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<P STYLE="margin: 0 0 0 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Pursuant to Section 13 or 15(d) of the</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Securities Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Date of Report (Date of Earliest Event Reported):&nbsp;&nbsp;February
27, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CHINA SHANDONG INDUSTRIES INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact Name of Registrant as Specified in its
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; text-autospace: none; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="width: 33%; text-autospace: none; font-weight: bold; text-align: center">333-147666</TD>
    <TD STYLE="width: 33%; text-autospace: none; font-weight: bold; text-align: center">20-8545693</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">(State or other Jurisdiction of</TD>
    <TD STYLE="text-autospace: none; text-align: center">&nbsp;(Commission File Number)&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: center">&nbsp;(I.R.S. Employer Identification No.)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">Incorporation)</TD>
    <TD STYLE="text-autospace: none; text-align: center"></TD>
    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">No. 2888 Qinghe Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Development Zone Cao County</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Shandong Province, 274400 China</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of Principal Executive Offices)&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Registrant&rsquo;s telephone number, including
area code:&nbsp;&nbsp;(86) 530-3431658</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 49.5pt">Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation under any of the following provisions (<I>see</I>&nbsp;General
Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c))
under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>ITEM 1.01 &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entry into a Material Definitive Agreement</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The information in Item 2.03 is incorporated in this Item 1.01 by
reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in"><B>ITEM 2.03.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Creation
of a Direct Financial Obligation or an Obligation under an Off-Shore Balance Sheet Arrangement of a Registrant</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"></TD><TD STYLE="text-align: justify">Pursuant to a U.S.$23,000,000 Facility Agreement dated February 27, 2012 between Shandong Caopu
Arts &amp; Crafts Co. Ltd., an enterprise incorporated under the laws of the People&rsquo;s Republic of China and an indirect wholly
owned subsidiary of the registrant (as defined below) (the &ldquo;<B><U>Borrower</U></B>&rdquo;), Mr. Li Jinliang, the president
and legal representative of the Borrower and the Chief Executive Officer, Director and controlling shareholder of China Shandong
Industries, Inc., a Delaware Corporation (the &ldquo;<B><U>Registrant</U></B>&rdquo;), Tianwei International Development Corporation,
an Oregon corporation and an indirect wholly owned subsidiary of the registrant (&ldquo;<B><U>TIDC</U></B>&rdquo;), Caopu Enterprise
Limited, a British Virgin Islands entity and an indirect wholly owned subsidiary of the registrant (&ldquo;<B><U>CEL</U></B>&rdquo;
and together with the Registrant and TIDC, collectively, the &ldquo;<B><U>Corporate Guarantors</U></B>&rdquo;), Standard Chartered
Bank (Hong Kong) Limited, (the &ldquo;<B><U>Arranger</U></B>&rdquo;), as the mandated lead arranger, security agent and agent for
the financial institutions listed in Schedule 1 to the Loan Agreement (the &ldquo;<B><U>Lenders</U></B>&rdquo;) (the &ldquo;<B><U>Arranger</U></B>&rdquo;),
and Standard Chartered Bank (China) Limited, Qingdao Branch, as Account Bank (the &ldquo;<B><U>Loan Agreement</U></B>&rdquo;),
the Lenders have agreed to loan to the Borrower up to U.S.$23,000,000 during the period commencing on February 27, 2012 and ending
90 days thereafter (approximately May 27, 2012).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">The Loan will be guaranteed by Mr.
Li Jinliang and the Corporate Guarantors and secured by all of the assets of the Corporate Guarantors of the capital stock of the
registrant beneficially owned by Mr. Li Jinliang.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">All principal amount borrowed under
the Loan Agreement shall be repaid in full no later than the date (the &ldquo;<B><U>Termination Date</U></B>&rdquo;), thirty-six
(36) months following the date of the first draw down of funds under the Loan Agreement (the &ldquo;<B><U>First Draw Down Date</U></B>&rdquo;)
as follows: (i) 7.5% of the outstanding principal amount on each of the 6 month, 12 month, 18 month and 24 months anniversary will
be subject to date of the First Draw Down Date; (ii) 15% of the outstanding principal amount on the date 30 months from the First
Draw Down Date; and (iii) the remaining 55% of the outstanding principal amount on the Termination Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"></TD><TD STYLE="text-align: justify">All outstanding principal amount, accrued but unpaid interest and other amounts owed, if any, under
the Loan Agreement mandatory repayment upon the occurrence of certain events prior to the Termination Date including, but not limited
to, if a Qualifying Initial Public Offering does not occur within 24 months following the First Draw Down Date; Caopu Enterprise
Limited ceases to own at least 86% of, or otherwise control, the Registrant, Mr. Li Jinliang ceases to own at least 51% of, or
does not control, the Borrower All outstanding principal amount, accrued but unpaid interest and other amounts owed, if any, under
the Loan Agreement may be voluntarily prepaid by the Borrower, in whole or in part, but not less than U.S.$750,000, commencing
on the date twelve (12) months after the First Draw Down Date, subject to, among other conditions, the Borrower shall also pay
to the Lenders a fee equal to the product of (i) 3%; multiplied by (ii) the principal amount being prepaid; multiplied by a fraction
of which (a) the numerator equals the number of days from the date the prepayment amount is paid until the Termination Date, and
(b) the denominator is 360.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"></TD><TD STYLE="text-align: justify">Subject to certain increases in the interest rate of the outstanding principal amount upon the
occurrence of certain events set forth in the Loan Agreement, the interest rate of all outstanding principal amount shall be eight
(8%) percent per annum, with accrued but unpaid interest being paid quarterly.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"><FONT STYLE="color: black">The Borrower
has agreed to pay the Lender a<B> </B>commitment fee<B> </B></FONT>in US Dollars computed at the rate of 2 per cent. per annum
on that Lender's Available Commitment for the Availability Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"></TD><TD STYLE="text-align: justify">The Borrower, TIDC, the Registrant, and CEL have made certain representations, warranties and covenants
(including, but not limited to certain financial covenants) to the Lenders and have agreed to provide certain information to the
Lenders, all as provided in the Loan Agreements. The Loan Agreements also contain certain events of default for certain events
related to the Borrower and certain other related entities.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"></TD><TD STYLE="text-align: justify">As of the date of this Current Report on Form 8-K, the Borrower has borrowed from the Lenders $U.S.
23,000,000 aggregate principal amount.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"></TD><TD STYLE="text-align: justify">The above is a summary of the Loan Agreement and certain other relevant documents and should be
read in connection with the Loan Agreement and the other Exhibits attached hereto.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">The foregoing descriptions of the Loan
Agreement and certain other relevant documents are summaries and are qualified in their entirety by reference to the full text
of such agreements, which shall be filed as exhibits to the Registrants next periodic report or an amendment to this Current Report
on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 49.5pt">Pursuant to the requirements
of Section 12 of the Securities Exchange Act of 1934, as amended the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 59.4pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">China Shandong Industries, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 54%; text-autospace: none">Date: &nbsp;March 2, 2012</TD>
    <TD STYLE="width: 4%; text-autospace: none">By:</TD>
    <TD STYLE="width: 42%; text-autospace: none; border-bottom: Black 1pt solid">/s/ Jinliang Li</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Name: Jinliang Li</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Title: Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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{"company-data": {"conformed-name": "China Shandong Industries, Inc.", "cik": "0001417192", "assigned-sic": "2511", "irs-number": "208545693", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-147666", "film-number": "12662974"}, "business-address": {"street1": "NO. 2888 QINGHE ROAD", "street2": "DEVELOPMENT ZONE CAO COUNTY", "city": "SHANDONG PROVINCE,", "state": "F4", "zip": "274400", "phone": "(86) 530-3431658"}, "mail-address": {"street1": "NO. 2888 QINGHE ROAD", "street2": "DEVELOPMENT ZONE CAO COUNTY", "city": "SHANDONG PROVINCE,", "state": "F4", "zip": "274400"}, "former-company": {"former-conformed-name": "Mobile Presence Technologies Inc.", "date-changed": "20071101"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):  February
27, 2012
CHINA SHANDONG INDUSTRIES INC.
(Exact Name of Registrant as Specified in its
Charter)
Delaware
333-147666
20-8545693
(State or other Jurisdiction of
(Commission File Number)
(I.R.S. Employer Identification No.)
Incorporation)
No. 2888 Qinghe Road
Development Zone Cao County
Shandong Province, 274400 China
(Address of Principal Executive Offices)
Registrant's telephone number, including
area code:  (86) 530-3431658
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation under any of the following provisions (
see
General
Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c))
under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01 	        Entry into a Material Definitive Agreement
.
The information in Item 2.03 is incorporated in this Item 1.01 by
reference.
ITEM 2.03.	      Creation
of a Direct Financial Obligation or an Obligation under an Off-Shore Balance Sheet Arrangement of a Registrant
Pursuant to a U.S.$23,000,000 Facility Agreement dated February 27, 2012 between Shandong Caopu
Arts & Crafts Co. Ltd., an enterprise incorporated under the laws of the People's Republic of China and an indirect wholly
owned subsidiary of the registrant (as defined below) (the "
Borrower
"), Mr. Li Jinliang, the president
and legal representative of the Borrower and the Chief Executive Officer, Director and controlling shareholder of China Shandong
Industries, Inc., a Delaware Corporation (the "
Registrant
"), Tianwei International Development Corporation,
an Oregon corporation and an indirect wholly owned subsidiary of the registrant ("
TIDC
"), Caopu Enterprise
Limited, a British Virgin Islands entity and an indirect wholly owned subsidiary of the registrant ("
CEL
"
and together with the Registrant and TIDC, collectively, the "
Corporate Guarantors
"), Standard Chartered
Bank (Hong Kong) Limited, (the "
Arranger
"), as the mandated lead arranger, security agent and agent for
the financial institutions listed in Schedule 1 to the Loan Agreement (the "
Lenders
") (the "
Arranger
"),
and Standard Chartered Bank (China) Limited, Qingdao Branch, as Account Bank (the "
Loan Agreement
"),
the Lenders have agreed to loan to the Borrower up to U.S.$23,000,000 during the period commencing on February 27, 2012 and ending
90 days thereafter (approximately May 27, 2012).
The Loan will be guaranteed by Mr.
Li Jinliang and the Corporate Guarantors and secured by all of the assets of the Corporate Guarantors of the capital stock of the
registrant beneficially owned by Mr. Li Jinliang.
All principal amount borrowed under
the Loan Agreement shall be repaid in full no later than the date (the "
Termination Date
"), thirty-six
(36) months following the date of the first draw down of funds under the Loan Agreement (the "
First Draw Down Date
")
as follows: (i) 7.5% of the outstanding principal amount on each of the 6 month, 12 month, 18 month and 24 months anniversary will
be subject to date of the First Draw Down Date; (ii) 15% of the outstanding principal amount on the date 30 months from the First
Draw Down Date; and (iii) the remaining 55% of the outstanding principal amount on the Termination Date.
All outstanding principal amount, accrued but unpaid interest and other amounts owed, if any, under
the Loan Agreement mandatory repayment upon the occurrence of certain events prior to the Termination Date including, but not limited
to, if a Qualifying Initial Public Offering does not occur within 24 months following the First Draw Down Date; Caopu Enterprise
Limited ceases to own at least 86% of, or otherwise control, the Registrant, Mr. Li Jinliang ceases to own at least 51% of, or
does not control, the Borrower All outstanding principal amount, accrued but unpaid interest and other amounts owed, if any, under
the Loan Agreement may be voluntarily prepaid by the Borrower, in whole or in part, but not less than U.S.$750,000, commencing
on the date twelve (12) months after the First Draw Down Date, subject to, among other conditions, the Borrower shall also pay
to the Lenders a fee equal to the product of (i) 3%; multiplied by (ii) the principal amount being prepaid; multiplied by a fraction
of which (a) the numerator equals the number of days from the date the prepayment amount is paid until the Termination Date, and
(b) the denominator is 360.
Subject to certain increases in the interest rate of the outstanding principal amount upon the
occurrence of certain events set forth in the Loan Agreement, the interest rate of all outstanding principal amount shall be eight
(8%) percent per annum, with accrued but unpaid interest being paid quarterly.
The Borrower
has agreed to pay the Lender a
commitment fee
in US Dollars computed at the rate of 2 per cent. per annum
on that Lender's Available Commitment for the Availability Period.
The Borrower, TIDC, the Registrant, and CEL have made certain representations, warranties and covenants
(including, but not limited to certain financial covenants) to the Lenders and have agreed to provide certain information to the
Lenders, all as provided in the Loan Agreements. The Loan Agreements also contain certain events of default for certain events
related to the Borrower and certain other related entities.
As of the date of this Current Report on Form 8-K, the Borrower has borrowed from the Lenders $U.S.
23,000,000 aggregate principal amount.
The above is a summary of the Loan Agreement and certain other relevant documents and should be
read in connection with the Loan Agreement and the other Exhibits attached hereto.
The foregoing descriptions of the Loan
Agreement and certain other relevant documents are summaries and are qualified in their entirety by reference to the full text
of such agreements, which shall be filed as exhibits to the Registrants next periodic report or an amendment to this Current Report
on Form 8-K.
SIGNATURES
Pursuant to the requirements
of Section 12 of the Securities Exchange Act of 1934, as amended the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
China Shandong Industries, Inc.
Date:  March 2, 2012
By:
/s/ Jinliang Li
Name: Jinliang Li
Title: Chief Executive Officer