EXHIBIT 10.5
LOAN AGREEMENT
This Agreement is made by and between Kid Castle Enterprises Limited
(hereinafter referred to as "Lender") and Kid Castle Corporation (hereinafter
referred to as "Borrower") with the guarantor(s), for the necessary fund lending
during the process of business dealings performed by both parties. The Agreement
is established under mutual agreement, with the terms and conditions specified
as follows:
Amount of Loan: THIRTY-FIVE MILLION New Taiwan Dollars.
Valid Loan Period: From January 1, 2002 to December 31, 2003. The loan will be
issued upon approval of the certificate of indebtedness or notes presented by
the Borrower.
1. The loan interest will be calculated according to the actual loan amount
and a fixed interest rate for the period. The annual interest rate is 6%.
2. Upon the due date for each loan taken, the Borrower and the guarantor(s)
must pay off the loan immediately. Under conditions of an overdue, the
interest for the entire loan amount will be re-calculated according to the
overdue interest rate, an annual interest rate of 10%.
3. For all debts incurred under the Agreement, the Borrower and the
guarantor(s) both agree to accept the obligation for loan payment. The
obligation cannot be advocated for exemption with the supply of application
documents, certificate of indebtedness, notes or any other documentation
not signed or sealed by the guarantor(s).
4. The interest accountable with the certificate of indebtedness should be
paid in lump sum with the payment for the principal.
5. Upon the involvement of this Agreement in a lawsuit, the Borrower and the
Guarantors agrees to use the court at the location of the Lender as the
court of first instance.
Lender : Kid Castle Internet Technology Corporation (sealed)
Address : 0xx Xxxxx, Xx. 00, Xxxxxxxxx Xxxx, Xxxxxxxx Xxxx, Xxxxxx
Borrower : Kid Castle Corporation (sealed)
Address : 0xx Xxxxx, Xx. 00, Xxxxxxxxx Xxxx, Xxxxxxxx Xxxx, Xxxxxx
Date: January 1, 2002
