Document:

posama3ex10xlvii_keyuan.htm

Exhibit 10.47

 

 

C1-02: Inward Bills Contract (applicable for single business)

Inward Bills Contract

No.:

Party A (Applicant): Ningbo Keyuan Plastics Co., Ltd

Business license No.:330200400023187

Legal representative/Principal: Chunfeng Tao

Address: Qingshi Industrial Park, Ningbo Postcode: 315803

Financial institution account and account No.: 35036108091001

Tel: 0574-86232932 Fax: 0574-86232618

Party B: Bank of China Inc, Beilun Branch

Legal representative/ Principal: Xiaoping Ying

Address: No.245, Huashan Road, Beilun Zone   Postcode: 315800

Tel: 0574-86880294 Fax: 0574-86890975

WHEREBY, the undersigned parties agreed to sign this contract in comply with applicable laws.

Article 1. Preconditions

Inward Bills under this contract shall meet the following requirements:

	
1.  

	
This contract has already been effective;

	
2.  

	
 Party A obligates and signs the related documents, receipts, seal, related

person’s name lists and samples of signatures for party B, and also fills in relevant certificates;

	
3.  

	
Party A opens the required account to fulfill this contract;

	
4.  

	
Party A arranges the required legal and administrative approval process to facilitate the business properly, and submits the duplicate copy of the approval documents and the copies of the original documents as requested by Party B;

	
5.  

	
The guarantee on the provision of this contract has been effectively established;

	
6.  

	
Other conditions requested by Party B.

Article 2. Related to Import Trade (Notes: complete with factual information.)

√Letter of Credit

Letter of Credit No.:

Name of Bank Issuing Documents: 

No. of Issued Document: 

Receipt amount: 

 

  

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Collection

Invoice No.: /           Entrusted bank’s name: /

Issuing documents No.: /  Receipt amount: /

Article 3.  Currency of Inward Bills and amount

Currency of Inward Bills: USD

Amount: (Spell-Out) 10 Million;

(Numeric)USD 10,000,000.00

Article 4.  The Term of Inward Bills

The term of Inward Bills is 12 months/ /   days, beginning to calculate since the date of Party B made foreign payment.

If sale price of the imported products has been collected before the closing of the financing, Party B has the right to consider the final collection date as the closing date of the financing. Party A agrees to use the payment for sale of imported products it receives to repay Party A of the financing amount.

Article 5.  Interest Rate and Interest Settlement (Notes: complete with factual information.)

	
1.  

	
Interest rate (annual interest rate)

	
(1)  

	
Inward Bills in RMB: fixed interest rate, and annual interest rate is / %;

	
(2)  

	
Inward Bills in foreign currency:

	
A.  

	
Fixed interest rate, and annual interest rate is / %;

	
B.  

	
Loan interest rate in the floating period within  / months / years since the Inward Bills date published by the Bank of China, Inc.

	
C.  

	
Benchmark of LIBOR/HIBOR + 300 for the latest 12 months published by Reuters till the prior working day of the Inward Bills date.

	
2.  

	
Calculation of interest

Interest is calculated according to the actual payment amount and days since the date of Party B made payment.

Calculation formula: Interest=Principal*Days*Daily interest rate.

Base for calculating daily interest rate is of 360 days, the reduction formula is: daily interest rate=annual interest rate/360.

 

 

  

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3.  

	
Method of interest settlement

 

Interest settlement is according to the following _third_ way:

	
(1)  

	
Settlement with quarter, 20th of each last month per quarter as the interest settlement day, and the 21st as the payment day.

	
(2)  

	
Settlement with month, 20th of each month as the interest settlement day, and the 21st as the interest payment day.

	
(3)  

	
Same as expiration date of principal.

	
(4)  

	
Receive the interest in advance and settle when expiration date.

On the condition that the final payment day of the financing principal is not the same date of interest payment day, then the final payment day is considered as interest payment day and Party A shall pay off the entire interest.

	
4.  

	
Default interest

	
(1)  

	
If Party A fails to return the payment of Inward Bills within the agreed time, as for the overdue payment, the default interest shall begin accruing according to the default interest rate starting from the date of late payment until both the principal and interest are paid off.

       Default interest rate equals to the benchmark interest rate in the item 1 of this section plus 20%

	
(2)  

	
If Party A fails to pay the interest and default interest in time, it can be penalized with compound interest per month/per quarter according to agreed default interest in this contract.

	
(3)  

	
 Default interest rate: Interest = principal ×factual days ×daily interest rate.

 

Article 6.  Fees

Party A shall pay the related fees related to the business under this contract in time and the Party B decides the calculation basis, standard and method, etc.

Party A pays the above fees through the __second__ method:

	
1.  

	
In __/__ banking day since this contract became effective, pay with __/___.

	
2.  

	
Party B is authorized to deduct from the Party A’s account (Account No.:10735036108491001)

	
3.  

	
Other methods:____________________/_______________.

 

  

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Article 7. Other Rights and Obligations of the Parties

Party B has the right to handle the full set of documents/goods under the inward bills business or other guarantee right/ property right pursuant to applicable laws and regulations. According to applicable laws and regulations or the verdict of the courts and arbitral authorities, the right to handle the full set of documents/goods under the Inward Bills business belongs to Party A, then Party A agrees to transfer this right to party B unconditionally to the maximum extent allowed by applicable law and regulations and accept performance and non- performance of Party B to handle the documents/goods. If according to applicable laws and regulations or the verdict of the courts and arbitral authorities, the right to handle the full set of documents/goods under the Inward Bills business belongs to Party B, then Party B retains this right till Party A completely pays off the financing.

 When Party A requests to hold receipts/goods, and repays the financing with sales income, Party A is only acting as Party B’s consignee, including but not limited to safekeeping relevant receipts, handling storage, transportation and other related matters under those receipts, and maintain sales fund or deposit it to specific account of Party B. Party A shall disclose this role when selling the goods to a third party.

Party A shall be responsible for all the fees (including but not limited to insurance, storage, transport and wharf) during period when Party A retains the goods. Party A promises to insure the goods according to the market price of the goods, indicate Party B as the insured and provide the insurance documents to Party B. Party B has the right to clam directly when insured cargo endures loss.

Without the permission of Party B, party A is not allowed to delay payment or handle the goods through any non-currency method or at the price lower than the market price. Party A is not allowed to mortgage or pledge, or make the goods to be bound by any other liens. Once requested by Party B, Party A shall submit the details of the goods’ accounts, any sales revenue or relevant sales contracts to party B; Party B has the right to enter into the warehouse to review the actual situations of the goods, or repossess these goods.

Article 8.  Guarantee (Notes: complete with factual information.)

The guarantee methods of liability under this contract:

 /          provide joint liability guarantee, ... , and sign corresponding guarantee contract.

√ Ningbo Keyuan Plastics Co., Ltd provides margin pledge:

In case the pledgor is a third party, Party B and the pledgor shall enter into additional margin pledge contract.

 

  

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√ This contract is the main contract of < General Agreement of Margin Pledge>, and the agreement provides margin pledge and submit corresponding <Certification of Margin Pledge> or handle directly as following ways rather submit <Certification of Margin Pledge>:

	
1)  

	
Margin Amount: (Currency) RMB ; (Spell-Out) Sixty-six Million Five hundred thousand ;

(Numeric) 66,500,000.

	
2)  

	
Party A pay for above margin with following method:

√ Within   1   banking days since the effective date of this contract, Party A will deposit or load margin to the margin account opened in Party B with 10735036108091001    .

Entrusted Party B to load the margin to the margin account opened in Party B from the RMB account in Party B.

Party A ‘s guarantee liability of margin under                                  business has been removed, and Party A authorized Party B to load the margin to margin account opened in Party B directly from                   account.

Others:   _______________

	
3)  

	
In case above guarantee liability of margin has been removed by Party B, Party B shall return according to following methods:

√ Return to the Party A’s account.

Return according to the deposit route.

Return according to the written instruction of Party A.

Others:                               .

 If Party B believes that Party A or guarantee occurred matters potentially affect the contractual capacity, or guarantee contract becomes invalid, terminated or cancelled, or financial conditions of Party A or guarantor gets worse or they enter into major litigation or arbitration, or any other factors that may affect their ability to perform their contractual obligations, or the value of guaranty gets worse or lost due to devaluation, destruction, losses, or being closed down, Party B has the right to demand and Party A has the obligation to provide new guarantee, replace the guarantor to bear the liability under this contract.

Article 9.  Party A’s Statements and Commitment

Statements as follows:

	
1.  

	
Party A registers and survives by law, and possess the complete capacity of civil rights needed to fulfill this contract;

 

  

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2.  

	
Party A signs and fulfills this contract based on true intention, has obtained the legal and effective authority according to the requirements of the Articles of Incorporation or other internal management documents, and is not allowed to violate any binding agreement, contract and other legal documents; Party A has gained or will gain all the relevant approvals, permits, files or registers.

	
3.  

	
All the documents and certificates provided by party A to Party B is authentic, complete, accurate and effective under this contract;

	
4.  

	
The trading background described by party A to party B is authentic and legal, and does not have the illegal purpose such as money laundering. Party A providing any documents according to party B’s requirements does not mean that party B has the obligations and responsibilities of inspection towards the authenticity and legality of party A’s trade;

	
5.  

	
Party A will not hide any truths that may influence both parties’ financial situation and contractual capacity.

Commitments as follows:

	
1.  

	
Provide the statement of products sales regarding the import items in timely manner according to Party B’s requirement.

	
2.  

	
If  Party A has already signed or will sign counter-guarantee agreement or other similar agreements about the guaranteed obligations with the guarantor of this contract, then the agreement will not damage any rights owned by party B under this contract;

	
3.  

	
If the products sales of the import items have serious difficulties, or situations that may influence both parties’ financial conditions and capacity to fulfill this contract, including but not limited to the change of any business pattern of dismantlement, merger, affiliation, joint venture with foreign merchants, cooperation, contractual operation, reorganization, reformation and listing program, reduction of registered capital, assignment of significant property or stock right, commitment of significant liabilities, or installation of new significant liabilities on the pledge, or involvement to grave litigation or arbitration cases, party A shall inform party B in time;

	
4.  

	
As for pending matters, Party A agrees to handle according to the international conventions and agreement with Party B.

Article10. Disclosure of Related Parties of Party A and Related Transactions

The __/_ item below is applicable to both parties:

	
1.  

	
Party A does not belong to the group client of party B according to the Management Guidance of Credit Extension Business Risk of Commercial Bank Group (short for Guidance).

 

  

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2.  

	
Party A belongs to the group client of party B according to Guidance. Party A shall report the situation of related transactions over 10% net assets in time, including the related relationship, trading projects, trading properties, trading amount, corresponding proportion and pricing policy and so on (including the trade with no capital but only proportion capital).

Article 11. Default Events

Party A will be considered in violation of this contract if one of the following events happens:

	
1.  

	
Party A fails to fulfill its obligations to pay and repay to the party B according to this contract;

	
2.  

	
The statements made by party A is untrue or default the commitments under this contract;

	
3.  

	
 The matters mentioned in No.3 of Item 2 in Article 9 happen; Party B considered those may affect the financial conditions and contractual capability of Party A or guarantor, and Party A has not provided new guarantee, replaced guarantor in accordance with the provisions of this contract.

	
4.  

	
Party A closes down or is subject to disincorporation, revocation or bankrupt.

	
5.  

	
Party A defaults other covenants in this contract;

	
6.  

	
Party A default the other contracts signed with Party B or other institutions of Bank of China, Inc.

	
7.  

	
Guarantor defaults the covenants of guarantee contract, or other contracts signed with Party B or other institutions of Bank of China, Inc.

When any of the above mentioned events occur, Party B has the right to take one or some following actions:

	
1.  

	
Request Party A and/or guarantor to amend the default behaviors within limited time;

	
2.  

	
Entirely or partly suspend or terminate Party A’s business applications under this contract or the other contracts, entirely or partly suspend or terminated to grant and handle the un-granted loans, holding trading financing;

	
3.  

	
Announce the unpaid loans/financing principals and interests and the other account payables to entirely or partly expire.

	
4.  

	
Terminate or revoke this contract, entirely or partly terminate or revoke the other contracts between Party A and Party B;

	
5.  

	
 Request Party B to compensate the liquidated damages;

 

  

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6.  

	
Deduct funds from Party A’s account to repay entirely or partly liability under this contract. The undue funds in this account will be considered due in advance. If the account currency is different from the business currency of Party B, convert according to the applicable rate of Party B.

	
7.  

	
Execute real guarantee;

	
8.  

	
Request guarantor to bear guarantee liability;

	
9.  

	
Other measures considered necessary by Party B.

Article 12. Reservation of the Rights

If one party fails to fulfill entire or part rights under this contract or request the other party to fulfill, undertake entire or part obligations, responsibilities, it shall not be considered to waive the obligations or responsibilities.

 Any party’s tolerance or extension or delay execution of the rights under this contract towards another party shall not affect the rights under this contact and laws and regulations, also not considered to waive the rights.

Article 13. Amendment, Modification and Termination

This contract can be amended or modified in writing  mutual agreement. Any amendments or modifications are inseparable parts of this contract.

Unless otherwise specified by laws or regulations or covenants, this contract is not allowed to terminate till the rights and obligations are completely executed.

Unless otherwise specified by laws or regulations or covenants, invalidation of any items under this contract will never affect the other items’ legal effectiveness.

Article 14. Applicable Laws and Settlement

 

This contract shall be governed by the laws of PRC.

After this contract becomes effective, all disputes concerning this contract should be settled through friendly negotiation. When negotiation fails, any party can settle with following second method;

	
1.  

	
Submit to ___________________Arbitration Committee to arbitrate.

	
2.  

	
Submit to the People’s court located in the domicile of Party B or other corresponding institutions of Bank of China, Inc.

	
3.  

	
Prosecute the People's Courts with jurisdiction.

 

  

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During the settlement period, if this dispute does not affect the performance of this other items, the other items shall continue to performance.

Article 15. Fees

Otherwise confirmation by law or other covenants, Party A undertakes all regarding fees.

 

Article 16. Attachment

The following attachments and other attachments ensured by both parties makes up the inseparable parts of this contract, and possess the equal legal validity.

1,__________/_______;

2,__________/_______;

......

Article 17.  Other Covenants

	
1.  

	
Without Party B’s written consent, Party A is not allowed to transfer rights or obligations to the third parties.

	
2.  

	
If Party B entrusts any other institutes of Bank of China to execute the rights and obligations under this contract, Party A shall agree. Party B or its designees are entitled to exercise all the rights under this agreement and to file a lawsuit in the People's Courts or submit to the Arbitration Committee to arbitrate.

	
3.  

	
In case of not affecting the other covenants of this contract, this contract has the legal binding to the heirs and transferees.

	
4.  

	
Apart from the other covenants, the address specified in this contract by both parties is regarded as the contract address, and also promise that when the contract address changes, then information will sent to the party in written form in time.

	
5.  

	
The titles and business names in this contract are just used for the purpose of convenience, and can’t be used for the purpose to explain the clause content, and obligations and rights of the party.

	
6.  

	
Per the changes of laws and regulations or regulatory process or the requirements of regulatory authority, Party B is unable to execute this agreement or execute according to covenants, Party B has the right to terminate or amend this agreement or single agreement according to the changes of  laws and regulations or regulatory process or the requirements of regulatory authority and exemption from liability.

 

  

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Article 18.  Conditions for effectiveness

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

This contract made in duplicate, each party has one copy, both having the same legal effects.

 

Party A: Ningbo Keyuan Plastic Co., Ltd         Party B: Bank of China, Inc Beilun Branch

The authorized person:                   The authorized person:

January 24, 2011                               January 24, 2011

 

 

 

 

 10posama3ex10xlviii_keyuan.htm

Exhibit 10.48

 

Appendix III

Agreement on Import Payment

Agreement No: 2011 Xinyong Zhongshan Daifu DF001

Party A (Applicant for import payment): Ningbo Keyuan Plastics Co., Ltd.

Address: Qingzhi Village, Beilun District, Ningbo City

Postal code: 315803

Tel: 86232932

Fax: 86232932

Legal Representative: Tao Chunfeng

Opening Bank and Bank Account:

 

Party B: Ningbo Brach of China CITIC Bank Corporation Limited

Address: No.36, Zhenming Road, Ningbo City

Postal Code: 315010

Tel:

Fax:

Legal Representative: Xia Nianlu

Opening Bank and Bank Account:

Place of contract signing: No. 36, Zhenming Road

Date of contract signing: August 4, 2011

For the purpose of performing Party A’s (i.e. the importer and applicant for import payment) responsibility of foreign payment under the import contract, Party A applies to Party B for import refinancing amount, and the Agreement is made by and entered into through equal negotiation between parties to clarify respective responsibilities.

Import payment mentioned herein refers to the business that Party A commissions Party B to guarantee that Party A will duly and fully reimburse the third bank (hereinafter referred to as “paying bank agent”), who pays the payable import funds for Party A, for the same, during the process of Party A’s performance of its obligation of foreign payment under the import contract by going through such settlement means as import L/C, import collection and T/T payment with Party B. Party A shall, within the agreed period, through Party B reimburse the paying bank agent for all the funds paid thereby for Party A and the corresponding expenses or reimburse Party B for all the funds paid thereby for the purpose of fulfilling its guaranty obligation and the relevant expenses.

 

  

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Article 1 Granted credit amount for import payment

(1)Party A’s maximum amount of import payment determined by Party B in accordance with China Citic Bank’s credit-granting requirements and systems is as follows:

Currency: USD

Amount (Capitalized): ELEVEN MILLION US DOLLARS

Amount (Arabic numbers): USD 11,000,000.00

Such credit amount may be valid from August 4, 2011 to September 4, 2012, and only the application for import payment put forward by Party A hereunder within such period will be accepted by Party B.

(2) Party A may re-use such granted credit amount within the valid period under the Agreement, on the condition that Party A shall separately apply to Party B for each import payment, and Party B may, after examination and approval of each application, instruct the paying bank agent to pay for Party A and provide corresponding guarantees. Party B is not obliged to allow Party A to use such granted credit amount.

Article 2 Guarantees for credit-granting of import payment

Party A agrees to provide one or several of the following guarantees (optional) as the counter-guarantees for Party A’s obtaining of the granted credit of import payment:

o Security;

o Suretyship    No. _________ Suretyship Contract is signed and entered into between and by the surety_____ and Party B;

o Pledge    No. _________ Pledge Contract is signed and entered into between and by the pledgor _____ and Party B;

o Mortgage   No. _________ Mortgage Contract is made by and entered into between and by the mortgager_____ and Party B;

þ Maximum suretyship   No. 2011 Xinyong Zhongshanyin Zuibao Zixu 113004 Maximum Suretyship Contract is made by and entered into between and by the surety Ningbo Litong Petroleum & Chemical Corporation and Party B;

 

  

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o Maximum mortgage  No.              Maximum Mortgage Contract is made by and entered into between and by the mortgagor           and Party B;

o ______________________________________________________________________.

Article 3 Prerequisites for import payment

(1) Before concluding the Agreement, Party A shall, in accordance with Party B’s rules and systems, open a settlement account with Party B for settlement of import payment hereunder.

(2) Party A has provided, as requested by Party B, the signature card, copy of business license or other materials which is consistent with original thereof, and the signatory’s valid letter of authorization.

(3) The said security at the agreed amount herein has been paid or the said guarantee contract has been signed and relevant formalities have been completed.

(4) Party A truthfully fills out and submits the Application for Import Payment according to the actual circumstances where Party A applies to Party B for import payment, and provides the transaction agreement under the Application and other documents and materials specified by Party B.

(5) All the promises and guarantees made by Party A herein are authentic, accurate and complete.

After fulfillment of the said prerequisites, Party B will, according to laws and regulations and China Citic Bank’s rules and systems, examine carefully Party A’s qualification, asset credit, transaction agreement and application for import payment, and based on such examination, Party B is entitled to determine whether to accept Party A's application.

Detailed information on the import payment hereunder shall be based on each Application for Import payment separately submitted by Party A and confirmed by Party B through affixing a seal. The Application will serve as the necessary supplement hereto and an integral part hereof, and liabilities under the Application are also the liabilities hereunder; Party A and the guarantor shall separately assume the responsibility of discharging the said liabilities and guaranteeing the payment of such liabilities in accordance with the Agreement and relevant regulations. Any of Party A’s import payment provided by Party B shall be performed under the Application corresponding to such business and the Agreement, and in case of any discrepancy, the said Application shall prevail in the performance of such business. Except as otherwise explicitly agreed in the Application, regulations of the Application inconsistent herewith will only apply to such business corresponding to that application, and will not be deemed as revision hereto or apply to other businesses hereunder.

 

  

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Article 4 Party A’s representations and warranties

(1) Party A warrants that the materials provided by Party A to Party B are authentic, lawful and effective, that the applied import payment is based on authentic transaction, and that relevant transaction agreements are all authentic, truthful, accurate and complete.

(2) Party A shall deposit all the refinancing funds and other expenses with Party B before the expiration of import payment. Any dispute between Party A and relevant parties of import contract has nothing to do with Party B, and Party A may not refuse to perform any of its obligations hereunder on the strength of such dispute.

(3) Before the expiration of import payment, if Party A is under any of such circumstances or if Party B has reasons to think that Party A is under any of such circumstances as its business conditions are seriously deteriorating, it loses its commercial credibility; or other circumstances indicating that it loses or is possible to lose the capacity of full payment of import refinancing funds, Party B is entitled to require Party A to add security to full amount or to provide other full guarantees, and Party A shall, within seven days as of Party B's request, satisfy Party B’s requirement. Otherwise, Party B has the right to take other legal measures as procedural preservation.

Article 5 Party A’s rights and obligations

(1) Party A is entitled to apply to Party B for import payment within the period and under the regulations as agreed herein.

(2) Party A shall, in accordance with relevant regulations of the Agreement and the Application for Import payment, through Party B, reimburse the paying bank agent for the import refinancing funds and the relevant expenses, or reimburse Party B for the funds disbursed by Party B for the purpose of performing its guarantee obligation and the relevant expenses.

(3) Party A shall, at Party B’s request, regularly or from time to time provide Party B with the reports and other documents which can truthfully reflect its operational and financial status.

 

  

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(4) During the period of expiration of import payment, Party A shall notify Party B in writing of its change of legal person’s name, legal representative, project leader, address, telephone and fax (if any) within seven calendar days of such change.

(5) During the period of expiration of import payment, Party A shall notify Party B in writing at least thirty calendar days in advance and obtain Party B’s prior written consent of any significant change (if any) in its operational policies including but not limited to such decisions as share transference, reorganization, merger, division, shareholding reform, joint venture, cooperation, joint operation, lease, and change of operational scope and registered capital which may influence Party B’s rights and interests, and shall pay off the import refinancing funds or provide the guarantees approved by Party B.

(6) Party A shall actively aid Party B in its investigation and supervision of Party A’s operational status and use of import refinancing funds, and all the expenses incurred to Party A from Party B’s non-cooperation shall be assumed by Party B.

(7) Without Party B’s prior written consent, in no case may Party A transfer (or transfer in a disguised way) its liabilities hereunder in whatsoever manner.

(8) Party A shall notify Party B in writing at least thirty calendar days in advance and obtain Party B’s prior written consent of disposition (if any) of its significant assets or all or major part of its business or business income by means of transference, lease or establishment of guarantee for the liabilities other than those hereunder.

(9) Party A shall immediately notify Party B of the events (if any) which may have significantly adverse influence on the discharge of liabilities hereunder including but not limited to major economic dispute, termination of business, suspense of business, being declared as bankruptcy, winding-up, business license being revoked, being cancelled or financial situation being deteriorating.

(10) If Party A’s surety herein partly or totally losses its capacity of surety for the import refinancing funds hereunder or if the value in the mortgage, pledge or pledge right hereunder decreases, Party A shall provide new guarantees approved by Party B.

Article 6 Party B’s rights and obligations

(1) Party B has the right to examine and supervise Party A's operational status and use of import refinancing funds.

 

  

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(2) Party B shall keep confidential Party A’s materials, documents and information provided by Party A, except as otherwise specified by laws and regulations and supervision authorities.

(3) Before expiration of the Agreement, in case of noncompliance of the Agreement because of newly revised policies and laws and regulations, or if Party A is under any of such circumstances or if Party B has reasons to think that Party A is under any of such circumstances as its business conditions are seriously deteriorating, it loses its commercial credibility; or other circumstances indicating that it loses or is possible to lose the capacity of full payment of import refinancing funds, Party B is entitled to terminate Party A’s use of the amount hereunder, and ask Party A to immediately pay off all the paid refinancing funds, payable interest, default interest and other expenses. Party B is entitled to directly deduct money from any of Party A’s accounts opened in China Citic Bank to offset Party A’s paid refinancing funds hereunder and other expenses.

Article 7 Liabilities for breach of contract

(1) After the Agreement has come into effect, parties shall separately perform their obligations as agreed herein, and either party who fails to (fully) fulfill the said obligations shall assume liabilities for breach of contract.

(2) After expiration of any import payment hereunder, if Party A fails to reimburse the paying bank agent through Party B for the import refinancing funds and relevant expenses, Party B’s disbursement thereby for the purpose of fulfilling its guarantee obligation will be converted as Party B’s overdue loans to Party A, the default interest of which shall be calculated according to the overdue days and overdue amount, with default interest rate as the loan default interest rate.

(3) After Party B’s disbursement on the expiration of import payment, if Party A fails to pay off such disbursement, Party B may simultaneously take the following remedy measures:

1. Deducting refinancing funds and relevant expenses from Party A’s margin account opened in Party B;

2. Deducting refinancing funds, payable interest and default interest from any of Party A’s accounts opened in any banking establishment of China Citic Bank;

3. Other lawful measures.

(4) Various expenses incurred to Party B from its realization of creditor’s rights (including but not limited to court fee, traveling expense, attorney fee, and disposal fee) shall be assumed by Party A.

 

  

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Article 8 Enforceable notarization

It is agreed by Party A that Party B may, on the strength of the Agreement, apply to notary public for enforceable notarization. If the funds arising from Party B's service of import payment hereunder and relevant expenses fail to be fully paid on the expiration of import payment, Party B may, on the strength of such notarization, apply to competent people’s court for enforcement. Party A unconditionally and irrevocably accepts people’s court’s lawful enforcement, and waives all of its counter-argument rights.

Article 9 Applicable law

The Agreement shall apply to laws of People’s Republic of China.

Article 10 Settlement of disputes

All the disputes arising from or relating to the Agreement shall be settled through negotiation between parties; if an agreement cannot be reached through negotiation, parties agree to take the first / second measure:

	
(1)  

	
resorting to _____Arbitration Committee for arbitration; or

	
(2)  

	
bringing a lawsuit before local people’s court at Party B’s location.

Article 11 Miscellaneous

(1) The Agreement will come into effect upon signature (or seal) of parties’ legal representative/ person-in-charge or their authorized agent and separate official seals.

(2) Any revision and supplement to the Agreement shall be decided in writing through negotiation. Any revision and supplement hereto, appendix hereto, the Application for Import payment and other relevant documents all constitute as a part of the Agreement.

(3) If some provision of this Agreement or part of some provision hereof becomes ineffective at present or in the future, the validity of the other provisions or other parts of the ineffective provision shall remain unaffected.

(4) All the notices, requests and other correspondence sent by Party B to Party A under the Agreement, including but not limited to such official letters as telex, telegram and fax, shall be deemed to have been delivered to Party A upon delivery; official letters sent by registered mail shall be deemed to have been delivered to Party A three days from the time of posting.

(5) This Agreement shall be executed in TWO original copies and is hold respectively by each party for compliance.

 

  

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(6) Party B has reasonably called Party A’s attention to the provisions of exemption or restriction of its obligations hereunder, and has explained sufficiently relevant provisions as requested by Party A; there is no discrepancy between parties’ understanding of the whole Agreement.

(7) Other matters agreed by parties:

Party A (the Company) agrees to deposit the RMB equivalent of USD11, 000,000 into the Bank (Party B) before the date of September 4, 2011 for one year, and agrees that the Bank (Party B) may block such security until September 4, 2012. It is Party A’s special promise.

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

Legal representative (seal): Tao Chunfeng

(or authorized agent)

 

Party B (official seal): Ningbo Brach of China CITIC Bank Corporation Limited

Legal representative (seal): Xia Nianlu

(or authorized agent)

Date: ___(MM)___(DD)____(YY)           Date: ___(MM)___(DD)____(YY)

 

  

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Appendix IV

Application for Import Payment (use under the granted amount)

                                         No:

Ningbo Branch of China CITIC Bank Corporation Limited:

In accordance with regulations of No. 2011 Xinyong Zhongshan Daifu DF001 Agreement of Import payment Amount, the Company hereby applies to the Bank for import payment for the purpose of performing its obligation of foreign payment under the import contract.

Detailed Information on the applied import payment is as follows:

Name of exporter: MERCURIA ENERGY TRADING PTE LTD                                                                                         

Name of importer: Ningbo Keyuan Plastics Co., Ltd.                                                                                                         

Amount of import payment: USD 11,000,000.00                                                                                                                 

Agreed refinancing price: 1 year LIBOR + 415 BPS    (or :_____________)

Duration: From the date of August 4, 2011to the date of September 4, 2012, totally: 396 days.

The total amount of import refinancing funds and relevant expenses:                                                                          

 

Name of payee: ____________________________________________________

Bank account of payee and opening bank: ________________________________

Account No.:                                                                                                                                                

The Company promises and warranties that:

1. It has chosen one of the following guarantee measures for the application:

þ it will deposit ___ Yuan, which is 100% of the said applied refinancing funds, into its pledge margin account of the Bank (account No.:___________________).

oit has signed relevant guarantee contract with the Bank (No.: ____________________).

2. It will fully deposit all the agreed import refinancing funds and relevant expenses into Party A’s designated account opened with Party B at least 3 business days before expiration of bank import payment

 

  

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Applicant’s seal:

                                        (Below is the bank’s examination and approval)                                                                   

After examination, the Bank agrees to provide import refinancing service with the applicant, and specific information is as follows:

Import paying amount: USD 11,000,000 Currency: US dollar Expiration of refinance: September 4, 2012 Interest rate: 4.91611% plus the electronic remittance of paying bank: USD 4.00

Bank seal:

(This Application shall be executed in 2 original copies and is hold respectively by each party for compliance.)

 

 

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