This Loan Agreement ("Agreement") is made and entered into this 4th day of
January, 2006 (the "Effective Date") by and between:
CHINA MERCHANTS BANK DONGFANG BRANCH, a corporation duly organized and validly
existing under the laws of the PRC and having its principal place of business at
No. 902-904, Dongfang Roda, Pudong New Area, Shanghai 201203, the PRC (the
SHENGQU INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD., a corporation duly
organized and validly existing under the laws of the PRC and having its
principal place of business at No.1 Office Building, No. 690 Bibo Road, Pudong
New Area, Shanghai 201203, the PRC ("Shengqu").
WHEREAS, Shanghai Shanda
Networking Co. Ltd. ("Shanda
Networking") and the
Agent entered into an Entrusted Loan Agreement dated as of January 4, 2006
pursuant to which Shanda
Networking will deposit funds with the Agent, which the
Agent will loan to Shengqu; and
WHEREAS, the Agent would like to provide Shengqu with a loan on the terms
and conditions set forth below.
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein and for other good and valuable consideration, the parties
hereto agree as follows:
1.1 "Advance" shall mean the principal amount of the lump sum drawing made by
Shengqu under the Facility or, as the context requires, the outstanding
balance thereof (as reduced by repayments and prepayments by Shengqu from
time to time).
1.2 "Availability Period" shall mean the period commencing from December 31,
2005 and ending on December 31, 2007.
1.3 "Business Day" shall mean any day other than a Saturday, Sunday or a legal
holiday in the PRC.
1.4 "Event of Default" shall mean any of the events specified in Section 6.1
1.5 "Facility" shall mean the one hundred million RenMinBi ("RMB") loan
facility to be made available to Shengqu pursuant to Section 2.
2. THE LOAN
2.1 Subject to the terms and conditions set forth in this Agreement, Shengqu
may on any Business Day during the Availability Period make one drawing
from the Agent under the Facility.
2.2 Shengqu shall provide the Agent with the records and information needed by
the Agent to ensure that loan proceeds are used according to the terms and
conditions of this Agreement.
3. INTERESTS AND TAXES
3.1 Interest. Shengqu shall not be obligated to pay any interest on the
3.2 All Advances to be made hereunder shall be made by the Agent. The Agent
hereby acknowledges and agrees that, upon Shanda
the Agent shall be responsible for transferring the Advances to Shengqu.
Shengqu shall repay the Advance outstanding at the end of the Availability
Period. Shengqu may prepay any or all part of the Advance in the event that
Networking agrees upon such prepayment by Shengqu.
5. PAYMENT PROVISIONS
5.1 Payment of Advance by the Agent. On the date on which the Advance is to be
made, the Agent shall make available such Advance to Shengqu in RMB in
immediately available funds to an account with the Agent specified in the
notice and maintained by Shengqu.
5.2 Payment of Shengqu. All payment(s) to be made by Shengqu shall be made to
the Agent on the date upon which the relevant payment is due in RMB in
immediately available funds to the Agent into such account as specified in
writing by the Agent. The Agent shall deliver payments made by Shengqu to
the account specified by Shanda
Networking within one (1) Business Day
receipt of such payment.
6. EVENT OF DEFAULT
6.1 Each of the following events shall be deemed an Event of Default:
(a) Non-Payment. Shengqu fails to pay any sum payable under this Agreement when
due or otherwise in accordance with the provisions.
(b) Failure to Perform. Shengqu fails to perform any of its other obligations
(c) Insolvency. Shengqu becomes insolvent or stops or suspends or threatens to
stop or suspend payments of all or a material part of its debts or is
unable or admits its inability to pay its debts as they fall due.
6.2 Acceleration. At any time after the occurrence of an Event of Default and
regardless of whether such Event of Default continues, the Agent may
declare the Facility to be canceled whereupon the same shall be so canceled
forthwith according to Shanda
7.1 Notice. Shengqu shall send a notice to the Agent upon the occurrence of a
combination, dissolution, receivership or any such similar proceedings.
7.2 Entire Agreement. This Agreement constitutes the entire agreement between
the parties with respect to the subject matter hereof, and merges, revokes
and supersedes all prior and contemporaneous agreements, understandings,
arrangements, documents and communications (whether written or oral)
between the Parties and is intended as a final expression of their
7.3 Amendments and Waivers. This Agreement shall not be modified or amended
except by written agreement signed by duly authorized representatives of
the parties. None of the provisions of this Agreement shall be deemed to
have been waived by any act or acquiescence on the part of a party, except
by an instrument in writing signed by such party; and no waiver of any
provision of this Agreement shall constitute a waiver of any other
provision(s) or of the same provision on another occasion. The failure of
either party to enforce, or the delay by either party in enforcing any of
its rights under this Agreement shall not preclude either party from
commencing appropriate legal or equitable proceedings, within the time
provided by the applicable law, to enforce any or all of its rights under
this Agreement, and any prior failure to enforce, or delay in enforcement,
shall not constitute a defense.
7.4 Disputes and Governing Law. This Agreement shall be construed and enforced
in accordance with the laws of the PRC. Any disputes that arise in
connection with this Agreement shall be litigated in courts located within
the Pudong New Area, Shanghai, PRC.
7.5 Costs and Expenses. The Parties shall each bear their own costs and
expenses incurred in connection with the preparation, negotiation and
execution of this Agreement.
7.6 Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. This Agreement may be executed and
delivered by facsimile and transmission by facsimile shall be considered
proper delivery for legal purposes.
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IN WITNESS WHEREOF, the Parties have executed this Agreement through their duly
authorized representatives on the date first set forth above.
CHINA MERCHANTS BANK DONGFANG BRANCH
SHENGQU INFORMATION TECHNOLOGY
(SHANGHAI) CO., LTD.
Name: Chen Tianqiao
Title: General Manager