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| CHID.OB > SEC Filings for CHID.OB > Form 8-K on 17-Sep-2008 | All Recent SEC Filings |
17-Sep-2008
Entry into a Material Definitive Agreement, Creation of a Direc
On August 29, 2008, Shenzhen E'Jenie Science and Technology Development Ltd., a wholly-owned subsidiary of China Digital Communication Group ("we" or the "Borrower") entered into a loan agreement (the "Loan Agreement") with China Construction Bank, Shenzhen Branch (the "Lender") for a working capital loan (the "Loan"). The transaction was closed on September 16, 2008. The Loan has a one-year term in the principal amount of RMB 15 million (equal to approximately USD $2.15 million) at an interest rate of 8.59%, which is a 15% premium over the current 7.47% interest rate, from August 25, 2008 to August 24, 2009. It shall be used solely for liquidity capital purpose, and is secured by Shenzhen Hua Yin Guaranty and Investment LLC ("Hua Yin"). We paid a guarantee fee of $110,000 USD to Hua Yin, who will be liable for any unpaid portion of the Loan if we default on the payments. The Loan is also subject to certain conditions as follows:
· the Borrower shall settle all previous balance with the Lender;
· all properties of the Borrower shall not be transferred during the term;
· the settlement amount in China Construction Bank shall not be lower than 50%.
The foregoing description of the Loan Agreement contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the complete text of the Loan Agreement attached hereto as Exhibit 10.1.
See "Item 1.01. Entry into a Material Definitive Agreement," which is incorporated herein by reference.
ITEM 9.01. EXHIBITS.
10.1 Loan Agreement between the Borrower and the Lender.
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