{"id":41104,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/loan-agreement-china-merchants-bank-and-utstarcom-china-co.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"loan-agreement-china-merchants-bank-and-utstarcom-china-co","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/finance\/loan-agreement-china-merchants-bank-and-utstarcom-china-co.html","title":{"rendered":"Loan Agreement – China Merchants Bank and UTStarcom (China) Co. Ltd."},"content":{"rendered":"
[Translation]<\/b><\/p>\n\n
Loan Agreement<\/b><\/p>\n\n
    Contract \nNumber: 2001 ChaoLiuZi No.005 <\/p>\n\n\n<\/pre>\n\n\n\n\n\n\n\n\n\n
Lender:<\/b><\/td>\n <\/td>\nChina Merchants Bank, Beijing Branch, Chao Yang Men Subranch<\/td>\n<\/tr>\n
Legal Representative:<\/b><\/td>\n <\/td>\nXiu Xiangqun<\/td>\n <\/td>\nPosition:<\/b>  President<\/td>\n<\/tr>\n
Address:<\/b><\/td>\n <\/td>\nNo.6 ChaoYangMen Bei Da Jie, Dongcheng district, Beijing<\/td>\n<\/tr>\n
Telephone:<\/b><\/td>\n <\/td>\n85282361<\/td>\n<\/tr>\n
Borrower:<\/b><\/td>\n <\/td>\n\nUTStarcom (China) Co., Ltd.<\/td>\n<\/tr>\n
Address:<\/b><\/td>\n <\/td>\nFll No.6 ChaoYangMen Bei Da Jie, Beijing Beijing<\/td>\n<\/tr>\n
Legal Representative:<\/b><\/td>\n <\/td>\nHong Lu<\/td>\n <\/td>\nPosition:<\/b>  Chairman<\/td>\n<\/tr>\n
Telephone:<\/b><\/td>\n <\/td>\n65542030<\/td>\n<\/tr>\n<\/table>\n
    WHEREAS:
\nParty A desires to borrow working capital loan from the Lender for business operation. In accordance with the related laws and stipulations, in consideration of the mutual
\npromise and to clarify the rights and obligations of each party, both parties agree to enter into this agreement and execute under this agreement. <\/p>\n
    \n
    \n
    1.<\/dt>\n
    Variety:
    \nShort term Revolving Fund. <\/p>\n<\/dd>\n
    2.<\/dt>\n
    Loan
    \nAmount: Reiminbi 50 million. <\/p>\n<\/dd>\n
    3.<\/dt>\n
    Purpose:
    \nThe loan is used in working Capital Turnover and can not be appropriated for other purpose without the written approval of the Lender. <\/p>\n<\/dd>\n
    4.<\/dt>\n
    Loan
    \nTerm: The duration of the loan under this agreement is twelve months which from March 14, 2001 to March 14, 2002. <\/p>\n<\/dd>\n
    5.<\/dt>\n
    Interest
    \nrate and calculation of Interest: <\/dd>\n<\/dl>\n<\/ul>\n
      \n
          5.1  Interest
      \nrate: [***] <\/p>\n<\/ul>\n
          During
      \nthe loan term, the interest rate will be adjusted in accordance with the provisions of the People’s Bank in the event the People’s Bank adjust the loan interest rate. <\/p>\n
        \n
            5.2  Calculation
        \nof Interest: <\/p>\n<\/ul>\n
            Interest
        \nshall accrue from draw-down date and be calculated [***]. The due date is [***] of very month (“due date”). <\/p>\n
          \n
              5.3  Payment
          \nof interest: <\/p>\n<\/ul>\n
              The
          \nBorrower shall pay off [***] interest on the due date. The Lender have the right to deduct the interest from the Borrower’s bank account in the
          \nLender. The Lender could collect compound interest in the event the Borrower fails to pay the interest on time. <\/p>\n
          \n
            \n
            \n
            6.<\/dt>\n
            Repayment
            \nof Loan: <\/dd>\n<\/dl>\n<\/ul>\n
              \n
                  6.1  The
              \nBorrower shall repay the principal and the interests pursuant to the provisions of this contract. <\/p>\n
                  6.2  The
              \nBorrower could advance the repayment with the approval from the Lender. <\/p>\n
              \n
              7.<\/dt>\n
              Guarantee <\/dd>\n<\/dl>\n
                  7.1  The
              \nprincipal, interest and other related expenses are guaranteed by UTStarcom (Hangzhou) Telecommunication Co., Ltd. and issues an irrevocable guaranty to
              \nthe Lender. <\/p>\n
              \n
              8.<\/dt>\n
              Rights
              \nof the Borrower <\/dd>\n<\/dl>\n<\/ul>\n
                \n
                    8.1  Draws
                \nand use the loan; <\/p>\n
                    8.2  Declines
                \nother terms except this contract; <\/p>\n
                    8.3  Assigns
                \nthe debt to any third party upon the approval of the Lender. <\/p>\n
                \n
                9.<\/dt>\n
                Obligations
                \nof the Borrower <\/dd>\n<\/dl>\n<\/ul>\n
                  \n
                      9.1  Provides
                  \ntrue information upon the request by the Lender including all bank accounts, accounts number and balance of the accounts, assists the Lender to inspect
                  \nreview and check. <\/p>\n
                      9.2  Accepts
                  \nthe supervision of the Lender regarding the use of loan and the status of manufacturing and finance. <\/p>\n
                      9.3  Uses
                  \nthe loan pursuant to the provision of this contract. <\/p>\n
                      9.4  Repay
                  \nthe due principal and interests on time. <\/p>\n
                      9.5  Assigns
                  \nthe all or partial debts under this agreements to any third party upon the written approval of the Lender. <\/p>\n
                      9.6  Advance
                  \nnotice to the Lender when the Borrower involves in contract, leasing, joint operation, consolidate (merger), liquidation, reorganization, joint venture or
                  \ncooperate with foreign company, equity sales, share reformation and change of business operation manner including but no limited to contract, lease, joint venture, acquisition, liquidation, present
                  \nand conversion into share company; The Borrower shall cooperate with the Lender to make efforts to make the Lender collect the principal and interests on time. <\/p>\n
                  \n
                  10.<\/dt>\n
                  Rights
                  \nof the Lender. <\/dd>\n<\/dl>\n<\/ul>\n
                    \n
                        10.1  Requests
                    \nthe Borrower to repay the principal and interests on due date according to the stipulations of this agreement; <\/p>\n
                        10.2  Requests
                    \nthe Borrower to provide the information related with the loan; <\/p>\n
                        10.3  Knows
                    \nthe Borrower’s manufacturing and financial status; <\/p>\n
                        10.4  Supervises
                    \nthe use of the loan in accordance with the term of this agreement; <\/p>\n
                        10.5  Deducts
                    \nthe outstanding principal and interest from the Borrowers bank account; <\/p>\n
                        10.6  In
                    \nthe event the Borrower fail to perform the payment obligation under this agreement, the Lender have right to request the Borrower to recall the loan ahead of
                    \ntime, cease in extending the loan; <\/p>\n
                        10.7  When
                    \nthe Borrower involves in contract, leasing, joint operation, consolidate (merger), liquidation, reorganization, joint venture or cooperate with foreign
                    \ncompany, equity transference, share reformation, the Lender shall have right to request the Borrower clear of principal and the <\/p>\n<\/ul>\n
                    2<\/p>\n
                    \n
                      \n
                      \nloan interest ahead of time, assign this loan to assignee confirmed by the Lender or provide acceptable guaranty to the Borrower. <\/p>\n
                      \n
                      11.<\/dt>\n
                      Responsibility
                      \nof the Lender <\/dd>\n<\/dl>\n
                          11.1  Extends
                      \nthe loan in accordance with the stipulations of this agreement; <\/p>\n
                          11.2  Holds
                      \nthe Borrower’s debts, financial, operational information in confidential except special provisions in Law. <\/p>\n
                      \n
                      12.<\/dt>\n
                      Warranty
                      \nof the Borrower <\/dd>\n<\/dl>\n<\/ul>\n
                        \n
                            12.1  The
                        \nBorrower is a company duly organized and validly existing under the law of the People’s Republic of China and has power and authority to sign and perform this
                        \nContract; <\/p>\n
                            12.2  Signature
                        \nand performance this contract is full authorized by the board or other authorization; <\/p>\n
                            12.3  The
                        \ndocuments, information and files provided by the Borrower is true, correct, complete and effective without any material mistakes and missing. <\/p>\n
                            12.4  The
                        \nBorrower respects the Lender’s operational policy which deposit and lending, credit and settlement is equal important. The Borrower warrants that its unused
                        \nfunds will deposit in the Bank account in Lender and entrust the Lender handle the Borrower’s foreign currency settlement. <\/p>\n
                        \n
                        13.<\/dt>\n
                        Extension
                        \nof the Loan <\/dd>\n<\/dl>\n<\/ul>\n
                            In
                        \ncase the Borrower could not to repay the loan under this contract and need to extend the loan, the Borrower shall apply to Party B for the extension of the loan within
                        \n[***] prior to maturity of the loan. The parties sign an extension loan agreement in written upon the approval of the Lender after the inspection made by the Lender. If the
                        \nLender disagrees to the extension of the loan, the Borrower shall repay the principal and the interest in accordance with the stipulations set forth in this contract. <\/p>\n
                          \n
                          \n
                          14.<\/dt>\n
                          Expenses\n<\/dd>\n<\/dl>\n<\/ul>\n
                              The
                          \nBorrower shall reimburse the Lender for [***] expenses in connection with [***]. The Lender is empowered to deduct the
                          \n[***] expense [***]. In the event that the money is not sufficient in the Borrower’s account, the Borrower shall clear the balance upon the notice from
                          \nthe Lender [***] <\/p>\n
                            \n
                            \n
                            15.<\/dt>\n
                            Liabilities
                            \nof Breach contract <\/dd>\n<\/dl>\n<\/ul>\n
                              \n
                                  15.1  In
                              \nthe event the Borrower fails to perform the obligations set forth in section 9.1 or 9.2 in this agreement, if it is material or the Borrower does not
                              \ncure it timely, the Lender shall have right to cease in extending the loan and recall partial or total loan ahead of time. <\/p>\n
                                  15.2  The
                              \nBorrower fails to perform the obligation set forth in section 9.3, the Lender shall have right to collect an interest at the rate of
                              \n[***] for the amount misappropriated; If the matter is serious, the Lender shall have right to cease in extending the loan and recall partial or total loan ahead of time. <\/p>\n
                                  15.3  If
                              \nthe Borrower fails to perform the obligation set forth in section 9.4, the Lender is entitled to collect an interest at the rate of
                              \n[***] for the default amount. <\/p>\n
                                  15.4  If
                              \nthe Borrower fails to perform the obligation set forth in section 9.5 and 9.6, the Lender fails to collect the repayment, the Lender shall have right to
                              \ncease in extending the loan, recall the loan ahead of time. The Borrower shall compensate the Lender partial or all damage incurring from above default. <\/p>\n
                              \n
                              16.<\/dt>\n
                              Amendments
                              \nAnd Termination of Contract <\/dd>\n<\/dl>\n<\/ul>\n
                              3<\/p>\n
                              \n
                                \n
                                  \n<\/ul>\n<\/ul>\n
                                      This
                                  \ncontract could be amended and terminated upon the written agreements conclude by the parties. The contract shall be effective before the written amendment is made. The contract
                                  \ncould not be changed, amended and terminated by one part without approval of the other part. <\/p>\n
                                    \n
                                    \n
                                    17.<\/dt>\n
                                    Miscellaneous\n<\/dd>\n<\/dl>\n<\/ul>\n
                                      \n
                                          17.1  During
                                      \nthe term of this contract, any tolerance, extension for the Borrows breach of contract and delay for excise any rights and benefit could not impair, affect
                                      \nand limit the Lender to excise its rights in accordance with this contract and related laws and regulation. It should not be construed that the Lender permit or recognize the Borrower’s behaviors and
                                      \nwaive current or future rights to take action to defend the Borrower. <\/p>\n
                                          17.2  In
                                      \nthe event this contract or partial provisions contained in this Contract should be invalid, the Borrower shall perform the repayment responsibility. In the
                                      \nevent aforesaid, the Lender shall have right to terminate this contract and immediately request the Borrower to repay the loan, interest and other expenses. <\/p>\n
                                          17.3  The
                                      \nnotice and other communications required to be given by any party shall be in written. Telex and Telegram shall be deemed effectively given on the moment of
                                      \ntransmission. Letter shall be deemed effectively given on the receipt of the post office. <\/p>\n
                                          17.4  The
                                      \nevidence of debt, the amendment, modification of the contract shall be made in written. Such documents shall be regard as the appendices of this contract and
                                      \nintegral part of this Agreement. <\/p>\n
                                      \n
                                      18.<\/dt>\n
                                      Governing
                                      \nLaw and Dispute resolution <\/dd>\n<\/dl>\n
                                          18.1  The
                                      \nconclude, interpretation and dispute resolution shall be subject to the Laws of the People’s Republic of China. The rights of the parities shall be
                                      \nsafeguarded by the Laws of the People’s Republic of China. <\/p>\n
                                          18.2  The
                                      \ndisputes arising from execution of this contract shall be settled through friendly consultation by the parties. In case no settlement can be reached, the
                                      \ndisputes shall be submitted to the People’s Court of Beijing for judgment. <\/p>\n
                                          18.3  After
                                      \nthis contract is empower compulsory execution with legal effectiveness by notarization, the Lender may apply to the People’s court with jurisdiction to
                                      \nexecution the contract. <\/p>\n
                                      \n
                                      19.<\/dt>\n
                                      Miscellaneous
                                      \nProvisions <\/dd>\n<\/dl>\n<\/ul>\n
                                        \n
                                            19.1  This
                                        \ncontract become effective after signed by the authorized representatives of both parties and go through the guaranty formality under Article 7 of this
                                        \ncontract until the loan and the interests and other related expenses be cleared up. <\/p>\n
                                            19.2  This
                                        \ncontract is executed in three original and be equally authentic. Each of the Borrower, the Lender and the Guarantor shall hold one copy. <\/p>\n<\/ul>\n
                                        4<\/p>\n
                                        \n
                                          \n<\/ul>\n\n\n\n\n\n\n\n
                                           <\/td>\n <\/td>\nLender: China Merchants Bank, Beijing Branch, Chao Yang Men Subranch<\/td>\n<\/tr>\n
                                          \n <\/td>\n <\/td>\n<\/p>\n
                                          <\/td>\n<\/tr>\n
                                           <\/td>\n <\/td>\n(signature)<\/td>\n<\/tr>\n
                                          \n <\/td>\n <\/td>\n\nBorrower: UTStarcom (China) Co., Ltd.<\/td>\n<\/tr>\n
                                          \n <\/td>\n <\/td>\n<\/p>\n
                                          <\/td>\n<\/tr>\n
                                           <\/td>\n <\/td>\n(signature)<\/td>\n<\/tr>\n<\/table>\n
                                          March
                                          \n14, 2001 <\/p>\n
                                          \n
                                          \n
                                          Translation Verification    
                                            <\/b><\/p>\n
                                              The foregoing represents a fair and accurate English translation of the original Chinese document. <\/p>\n
                                          Dated:
                                          \nMay 11, 2001 <\/p>\n\n\n\n\n
                                           <\/td>\n <\/td>\nBy:<\/td>\n <\/td>\n\/s\/ SHAO-NING J. CHOU   <\/p>\n
                                          <\/td>\n<\/tr>\n
                                           <\/td>\n <\/td>\nName:<\/td>\n <\/td>\nShao-Ning J. Chou<\/td>\n<\/tr>\n
                                           <\/td>\n <\/td>\nTitle:<\/td>\n <\/td>\nExecutive Vice President and Chief Operating Officer, China Operations<\/td>\n<\/tr>\n<\/table>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[9205],"corporate_contracts_industries":[9516],"corporate_contracts_types":[9560,9567],"class_list":["post-41104","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-utstarcom-inc","corporate_contracts_industries-telecommunications__equipment","corporate_contracts_types-finance","corporate_contracts_types-finance__loan"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/41104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=41104"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=41104"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=41104"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=41104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}