Coorperation Agreement By Bank & Enterprise

 

This is a Cooperation Agreement by

Party A (The Enterprise)

and

Party B (The Bank) China Construction Bank

To better enhance the good cooperative relationship between the bank and the enterprise, and to improve the mutual development and the long term cooperation of both parties, Party A and Party B, on the basis of adhering to the principle of voluntaries, equality and mutual benefit, and after full consultations and negotiations, have made the following agreement and committed to strictly abiding by the terms of this agreement and performing the responsibilities of each party.

I. Party B is willing to take Party A as an important and primary client, and put Party A in a prior position when providing various financial supports and qualified financial services, under the premise of keeping incompliance with laws and financial policies.

II. Party B will provide Party A with all-round credit lending services which include the working capital loans, capital construction loans, technological transformation loans, reserve loans, real estate loans, and bill acceptance and discount, etc., according to its credit lending conditions and process.

III. Party B will try its best to satisfy Party A's reasonable demand for working capital loans, so long as Party A maintains a good financial structure, with the current ratio above____%, the account receivable turnover ratio above____%, and the assets-liabilities ratio below____%.

IV. Party B will actively support Party A in its capital construction and technological transformation. For those projects which have been listed in the government's plan by the authorities departments, Party B will perform the project appraisals as soon as possible; and for the committed projects, Party B shall make a prior arrangement in its annual credit lending plan and ensure the on time fund supply.

V. When Party A finds a difficulty in the turnover of its reserve funds for the under-construction projects, Party B shall make a prior arrangement according to its reserve loan issuing terms.

VI. Party B shall actively support Party A in its international business development, including the import & export, by providing comprehensive international financial services.

VII. Party A agrees to take Party B as its main bank, opening its____ account with Party B and settling___% of its trade volume through this account.

VIII. Party A guarantees that the proportion of its fund deposit at the Bank in the above-mentioned account shall not be less than the proportion of Party B's loans.

IX. Party A guarantees that it will not default the repayment of the principal and payment of interest of Party B's loans. Should any loans need extension out of particular reasons, Party A shall present an application, which will be reviewed by Party B. Party B shall agree only those extensions that are in line with the extension terms.

X. Party A guarantees that it will not appropriate or misappropriate its working capital funds for capital construction investment.

XI. Party A guarantees that it will present monthly financial statements to Party B and be responsible for the authenticity of the financial data.

XII. Party A agrees to let Party B handle its such financial businesses as international settlement, salary issuing, credit card clearing, staff housing fund management, reviewing of project budget and annual settlement, project evaluation and consultation, development bank loan channeling and management, and other banks' agent and entrusted businesses.

XIII. When the agreement comes into effect, both parties shall notify the concerned affiliates and supervise them in their performing of the agreement.

XIV. If disputes arise in the performance of the agreement which causes the amendments of and additions

to the above articles, both parties shall find a solution through friendly talks on the basis of equality, mutual interest and mutual-understanding basis.

XV. Within the term of the agreement, no party is allowed to unilaterally violate the articles or terminate the agreement.

XVI. This agreement shall be effective only when the legal representative or his (her) designated agent of the two parties sign on it, with their official seals. The expiry date of the agreement is____ years. Whether the agreement will be renewed should be decided by the two parties after negotiations. There are two originals for this agreement, Party A and Party B shall each take one. There are____ duplicates for this agreement, Party A and Party B shall each take____ copies.

Party A (Seal): Party B (Seal):

Representative (signature): Representative

(Signature):

(DDMMYY) (DDMMYY)