (ii) principal. Where the repayment of the loan is delayed for over 90
      days, the the money repaid from Party B shall be applied in the following
      order: (i)principal; and (ii) interests (including penalty interest and
      compound interest).

	 	g. 	
      In the case where Party B misappropriates the loan
      proceeds, Party A shall have the right to accrue, as from the
      misappropriation date and for the actual number of misuse, interest on the
      part of proceeds which is used against agreements based on the lending
      rate set out herein plus 100% penalty interest rate, and accrue compound
      interest on the interest which fails to be paid as scheduled based on the
      penalty interest rate;

	 	 	 
	 	h. 	
      Claim subrogation right against debtors of Party B, in
      which case Party B should provide all necessary cooperation and assistance
      as per Party A's request and solely bear all costs incurred by Party A in
      exercising the subrogation right;

	 	 	 
	 	i. 	
      Request the court to revoke such acts of Party B as
      waiving creditor's rights which fall due, property transfer for no
      considerations, or property transfer at conspicuously unreasonable low
      price. In this case, Party B should provide all necessary cooperation and
      assistance as per Party A's requirements and solely bear all costs
      incurred by Party A in connection therewith; and

	 	 	 
	 	j. 	
      Other remedies vested in Party A by laws or agreements of
      the Parties.

	Article 20 	Revision and Terminate of the Contract
  

The Parties may revise or terminate this Contract based on
mutual understanding, provided always that the agreements of revision or
termination shall be in written from. 

	Article 21 	Representations, Guarantee and Undertakings of
      Party B 

	a. 	
      Party B is a company legally incorporated in its
      incorporation jurisdiction and has effective existence, good standing and
      all corporate rights, government permits and approvals to engage in the
      businesses that it practices for the time being;

	 	 
	b. 	
      Party B has all legal authority, rights and authorization
      to sign, deliver and perform this Contract. This Contract constitutes an
      agreement effective and binding on Party B, and may be enforced against
      Party B in accordance with the terms and conditions set forth
    herein;

	 	 
	c. 	
      Party B guarantees that all materials provided to Party A
      are authentic, complete, legitimate and effective, free or any false
      record, misleading representation or material omission;

	 	 
	d. 	
      Party B hereby undertakes that it will fully perform all
      obligations hereunder with good faith, and refrain from any acts or
      omissions (including omission of any acts required to be done, or doing
      any impermissible acts) which may endanger the realization of creditor's
      rights hereunder without prior written consent of Party A;

	 	 
	e. 	
      Party B hereby undertakes that it will notify Party A in
      writing within ten days after any changes to the domicile, contract
      address, telephone, business scope, legal representative, etc. If Party B
      fails to perform the said notification obligation, any notices and
      documents from Party A shall be deemed duly served when they are delivered
      to the original contract address; and

	 	 
	f. 	
      Party B hereby acknowledges that it has carefully read
      and thus is fully aware of and understand all terms and contents of this Contract, and that it signs the
Contract at its true will. 

	 	 
	Article 22 	Miscellaneous 

	a. 	
      Any tolerance or grace given by Party A to any breach or
      delay of Party B or any delay of Party A in exercising the rights
      hereunder during the term of the Contract shall not prejudice, affect or
      restrict any rights invested in Party A by this Contract and relevant
      laws, or be deemed as Party A's consent or connivance of any acts
      destructive to the Contract, or deemed as Party A's waiver of actions
      against existing or future breaches of Party B.

	 	 
	b. 	
      In the event that this Contract, either in part or in
      entirety, becomes legally invalid for any reason whatsoever, Party B shall
      nevertheless perform all repayment duties hereunder, and Party A has the
      right to terminate the Contract and immediately thereupon be entitled to
      recourse against Party B for all principal and interest of the underlying
      loan and all other relevant monies.

	 	 
	c. 	
      All notices and requests of Party A and Party B in
      connection with this Contract shall be in written form.

	 	 
	d. 	
      In the event that any date stipulated by this Contract or
      the last day of any stipulated period happens to be a statutory holiday,
      the date shall be postponed to the first workday after the statutory
      holiday (period).

	Article 23 	Conditions or Effectiveness and Termination of
      the Loan Contract 

	a. 	
      Effectiveness conditions of the Contract: this Contract
      shall become effective immediately after being signed by the Parties (the
      authorized signatories should personally sign or stamp the Contract and
      affixed it with official seals).

	 	 
	b. 	
      Termination conditions of the Contract: this Contract
      shall terminate immediately after Party B repays all principal and
      interest of the underlying loan and all other
costs.

Party A (Stamp): 

Signature: Company Seal of Shenzhen Development Bank Co., Ltd.
Guangzhou Dongshan Branch 

Date of Execution: July 1, 2010 

 

Party B (Stamp): 

Signature: /s/ Tsoi Man Hoo (company seal of Guangdong Jinhao
Motorcycle Co., Ltd.) 

Date of Execution: July 1, 2010Jinhao Motor Company: Exhibit 10.16 - Filed by newsfilecorp.com

Exhibit 10.16

 

LOAN AGREEMENT 

NO. Si Hui (Da Wang) Nong Xin (2009) Jie Zi No.
14077 

 

 

	BORROWER: 	Guangdong Jinhao Motorcycle Co., Ltd.
  
	 	 
	LENDER: 	Rural Credit Cooperative of Sihui, Dawang
      Credit Association 

LOAN AGREEMENT

Guangdong Jinhao Motorcycle Co., Ltd.(the
“Borrower”), 

ID card/enterprise legal person No. 441200400008320,

Legal representative (person in charge): Tsoi Man
Hoo           Title:
Chairman 

Domicile: Zhaoqing High-Tech
Zone,                                  
Post Code: __________________________________

Tel:__________________________________               
 Fax:__________________________________

 

And 

 

Rural Credit Cooperative of Sihui, Dawang Credit Association
(the “Lender”) 

Domicile:
Dawang                                                                                                
Post Code: __________________________________

Tel:______________________________________________    
 Fax:__________________________________

WHEREAS the Borrower applies for loan from the Lender, and the
Lender agrees upon approval to issue the loan as prescribed in the Agreement,

WHEREAS under the principle of equality and free will, honesty
and good faith, in accordance with pertinent laws, regulations and rules and
through consultation, both parties hereby enter into this Agreement for strict
implementation. 

	Article 1 	Types and Purposes of the Loan
    

	1.1 	
      The type of the Loan hereunder shall be incremental
      borrowing (incremental borrowing, repaying the old debts, borrowing a new
      loan to repay the old debts, repaying the old and borrowing new debts,
      change to the parties to the loan agreement)

	 	 
	1.2 	
      The Purpose of the Loan hereunder is for financing
      working capital requirements of the
Borrower.

Without the Lender’s written consent, the Borrower shall not
use the Loan for any other purpose and the Lender is entitled to supervise the
use of the Loan. 

	Article 2 	Currency and Amount of the Loan
  

	2.1 	
      The Currency of the Loan shall be RENMINBI.

	 	 
	2.2 	
      The amount of the Loan shall be RENMINBI EIGHTTEEN
      MILLION ONLY, 18,000,000.

	Article 3 	Term of the Loan 

The Term of the Loan shall be three (3) years
(month/year), calculated from 8 April, 2009 to 1 April, 2012.

The Receipt of the Loan is an integral part of this Agreement
and shall have the same legal effect as this Agreement. If there is any
difference in the term, value amount, interest rate or currency prescribed in
the Agreement and those prescribed in the Receipt of the Loan, the latter shall
prevail. 

	Article 4 	Method of Disbursement

The Borrower authorizes the Lender to directly remit the Loan
to the follow account: 

Name of account: Guangdong Jinhao Motorcycle Co., Ltd.

No. of account/card: 5988021401301000008957 

Deposit bank: Dawang Credit Association 

	Article 5 	Interest Rate 

	5.1 	
      The interest rate of the Loan shall be the basis lending
      rate of the same period and the same level issued by the People’s Bank of
      China plus 55% . Thus, the annual interest rate shall be
      6.975%, and shall be converted by the following formula: monthly
      interest rate = annual interest rate/12, daily interest rate = annual
      interest rate/360.

	 	 
	5.2 	
      If the basis interest rate is adjusted and such
      adjustment is applicable to the Loan before the issuance of the Loan, the
      adjusted basis interest rate shall be adopted and the lending rate shall
      be re-determined as stipulated in Paragraph 1 of this Article. If the
      basis rate is adjusted after the issuance of the Loan, the lending rate
      shall be adjusted in Method D below:

	 	A. 	
      The interest rate shall be determined per year and be
      calculated by section within the loan term. If the loan term is less than
      one (1) year, including one (1) year, the interest rate of this Agreement
      shall be implemented and shall not be calculated by section. If the loan
      term is more than one (1) year, new interest rate shall be determined and
      implemented in accordance with the adjusted basis rate and the rate
      floating ratio as agreed in Paragraph 1 of this Article commencing from
      January 1 of the year after the date of each adjustment of the basis
      interest rate. Such adjustment is not subject to the Borrower’s consent,
      nor is it necessary to give a separate notice to the Borrower. If the
      basis rate is adjusted for two times or more than two times within one
      calendar year, the basis rate of the last adjustment within that calendar
      year shall prevail.

	 	 	 
	 	B. 	
      The interest rate shall be determined per quarter and be
      calculated by section within the loan term. If the loan term is less than
      one (1) quarter, including one (1) quarter, the interest rate of this
      Agreement shall be implemented and shall not be calculated by section. If
      the loan term is more than one (1) quarter, new interest rate shall be
      determined and implemented in accordance with the adjusted basis rate and
      the rate floating ratio as agreed in Paragraph 1 of this Article
      commencing from the first day of the quarter after the date of each
      adjustment of the basis interest rate. Such adjustment is not subject to
      the Borrower’s consent, nor is it necessary to give a separate notice to
      the Borrower. If the basis rate is adjusted for two times or more than two
      times within one calendar quarter, the basis rate of the last adjustment
      within that calendar quarter shall prevail.

	 	 	 
	 	C. 	
      The interest rate shall be determined per month and be
      calculated by section within the loan term. New interest rate shall be
      determined and implemented in accordance with the adjusted basis rate and
      the rate floating ratio as agreed in Paragraph 1 of this Article
      commencing from the first day of next month following each adjustment of
      the basis interest rate. Such adjustment is not subject to the Borrower’s
      consent, nor is it necessary to give a separate notice to the Borrower. If
      the basis rate is adjusted for two times or more than two times within one
      calendar month, the basis rate of the last adjustment within that calendar
      month shall prevail.

	 	D. 	
      The interest rate shall not be adjusted (That is, fixed
      interest rate shall be adopted).

	 	 	 
	 	E. 	
      Others:

	5.3 	
      The basis rate refers to the lending rate of loan in the
      same period and of the same level issued by the People’s Bank of China; If
      the People’s Bank of China no longer issues the lending rate of loan in
      the same period and of the same level, the basis rate shall be the lending
      rate of loan in the same period and of the same level generally accepted
      by the banking industry, unless otherwise agreed upon by both
    parties.

	Article 6 	Conditions Precedent

Unless wholly or partially waived by the Lender, all the
following conditions should be satisfied before the Lender is obligated to
disburse the Loan to the Borrower. (The Lender’s disbursement of loan in absence
of full satisfaction of the following conditions shall not constitute default in
the Lender’s performance of obligations hereunder.) 

	6.1 	
      The Borrower opens a basic account at the
      Lender.

	 	 
	6.2 	
      The Borrower has completed legal procedures including but
      not limited to procedures in respect of approval, registration, and
      delivery of the Loan hereunder in compliance with pertinent laws and
      regulations and specific requirements of the Lender.

	 	 
	6.3 	
      In case that there is guarantee on this Agreement, the
      guarantee that meets the Lender’s requirements has taken effect and
      remains effective.

	 	 
	6.4 	
      The Agreement has become effective and the Borrower has
      not done any of the defaulting conducts stipulated herein.

	 	 
	6.5 	
      The Borrower has provided the Lender with the documents
      and materials required by the Lender and such documents and materials have
      been examined and approved by the Lender.

	 	 
	6.6 	
      Other conditions precedent to the disbursement of the
      loan agreed upon by both parties:

	 	 
	 	 
	 	 
	 	 

	Article 7 	Repayment

	7.1 	
      Principles of repayment: Unless otherwise agreed upon by
      the Borrower and the Lender, the following principles shall be complied
      with: pay the interests first, then the principal; the interests shall be
      paid off together with the principal.

	 	 
	7.2 	
      Payment of interests: The interests shall be calculated
      from the date of actual disbursement (date of value) in accordance with
      the actual amount of loan and the actual number of days of loan. The loan
      shall be settled A (A. every month; B. every quarter; C. every
      year; D. by paying the interests together with the principal). In case of
      settlement every month/quarter/year, the date of interest settlement shall
      be fixed as the twenty-first day of every A (A. month; B.
      last month of the quarter; C. last month of the year). The Borrower shall
      pay the interests on every date of interest settlement; if the last date
      of principal repayment is not the date of interest settlement, the unpaid
      interests shall be paid together with the principal. Failure to pay the
      interests within the stipulated time shall be deemed as
  default.

	7.3 	
      Payment of principal: The principal shall be repaid by
      the Borrower in the second method
below:

	 	7.3.1 	
      The Borrower shall pay off all the principals in a lump
      sum upon the expiry of the term of loan.

	 	 	 
	 	7.3.2 	
      Plan of repayment in installment: The Borrower shall
      repay the principal in accordance with the loan certificates and/or the
      plan of repayment in installment indicated in the Annex-Plan of Repayment
      in Installment.

	7.4 	
      Method of repayment: The Borrower shall raise the fund
      prior to the interest settlement date and the date of repayment stipulated
      herein and deposit the money into the repayment account opened at the
      Lender. The Borrower authorizes the Lender to, on the interest settlement
      date and the repayment date, directly deduct corresponding principals and
      interests and other payable amount from the account that is confirmed to
      be repayment account in the Lender’s system. For such authorization no
      power of attorney needs to be issued. If the repayment account is an
      account of a thirty party other than the Lender, such third party shall
      issue a power of attorney, authorizing the Lender to deduct the amount
      payable by the Borrower from such account. If the Borrower’s repayment
      account is reported lost, frozen, cancelled or the Borrower needs to
      change the repayment account, the Borrower shall promptly notify the
      Lender and apply for formalities of alteration registration. Before such
      registration becomes effective, if it is impossible to deduct payment from
      the original repayment account, the Borrower shall make payment at the
      business office designated by the Lender and liabilities regarding the
      failure to deduct money shall be assumed solely by the Borrower.

	 	 
		
      Should the Borrower fail to make payment on time, the
      Lender has the right to directly deduct the interest and principal of the
      loan, breach penalty and any other payable amount from any account of the
      Borrower in the Lender’s system of rural credit
  cooperatives.

	Article 8 	 Prepayment and Extension of
      Loan 

	8.1 	
      Upon giving five (5) days’ written notice in advance and
      approval by the Lender, the Borrower may prepay all or any portion of the
      Loan.

	 	 	 
	8.2 	
      The Borrower may prepay the principal provided that the
      Borrower has paid off the entire amount due and payable to the Lender. The
      Borrower shall settle the payable amount of that period before its
      prepayment of a portion of principal. With respect to the principal
      prepaid by the Borrower, the Lender shall charge interests on the basis of
      the lending rate implemented in the Agreement at the time of prepayment
      and the amount of prepaid principal, and the days shall be days of actual
      possession of the amount commencing from the last interest settlement date
      to the date of prepayment. The loan interests charged and collected before
      that time shall not be adjusted.

	 	 	 
	8.3 	
      In case of the Borrower’s prepayment, the Lender shall be
      entitled to collect liquidated damages on prepayment in accordance with
      the ____ method:

	 	 	 
		8.3.1 	
      In case of prepayment within ____ month(s) after the
      actual disbursement, liquidated damages = prepaid amount * _%; In case of
      prepayment ____ month(s) after the actual disbursement, liquidated damages
      = prepaid amount * _%.

	 	 	 
		8.3.2 	
      Other methods:
	 
	 	 	 
	 	 	 
	8.4 	
      If the Borrower can not pay the principals and interests
      of the Loan hereunder within the stipulated term and needs an extension of
      Loan, the Borrower shall submit a written application thirty
  (30) days prior to the expiry date of Loan. If the Lender agrees on
the extension upon examination, a loan extension agreement shall be entered into
by and between both parties. If the Lender refuses to make an extension, the
Borrower shall still be liable for repayment of the principals and interests in
accordance with the Agreement. 

	 	 
	Article 9 	Guarantee of the Loan

	9.1 	
      The Borrower must provide guarantee for the performance
      hereunder in accordance with the Lender’s requirements. Methods of
      guarantee hereunder may be any one or a portfolio of the following
      methods: guarantee, mortgage, pledge or other methods of
  guarantee.

	 	 
	9.2 	
      See guarantee methods and specific contents of guarantee
      hereunder in the guarantee provisions herein and provisions including but
      not limited to the following guarantee agreements and documents:

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

	9.3 	
      The Borrower hereby confirms that the Lender may, at its
      discretion, choose to exercise all or any portion of the rights in the
      guarantee agreements and documents referred hereto for the purpose of
      realization of the Lender’s credits, and the Borrower waives any defense
      against the Lender’s option mentioned above.

	Article 10 	Rights and Obligations of the Borrower
    

	10.1 	
      The Borrower shall be entitled to obtain and use the Loan
      as agreed herein.

	 	 
	10.2 	
      Unless otherwise stipulated by laws, regulations, rules
      and/or this Agreement, the Borrower shall be entitled to require the
      Lender to keep confidential the individual or enterprise information in
      respect of family assets, financial materials, production and operation,
      etc. The Lender, if authorized by the Borrower, may disclose to the public
      material related to the Borrower within the scope of
  authorization.

	 	 
	10.3 	
      The Borrower shall timely return the principals and
      interests in full in accordance with the Agreement.

	 	 
	10.4 	
      The Borrower shall use the Loan for the purposes agreed
      in this Agreement and shall not use the Loan for any purpose other than
      those agreed herein. The Borrower shall guarantee that the purposes agreed
      herein comply with laws, regulations, rules, industrial codes and the
      Borrower’s articles of association and bylaws, and have obtained relevant
      licenses and authorization.

	 	 
	10.5 	
      The Borrower shall guarantee that all the documents,
      materials and information provided by it to the Lender or any person
      designated by the Lender are true, reliable and effective without any
      forge, fraud or concealment. The Borrower shall provide the Lender with
      materials and information including but not limited to reports,
      statements, certificates and documents in respect of the Borrower’s
      business status, financial status, and shall guarantee that these
      materials and information are accurate, true, complete and
    effective.

	 	 
	10.6 	
      The Borrower shall actively cooperate with the Lender and
      its authorized agent in their investigation into, understanding of and
      supervision on the Borrower and
guarantor/securities’ production and operation, financial activities and use of the Loan hereunder.

	
10.7 		
If the Borrower conducts any of the following activities prior to its full settlement of the principals and interests hereunder, the Borrower shall give prior notice to the Lender. Unless it has obtained the Lender’s prior
consent and guarantee is provided in compliance with the Lender’s requirements, and the liability for debt payment or prepayment is specified, the Borrower shall not implement the following activities:

	
	 	 	 
		
10.7.1 		
To reduce the registered capital in any manner, to undergo any important system change such as division, merger, restructure, and stockholding system reform, or to apply for or undergo procedures like winding up, dissolution,
liquidation and bankruptcy;

	
	 	 	 
		
10.7.2 		
To implement important events with respect to external investment and asset transfer;

	
	 	 	 
		
10.7.3 		
To carry out transactions of ownership and operation rights by means of lease, contract, joint-operation and trusteeship;

	
	 	 	 
		
10.7.4 		
To carry out important equity changes such as equity adjustment or equity transfer;

	
	 	 	 
		
10.7.5 		
To carry out any other activity that might cause change to the rights and obligations hereunder or might affect the realization of the Lender’s credits.

	
	 	 	 
	
10.8 		
If any of the following circumstances occurs to the Borrower or in case of any event that might endanger the Borrower’s normal operation or its performance of repayment obligation hereunder, the Borrower shall notify the
Lender in writing and shall, in accordance with the Lender’s requirements, actively raise funds for the repayment of principals and interests hereunder and implement safeguarding measures necessary for the full payment of payables within
stipulated time:

	
	 	 	 
		
10.8.1 		
There is any defaulting event arising from the loan agreements, credit line agreements and the credit agreements and guarantee agreements thereunder concluded by the Borrower with banks and other financial institutions and any
other financing agreements concluded by the Borrower with other creditors.

	
	 	 	 
		
10.8.2 		
There is any change to the Borrower’s name, legal representative(person in charge), domicile, operation scope, affiliation, major business scope, list of directors and officers, amendment to the joint venture contract or the
company’s articles of association or adjustment to the internal organizational structure;

	
	 	 	 
		
10.8.3 		
The Borrower or its major leader is involved in any event violating discipline or law, or is claimed against;

	
	 	 	 
		
10.8.4 		
The Borrower has serious difficulties in business operation and its financial status deteriorates;

	
	 	 	 
		
10.8.5 		
Prior to the settlement of the debts hereunder, the Borrower has assumed or will assume debts, contingent debts or provide mortgage or pledge to a third party;

	
	 	 	 
		
10.8.6 		
There is any litigation or arbitration to the Borrower with respect to significant disputes over credits and debts;

	
	 	 	 
		
10.8.7 		
Any other event that might affect the Borrower’s financial status and its capacity of paying off its debts.

	
	 	 	 
	
10.9 		
If, prior to the full repayment of principals and interests hereunder, the Borrower provides guarantee to others’ debts or mortgage or pledge its major assets to a third party and might affect its capacity of repaying
principals and interests hereunder, the Borrower shall give a seven (7) days’ prior notice to the Lender in writing and shall not carry out such activities unless and until it has obtained the Lender’s written consent.

	

	10.10 	
      The Borrower and its investors shall not withdraw the
      capital, transfer the assets or transfer the equity without authorization
      so as to avoid payment of the debts owed to the Lender.

	 	 
	10.11 	
      If the Borrower’s operation results of the relevant
      accounting year are insufficient to pay off the principals and interests
      and other costs and expenses payable by the Borrower to the Lender upon
      the expiry of such accounting year in accordance with this Agreement, the
      Borrower shall not distribute any dividends or bonus to its shareholders
      or investors.

	 	 
	10.12 	
      The Borrower shall not dispose its assets in any manner
      that might endanger its capacity of paying off its debts and shall not
      provide others with any guarantee that is beyond its capacity.

	 	 
	10.13 	
      The Borrower shall assume costs and expenses with respect
      to legal services, insurance, transportation, evaluation, registration,
      custody, appraisal, notarization, etc. and costs and expenses arising from
      the Lender’s recovery of its credits hereunder attributable to the
      Borrower’s fault.

	 	 
	10.14 	
      The Borrower shall keep confident relevant business
      secrets of the Lender.

	 	 
	10.15 	
      Transfer of its debts hereunder to a third party by the
      Borrower shall be subject to the Lender’s written consent.

	 	 
	10.16 	
      The Borrower shall ensure that information provided by
      the Borrower, including but not limited to its address, contact
      information, business license, personal identification card are true,
      accurate and legal and shall guarantee to give written notice to the
      Lender within five (5) days as of the date of the change to such
      information. The Borrower shall guarantee that the Borrower can receive
      the certificates sent by the Lender making claims in accordance with the
      aforesaid information. If the Borrower fails to receive the certificates
      by which the Lender make claims due to errors in the aforesaid information
      or failure to timely update such information, the consequences shall be
      borne by the Borrower.

	Article 11 	Rights and Obligations of the
      Lender

	11.1 	
      The Lender shall be entitled to investigate the
      Borrower’s conditions with respect to production and operation, financial
      activities, inventories and its use of the Loan, and to require the
      Borrower to regularly provide documents, materials and information such as
      financial statements.

	 	 
	11.2 	
      With respect to collection or pre-collection of the
      principals, interests, penalty interests, compound interest and other
      costs and expenses payable by the Borrower in accordance with the
      Agreement, the Lender may directly deduct such amount from any account
      opened by the Borrower in the rural credit association system to which the
      Lender is affiliated to and the deduction certificate is not subject to
      the Borrower’s signature and confirmation.

	 	 
	11.3 	
      If the amount repaid by the Borrower is insufficient to
      pay off its payables hereunder, the Lender shall operate under the
      principle of “pay the interests first, and then pay the
  principals”

	 	 
	11.4 	
      If the Borrower defaults, conducts any activities or gets
      involved in any circumstances that might have negative effect on the
      safety of the loan, the Lender may stop disbursement or require the
      Borrower to pay the principals, interests and relevant expenses and costs
      in advance.

	 	 
	11.5 	
      In any of the following circumstances, the Lender may
      recover the principals and interests in advance or require the Borrower to
      timely provide other guarantee acceptable to the Lender: the guarantor
      hereof stops production, suspends business, is cancelled of registration,
      is cancelled of business license, goes bankrupt, is cancelled or has
      business losses, wholly or partially loses the guaranty capacity that
      matches with the Loan; the value of the guarantees pledged property or the
      pledged rights hereunder is reduced, damaged or lost in incident; other
      guarantee is in risk.

	11.6 	
      If the Borrower fails to perform its obligation of
      repayment, the Lender may disclose the Borrower’s default to the public,
      or provide relevant information to the reminding institution for the
      purpose of reminding and the Lender shall not assume any liability for any
      effect on the Borrower arising therefore.

	 	 
	11.7 	
      The Borrower may, in accordance with pertinent laws,
      regulations and other regulatory documents, provide the information with
      this Agreement and other relevant information to the People’s Bank of
      China’s basic database for individual credit information and basic
      database for enterprise credit information and other credit databases
      established in accordance with laws for reference and use by qualified
      institutions and individuals. The Lender may, for the purpose of the
      conclusion and performance of the Agreement, check information regarding
      the Borrower and the guarantor through the People’s Bank of China’s basic
      database for individual credit information and basic database for
      enterprise credit information as well as other credit information database
      that are legally established..

	 	 
	11.8 	
      Save for delay at the Borrower’s fault, the Lender shall
      make full disbursement to the Borrower on schedule provided that the
      Borrower meets all the obligations hereunder and all the conditions for
      disbursement are satisfied.

	 	 
	11.9 	
      Other rights and obligations stipulated by laws,
      regulations and this Agreement.

	Article 12 	Defaulting Events

	12.1 	
      Any of the following circumstances shall constitute the
      Borrower’s default under this Agreement:

	 	 	 
		12.1.1 	
      The Borrower provides the Lender with false materials,
      information, or intentionally conceals material facts relating to the
      conclusion of this Agreement;

	 	 	 
		12.1.2 	
      The Borrower fails to use the Loan for the purpose agreed
      in the Agreement;

	 	 	 
		12.1.3 	
      The Borrower fails to repay or pay the principals,
      interests, costs and expenses and other payables in accordance with this
      Agreement;

	 	 	 
		12.1.4 	
      The Borrower breaches any other loan contract or
      guarantee contract, or the guarantor breaches the guarantee contract and
      might affect the Borrower’s performance of its obligations
    hereunder;

	 	 	 
		12.1.5 	
      The value of the mortgages or pledges hereunder reduces
      obviously and affects the Lender’s rights and the mortgagor the pledgeor
      fails to add corresponding guarantee;

	 	 	 
		12.1.6 	
      The business operation status or the financial status of
      the Borrower and/or its family deteriorates, or loses its business
      reputation;

	 	 	 
		12.1.7 	
      The Borrower transfers the properties, withdraws the
      capital or conducts any other activity to avoid payment of its
    debts;

	 	 	 
		12.1.8 	
      The Borrower and/or its family has any dispute,
      litigation, arbitration with a third party or is imposed with
      administrative punishment or there is any event that the Lender believes
      will pose threat to or exert adverse effect on the Lender’s rights and
      interests and might affect the Borrower’s performance of its obligations
      hereunder;

	 	 	 
		12.1.9 	
      The Borrower has lost or will lose its capacity of
      repayment;

	 	 	 
		12.1.10 	
      Prior to the expiry of the loan term, the Borrower
      expressly states or indicates with its conduct that it will not perform
      its major obligation under this Agreement;

		12.1.11 	
      All or any portion of the guarantee provisions or the
      guarantee documents fail to take effect, become invalid or are cancelled
      and the Borrower fails to add new guarantee as required by the
    Lender;

	 	 	 
		12.1.12 	
      There is any other event that might affect the Borrower’s
      capacity of repayment;

	 	 	 
		12.1.13 	
      The Borrower breaches any other obligation stipulated in
      this Agreement.

	 	 	 
	12.2 	
      Any of the following circumstances shall constitute the
      Lender’s default:

	 	 	 
		12.2.1 	
      The Lender fails to provide funds as agreed
  herein;

	 	 	 
		12.2.2 	
      The Lender adds or adds in disguised form the interests
      or other costs and expenses beyond the scope of lending rate floating
      stipulated by the People’s Bank of China and in violation of this
      Agreement.

	13. 	
      Liability for Breach of Agreement

	 	 
	13.1 	
      If any of the defaulting events occurs to the Borrower,
      the Lender may (rather than must) take any of the following measures
      separately or aggregately:

	 	13.1.1 	
      To demand the Borrower to correct its default within
      stipulated time and indemnify corresponding losses;

	 	 	 
	 	13.1.2 	
      To cease to disburse the Loan;

	 	 	 
	 	13.1.3 	
      To declare the prompt expiry of the loan term and require
      the Borrower to promptly return all the principals, interests, and
      relevant costs and expenses;

	 	 	 
	 	13.1.4 	
      To transfer amount in any currency from the Borrower’s
      account opened at the rural credit association system that the Lender is
      affiliated to for the purpose of payment of principals, interests and
      other amount payable by the Borrower;

	 	 	 
	 	13.1.5 	
      To demand the Borrower to provide new guarantee for all
      the debts hereunder in accordance with the Lender’s
requirements;

	 	 	 
	 	13.1.6 	
      To exercise its guarantee rights;

	 	 	 
	 	13.1.7 	
      If the Borrower fails to pay the principals in full, the
      Lender shall be entitled to collect interests on the principals overdue by
      9‰ per day commencing from the day overdue.

	 	 	 
	 	13.1.8 	
      If the Borrower fails to pay the interest on schedule,
      the Lender may collect compound interests on the unpaid interests by ___
      per day;

	 	 	 
	 	13.1.9 	
      If the Borrower fails to use the Loan in compliance with
      the purposes stipulated in this Agreement, the Lender shall be entitled to
      collect penalty interests by 9‰ per day on the amount that the
      Borrower has used for any other purpose, commencing from the date that the
      Loan is used for any other purpose to the date when the Borrower corrects
      such wrong behavior.

	 	 	 
	 	13.1.10 	
      If the Borrower breaches any of its obligations
      hereunder, in addition to the collection of interests, compound interests
      and penalty interests stipulated in Subparagraphs (7), (8) and (9) of this
      Paragraph, the Lender shall be entitled to collect liquidated damages by
      __ per day on the basis of the involved principals;

	 	 	 
	 	13.1.11 	
      To discharge the loan relationship with the
    Borrower;

	 	 	 
	 	13.1.12 	
      To take any other measures stipulated in this Agreement
      or allowed by laws.

	13.2 	
      If the Lender conducts any activity stipulated in
      Paragraph 2 of Article 12 hereof, the Borrower may take the following
      measures separately or aggregately:

	 	 	 
		13.2.1 	
      To demand the Lender to correct its default within
      stipulated time;

	 	 	 
		13.2.2 	
      To make prepayment.

	13.3 	
      If the Lender takes measures such as litigation and
      arbitration to realize its credits due to the Borrower’s breach of
      contract, the Borrower shall assume legal costs, attorney’s fees,
      traveling expenses and other costs and expenses arising from realization
      of the Lender’s credits suffered by the
Lender.

	Article 14 	Governing Law and Dispute
      Settlement 

	14.1 	
      Conclusion, change, amendment, supplementation, validity,
      interpretation, performance and enforcement of this Agreement shall be
      governed by the laws of the People’s Republic of China.

	 	 	 
	14.2 	
      Any dispute arising from or related to this Agreement may
      be solved through negotiation between both parties. If the negotiation
      fails or either party is unwilling to negotiate, the dispute shall be
      solved in the second method:

	 	 	 
		14.2.1 	
      Submitting the case to ________________Arbitration
      Commission for arbitration in_________.

	 	 	 
		14.2.2 	
      Bringing the case to the people’s court in the area where
      the Lender is located.

	 	 	 
	14.3 	
      Prior to the resolution of the dispute, the
      implementation of any provision hereof other than the disputed matters
      shall not be affected.

	Article 15 	Miscellaneous

	15.1 	
      Any matter uncovered herein shall be decided through
      negotiation between both parties; any matter on which both parties fail to
      reach any agreement shall be governed by laws, regulations and other
      pertinent provisions of the People’s Republic of China.

	 	 	 
	15.2 	
      The following documents shall be an integral part of this
      Agreement and shall have the same legal effect as this
Agreement:

	 	 	 
		15.2.1 	
      Receipt of loan

	 	 	 
		15.2.2 	
      Guarantee agreement and documents;

	 	 	 
		15.2.3 	
      Plan of repayment in installment;

	 	 	 
		15.2.4 	
      Other materials that are deemed necessary by both
      parties.

	 	 	 
		15.3 	
      The Borrower declares and warrants:

	 	 	 
		15.3.1 	
      The Borrower clearly understands the Lender’s business
      scope and authorized powers;

	 	 	 
		15.3.2 	
      The Borrower has read all the provisions of this
      Agreement. Upon the Borrower’s request, the Lender has made corresponding
      explanation on this Agreement. And the Borrower has fully known and
      understood the meanings and legal results of the provisions
  hereof.

	 	 	 
		15.3.3 	
      The Borrower has all the necessary rights and
      authorization and full capacity for rights and behavior with respect to
      engaging in its business operation and the conclusion and performance of
      this Agreement.

	Article 16 	Others 
	 
	 
	 
	 
	 
	 
	 

	Article 17 	Validity 

This Agreement shall become effective when it is signed and
sealed by both parties’ legal representatives (persons in charge) or authorized
representatives and affixed with their official seals (if the Borrower is a
natural person, use the Borrower’s signature). 

	Article 18 	 ounterparts
  

This Agreement has five (5) copies, with the Borrower
holding one (1) copy and the Lender holding two (2) copies, and the remaining
two (2) copies shall be kept by the Lender for the purpose of submission to
competent authorities or persons for registration, recording or filing; each
copy shall have the same legal effect. 

(The rest of the page is intentionally left blank for signature
and seal) 

	Borrower: 	Lender: 
	 	 
	Signature: (company seal of Guangdong Jinhao Motorcycle
      Co., Ltd. 	Signature: (company seal of Rural Credit
      Cooperative of Sihui, Dawang Credit Association)

Date of Execution: 8 April, 2009 

Place of Execution: Dawang Credit Association

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}]]