Sample Business Contracts

Loan Contract - Bank of Communications and Weifang Fuhua Amusement Park Co. Ltd.

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   Before signing this Contract, Borrower should read the Contract carefully,
especially the sections marked with ***, and should confirm that Borrower has no
                        disagreement with the Contract.

                 (For Medium or Short Term Working Capital Loan)

                     Loan No.: Wei Jiao Yin 2001 Loan 6-031

Borrower:              Weifang Fuhua Amusement Park Co., Ltd.
Address:               East End of Dong Feng East Street, Weifang City
Legal representative:  Jie Yang

Lender:                Weifang Branch of the Bank of Communications
Address:               358 Dong Feng East Street

According to applicable laws and regulations of the People's Republic of China
(the "PRC"), the Borrower and Lender, after reaching an agreement through
negotiations, hereby enter into this contract pursuant to Borrower's application
to Lender for a working capital loan (the "Loan")

                               Article 1. The Loan

1.1.  Type of currency: RMB

1.2.  Loan amount (full-form characters): Four hundred and fifty thousand yuan
      exactly. The actual principal borrowed by Borrower shall be the number
      written on the financial voucher issued by Lender.

1.3.  Loan term: July 24, 2001 to June 20, 2002

1.4.  The Loan under this Loan Contract shall be solely for industrial/business
      use. Borrower shall not divert the funds under this Loan Contract to any
      other purpose.

                Article 2. Interest Rate and Interest Calculation

2.1.  Interest rate: 5.3625%, based on 30 days in a month and 360 days in a

2.2.  During the term of this Loan Contract, interest may be changed as
      prescribed by the People's Bank of China when said Bank adjusts its
      interest rate or rate calculation method, in which case Borrower's
      approval is not necessary.


2.3.  The formula for calculating the interest is as follows: Interest on the
      loan = (the prescribed interest rate under this Loan Contract) x (Loan
      amount) x (actual days of use), where actual days of use is calculated
      from the day the Loan is issued.

2.4.  Settlement of interest under this Loan Contract is to be calculated per
      month. The settlement date is the 20th day of each month. All principal
      and interest shall be paid in full on the day the term of the Loan

                   Article 3. Release of funds under the Loan

3.1.  Borrower may apply for release of funds under the Loan Contract, at one
      time or at different times, within the fixed period, under Article 1.3
      hereof. However, each time Borrower must make the application to Lender at
      least 3 banking days in advance.

3.2.  Lender shall have the right to examine the following issues before
      releasing funds under the Loan and shall decide whether to release funds
      based on results of the examination:

      (1)      whether Borrower has performed all legally-required procedures
               such as obtaining government licenses, approvals and registration
               and other procedures Lender may require of Borrower;

      (2)      Whether a related guaranty contract is currently in effect.

3.3.  Lender shall release funds at one time or at different times to Borrower
      according to the Loan Voucher; and

3.4.  The funds release date and amount shall be as recorded in the Loan

                        Article 4. Repayment of the Loan:

4.1.  The date of repayment of principal under this Loan Contract shall be as
      recorded in the Loan Voucher;

4.2.  Borrower shall repay the principal and interest under this Loan Contract
      in full on the due date.

4.3.  ***Borrower hereby irrevocably authorizes Lender, on the Lender's own
      initiative, to withdraw funds from Borrower's deposit account with the
      Bank of Communications.

4.4.  Borrower shall repay principal and interest in the currency provided in
      Article 1.1 above.

4.5.  ***Borrower may repay the Loan in advance upon approval from Lender.


     Lender has the right to collect the interest for the period between the
date of the prepayment and the date of repayment recorded in the Loan Voucher at
the rate specified in this Loan Contract.

               Article 5. ***Borrower's Declaration and Warranties

5.1.  Borrower accepts and shall abide by Lender's business system, operational
      practices, and the procedures under this Loan Contract.

5.2.  Borrower warrants that it will cooperate with Lender on the supervision
      and inspection of the use of the funds borrowed under this Loan Contract
      and of the business condition of Borrower and that it will promptly
      provide all financial statements and related materials needed by Lender,
      which Borrower warrants to be true, complete and accurate.

5.3.  Borrower warrants that it will issue written notices to Lender upon
      occurrence or possible occurrence of the following events within seven
      days thereof:

(1)     Borrower's operational system or organizational form of property
        ownership is changed materially, including, but not limited to,
        introducing the practice of contracting, conducting leasing operations,
        entering into joint operations, restructuring equity, merging with
        (acquiring) other entities, entering into a joint venture (cooperative
        arrangement), splitting into separate entities, setting up a subsidiary,
        transferring title to property, reducing capital, termination or
        dissolution and filing for bankruptcy;

(2)     Borrower amends it articles of association, replaces its legal
        representative, reduces its registered capital or makes material changes
        in its finances or personnel;

(3)     Borrower sells, leases, transfers or otherwise disposes of all or part
        of its assets;

(4)     Borrower provides a guaranty to a third party, which will have a
        material adverse effect on its financial position or its ability to
        perform its obligations under this Loan Contract;

(5)     Borrower is a party to a material legal suit or its main assets have
        been put under property preservation or other orders;

(6)     The financial position of Borrower has undergone a material change or
        the value of collateral has been markedly reduced; and

(7)     Borrower experiences other matters which will produce a material adverse
        effect on its financial position or ability to repay its debt.


                       Article 6. Other Contractual Items:

6.1.  Upon agreement by both parties, this Loan Contract will become effective
      upon the affixing of the official Loan seal after authorization from the
      Lender's legal representative.

                        Article 7. *** Events of Default

7.1.  Any of the following events shall be considered a default under this

(1)     Borrower misappropriates loan funds;

(2)     Borrower is delinquent in its repayment of the principal or interest;

(3)     Borrower or guarantor refuses normal financial or operational
        supervision by Lender, or Borrower or guarantor provides false financial
        statements or asset appraisal reports;

(4)     Borrower or guarantor is involved in illegal activities;

(5)     The legal representative or primary management personnel of Borrower or
        guarantor is involved in a criminal case; or

(6)     Borrower experiences any of the events requiring notification listed in
        Article 5.3, and such event affects Borrower's ability to repay debt.

7.2.  In the event of events of default, Lender has the right to take the
      following steps:

(1)     Stop providing loan funds that Borrower has not yet used;

(2)     Unilaterally declare all principal already lent under the Loan Contract
        to be due ahead of the contract due date and require Borrower
        immediately to return the principal and pay all interest due; and

(3)     Take other remedies as provided by applicable laws and regulations.

                          Article 8. Default Liability:

8.1.  Lender will impose penalty interest and compounded interest according to
      the regulations of the People's Bank of China in the event that Borrower
      has not fully repaid the principal or interest under the Loan Contract in
      a timely manner, or fails to use the Loan's funds as provided by this Loan
      Contract. The default interest rate for a foreign exchange loan shall be
      _____ over and above the original interest rate.

8.2.  ***For the recovery of the principal, interest, penalty interest,
      compounded interest and other fees unpaid by Borrower, Borrower hereby
      irrevocably authorizes Lender to withdraw funds from its account with the
      Bank of Communications.


                            Article 9. Other Clauses:

9.1.  ***Any dispute concerning this Loan Contract is under the jurisdiction of
      the local people's court where Lender is located.

9.2.  The Loan Voucher under this Loan Contract and related documents and
      materials confirmed by both parties are inseparable components of this
      Loan Contract.

9.3.  This Loan Contract shall become effective upon signature (or seal) by
      legal representatives or authorized representatives of both parties and
      upon the affixing of the official seals of both parties.

9.4.  This Loan Contract has two originals, which are identical to each other,
      with each of the parties holding one copy. There are several duplicates
      for future reference.

Borrower (Official Seal): (Illegible)
Legal Representative or Authorized Representative
 (Signature or Personal Seal): (Illegible)

 Date of Signature: 24 July 2001.

Lender (Official Seal): Weifang Branch of the Bank of Communications, Loan
Seal (6)
Legal Representative or Authorized Representative
 (Signature or Personal Seal): Shixiang Ma

Date of Signature: July 24, 2001.