Document:

Unassociated Document

Exhibit 10.55

 

Trading financing 008

 

Trust Receipt Loan Contract

 

Contract No: G1225-2012-006

Party A: Ningbo Keyuan Plastics Co., Ltd

	
Address: Qingzhi

	
Postal code: 315801

Legal representative: Chunfeng Tao

Tel: 86232932

 

Party B (Lender ): China Construction Bank, Beilun Branch

	
Address: No 251 Xinda road

	
Postal code: 315800

Principals: Jiangen Han

Fax: 86882154             Tel: 86884361

 

Since the Letter of Credit (“L/C” or “LC”) / Telegraphic Transfer (“T/T” or “TT”) / documents under import collection will arrive (has arrived), Party A applied for trust receipt loan and Party B has already accepted the application.

WHEREAS:

The undersigned parties agreed to sign this contract after mutual agreement.

Article 1. Trust Receipt Loan

	
1.

	
Trust Receipt Loan under this contract means the short term financing provide by Party B per Party A’s request when the expiration date of LC/TT/ documents under import collection to be used for payment.

Information of L/C

L/C No.:8300901000635901

Amount of L/C (Spell-Out):USD Thirteen Million Two hundred and Fifty-Four Thousand Four Hundred and Sixty-Eight point Ninety-Six

Invoice/Bills (Spell-Out):USD Thirteen Million Two hundred and Fifty-Four Thousand Four Hundred and Sixty-Eight point Ninety-Six

 

Information of Inward Collection

Inward Collection No.:/

Invoice/Bills (Spell-Out):/

 

  

1

  

 

Information of Import COD

Import Contract No.:/

Invoice/Bills(Spell-Out):/

Invoice No:/

	
2.

	
Trust Receipt Loan Amount(Currency, Spell-Out): EURO Ten Million Sixty-Eight Thousand Two Hundred and Sixty-Three Point Fifty-Five.

	
3.

	
Term: 92 days, from March 8, 2012 to June 8, 2012.

Article 2.  Interest Rate and Interest Calculation and Interest Settlement

	
1.

	
Interest rate under this contract is annual interest rate, being the following Item 1:

	
1)

	
The loan interest under this contract is fixed interest rate, which is 2.7384%, the interest rate remains unchanged within loan term

	
2)

	
The loan interest under this contract is floating interest rate, which is LIBOR +interest margin /, floating once per month.

	
2.

	
The loan interest is started to be calculated from the date of payment by Party B, which date is also value date. The loan interest is accounted by date. Daily interest of the loan calculates with 365 days if the currency is HK dollar and UK pound, while the other currencies shall be calculated by 360. The first day of the term is included in the interest period but exclude the last day.

	
3.

	
Interest settlement

	
  

	
1)

	
With fixed interest, the interest rate shall be calculated according to agreed fixed rate. With floating interest, the interest rate shall be calculated according to the interest rate in the floating term. If the floating interest rate term is shorter than settlement term, the floating interest will be calculated first, settlement date plus interest in each period to calculate the loan interest.

	
  

	
2)

	
Settlement method applies for the following second one :

	
  

	
a.

	
Settlement by/(month/quarter/half year), settlement date shall be the corresponding date of value date, if there is no corresponding date, the last shall be done.

	
  

	
b.

	
Loan is cleared with payment of both principal and interests on the due date of the loan.

	
  

	
c.

	                                     

 

  

2

  

 

Article 3.  Preconditions for Party B to Grant Loan

Unless Party B waives all or any of the following, Party B will be obligated to grant loan when all of the following preconditions are met.

	
1.

	
Party A has already complete related legal procedures like approval, registration, insurance and so on required by law;

	
2.

	
Party A has already submitted all the files required by Party B;

	
3.

	
Party A has already submitted the trust receipt required by Party B;

	
4.

	
All requested guarantee becomes and remains effective;

	
5.

	
Party A does not breach any covenants under this contract;

	
6.

	
Others

Article 4. Repayment

	
1.

	
Repayment principle

 

Payments Party A receives for products relating to L/C/inward collection/import COD under this contract shall be used for repaying Party B’s trust receipt, and shall repay the outstanding amount with other capital.

	
2.

	
Interest payment

Patty A shall pay the due interest to Party B in settlement date. The first interest payment date is the first settlement date and the loan shall be cleared with the payment of both interests and principal.

	
3.

	
Repayment method

	
  

	
1)

	
Party A shall pay off the loan principal and interest at the same time when the loan is due.

	
  

	
2)

	
Party A shall prepare sufficient capital in the account opened with Party B before payment due day (Party B is also entitled to deduct the money from Party A’s account for payment), or transfer the capital from other account on the payment due day.

	
4.

	
Repayment in advance

Party A has the right to repay in advance.

When repay in advance, Party A shall calculate the interest according to the actual number of days the loan and interest rate stipulated in this contract. After the prepayment, the unpaid balance shall be still subject to the terms and conditions under this contract.

 

  

3

  

 

Article 5.  The Rights and Obligations

	
1.

	
Party A has the right to request Party B to grant loan according to the provisions of this contract.

	
2.

	
Party B should keep Party A’s the commercial secret confidential, unless otherwise required by laws and regulations, demanded by the authority, or according to other agreements between the parties.

	
3.

	
All settlement of RMB and foreign currency under this contract shall be conducted in Party A’s account opened with Party B.

	
4.

	
Party B takes the ownership of the documents and products when Party A issued loan receipt or Party B paid (whichever happens first).

	
5.

	
After Party A issued the trust receipt to Party B, Party B shall hand over all the documents to Party A.

	
6.

	
Being the trustor and beneficiary, Party B has the beneficial right to Party A’s entrusted property.

	
7.

	
Being the trustee, Party A shall unload, store, produce, process, transport and sell under the documents and products involving L/C/inward collection/import COD for the interest of Party B.

The sales price received by Party A shall be used to repay the loan. The remaining balance of the loan shall be paid with other capital.

	
8.

	
Party A shall undertake all fees incurred by products or handling products.

	
9.

	
Party B has the right to collect the payment from buyers regarding sales products involving L/C/inward collection/import COD and does not need to inform Party A in advance.

	
10.

	
If Party B has special requirements, Party A will handle the products according to the requirements.

	
11.

	
All relevant documents, products and rights (including but not limited to the unsold products, and the claims to buyers due to products sales, the payment due to products sales and insurance compensation) under this contract are Party B’s trust property, and independent from Party A. When Party A entered into dissolution, revocation and bankruptcy, or the creditors of Party A claim rights to the trust assets, it is the obligation for Party A to declare to the court or third Party that the trust assets does not belong to Party A’s liquidation assets or owned assets, or Party A’ s bankrupt assets. Claims Party A obtains due to managing and handling the documents and products is not allowed to offset the liability under the owned assets.

 

  

4

  

 

	
12.

	
Before paying off the trust receipt loan principal, interest and expense, Party A can not pledge the documents or the products to other third parties, or make the goods must subject to any restriction of lien.

	
13.

	
If Party B so requests, Party A shall provide any requested documents or store goods as instructed, and use Party B letterhead to create warehouse receipt.

	
14.

	
If Party B so requests, Party A shall take related insurance from good credit insurance company with equal value to L/C/inward collection/import COD, and hold as the trustee of Party B and provide Party B with the insurance policy or insurance agreement which Party B is beneficiary or endorsing Party B as beneficiary per Party B’s request. Party A will be responsible for all the expenses related to insurance. If any claims occur, Party A shall inform Party B immediately and hand over the insurance compensation to Party B upon receipt.

	
15.

	
Party B is entitled to decide and inspect the transportation methods, storage location and method and insurance. Party A shall provide all the convenient access to allow Party B to get into Party A’s location or warehouse, and sign all the documents for Party B’s collection and claims.

	
16.

	
Party B is entitled to inspect the payment collection of the products under L/C/inward collection/import COD and Party A shall inform Party B in writing when required by Party B.

	
17.

	
If Party A changed its legal representative, address, or business location, registered capital and article of incorporation, it shall inform Party B within .....working days after occurrence.

	
18.

	
Party A shall not sign any contracts with third parties that may be detrimental to Party B’s rights under this contract.

	
19.

	
Party B can revoke the trust any time. Upon request by Party B, Party A shall return to all the property certificate, documents and the products o Party B.

	
20.

	
If Party A fails to handle the trust property per Party B’s request, Party B is entitled to terminate the trust relationship, take back the trust property and handle as it sees fit.

	
21.

	
If there are any disputes or frauds under the main contract concerning L/C/inward collection/import COD, whatever settled or not, Party A shall pay loan principal and interest and related expenses under this contract to Party B.

 

  

5

  

 

	
22.

	
Party A cannot use the related party transaction to avoid the liability to Party B; cannot use the false contract with related parties, bill receivable without practical business background, account receivable to discount or pledge in bank for cash or credit granting.

	
23.

	
If the Party A is a group client, it shall give Party B a timely notice for related transaction involving over 10% net assets, including: 1) the relationship with each party in the transaction, 2) project and transaction nature; 3) the money amount and related proportion; 4) the pricing policy (including symbolic transaction without monetary amount).

Article 6.  Liability of Default

	
1.

	
Party A’s defaults and the conditions may adversely affect Party B’s claims:

	
  

	
1)

	
Party A breaches any covenants under this contract or explicitly expresses not to perform one of the covenants;

	
  

	
2)

	
If any following conditions occur that make Party B believe may affect its claims:  Party A takes contract, trusteeship, lease, shareholding reforming, investment, joint operation, M & A, purchase and reorganization, separation, joint venture, apply for closing down, apply for dismissing, being revoked, being applied for bankruptcy, shareholder change or major assets transfer, stop production, closing down, and charged by local authority, cancelling it registration, suspend its license, involved in great legal dispute, great difficulties in production or finance, legal representative can not perform its duty, Party A does not perform its obligation for due debt (including the debt of Party A to Party B, or to other departments in Chinese Construction Bank), transfer its capital for free or in low price, reduce third Party’s liability or provide guarantee for third Party, neglect to perform its claims  or other rights, Party A’s shareholder to use its independent position to avoid liability, or Party A fails to provide certification to prove its property separate with shareholder’s property, the guarantee under the contract is false, ineffective, invalid, being revoked, or being dismissed, the guarantor default the contract or express he will not continue the guarantee by his actions, or the guarantor lose its guarantee capacity partially or wholly, and the value of warranty is being reduced, or the other conditions may endanger Party B’s claims.

	
  

	
3)

	
If any one of above mentioned situation arises, Party B has the right to take one or any actions below:

	
  

	
A.

	
Announce that the loan is due immediately, and request Party A to repay entire due and undue principal, interest and expense.

	
  

	
B.

	
If Party A fails to pay the interest in time within the term, it shall pay compound interest pursuant to relevant terms under this agreement.

 

  

6

  

 

When the loan is overdue, from the overdue date to the date of paying off all principal and interest, the unpaid principal and interest (including the principal and interest which Party B to declare acceleration of maturity) shall be calculated based on agreed settlement with default loan interest; if the agreed principal and interest shall be paid off simultaneously when due, the unpaid principal and interest (including the principal and interest which Party B to declare acceleration of maturity) shall be calculated based on agreed settlement with default loan interest. The default loan interest 4.7384%.

The overdue loan means Party A fails to pay off the loans on time.

	
  

	
C.

	
Dispose the documents and products regarding L/C/inward collection/import COD.

	
  

	
D.

	
Request Party A to provide guarantee

	
  

	
E.

	
Exercise the guarantee right.

	
  

	
F.

	
Other remedies allowed by law.

Article 7.  Others

	
1.

	
Fees

Unless otherwise agreed, Party A shall be responsible for all fees related to legal counsel, insurance, evaluation, registration, appraisal and notarization under this contract.

Party A shall be responsible for all fees (including but not limited legal cost, arbitration fee, property protection fee, travel expense, execution fee, evaluation fee, auction fee, delivery fee, announcement fee, lawyer fee and etc) that Party B incurs in order to pursue its claims.

	
2.

	
Collection of account receivable

For all the account receivable under this contract, Party B is entitled to deduct the money or foreign currency directly from Party A’s account in Chinese Construction Bank without informing Party A in advance. If the settlement of exchange and purchasing foreign currency is required, it is Party A’s obligation to assist Party B and take care exchange rate risk.

	
3.

	
The usage of Party A’s information

Party A agrees that Party B may check Party A’s credit status form People’s Bank of China or the credit data base approve by Credit Department or other departments, and also agrees that Party B may provide information to People’s Bank of China or the credit data base approve by Credit Department. Party A also agrees that Party B may use and disclose Party A’s information if it is necessary to carry out business.

 

  

7

  

 

	
4.

	
Announcement collection

Party B has the right to inform related department for the default of Party A, and do announcement collection through press.

	
5.

	
The effectiveness of Party B’s record

Unless there are reasonable, definite contrary evidences, all the Party B’s internal records for principal, interest and expense and repayment records, the documents and evidences related to Party A to withdrawal money, repayment, and interest payment, and record for Party B’s announcement of collection, are all regarded as the efficient evidences to prove the relationship between Party A and Party B.  Party A can not object due to the fact that the records and documents are prepared by Party B.

	
6.

	
Reservation of power

Party B’s right under this contract will never affect and exclude his rights under the law and other contracts. Any tolerant, grace, privilege or delay to execute any rights for the default behavior and delay behavior shall not be considered as waive of rights and interests or accept the default behavior, and also does not bind or prevent Party B from continuing to execute the rights, and also will not result in Party B undertaking obligation and responsibility to Party A.

	
7.

	
If Party A owes other due liability to Party B apart from the liabilities under this contract, Party B is entitled to deduct money from Party A’s account in Chinese Construction Bank system for RMB and foreign currency to pay off the liabilities, and Party A shall not object.

	
8.

	
Party A shall make an immediate notice to Party B for any changes of address in writing. If failure to provide notice results in any losses, Party A be responsible for the losses.

	
9.

	
The construction of this contract shall be subject to the purpose of this contract, sentences used, relevant clauses, trading custom, international practice, and the principle of good faith and honesty.

	
10.

	
Trust receipt loan applications and other documents are parts of this contract.

	
11.

	
Settlement

 

  

8

  

 

All disputes concerning this contract should be settled through friendly negotiation; when the negotiation fails, shall settle with following  method:

	
  

	
1)

	
Proceed to the local People's Court

	
  

	
2)

	
Submit to arbitration committee.

During the dispute, the parties shall continue to perform the terms which are not affected by the dispute.

	
12.

	
Effect of this contract

This contract becomes effective upon the signature and seal of the legal representatives of both parties, principals or the authorized persons.

	
13.

	
This contract is made in two duplicates.

	
14.

	
Other covenants

                       /                            

Article 8. Statements

	
1.

	
Party A is aware of Party B’s operation scope and authority limit.

	
2.

	
Party A has read all the clauses of this contract. At Party A’s request, Party B has made sufficient explanation for this contact. Party A fully understands the contract and is aware of the legal consequence.

	
3.

	
Party A’s signing and execution of this contract complies with all the national laws and regulations, as well as Party A’s internal constitution and internal organization files. Party A has already obtained approval authority within the company or from national organization to enter into this contract.

	
4.

	
Party A states that at the time of executing the contract there is no violation of any laws and regulations related to environmental protection, energy conservation and emission reduction; and promises to comply with those laws and regulations throughout the term of this contract. If Party A’s above statement is false or it fails to perform, or there is potential risk of waste of energy and pollution from the part of Party A, Party B has the right to stop granting credit to Party A (include but not limited to refuse loaning, financing, issuing L/G, LC), or announce the claims (principal and interest) is acceleration of maturity (include but not limited to loan, financing, money paid in advance or to be paid actually) , or using other reliefs allowed by this contract or laws.

 

  

9

  

Party A(Stamp)

Legal Representative/ Authorized person

2012-3-8

Party B (Stamp)

Legal Representative/ Authorized person

2012-3-8

10posama3ex10lvi_keyuan.htm

Exhibit 10.56

 

CCB Cooperation Agreement on Inter-Bank Refinance

 

Agreement No. :   G9112-2012-025

 

Party A (full name):  Ningbo Keyuan Plastics Co.,Ltd.(seal)

 

	
Add.: Qingshanshi, Beilun District, Ningbo   

	
Postal Code: 315803

 

Legal Representative (Person in Charge):  Tao Chunfeng

 

	
Fax: 0574-86232618

	

Tel: 0574-86232932

 

Bank to open basic deposit account:

 

Bank account number:

 

Bank account opened at Party B:

 

Party B: China Construction Bank Inc, Ningbo Beilun Branch (seal)

 

	
Add: No.251 Xinda Road, Beilun District, Ningbo

	
Postal Code: 325800

 

	
Person in Charge:

	

 

	
Fax: 86882154 

	
Tel: 86884361

 

This Agreement is entered into by and between Party A and Party B to identify rights and obligations for both parties in Overseas Payment businesses in accordance with relevant laws, regulations and regulatory rules through negotiation for mutual compliance.

 

Article 1    Inter-bank refinance

 

	
1.

	
Inter-bank refinance herein means Party A entrusts Party B with applying to overseas branches of CCB or other banks acknowledged by CCB (hereinafter ‘overseas branches/ other banks’) that under the condition of Party A taking payment responsibility and Party B taking responsibility of guarantee of payment, overseas branches/ other banks shall pay for import goods (including advances) under L/C, import collection and T/T payment settlement and refinancing services under non-trade item.

 

	
2.

	
Inter-bank refinance herein is limited to payment under import trade contract or non-trade item. Types of international settlement that can conduct Overseas Payment include: sight L/C, usance L/C, usance L/ C payable at sight under L/C settlement; D/P under import collection settlement; D/A; Pay on delivery under TT settlement.

 

	
3.

	
Considering Party A’s application, Party B agrees to provide maximum (currency, Spell-Out)US Dollar: Fourteen Million Seven Hundred and Forty-Nine Thousand Two Hundred and Eighty- One Point Six of trust receipt facility for Party A to handle Overseas Payment businesses.

 

Validity of this facility is from March 30, 2012 to June 28, 2012.

 

During the effective period of the agreed facility, only if Party B accepts Party A’s entrust and applies to overseas branches/ other banks for inter-bank refinance, and the balance of principal of it doesn’t exceed aforementioned facility. Party A can continuously apply to Party B for Overseas Payment according to This Agreement and not be limited by numbers of application. Nonetheless, the sum of the amount that Party A applies for Party B for Overseas Payment and the balance of principal of Overseas Payment that Party A has taken up or keeps outstanding shall not exceed the agreed facility.

 

  

1

  

 

Trust receipt facility under This Agreement belongs to trade refinancing facility, which means import refinancing facility that Party B, under the condition that Party A presents trust receipt, provides to Party A. Party A can apply to Party B to use this facility for Overseas Payment businesses.

 

	
4.

	
Unless both parties agree otherwise, the concrete amount of each Overseas Payment shall be determined by Party B based on amount due under import contract, with the maximum amount not exceeding that of the draft. If no draft, the maximum shall not exceed amount due for the goods.

 

	
5.

	
Term for each Overseas Payment shall be calculated as of the actual payment date by refinancing bank, and will end on expiration date determined by refinancing bank.

 

Article 2   Procedure for Overseas Payment businesses under This Agreement

 

	
1.

	
If Party A wants to apply for using trust receipt facility in Overseas Payment businesses under This Agreement, it shall submit Application for Overseas Payment within the period of validity of the facility to Party B. Party A shall guarantee that Overseas Payment businesses facilities submitted not exceed the limit agreed herein.

 

	
2.

	
If Party B agrees to accept Party A’s entrust after examination to apply to overseas branches/ other banks for Overseas Payment businesses, Party B shall, according to issues entrusted by Party A, submit refinancing application as the trustee to its overseas branches/ other banks, and take guarantee of payment responsibility accordingly, meanwhile it should present Notice on Using Trade Refinancing Facility to Party A.

 

	
3.

	
Before expiration of single Overseas Payment business, Party B shall send Notice on Expiration of Overseas Payment Business to Party A. Both parties agree that actual amount, interest, expense and term etc. of single Overseas Payment business shall be subject to the information listed on Notice on Expiration of Overseas Payment Business.

 

Article 3    Interest, expense of overseas payment

 

Party A agrees to take relevant interest and expense under Overseas Payment (including refinancing interest charged by overseas branches/ other banks, commission charged on Party B for Overseas Payment and other related charges), and all interests and charges payable shall be paid by Party B.

 

	
1.

	
Interest and expense

 

Party A selects the ___second__ way among the following to determine interest and expense of inter-bank refinance:

 

	
(1)

	
When Party A applies to Party B for single Overseas Payment business, Party B  should enquire from overseas branches/ other banks to determine refinancing interest rate. Meanwhile, Party A should bear interests of overseas branches/ other banks and commission charged on Party B for inter-bank refinance. Details of refinancing interest rate and commission rate shall be subject to Notice on Using Trade Refinancing Facility presented to Party A by Party B.

 

	
(2)

	
Both parties agree that under This Agreement, each Overseas Payment business shall calculate by applying general rate of LIBOR of the same period plus price difference (including refinancing interest charged by overseas branches/ other banks and commission charged on Party B for inter-bank refinance), and Party A agrees that Party B shall have the right to deduct commission charged by Party B for Overseas Payment from the sum of accrued interest. Details of general rate for Overseas Payment shall be subject to agreement of Notice on Using Trade Refinancing Facility.

 

  

2

  

 

Refinancing interest rate/ general rate for Overseas Payment shall be annual rate and calculated by the day ( Currencies for Overseas Payment shall be HK Dollar and Pound, and it will be calculated by 365 days in one year; for currencies other than HK Dollar and Pound, it will be calculated by 360 days in one year).

 

LIBOR referred in this Article means the very same day of each Overseas Payment business day, or one or two bank trading day before each Overseas Payment business day, or the very same day of interest rate adjustment day, or one or two bank trading day before interest rate adjustment day, the inter-bank offered rate for the same period and same currency published by BBA provided by financial telecommunication terminals such as TELERATE etc. LIBOR applies to each Overseas Payment business shall be subject to determination by overseas branches/ other banks.

 

LIBOR for the same period means the LIBOR price in months matching the term and currency of inter-bank refinance. LIBOR price for each day can be divided into different levels from one month to twelve months. Shall term of Overseas Payment be less than one month, it shall be calculated in LIBOR price for one month; Shall term of Overseas Payment be more than one month but less than two months, it shall be calculated in LIBOR price for two months; so on and so forth, maximum can apply LIBOR price for twelve months.

 

	
2.

	
Other charges

 

Unless otherwise agreed, Party A agrees to bear other charges incurred in the process of transaction of Overseas Payment businesses, including but not limited to postage, commission charged by foreign banks etc. Party A agrees to pay other charges listed on Notice on Expiration of Overseas Payment Business sent by Party B to overseas branches/ other banks once and for all before expiration date of Overseas Payment via Party B.

 

	
3.

	
Payment for interest

 

Party A agrees to pay for t principal, interests and charges listed on Notice on Expiration of Overseas Payment Business as interests of Overseas Payment businesses under This Agreement sent by Party B to overseas branches/ other banks once and for all before expiration date of Overseas Payment via Party B.

 

	
4.

	
In case of extension, Party A shall still pay for interest for extended period and all expenses happened after extended period to overseas branches/ other banks via Party B.

 

Article 4   Preconditions for Party B to accept Party A’s entrust to apply to overseas branches/ other banks for Overseas Payment businesses and provide guarantee for Party A’s payment obligation

 

Unless Party B waives all or part of its rights, Party B shall not be obliged to accept Party A’s entrust to apply to overseas branches/ other banks for Overseas Payment businesses and provide guarantee for Party A’s payment obligation until following preconditions are all met:

 

  

3

  

 

	
1.

	
Party A has properly handled approval, registration, delivery and other legal procedure related to Overseas Payment under This Agreement in line with relevant laws, regulations and regulatory rules.

 

	
2.

	
Party A has carried out foreign exchange payment procedure in accordance with requirements from State Administration of Foreign Exchange and this has been confirmed by State Administration of Foreign Exchange.

 

	
3.

	
Party A has submitted relevant documents that meet Party B’s requirement.

 

	
4.

	
Guarantee agreement that meets Party B’s requirement or other guarantee methods have come into effect.

 

	
5.

	
Party A hasn’t involved in any breaching activities listed in This Agreement.

 

	
6.

	
Party A has submitted Trust Receipt to Party B except Party B agrees not to do so.

 

	
7.

	
Party B has approved Party A’s application.

 

Article 5   Repayment

 

	
1.

	
Ways of repayment

 

	
(1)

	
Payment for goods obtained from disposing the goods represented by trust receipt by Party A  shall be used to repay Overseas Payment amount, and the insufficient shall be repaid by Party A using other funds.

 

	
(2)

	
Principal, interests, charges and other payment due listed on Notice on Expiration of Overseas Payment Business sent by Party B to Party A shall be payable for inter-bank refinance. Unless otherwise agreed by both parties, Party A shall pay above amount due to overseas branches/ other banks once and for all before expiration date of Overseas Payment via Party B.

 

	
(3)

	
Party A shall, before the repayment date listed on Notice on Expiration of Overseas Payment Business, deposit sufficient amount payable for Overseas Payment in the bank account opened by Party B, and transfer the amount to pay off debt by itself, or transfer amount from other bank account on repayment date to bank account designated by Party B to pay off debt; shall Party A not make repayment on schedule, Party B will have the right to appropriate it  from Party A’s bank account opened in CCB.

 

	
2.

	
Prepayment

 

Unless it’s agreed by overseas branches/ other banks and Party B, Party A shall not repay principal, interests, charges for Overseas Payment ahead of schedule. Nonetheless, in cases that Party B and/or overseas branches/ other banks consider that Party A is already suffering from operational crisis or other factors which has already impaired Party A’s capability of making repayment for Overseas Payment upon expiration or this kind of situation would happen, or due to change of national policies, or internal managerial issues of Party B and/or requirements from overseas branches/ other banks, Party A shall be obliged to repay Overseas Payment amount ahead of schedule according to Party B’s requirement.

 

Shall Party A need to repay all or part of Overseas Payment amount ahead of schedule, Party A shall submit application to overseas branches/ other banks by tested cable via Party B at least 15 days in advance, and if overseas branches/ other banks agree, Party A shall pay default punishment to overseas branches/ other banks via Party B. Default punishment shall be subject to the amount on the tested cable, which is the reply of overseas branches/ other banks. Meanwhile Party B shall have the right to charge Party A for losses resulted from prepayment according to actual situation.

 

	
3.

	
If Party A requires for extension for inter-bank refinance, it should apply to overseas branches/ other banks by tested cable via Party B at least 15 days in advance.

 

  

4

  

 

Article 6   Rights and obligations of both parties

 

	
1.

	
Party A shall have the right to request Party B , according to agreement herein, to apply to overseas branches/ other banks for Overseas Payment businesses for Party A, and provide guarantee for Party A’s payment obligation when conditions are met.

 

	
2.

	
Party B shall keep Party A’s commercial secret confidential in accordance with law.

 

	
3.

	
Party A’s settlement in RMB or foreign currencies under This Agreement shall all be handled via the bank account opened by Party B.

 

	
4.

	
When overseas branches/ other banks make payment and occupy the vouchers which represent the ownership of goods and relevant documents, Party B shall promptly acquire the ownership of vouchers and ownership of goods represented by vouchers.

 

	
5.

	
After Party A represents trust receipt to Party B, Party B shall pass the vouchers to Party A.

 

	
6.

	
Party B, as the trustor of trust receipt, shall enjoy the beneficial right from Party A’s disposing trusted properties.

 

	
7.

	
Party A, as the trustee of trust receipt, holds documents under settlement methods such as import L/C, import collection or T/T settlement involved in Overseas Payment and the goods represented by these documents, and can decide on unloading, storage, manufacture, processing and sales matters.

 

Payment for goods obtained by Party A from sales shall be used to repay Overseas Payment amount applied from overseas branches/ other banks via Party B, and the insufficient shall be repaid by Party A using other funds.

 

	
8.

	
All costs arising from disposal of goods or goods shall be borne by Party A.

 

	
9.

	
After the goods represented by documents under settlement methods such as import L/C, import collection or T/T settlement involved in each Overseas Payment under This Agreement has been sold out, Party B shall have the right to collect payments for goods from the buyer and issue effective receipt without the obligation to inform Party A in advance.

 

	
10.

	
In case that Party B expresses special requirements, Party A shall dispose the goods according to Party B’ requirement.

 

	
11.

	
The documents involved in each Overseas Payment under This Agreement and the goods represented by these documents shall, as Party B’s trusted properties, be independent of Party A. In situations like dissolution, cancellation or bankruptcy happened to Party A, trusted properties shall not be included in assets to be liquidated. Creditor’ rights that Party A obtained from managing and disposing documents and the goods represented by documents shall not offset the debts arising from its own properties.

 

	
12.

	
Before paying off principal, interests and charges of inter-bank refinance, Party A shall not mortgage (pawn) documents and the goods represented by documents to other people.

 

  

5

  

 

	
13.

	
In case that Party B expresses special requirements, Party A shall, before selling the goods involved in single Overseas Payment under This Agreement, guarantee that relevant documents about the goods delivered to Party B be stored according to Party B’s instruction, and make a warehouse receipt with a letter head of Party B.

 

	
14.

	
In case that Party B expresses special requirements, Party A shall purchase fire insurance and other common insurance types from insurance with good reputation according to full value of the goods involved in single Overseas Payment under This Agreement, and hold it for Party B as trustee of trust receipt, and submit, at any time when Party B requests, the insurance policy or insurance contracts with Party B being the party to enjoy priority claim right or the benefits under this policy being transferred to Party B. Premium shall be borne by Party A. In case of compensation claimed for goods under this policy, Party A shall immediately inform Party B, and after collection of compensation, Party A shall promptly pass it on to Party B.

 

	
15.

	
Party B shall have the right to decide and examine transportation methods, storage place, storage method and different coverage of goods involved in single Overseas Payment under This Agreement. Party A guarantees to provide convenience for Party B, including allowing Party B’ s staff to enter into warehouse and place owned, occupied or managed by Party A. If Party B requires, Party A shall sign all documents necessary for facilitating Party B to take delivery of goods and claim compensation.

 

	
16.

	
Party B shall have the right to supervise Party A’s operational status and Party A shall provide assistance. Party B shall have the right to examine and supervise the collection of payment for goods involved in single Overseas Payment under This Agreement, and Party A shall, at any time when Party B requests, provide relevant information in writing to Party B.

 

	
17.

	
In case that Party A shall change legal representative (person in charge), domicile or business place, or reduce registered capital during agreement period, Party A shall inform Party B in writing in advance.

 

	
18.

	
In case that Party A shall change operational type or ownership organizational form due to contracting, leasing, associate company, shareholding reform, division, merger, consolidation and other reasons, Party A shall inform Party B in advance and carry out debt clearance measures.

 

	
19.

	
Shall situations happen to Party A which constitute crisis to its normal operation or have substantial adverse impact on Party A’s capability of making repayment for Overseas Payment under This Agreement, including but not limited to production suspension, close down, having cancellation registration, business license revocation, legal representative or major person in charge being involved in illegal activities, major litigation, or serious difficulties in operation, financial status degradation, Party A and its investors withdraw capital, transfer assets or shares on its own etc., Party B shall have the right to demand Party A to immediately deposit the capital and interests for Overseas Payment into the bank account designated by Party B as the earnest money guarantee or take other measures acknowledged by Party B.

 

	
20.

	
Party A guarantees not to sign agreement with any third party to damage Party B’s benefits under This Agreement.

 

	
21.

	
Party B can at any time revoke trust. Once Party B request, Party A shall promptly return whole set of property ownership documents, vouchers and other instruments or the goods under these documents to Party B.

 

  

6

  

 

	
22.

	
Shall Party A not dispose trusted properties according to Party B’s requirements, Party B shall have the right to cancel trust relation and retrieve trusted properties for its own disposal.

 

	
23.

	
In case of security established, if the guarantor breaches security agreement or lost its capability of guarantee, Party A shall promptly provide new security acknowledged  by Party B, or Party B shall have the right to retrieve ahead of schedule the principal, interests and relevant charges of Overseas Payment in the name of overseas branches/ other banks, and Party B shall have the right to appropriate this amount from Party A’s bank account opened in CCB, and shall have the right to exercise security rights.

 

	
24.

	
Party A agrees that: Party B shall have the right to exercise whatever rights overseas branches/ other banks enjoy against Party A.

 

	
25.

	
Both parties agree that international conventions such as UCP 600 etc. shall be applied on issues not finalized in This Agreement or ambiguous expressions.

 

Article 7   Guarantee

 

Guarantee methods under This Agreement shall be _the first and the fourth____ among following choices:

 

	
(1)

	
Guarantee

 

	
(2)

	
Mortgage

 

	
(3)

	
Pawn

 

	
(4)

	
Earnest money

 

	
(5)

	
Spare L/C

 

	
(6)

	
Credit insurance

 

	
(7)

	
Others:_________

 

Article 8    Liability for breach of contract

 

	
1.

	
Upon expiration of inter-bank refinance, shall Party A not make full payment via Party B on time or the balance in Party A’s bank account opened in Party B be insufficient, Party B shall have the right to issue a collection notice to Party A, and Party A shall, according to Party B’s requirement, raise funds in time and make full payment via Party B. Under any circumstances, if Party B performs obligation of payment guarantee, Party A shall pay following amount to Party B within 3 working days after Party B makes payment:

 

	
(1)

	
The full amount that Party B paid to overseas branches/ other banks or third party designated by overseas branches/ other banks;

 

	
(2)

	
For outstanding amount (including principal, interests, postage/cable charge, commission etc. for inter-bank refinance) of Part A in the period from the date that Party B makes payment to the date that Party B collects full payment from Party A, it should calculate the rate of monies advanced  by a daily interest rate of 0.05%

 

	
(3)

	
Costs for Party B to deliver notice and other relevant expenses.

 

	
2.

	
Shall Party A not repay full amount of principal and relevant charges on schedule, Party B shall have the right to adopt one or several methods of following choices:

 

  

7

  

 

	
(1)

	
Appropriate it from Party A’s bank account opened in CCB, or appropriate it from other receivables of Party A;

 

	
(2)

	
Dispose documents under import L/C, import collection or T/T settlement involved in single Overseas Payment under This Agreement and the goods represented by these documents;

 

	
(3)

	
Dispose collaterals, properties in pawn or pursue recovery from the guarantor.

 

	
3.

	
If Party A have any violation of the situations provided herein, Party B shall have the right to demand Party A correct it by a set time, and demand Party A provide guarantee in line with Party B’s requirement, and appropriate any amount payable from Party A’s bank account opened in CCB and other remedial measures permitted by law.

 

Article 9 Modification, supplementation and interpretation of This Agreement

 

	
1.

	
Any modification or supplementation of This Agreement shall be agreed by both parties and made in writing, and constitute effective components of This Agreement.

 

	
2.

	
Shall there be discrepancy in interpretation of any articles herein, the true meaning of it shall be determined by purpose of This Agreement, words and expressions used, relevant clauses, trading conventions and honesty and credibility principle.

 

Article 10   Attachment of This Agreement

 

Application for Overseas Payment submitted by Party A, Notice on Using Trade Refinancing Facility, Notice on Expiration of Overseas Payment Business issued by Party B to Party A, and import goods list and other vouchers and documents, etc. under import L/C, import collection or T/T settlement involved in single Overseas Payment under This Agreement shall all be attachment of This Agreement and constitute effective components of This Agreement.

 

Article 11 Settlement of disputes

 

Shall any disputes happen during the process of implementing This Agreement, it can be solved via negotiation. If negotiation fails, the __first____ way of following choices shall be chosen for settlement:

 

	
(1)

	
File a lawsuit to the People’s Court where Party B locates;

 

	
(2)

	
Submit the case to __________ arbitration committee (arbitration place shall be _______) for arbitration in accordance with presently existing and effective arbitration rules of this committee. The award of arbitration shall be final and legally binding upon parties hereto.

 

During litigation or arbitration period, the part of This Agreement which is not involved in disputes shall still be enforced upon.

 

Article 12   Operation of This Agreement

 

This Agreement comes into effect after legal representative (person in charge) or authorized agent from Party A sign and affix official stamp and legal representative (person in charge) or authorized agent from Party B sign and affix official stamp.

 

Article 13 Miscellaneous agreement

 

	
1.

	
Shall Party A pay earnest money in full amount or relevant financial pawn in full value to Party B, if Party B examines and agrees, Party B can carry out Overseas Payment businesses for Party A and will be legally bound by relevant rights and obligations herein;

 

  

8

  

 

	
2.

	
____________;

 

	
3.

	
__________.

 

Article 14   This Agreement comes in ___two___ copies with same content.

 

Article 15   Statement

 

	
1.

	
Party A clearly acknowledges business scope and authorization of Party B.

 

	
2.

	
Party A has read all clauses herein. At Party A’s request, Party B has given interpretation to articles herein accordingly. Party A has sufficient knowledge and understanding of meanings of the articles herein and their corresponding legal effect.

 

	
3.

	
Party A has the right to sign This Agreement.

 

 

Party A (seal): Ningbo Keyuan Plastic Co., Ltd.

 

Legal Representative (person in charge) or Authorized Agent (signature):Chunfeng Tao

 

March 30, 2012

 

 

Party B (seal): CCB Ningbo Beilun Branch

	
Legal Representative (person in charge) or Authorized Agent (signature):

	

March 30, 2012

 

 

9

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