Date: July 30, 2007
Short-Term Advised Credit Line Facility Agreement
JPMorgan Chase Bank, N.A., Shanghai Branch (the “ Bank ”) is pleased to make available to Kadant
Jining Light Machinery Co., Ltd.( 凯登炅工机械ø济宁÷有榰公司 ), a company incorporated in P.R.
China having its principal office at No.99 Jidian Road 1, High and New Technologies Industry
Development Zone, Jining, Shandong, 272023, P.R. China (the “ Borrower ”) a short term advised
credit line facility (“ Facility ”) up to an aggregate principal amount not at any time exceeding RMB
Forty-five million Only (RMB45,000,000) (the “ Advised Amount ”) subject to the terms and
conditions of this Agreement.
The Borrower will apply the proceeds of the Loan towards its general working capital requirements.
The Loan will not be used for other purposes without the prior consent of the Bank provided that the
Bank is not obliged to monitor or verify the application of the Loan.
4.2 The Request will not be regarded as having been duly completed unless:-
The Facility offered by the Bank is uncommitted. No Advance will be available for drawdown and no
Bank Guarantee will be available for issuance after the expiration of the Drawdown Period after which
time the Facility will automatically lapse. In any event, the availability of the Facility even during such
Drawdown Period will be at the sole discretion of the Bank. The Bank may, in its sole and absolute
discretion, agree to provide the Facility on such terms and conditions as the Bank deems appropriate.
Subject to the terms and conditions of this Agreement (including without limitation, clause 3 hereof), the
Facility may be used by one o