Document:

ex10_27.htm

Exhibit 10.27

		
AGREEMENT FOR AN ACCOUNT WITH OVERDRAFT FACILITY,

COMPANIES / ORGANISATIONS

	
Leppävaara

tel. +358 10 444 3604

	  	
     

Account number

 

 

	
Debtor

	
Encorium Oy,

Keilaranta 10

02150 Espoo

	  

 

	
Overdraft 

facility amount

	
Five-hundred-thousand 00/100 euros

500.000 €

The Debtor is entitled to use the overdraft facility connected to the account specified above, not exceeding the amount specified above and in accordance with the terms and conditions of this agreement and its general terms and conditions.

 

	
Agreement 

validity period

	
The agreement is valid until further notice.

The Bank may cancel the agreement immediately on the part of unused credit and on one months notification on the part of other issues.

The Debtor is entitled to terminate an agreement that is valid until further notice with immediate effect. The agreement shall expire when the Debtor renders payment for the amount of the credit, interests, credit facility commissions, penalty interests, additional interest and other possible charges and fees linked to the account or facility to Handelsbanken or to a party assigned by the Bank. The Bank does not return to the Debtor any already paid credit facility commissions. A fixed-term agreement is valid and the facility available until the maturity date agreed upon. The special grounds for termination of the agreement are specified in section 6 of the general terms and conditions of the agreement. After the termination or maturation of the agreement, or the falling due of the credit for a reason specified in section 6 of the general terms and conditions, the Debtor no longer has the right to utilise the overdraft facility.

	 	 
	
Payment of 

credit line 

commission 

and interest

	
The credit line commission is collected in forehand every quarter, on the first banking day of the quarter of the year. The interest is debited a quarter afterwards on the last banking day, if not agreed otherwise.

The bank debits credit line commission and interest from the account appointed in this agreement. The Debtor is committed to administer that the Bank is able to charge credit line commission and interest for the credit without exceeding the maximum amount.

	 	 
	
Credit line 

commission

	
0,45% credit line commission is debited one year beforehand for the granted credit.

	 	 
	
Credit facility 

fee

	
The credit facility fee is 500,00€

	
Interest

	
The Debtor is liable to pay annual interest on the amount overdue, which is determined by the credit of the balance of the day. The yearly interest rate is the reference interest mentioned below with a margin of 0,9000 percentage units.

Handelsbanken Prime      o        

Handelsbanken Avista    o   

 

 

below       %.

	
Additional 

interest

	
The Bank is entitled to collect an annual additional interest of no more than three (3) percentage units in situations specified in section 7 of the general terms and conditions for the facility.

 

  

  

  

 

	
Overdraft 

interest

 

 

Overdue 

interest

	
If the amount of credit is exceeded, annual overdraft interest shall be charged on the credit amount overdraft from the overdraft date to the date on which the overdraft of credit has been eliminated. The amount of overdraft interest on the delayed instalments at three (3) percentage units over the overdue Interest, nevertheless 16 % at minimum, from the due date to the actual payment date. Interest shall be charged on available funds in the account.

 

If the capital, interest or other remittance in arrears is not remitted in compliance with this agreement on the due date, the Bank shall have the right to charge annual overdue interest on the delayed instalments at four (4) percentage units over the overdue Interest, nevertheless 16 % at minimum, from the due date to the actual payment date.

	 	 
	
Charges and 

commissions

	
 

The Account Holder is obliged to remit charges and fees, shown in the price list for services, to the Bank that are valid at the time for the granting of credit, use of the account and credit and related to maintenance and credit repayment as well as other charges and fees.

The Bank is entitled to change the charges and commissions. The Bank may increase the charges and fees due to general price increasing or additional costs or any other cause justified.

The Bank publishes the changes in charges and commissions in their price list. The changes become valid when the Bank notifies of this, at the earliest one month after the month of publishing the changes. The price list for services is visible at the Bank premises.

The Account Holder shall be obliged to reimburse the Bank for all costs connected with credit collection and the realization of property lodged as security for the agreement. If the Account Holder neglects the costs connected to the credit collection and the realization of property lodged as security for the agreement, the Bank may collect the costs from the Account Holder.

	  	  
	  	  

	
Svenska Handelsbanken AB

Type of company: public banking company (publ)

Registered office: Stockholm

Registered in the bank register conducted by the

Swedish Financial Supervisory Authority

Business organization number: 502007-7862

	
Svenska Handelsbanken AB (publ),

Branch Operation in Finland

Business ID 0861597-4

	
Address

Aleksanterinkatu 11

FI-00100 Helsinki

Finland

 

www.handelsbanken.fi

	
Telephone

010 444 11

int.+358 10 444 11

	
Telefax

010 444 2299

+358 10 444 2299

 

SWIFT

HANDFIHH

 

 

  

  

  

		
AGREEMENT FOR AN ACCOUNT WITH OVERDRAFT FACILITY,

COMPANIES / ORGANISATIONS

	
Leppävaara

tel. +358 10 444 3604

	  	
     

Account number 313130-1164920

IBAN                     FI3231313001164920     

BIC                        HANDFIHH                            

	
Jurisdiction

	
Any disputes arising from this debt relationship will be settled by the District Court of Helsinki or elsewhere in Finland located lawful District Court. This debt relationship shall be governed by the laws of Finland.

	 	 
	 	 
	
Disclosure of 

information

	
The Bank is entitled to disclose information about the Debtor and its liabilities to the parent company, subsidiaries and their TYTÄRYHTEISÖ, and gather information about the Debtor, which includes bank secrecy.  Handovering information requires that the receiver is obliged to observe secrecy

	  	  
	 	 
	
Commitment

	
I commit to pay the amount of the credit, interest, credit facility commission and other charges and fees linked to the account and facility.

I commit to ensure that the Bank can debit these payments from the account without exceeding the maximum overdraft facility amount.

I have received from the Bank a copy of the agreement for an account overdraft facility and its general terms and conditions. I have read them and accept them.

	
Place and date

	
Espoo-Leppävaara 9 February 2005

	
Signature of account holder / account opener

	  
	 
	 
	
Annika Suni

	
     

	
     

	
     

	
Verification of identity (complete the information concerning the identification document)

	
o   Driving licence      

o   ID card      

o   Other, specify      

o   Identity verified by      

	
o   Driving licence      

o   ID card      

o   Other, specify      

o   Identity verified by      

	
o   Driving licence      

o   ID card      

o   Other, specify      

o   Identity verified by      

	
o   Driving licence      

o   ID card      

o  Other, specify      

o  Identity verified by      

	
Witness:

 

 

 

Hanne Katrama

	
     

	
Bank’s signature

	
Handelsbanken

	 
	
Leppävaara tel. +358 10 444 3604

	
Pekka Vasankari

	
THE ORIGINAL AGREEMENT SHALL BE STORED AT THE BANK.

 

 

	
Svenska Handelsbanken AB

Type of company: public banking company (publ)

Registered office: Stockholm

Registered in the bank register conducted by the

Swedish Financial Supervisory Authority

Business organization number: 502007-7862

	
Svenska Handelsbanken AB (publ),

Branch Operation in Finland

Business ID 0861597-4

	
Address

Aleksanterinkatu 11

FI-00100 Helsinki

Finland

 

www.handelsbanken.fi

	
Telephone

010 444 11

int.+358 10 444 11

	
Telefax

010 444 2299

+358 10 444 2299

 

SWIFT

HANDFIHH

 

  

  

  

 

	
GENERAL TERMS AND CONDITIONS FOR AN ACCOUNT WITH OVERDRAFT FACILITY,  COMPANIES / ORGANISATIONS

	
1.  Interest

1.1. Variable interest

The interest rate for an overdraft facility with variable interest is comprised of the reference rate and margin.

1.2. Effect of reference rate value changes on the interest rate for the overdraft facility

Handelsbanken Prime

The interest on the facility changes along with any changes in the Handelsbanken Prime rate on the day on which the change takes effect.

Handelsbanken Avista

Handelsbanken Avista is an interest rate that is determined every business day. The interest on the facility changes along with any changes in the Handelsbanken Avista rate on the day on which the change takes effect.

Euribor interest

The Euribor interest rate is the money market interest rate for the Euro zone, and its value determination and quotation days are based on the currently valid international practice.

The interest period is the period of time during which the credit interest rate remains the same. The duration of the interest period is specified by the name of the reference rate, unless otherwise agreed upon. The first interest period begins when the credit is withdrawn. The subsequent interest period begins at the end of the preceding interest period.

The value of the interest rate changes on the first day of each interest period to be equal with the value of the preceding business day, unless otherwise agreed upon. The interest changes to the same degree as the value of the reference rate changes.

1.3. Notification of interest

The Bank notifies the Debtor of the interest rate for the interest period afterwards in the account statement or otherwise in writing. The notification can be made electronically through remote communication if such a method has been agreed on by the Bank and Debtor.

1.4. Discontinuation or interruption of quotation of reference rate

If the quotation of the reference rate of interest is discontinued or interrupted, the reference rate applied to the overdraft facility shall be that which replaces the previous reference rate in accordance with the law or the decision or directives of the authorities.

If no replacement interest rate has been determined in the law or by the decision or directive of the authorities, the Bank and Debtor will agree on the new reference rate which will apply to the overdraft facility. If the Bank and Debtor do not reach an agreement about the new reference rate prior to the end of the interest period, the Bank will independently assign a new reference rate.

Until the new reference rate has been determined, the value of the reference rate applied prior to the end of the interest period will further serve as the value of the reference rate.

1.5. Interest days

Interest is calculated by calendar days (actual/360), unless otherwise specified in the overdraft facility agreement. Penalty interest is calculated in accordance with the number of actual days.

2. Business days

In this overdraft facility agreement, business days refer to weekdays from Monday to Friday with the exception of bank holidays in Finland, Independence Day, May Day, Christmas Eve, Midsummer’s Eve and any day which is otherwise not considered a business day.

3.  Postponement of payment date

If the due date is not a business day, the payment date for the credit and its accrued interest, as well as for any costs related to the management of the facility is postponed to the next business day. If the payment day is postponed, the Bank is entitled to collect interest in accordance with the rate valid for the preceding interest period up to the transferred payment day for the entire amount of capital in use.

	 	
The Bank is entitled to deny the Debtor the use of the overdraft facility linked to the account, if the Debtor or any of the Debtor’s Creditors has submitted to a Court an application for company restructuring as prescribed by the relevant law or a bankruptcy petition concerning the Debtor, or the Debtor has submitted an application for personal restructuring of debts as prescribed by the relevant law.

If there are two or more Debtors, each Debtor may independently use the overdraft facility, unless otherwise agreed upon. If one of the Debtors wishes to prevent the use of the credit, this Debtor must notify the Bank, and the Bank shall then have the right to prevent the use of the credit.

4.1. Bank’s right to block the account as a result of the liability restrictions of the Guarantor or Pledger

A private Guarantor for a overdraft facility agreement may, during the validity of the agreement, specify a date after which the Guarantor is no longer liable for any credit withdrawn. A private Pledger pledging a security for a third party is entitled to specify the date after which the pledge no longer serves as security for any credit withdrawn.

Upon receipt of the notification of restricted liability, the Bank is entitled to immediately block the account and prevent the use of the overdraft facility. The Bank shall notify the Debtor immediately upon closing the account. Under these circumstances, the Debtor and any person entitled to use the credit are obligated to return the credit instruments to the Bank.  The Bank has, thereby, the right to terminate the agreement and to require the repayment of the credit in accordance with section 6.3 of the general terms and conditions.

4.2. Bank’s right to block the account as a result of the notification of an execution officer

If an execution officer notifies the Bank of any freeze of payment concerning the credit, the Bank is entitled to immediately block the account and prevent the use of the overdraft facility. The Bank shall notify the Debtor immediately upon closing the account. Under these circumstances, the Debtor and any person entitled to use the credit are obligated to return the credit instruments to the Bank.  The Bank has, thereby, the right to terminate the agreement and to require the repayment of the credit in accordance with section 6.3 of the general terms and conditions.

5. Bank’s right to increase the margin of credit

The bank has the right to collect margin on the credit, if it is justified by increase of financial costs that the bank could not have estimated when signing the agreement, not more than five (5) percentage units during the loan time.

The margin can be raised when it has been nevertheless than 3 years since granting the credit or raising of the margin.

The bank notifies of the raising to the Debtor by sending the Debtor a letter to the address declared on the agreement at least two months before it takes effect.

6. Special grounds for the termination of the overdraft facility agreement

6.1.Exceeding the maximum overdraft amount

The agreement ends and the credit falls due for immediate payment upon a written request from the Bank if the amount of the credit exceeds the agreed maximum amount when the credit facility fee, interest or other charge is debited.

6.2. Late payments

The agreement ends and the credit falls due for immediate payment upon a written request from the Bank if the Debtor has failed to pay the capital, interest, credit facility fee, penal interest, additional interest or a part thereof on the given due date.

6.3. Credit falling due for a reason other than a late payment

The agreement ends and the credit falls due for immediate payment upon a written request from the Bank, if

 

 

  

  

  

 

	

4.  Use of the facility

The Debtor or any person entitled to use the overdraft facility may withdraw credit at a Bank branch or using credit instruments. The Bank can require the return of a bankcard intended for credit utilisation or other credit instrument, and may deny their use or restrict the use of the credit through notification to the Debtor.

	 	
-       the Debtor, one of the Debtors or the Guarantor has provided the Bank with misleading information or has concealed information which may have affected the granting of the credit or its terms and conditions,

-       the Debtor or one of the Debtors dies,

-       a person who has a significant financial or business interest in the Debtor dies, such a person or organisation applies for a settlement or company restructuring, is placed in liquidation or declared bankrupt, or suspends payments,

-       the financial position of the Debtor or an organisation or a person with a significant financial or business interest in the Debtor is significantly weakened,

-       the Debtor ceases business activities or fundamentally changes or reduces them, or there are fundamental changes in the ownership of the Debtor,

-       the Debtor has not provided the Bank with the information specified in section 11,

-       the pledge issued as security for the credit is realised,

-       the Debtor fails to pay, for another debt or undertaking, the capital, interest, credit facility fee, penalty interest, additional interest or a part thereof to the Bank on the due date, or a similar payment falls due prematurely for repayment.

If the Guarantor dies, applies for a settlement, company restructuring or debt restructuring, is placed in liquidation or declared bankrupt, or suspends payments, then the Debtor or joint Guarantor shall obtain a new Guarantor or provide other security, which is approved by the Bank, within the time limit stated by the Bank.  Otherwise, the Bank may terminate the credit for immediate repayment.

If the provided security is not deemed as sufficient, the Debtor must procure additional security within the time limit stated by the Bank and in the manner approved by the Bank, or the credit must be paid off by the amount notified by the Bank in writing. Otherwise, the Bank may terminate the credit for immediate repayment.

If the Debtor or one of the Debtors applies for a settlement or company restructuring, is placed in liquidation or declared bankrupt, or suspends payments, the credit will fall due for immediate repayment.

 

  

  

  

 

	

6.4. The Bank’s right to compensation in repayment situations

If the Bank requires the repayment of the credit or a part thereof on the basis of sections 6.1-6.3, the Debtor is liable to pay the relevant fees stated in the tariff of services valid on the date of the repayment request, the actual cancellation and re-investment costs for refinancing, as well as a compensation for the loss of profit.

6.5. The Bank’s right to refer to grounds of premature termination

In case the Bank has the right to terminate the credit for immediate repayment but has not done so immediately upon being informed about the existing grounds for premature termination, the Bank has not waived its right to refer to the said grounds for terminating the credit for immediate repayment.

6.6 The Debtors liability to compensate  breach of contract

If the Bank has expired the credit or on ground of section 6.2 or 6.3, the Debtor is obliged to pay the valid payments and actual refunding expiring- and reinvestment fees and the loss of profit according to prices of the Banks valid price list.

7.  Additional interest

The Bank is entitled to increase the interest on the overdraft facility with an additional interest if

-  written bases of the customer relationship have fundamentally changed, or

-  there are special grounds for the premature termination of the credit as described in sections 6.2-6.3.

Additional interest takes effect, at the earliest, one month from the date on which the Bank has provided written notification to the Debtor about the collection of the additional interest and its bases. The Bank’s right to collect additional interest ceases immediately once the grounds for the additional interest have been removed. Regardless of the collection of the additional interest, the Bank is entitled to demand that the credit be repaid immediately if the special termination grounds still exist.

8.  Taxation consequences from a debt relationship

The Debtor is responsible of this debt relationship and changes made to its terms that may cause any taxes, and taxation payments with overdue consequences and increase in taxation.

In the event that the Bank is required to remit the taxes concerned, the Debtor is obliged to compensate the Bank all costs including overdue interest  from the day that the Bank’s remittance date to the compensation payment date. The overdue interest is seven(7) percentage units over the overdue Interest, nevertheless 16 % at minimum.

9. Liability to pay

The Debtor must reimburse the Bank for all costs and commissions incurred by the collection of the credit, its interests, and the management of the facility.

The Bank is entitled to debit the aforementioned charges and commissions and collection fees from the Debtor’s account.

	 	
10. The Bank’s right to provide the Guarantor and Owner of the pledge with information 

        about the solvency of the Debtor

The Bank is entitled to provide information to the Guarantor and Owner of the pledge about all commitments, payment disruptions, and other matters affecting the solvency of the Debtor.

11.   he Debtor’s duty of disclosure

Unless otherwise agreed, the Debtor must provide the Bank with

-       annual accounts including any supplementary information within thirty (30) days, at the latest, of the date for the closing of accounts as prescribed by the Accounting Act.

-       the auditor’s report concerning the annual accounts within thirty (30) days of the issuing date,

-       any other special audit report within thirty (30) days from the receipt of the special audit report,

-       possible liquidation balance sheets within thirty (30) days from their issuing date, and

-       interim reports on request or as separately agreed upon.

The Debtor must provide, at the Bank’s request, information concerning the Debtor’s financial position that the Bank, as Creditor, deems necessary.   Furthermore, the Debtor shall, of its own accord, notify the Bank immediately of any fundamental changes to the Debtor’s business activities. These types of changes include, among others,

-       a change in the form of the company or its field of activities,

-       termination, or fundamental expansion or reduction of business activities,

-       fundamental changes in the Debtor’s financial interest or ownership,

-       changes in the Debtor’s ownership or significant commitments in other companies.

12. Receipt of notification

A written notification from the Bank is considered to have been received by the Debtor no later than seven (7) days from the dispatch date, if it is sent to the most recent address provided to the Bank or official register. If the notification has been sent via remote communications media, the notification is considered to have been received by the Debtor no later than seven (7) days from the dispatch date.

13. Facility expense changes that are beyond the control of the Bank

The Debtor must compensate the Bank for additional costs or reduced profit accrued to the Bank in relation to the overdraft facility if the increase in costs or decrease in profits is the result of a change in legislation or the decision of the authorities, or for some other reason that is beyond the Bank’s control. The compensation is debited as a separate payment, or converted into an annual percentage unit and added to the credit interest rate.

The Bank notifies the Debtor of the change in writing.

14. Force Majeure

The contractual party is not liable for damage which is caused by an insurmountable obstacle or other circumstance which renders its operations inordinately difficult.

Each contracting party has the duty to notify the other party as soon as possible if an insurmountable obstacle arises. If the insurmountable obstacle concerns the Bank, the Bank may provide notice thereof in the daily national newspapers in Finland and comparable electronic communications media.ex10_28.htm

Exhibit 10.28

 

SAMPO BANK OY

AGREEMENT ON AN

OVERDRAFT FACILITY

CORPORATE AND INSTITUTIONS

Exhibit 10.28

 

	 	Date granted: 21 Feb. 2006

 

 

Sampo Bank plc (hereinafter “the Bank”) and the account holder specified below (hereinafter “the Account Holder”) agree as follows on the overdraft facility attached to the account specified above:

1. Parties to the contract

1.1 Account Holder and account holders contact information

 

	Account holder   	Encorium Oy
	 	 	 
	Address   	Keilaranta 10, 02150 Espoo, Finland
	 	 	 
	Business ID:      	 	FI10334944
	 	 	 
	Phone:   	 	020 7518200
	 	 	 
	Fax:   	 	020 7518250
	 	 	 
	
1.2 Creditors contact information

	 	 
	 	 	Information sent to the Bank are valid only when sent to the address below or by fax:
	 	 	 
	
Address:

	 	
Sampo Pankki Oyj, Helsinki-Keskustan yrityskonttori, PL 1102 (Fabianinkatu 23), 00075 Sampo

	 	 	 
	Fax:   	 	010 513 2931
	 	 	 
	
1.3 Changes in information

	 	
The parties to the agreement are obliged to immediately report any changes to their above mentioned information.

	 	 	 
	
2. Amount of credit

The amount is    

	 	 EUR
	 	 	 
	
Maximum credit in letters 

	Three-hundred-thousand Euros
	
Maximum credit in numbers   

	 	300.000,-
	 	 	 
	3. Use of account and credit	 	 
	3.1 Use of credit      	Working Capital
	 	 	 
	
3.2 Use of credit?

	 	 
	 	 	The Account Holder is entitled to use the account as credit to the maximum amount mentioned above, in accordance with the terms mentioned in this agreement. In addition, the terms of the account contract shall be observed.

 

  

  

  

                                                   

	 	 	Credit use requires that none of the grounds mentioned in paragraph 17. for cancellation of the agreement, at the discretion of the Bank, are in effect, nor is the agreement cancelled according to paragraph 4.1 or 4.2 or the agreement otherwise ended by paragraph 4.3.
	 	 	 
	3.3 Documents required from the Account Holder
	 	 	The Account Holder is obliged to supply the Bank with the following documents prior to the initialization of credit:
	 	 	
a)

	
Extract from the Register of Companies and/or other clarification on the Account Holder, guarantor and pledgor that the persons who have undersigned the agreement, guarantee and pledge commitments are entitled to sign.

	 	 	
b)

	
The pledges and guarantee commitments for the agreement bindingly undersigned.

	 	 	 
	3.4 Closure of account due to restriction of liability with regard to a party providing security
	 	 	A private guarantor of a credit agreement may, during the period of validity of the agreement, report a date after which the guarantor will not be liable for new credit drawn. In the case of a third party pledge, a private pledgor has the right to report the date after which the pledge shall no longer be liable for the credit drawn. Having been notified of such restricted liability, the Bank is entitled to immediately close the account and/or prevent the use of the credit facility. The Bank shall immediately inform the Account Holder of account closure and/or credit block. The Account Holder and any who are entitled to use the credit are in this case required to return the credit usage instruments to the Bank. In this case, the Bank has the right to cancel the agreement to end immediately according to paragraph 17. j).
	 	 	 
	
3.5 Closure of account due to notice by distraint officer

	 	 	If a distraint officer informs the Bank of a payment or remittance prohibition in respect of credit, the Bank shall have the right to immediately close the account and prevent the use of credit. The Bank shall immediately inform the Account Holder of the closure of the account. The Account Holder and any who are entitled to use the credit are in this case required to return the credit usage instruments to the Bank. In this case, the Bank has the right to cancel the contract to end immediately.
	 	 	 
	
4. Agreement validity period

4.1 Agreement validity period

	 	 	o  This agreement shall be in effect until ___. 

The period of validity of the agreement may be continued by mutual agreement for a fixed-period or until further notice. Either party to the agreement may cancel the contract, to end one month from cancellation. The Bank will not refund any commission paid to the Bank by the Account Holder.

x This agreement shall be in effect until further notice. The period of validity of the agreement may be continued by mutual agreement for a fixed-period or until further notice. Either party to the agreement may cancel the contract, to end one month from cancellation. The Bank will not refund any commission paid to the Bank by the Account Holder.

 

  

  

  

	4.2 Right to cancel the agreement by the guarantor and third party pledgor
	 	 	In the event that, on the basis of the Act on Guaranties and Third Party Pledges (361/99) or according to the terms of the guarantee or pledge commitments, the guarantor or third party pledgor has the right to cancel and/or remit the credit capital, interest, commissions, overdue interest, overdraft in-terest, fees and charges derived from repayment of the credit and management of the account, and the guarantor or third party pledgor remits the receivables based on the agreement to the Bank, the period of validity of the agreement shall end.
	 	 	 
	
4.3 Bankruptcy of Account Holder

	 	 	In the event of bankruptcy of the Account Holder, the validity period of the agreement shall end and the credit shall fall due for payment on the starting date of the bankruptcy.
	 	 	 
	
5. Credit repayment

	 	 
	 	 	
The credit capital in use and accured interest shall fall due for repayment on the closing date of the agreement.

The Account Holder is obliged to pay the credit capital falling due as well as accured interest and possible overdue interest and other charges in accordance with the agreement to the Bank or its appointee at the close of the contract. The Bank shall have the right to debit all payments falling due on their due date from the account of the Account Holder. The Account Holder is obliged to reserve sufficient funds in the account. In the event the due date is not a banking day, the payments must be remitted on the following banking day.

Entering of the Bank’s charges and fees when there are insufficient funds on the account: If the account does not have sufficient funds for the debiting of payments and fees, the Bank shall have the right to enter the amount to be debited in the account as the Bank’s receivables. These forms of debits are, among other things, commissions, overdue interest, charges and fees in accordance with the agreement.

 

Consequences arising from insufficient funds:  If the account does not have sufficient funds for the debiting of commissions, interest, overdue interest and charges and fees to the Bank, the Account Holder shall be obliged to pay the Bank and the Bank shall have the right to debit from assets coming later to the account, for the overdue interest accrued on the receivables, charges for sending a letter of reminder and all other receivables, as well as charges and fees caused by collection.

	 	 	 
	
6. Banking day

	 	 	
Banking days in accordance with the agreement are weekdays from Monday to Friday, not including Finnish holidays, Independence Day, May Day, Christmas Day, Christmas Eve and Midsummer Eve as well as those bank holidays stipulated as such by the European Central Bank.

	 	 	 
	
7. Interest 

7.1 Interest invoicing

	 	 
	 	 	The Bank shall charge the agreed interest to the amount of credit in use at the time from the account for each subsequent invoicing period. The accrued interest shall fall due for payment on the last day of the invoicing period.

 

 

 

 

 

	 	 	
The first invoicing period shall begin on the signature date of this agreement. The following invoicing period shall begin the next day after the close of the previous invoicing period. The length of the invoicing period is three (3) months.

	 	 	 
	
7.2 Specification of interest

	 	 	
Interest on the credit used shall be the reference rate of interest added with the determined margin.

Sampo reference rate of Interest

Margin 1,0% (as of 25 Dec. 2010 the credit interest margin has been increased to 3.5%)

    Interest shall be calculated by using actual days and a 365-day year as the denominator.

    The interest charged on used credit shall change in accordance with the value of the reference rate of interest on that date the change in the reference rate of interest becomes valid.

    Sampo reference rate of Interest is the Euro area’s money-market reference rate of interest, administered at the time of signing the agreement by the Banking Federation of the European Union (FBE) and the Financial Markets Association (ACI). The specification of the Sampo reference rate of Interest value is based on international practice in effect at the time.

The quotation date of Sampo reference rate of Interest is the day on which its value is determined in accordance with international practice in effect at the time. In accordance with practice at the time of signing the con-tract, Euribor interest shall be quoted on weekdays from Monday to Friday, with the exception of bank holidays separately determined by the European Central Bank at the time. The value of the credit’s reference rate of interest shall change in accordance with the day’s value on the banking day concerned.

The Sampo Prime Interest is the interest confirmed by the bank, which the bank publishes and keeps visible at its offices according to valid agreements.

The fixed rated credit interest stays the same the entire loan-period or to the time period according to the agreement, unless the bank and the Account Holder agrees on something else.

	 	 	 
	
7.3 Review of margin and commission

	 	 	x  According to the agreement that is effective until further notice, the margin and the commission in paragraph 9.1 are valid until the pricing is revaluated and will continue unchanged one revaluation period per time unless one or both of the parties informs in writing at the latest one month prior to the next revaluation date that they whish to review the pricing. 

    The revaluation period is 2 years. The revaluation date is 01.03.2008.

 

o   Review of margin and commission 

If the parties have not reached an agreement before the revaluation date, the agreement terminates on the date of the revaluation.  Increased credit and other payment commitments fall due when the agreement ends according to paragraph 5.

 

 

 

 

 

	
7.4 Termination or interruption of reference rate of interest quotation

	 	 	
If quotation of the agreed reference rate of interest is terminated or interrupted, the reference rate of interest applied to the credit shall be specified in accordance with the regulation on the new reference rate of interest or a decision or instruction by the authorities.

If a regulation, decision or instruction on the new reference rate of interest is not issued by the authorities, the Bank and the Account Holder shall agree upon the new reference rate of interest to be applied to the credit. If the Bank and the Account Holder do not reach agreement on the new reference rate of interest prior to the end of the current interest specification period, the reference rate of interest value applied to the credit shall continue to be that applied before the end of the interest specification period. If the Bank and the Account Holder do not reach agreement on the new reference rate of interest before the 01.03.2008, the Bank shall specify the new reference rate of interest after having heard the authorities supervising the Bank.

	 	 	
 

	8.Amount of credit and certificate of claim	 	 
	 	 	

When the interest is calculated, the amount of credit used is determined daily so that the value date of the deposit is the following banking day after the entry date, and the value date of withdrawal is the transaction day. The value date of cheque and debit card withdrawals shall be the date on which the withdrawal or cheque is handled in a Finnish banking institution for the first time.

As evidence of the debt relationship and the credit amount at the time, one or more of the following is/are applied:

	 	 	●	this agreement
	 	 	●	bank account entries
	 	 	●	deposit and withdrawal receipts
	 	 	●	account statements sent by the Bank to the 
	 	 	
Account Holder 

in such manner, however, that the primary evidence of the amount of credit in use is the entry made in the Bank ́s account ledger.

	9. Charges and fees 

9.1 Commission

	 	 	The Account Holder shall pay to the Bank commission of  0,75% p.a. of the entire credit amount. Commission shall be debited from the account for each invoicing period in advance, the first time immediately after signing the credit agreement.
	 	 	 
	
9.2 Credit fee

	 	 	The Account Holder shall pay to the Bank the total credit amount or 1000,- EUR . The credit fee shall be debited from the account immediately after signing the agreement.
	 	 	 
	
9.3 Other fees

	 	 	The Account Holder is obliged to remit charges and fees, shown in the price list for services, to the Bank that are valid at the time for the granting of credit, use of the account and credit and related to maintenance and credit repayment as well as other charges and fees. The price list for services is visible at the Bank premises.

  

  

  

 

	
9.4 Changes

	 	 	
The Bank shall have the right to raise the above-mentioned fees and charges. The Bank shall report any increase in charges and fees by publishing it in the price list for services. The increase shall come into effect at the beginning of the calendar month starting after one month from the date the increase is published in the price list for services.

	 	 	 
	
10. Overdue interest

	 	 	If the capital, interest or other remittance in arrears is not remitted in compliance with this agreement on the due date, the Bank shall have the right to charge annual overdue interest on the delayed instalments at six (6) percentage units over the Sampo Reference Rate of Interest, nevertheless 18 % at minimum, from the due date to the actual payment date.
	 	 	 
	
11. Overdraft interest

	 	 	If the amount of credit is exceeded, annual overdraft interest shall be charged on the credit amount overdraft from the overdraft date to the date on which the overdraft of credit has been eliminated. The amount of overdraft interest is determined in the same way as overdue interest. Overdraft inter-est shall be charged on available funds in the account. Overdraft interest cannot be added to the credit capital.
	 	 	 
	
12. Taxes

	 	 	The Account Holder is responsible for taxes possibly incurred by changes made to this agreement and its terms, such as stamp duty or other such taxes, with possible overdue penalties and tax in-creases. In the event that the Bank is required to remit the taxes concerned, the Account Holder shall undertake to compensate the Bank for the amounts of taxes it has paid, with 18 % annual interest, from the Bank’s tax remittance date to the compensation payment date.
	 	 	 
	
13. Collection and pledge realization costs

	 	 	The Account Holder shall be obliged to reimburse the Bank for all costs connected with credit col-lection and the realization of property lodged as security for the agreement, including a reasonable fee for collection and related procedures performed.
	 	 	 
	
14. Collateral 

14.1  General pledge and guarantee

	 	 	As guarantee of fulfilling the obligations of this agreement are also the Account Holders previous and future General pledges given to the bank and Sampo Group companies.
	 	 	 
	14.2 Additional collateral
	 	 	In the event that the Bank considers that the security provided for the agreement can no longer be regarded as sufficient and that repayment of credit is threatened, also regarding the above-mentioned restriction on the liability of the party providing security, the Account Holder must provide the Bank with additional collateral during a period stipulated and in the manner agreed by the Bank, or must reduce the amount of credit in use to an extent similarly approved by the Bank.

 

  

  

  

 

	
15. Account Holder’s notification duty

	 	 	
The Account Holder must immediately inform the Bank of any changes to its name and address.

    The Account Holder undertakes to send to the Bank, on an annual basis, the closing of accounts information and notes on the accounts including the profit and loss account, balance sheet, annual re-port and auditors’ report, no later than two months from the date on which the closing of the ac-counts must be prepared in accordance with the accounting regulations concerned. In addition, the Account Holder undertakes to deliver the possible interim accounts, interim reports and stock exchange bulletins immediately when they are available.

Upon demand from the Bank, the Account Holder must deliver, at its own expense, all that information and documents the Bank considers it requires for the clarification of the Account Holder’s financial status and assessment of the value of the property pledged as security for repayment of credit to the Bank.

    Within the framework of the law, the Account Holder must inform the Bank without delay of any events described in section cancellation of agreement and credit in paragraphs c), e) and h) hereafter, changes in the company form, its intention to distribute entirely or in part or act as the recipient company in distribution, its intention to merge with another corporate body or act as the recipient corporate body in merger, and the intention of the Account Holder and another corporate body to merge by establishing a new corporate body.

	 	 	 
	
16. Disclosure of information 

16.1

	 	 	
The Bank shall have the right to disclosure information concerning the Account Holder in accordance with the legislation in effect at the time.

	 	 	 
	
16.2

	 	 	
The Bank shall have the right to give information to the guarantor and owner of a pledge with regard to all obligations, delinquent payments and other factors affecting the Account Holder ́s ability to pay.

	 	 	 
	
16.3

	 	 	
The Bank shall have the right to inform, and the registrar shall have the right to register, information on payment default in the credit information register when such registration is permitted on the basis of legislation or the decision of the data protection authorities.

	 	 	 
	
17. Cancellation of agreement and credit

	 	 	
The Bank shall have the right to cancel the credit in use for immediate repayment and the agreement shall be terminated immediately under the following circumstances:

	 	 	
a) The Account Holder delays the remittance of interest, commission or other payment in accordance with this agreement.

	 	 	
b) The Account Holder, guarantor or corporate body belonging to the same Group of companies as the Account Holder or corporate body or private person having an essential economic interest with the Account Holder neglects the fulfilment of any payment obligation to the Bank or corporate body belonging to the same Group of companies as the Bank.

  

  

  

 

	 	 	
c) The Account Holder or guarantor neglects the remittance of any fundamental debt or corresponding payment obligation on the due date, or such obligation falls due prematurely for payment, or procedures for enforced collection begin.

	 	 	
d) The Account Holder or guarantor has given the Bank or corporate body belonging to the same Group of companies as the Bank misleading information or has concealed information that concerns its financial situation and may have affected the granting of credit or its terms.

	 	 	
e) The Account Holder or guarantor is summoned for liquidation or the guarantor to bankruptcy. The Account Holder or guarantor applies composition, ends its payments, completely or to a fundamental extent terminates its operations. . On the part of the Account Holder or the guarantor, company reorganization is applied for in accordance with the Act on Company Reorganization Procedure, or statutory private person debt arrangement. The guarantor dies. Realization begins on the security for credit.

	 	 	
f) The account is closed due to the above-mentioned notice by a distraint officer.

	 	 	
g) The Account Holder neglects to deliver information on its business operation as agreed in this agreement or otherwise, or neglects its obligations in accordance with this agreement, including the special terms possibly agreed upon in accordance with the annex.

	 	 	
h) Fundamental changes occur to the Account Holder ́s ownership basis or relations, or the scope or nature of the business operations change substantially compared with their status at the signing of this agreement.

	 	 	
i) The financial position of the Account Holder or guarantor weakens from what it was at the time of signing the agreement and, as a result, the Bank considers repayment of credit threatened.

	 	 	
j) The Account Holder has not supplied the Bank with the additional collateral required by the Bank during the period stipulated be the Bank or reduced the credit to the amount approved by the Bank.

	 	 	
k) The credit is used for some other purpose than what it was granted for, or the project financed by the credit is not implemented in its fundamental aspects in the manner presented.

	 	 	
l) Fundamental changes occur in the inter-bank money market, or euro market, in the availability of refinancing, legislation concerning the Bank or its interpretation (including tax legislation) or in the guidelines of the Central Bank or the authorities or other similar reasons beyond the control of the Bank, the Bank no longer considers it possible to continue the agreement or, for some other reason, its obligations in accordance with the contract become in full or in part contrary to the law or the regulations of the authorities.

	 	 	 
	 	 	
However, the Bank shall not have the right to cancel the agreement and credit for the reasons mentioned in b), c), d), e) and i) above due to a guarantor or a pledgor not belonging to the same Group of companies as the Account Holder, if the Account Holder deposits security for the agreement which is acceptable to the Bank within a reasonable period of time set by the Bank.

 

  

  

  

	 	 	
If credit becomes due for repayment prematurely on the basis of a) - k), the Account Holder is obliged to compensate any damage incurred by the Bank for this, including the costs of cancelling refinancing and reinvestment as well as the loss of yield in accordance with the Bank’s written cal-culation. That mentioned above shall not, however, apply in the event that cancellation is based on paragraph 14.2 not obtaining additional collateral after the party providing security has limited its liability. 

When the Bank has the right to cancel the agreement and credit on the basis of sections a)l) but the Bank has not cancelled the agreement and credit immediately upon obtaining information about the grounds for cancellation, the Bank has not waived the right to appeal to the grounds for cancellation concerned.

	 	 	 
	
18. Changes in circumstances

	 	 	
In the event that a law, other regulation (including tax legislation and increased solvency requirements), order of the authorities, Central Bank procedure or other similar reason beyond the control of the Bank increases the costs incurred by the Bank in providing or maintaining the funding specific in this agreement or reduces the return gained by the Bank therefrom, the Account Holder agrees to compensate the Bank for costs incurred by the Bank and the reduced yield in accordance with the Bank’s written calculation.

	 	 	 
	
19. Applicable law and venue

	 	 	
Finnish law shall be applied to the agreement.

All disagreements based on the agreement shall be handled in the Helsinki District Court.

	 	 	 
	
20. Limitation on liability

	 	 	
The Bank and the Account Holder shall not be responsible for damage caused by force majeure or other similar reason causing unreasonable detriment to the other contract party’s operations.

The Bank and the Account Holder are responsible for informing each other about a force majeure as soon as possible. If the force majeure concerns the Bank, it may issue information about the matter in the national daily press.

	 	 	 
	
21. Bank’s right of assignment

	 	 	
The Bank shall have the right to assign its rights and obligations based on this agreement, together with collateral, in full or in part to a third party. If the Bank so demands, the Account Holder shall be obliged to relinquish and undersign the documents required for the transfer and carry out the other required measures.

	 	 	 
	
22. Notifications delivered to the Account Holder

	 	 	
A written notification delivered by the Bank to the Account Holder must be regarded as having been received by the recipient no later than the seventh day after delivery if it has been sent to the latest address reported to the Bank or Trade Register. A message sent by telefax must be regarded as having been received by the Account Holder immediately if it has been sent to the latest telefax number reported to the Bank and the fax machine reports that the message has been delivered.

 

  

  

  

 

	
23. Obligation

	 	 	
The Account Holder affirms that its financial situation at the time of signing this agreement does not fundamentally deviate from the information essential for the granting of the credit and which the Ac-count Holder has provided the Bank with in connection with applying for credit.

    We affirm that we have made the decisions required by borrowing in the appropriate manner.

    The Account Holder agrees to pay the Bank or its appointee the credit capital, interest and other remittances based on this agreement in accordance with the agreement terms.

	 	 	 
	
Signature

	 	 	
Place and date

	 	 	
Helsinki 3 March 2006

	 	 	 
	 	 	 
	 	 	 
	 	 	
Signature of Account Holder and clarification of name

Encorium Oy

Annika Suni

	 	 	 
	 	 	 
	
Signature of witness

	 	 	 
	 	 	 
	 	 	
Signature of witness and clarification of name 

Ulla Kansanniva 

 

	
Signature of Bank Official

	 	 
	
 

	 	 	 
	 	 	
Signature of Bank Official

	 	 	Ulla Kansanniva                                              Anja Salo-Lehto

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