Document:

Exhibit

Exhibit 10.37
MILACRON HOLDINGS CORP.
2015 Equity Incentive Plan

Performance Stock Unit Award Agreement
This Performance Stock Unit Award Agreement (this “Agreement”) is made by and between Milacron Holdings Corp., a Delaware corporation (the “Company”), and [_______________] (the “Participant”), effective as of March 1, 2018 (the “Date of Grant”). 
RECITALS

WHEREAS, the Company has adopted the Milacron Holdings Corp. 2015 Equity Incentive Plan (as the same may be amended and/or amended and restated from time to time, the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement, and capitalized terms not otherwise defined in this Agreement will have the meanings ascribed to those terms in the Plan; and
WHEREAS, the Committee has authorized and approved the grant of an Award to the Participant that will provide the Participant the opportunity to acquire shares of Common Stock (“Shares”) upon the settlement of stock units, subject to the terms and conditions set forth in the Plan and this Agreement (“Performance Stock Units”). 
NOW THEREFORE, in consideration of the premises and mutual covenants set forth in this Agreement, the parties agree as follows:
		
	1.
	Grant of Performance Stock Unit Award.  

		
	(a)
	The Company hereby grants to the Participant a target award of [__________] Performance Stock Units (“Target Award”), on the terms and conditions set forth in the Plan and this Agreement, subject to adjustment as forth in the Plan. As set forth on Exhibit A, Fifty percent (50%) of the Target Award will vest based upon the Company’s achievement of certain Adjusted EBITDA Margin performance vesting goals and fifty percent (50%) of the Target Award will vest based will upon the Company’s achievement of certain Free Cash Flow Conversion performance vesting goals (collectively, the “Performance Targets”), in each case over the Performance Period.

		
	(b)
	Except as otherwise set forth in the Plan or this Agreement, the grant of Performance Stock Units represents the right to receive a percentage of the Target Award upon vesting of such Performance Stock Units over the Performance Period upon the Company’s achievement of the Performance Targets (as set forth on Exhibit A), with each Performance Stock Unit that vests representing the right to receive one (1) Share upon vesting thereof. The “Performance Period” means the three-year period beginning on January 1, 2018 and ending on December 31, 2020.

WEIL:\96042770\6\63629.0006 REV 030118

		
	2.
	Vesting of Performance Stock Units.  

		
	(a)
	Vesting.  Subject to the Participant’s continued Service through the last day of the Performance Period (the “Vesting Date”) and except as otherwise provided in Section 2(b) and Section 2(c), the Performance Stock Units will be eligible to vest based on the Company’s achievement of the Performance Targets over the Performance Period, as set forth on Exhibit A attached hereto.  To the extent the Performance Targets for the Performance Period are not achieved at the applicable threshold performance levels set forth on Exhibit A, the Participant shall forfeit, immediately and without consideration, all or any portion of the Performance Stock Units that failed to vest for such Performance Period.   

		
	(b)
	Change in Control.  In the event of a Change in Control, the Target Award will convert to a number of time-based vesting restricted stock units at the target performance level that vest on the last day of the Performance Period, subject to the Participant’s continued Service through the last day of the Performance Period, except as otherwise provided in Section 2(c)(ii); provided, however, that the Committee may, in its sole discretion,  accelerate the vesting and settlement of the Target Award, at no less than the target performance level, in accordance with the terms and conditions of the Plan.  Notwithstanding the foregoing, to the extent that the Performance Stock Units constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code (“Nonqualified Deferred Compensation”) and the Committee accelerates the vesting of the Target Award as set forth herein, settlement of such vested Target Award shall be made in accordance with Section 3(a).

		
	(c)
	Termination of Service. 

		
	(i)
	Except as otherwise provided in Section 2(c)(ii), the Participant shall forfeit, immediately and without consideration, all Performance Stock Units upon a termination of Service for any reason that occurs prior to the last day of the Performance Period. Without limiting the generality of the foregoing, the Performance Stock Units and the Shares (and any resulting proceeds) will continue to be subject to Section 13 of the Plan.

		
	(ii)
	Any Performance Share Units that have not previously become vested during the Performance Period will fully vest upon a termination of the Participant’s Service without Cause or for Good Reason occurring upon or within 12 months following a Change in Control. The vesting of the Performance Stock Units pursuant to the immediately preceding sentence is conditioned, however, upon the Participant’s signing a release of claims in a form provided by the Company (a “Release”), which Release must be executed, returned and, to the extent applicable, no longer subject to revocation, within 30 days following the Participant’s termination of Service (the date such Release has been executed, returned and, to the extent applicable, no longer subject to revocation, the “Release Effective Date”). Notwithstanding anything to the contrary contained in this Agreement, (i) the “Vesting Date” shall be the 

2
WEIL:\96042770\6\63629.0006 REV 030118

Release Effective Date, and (ii) to the extent that the Performance Stock Units constitute “nonqualified deferred compensation,” any Performance Stock Units that vest in accordance with this Section 2(c)(ii), will be settled on the 60th day following the date of the Participant’s termination of Service, except to the extent that the Specified Employee Delay applies.

		
	(iii)
	Good Reason Defined.  If a Participant has an effective employment agreement, severance agreement, service agreement or other similar agreement with the Company or a Subsidiary that defines “Good Reason” or a like term, Good Reason shall have the meaning set forth in such agreement at the time of the Participant’s termination of Service or, in the absence of such definition, Good Reason means the termination of Service by the Participant because of the occurrence of any of the following events without the Participant’s written consent: (i) a material reduction of the Participant’s authorities, duties or responsibilities from those in effect immediately prior to the Change in Control; provided, however, that any change in title, reporting relationship or de minimis reduction in such authorities, duties or responsibilities resulting merely from the acquisition of the Company and its existence as a subsidiary or division of another entity shall not constitute Good Reason; (ii) a material reduction in the Participant’s base salary or target annual bonus opportunity, in each case, as compared to the value of each immediately prior to the Change in Control; or (iii) the Participant is required to relocate to a different principal place of business that is located more than one hundred (100) miles away from the Participant’s primary residence as of immediately prior to the Change in Control. In the event of existence of grounds that would constitute Good Reason as contemplated in subsections (i), (ii) and (iii) above, such grounds shall constitute Good Reason only if the Participant provides written notice to the Company of the facts which constitute the grounds within 90 days following the initial existence of the grounds and the Company thereafter fails to cure such grounds within 30 business days following its receipt of such notice (or, in the event that such grounds cannot be corrected within such 30 day period, the Company has not taken all reasonable steps within such 30 day period to correct such grounds as promptly as practicable thereafter).

3
WEIL:\96042770\6\63629.0006 REV 030118

		
	3.
	Payment

		
	(a)
	Settlement. The Company shall deliver to the Participant within 30 days following the Vesting Date a number of Shares equal to the aggregate number of Performance Stock Units that vested as of such date. No fractional Shares shall be delivered; the Company shall pay cash in respect of any fractional Shares. The Company may deliver such shares either through book entry accounts held by, or in the name of, the Participant or cause to be issued a certificate or certificates representing the number of Shares to be issued in respect of the Performance Stock Units, registered in the name of the Participant.

		
	(b)
	Withholding Requirements. The Company will have the power and the right to deduct or withhold automatically from any Shares deliverable under this Agreement, or to require the Participant or the Participant’s representative to remit to the Company, the amount necessary to satisfy all applicable federal, state, and/or local taxes and any non-U.S. taxes, including, without limitation, income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to Participant (“Tax-Related Items”) required to be withheld with respect to any taxable event arising as a result of this Agreement, as determined by the Company using rates of up to the maximum applicable rates in the Participant’s jurisdiction. Alternatively, or in addition to the foregoing withholding methods, the Company or the Employer may satisfy applicable Tax-Related Items withholding obligations by (i) withholding from the Participant’s wages or other cash compensation, or (ii) withholding from proceeds of the sale of Shares acquired upon vesting/settlement of the Performance Stock Units, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization). Notwithstanding the foregoing, if the Participant is subject to Section 16 of the Exchange Act, any obligation to withhold Tax-Related Items will be satisfied by automatic withholding from any Shares deliverable under this Agreement as provided herein, unless otherwise determined by the Board or Committee.  

		
	(c)
	Tax Acknowledgement. The Participant acknowledges that, regardless of any action taken by the Company or, if different, the Participant’s employer (the “Employer”) the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed the amount, if any, withheld by the Company or the Employer. The Participant further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Performance Stock Units, including, but not limited to, the grant, vesting or settlement of the Performance Stock Units, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends, and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Performance Stock Units to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result.  If the Participant is subject to Tax-Related Items in more than 

4
WEIL:\96042770\6\63629.0006 REV 030118

one jurisdiction, the Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

		
	4.
	Adjustment of Shares.  In the event of any change with respect to the outstanding shares of Common Stock contemplated by Section 4.5 of the Plan, the Performance Stock Units may be adjusted in accordance with Section 4.5 of the Plan.

		
	5.
	Restrictive Covenant Agreement. The Participant agrees to be bound by the Restrictive Covenant Agreement attached hereto as Exhibit B (the “Restrictive Covenant Agreement”) in consideration of: (a) the Performance Stock Units granted herein; (b) the Participant’s ongoing employment by the Company or a Subsidiary; (c) the importance of protecting the confidential information of the Company, its Subsidiaries and its affiliates and their other legitimate interests, including without limitation the valuable confidential information and goodwill that they have developed or acquired; (d) the Participant being granted access to trade secrets and other confidential information of the Company, its Subsidiaries and its affiliates; and (e) other good and valuable consideration.

		
	6.
	Miscellaneous Provisions

		
	(a)
	Securities Laws Requirements. No Shares will be issued or transferred pursuant to this Agreement unless and until all then applicable requirements imposed by federal and state securities and other laws, rules and regulations and by any regulatory agencies having jurisdiction, and by any exchanges upon which the Shares may be listed, have been fully met.  As a condition precedent to the issuance of Shares pursuant to this Agreement, the Company may require the Participant to take any reasonable action to meet those requirements.  The Committee may impose such conditions on any Shares issuable pursuant to this Agreement as it may deem advisable, including, without limitation, restrictions under the Securities Act, as amended, under the requirements of any exchange upon which shares of the same class are then listed and under any blue sky or other securities laws applicable to those Shares.  

		
	(b)
	Rights of a Shareholder of the Company. Prior to settlement of the Performance Stock Units, neither the Participant nor the Participant’s representative will have any rights as a shareholder of the Company with respect to any Shares underlying the Performance Stock Units and the Participant will not receive payment of, or credit for, dividends or dividend equivalents with respect to any Shares underlying the Performance Stock Units.

		
	(c)
	Transfer Restrictions. The Shares delivered hereunder will be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares are listed, any applicable federal or state laws and any agreement with, or policy of, the Company 

5
WEIL:\96042770\6\63629.0006 REV 030118

or the Committee to which the Participant is a party or subject, and the Committee may cause orders or designations to be placed upon the books and records of the Company’s transfer agent to make appropriate reference to such restrictions.

		
	(d)
	No Right to Continued Service.  Nothing in this Agreement or the Plan confers upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without Cause.

		
	(e)
	Notification.  Any notification required by the terms of this Agreement will be given by the Participant (i) in a writing addressed to the Company at its principal executive office and will be deemed effective upon actual receipt when delivered by personal delivery or by registered or certified mail, with postage and fees prepaid, or (ii) by electronic transmission to the Company’s e-mail address of the Company’s General Counsel and will be deemed effective upon actual receipt.  Any notification required by the terms of this Agreement will be given by the Company (x) in a writing addressed to the address that the Participant most recently provided to the Company and will be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid, or (y) by facsimile or electronic transmission to the Participant’s primary work fax number or e-mail address (as applicable) and will be deemed effective upon confirmation of receipt by the sender of such transmission.

		
	(f)
	Entire Agreement.  This Agreement and the Plan constitute the entire agreement between the parties hereto with regard to the subject matter of this Agreement.  This Agreement and the Plan supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to the subject matter of this Agreement.

		
	(g)
	Waiver.  No waiver of any breach or condition of this Agreement will be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.

		
	(h)
	Successors and Assigns.  The provisions of this Agreement will inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Participant, the Participant’s executor, personal representative(s), distributees, administrator, permitted transferees, permitted assignees, beneficiaries, and legatee(s), as applicable, whether or not any such person will have become a party to this Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.

6
WEIL:\96042770\6\63629.0006 REV 030118

		
	(i)
	Severability.  The provisions of this Agreement are severable, and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, then the remaining provisions will nevertheless be binding and enforceable.

		
	(j)
	Amendment.  Except as otherwise provided in the Plan, this Agreement will not be amended unless the amendment is agreed to in writing by both the Participant and the Company.

		
	(k)
	Choice of Law; Jurisdiction.  This Agreement and all claims, causes of action or proceedings (whether in contract, in tort, at law or otherwise) that may be based upon, arise out of or relate to this Agreement will be governed by the internal laws of the State of Delaware, excluding any conflicts or choice-of-law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.  The Participant and each party to this Agreement agrees that it will bring all claims, causes of action and proceedings (whether in contract, in tort, at law or otherwise) that may be based upon, arise out of or be related to the Plan and this Agreement exclusively in the Delaware Court of Chancery or, in the event (but only in the event) that such court does not have subject matter jurisdiction over such claim, cause of action or proceeding, exclusively in the United States District Court for the District of Delaware (the “Chosen Court”), and hereby (i) irrevocably submits to the exclusive jurisdiction of the Chosen Court, (ii) waives any objection to laying venue in any such proceeding in the Chosen Court, (iii) waives any objection that the Chosen Court is an inconvenient forum or does not have jurisdiction over any party and (iv) agrees that service of process upon such party in any such claim or cause of action will be effective if notice is given in accordance with this Agreement.  

		
	(l)
	Code Section 409A Compliance.  To the extent applicable, it is intended that the Performance Stock Units comply with, or be exempt from, the requirements of Section 409A of the Code and the Treasury Regulations and other guidance issued thereunder, and in accordance with Section 15.8 of the Plan, this Agreement shall be interpreted and applied by the Committee in a manner consistent with this intent in order to avoid the imposition of any additional tax under Section 409A of the Code.  Without limiting the foregoing, to the extent the Performance Stock Units constitute Nonqualified Deferred Compensation: (i) no settlement of the Performance Stock Units shall be made upon the Participant’s termination of Service unless and until such termination is also a “separation from service,” as determined in accordance with Section 409A of the Code and (ii)  if a Participant is a “specified employee” as defined in Section 409A of the Code at the time of such “separation from service” with respect to an Award, then solely to the extent necessary to avoid the imposition of any additional tax under Section 409A of the Code, settlement of the Performance Stock Units shall be deferred until the date that is six months plus one day following the date of the Participant’s separation of service or, if earlier, the Participant’s death (or such other period as required to comply with Section 409A) (the “Specified Employee Delay”).

7
WEIL:\96042770\6\63629.0006 REV 030118

		
	(m)
	Signature in Counterparts. This Agreement may be signed in counterparts, manually or electronically, each of which will be an original, with the same effect as if the signatures to each were upon the same instrument.

		
	(n)
	Acceptance.  The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.  The Participant has read and understands the terms and provisions of the Plan and this Agreement, and accepts the Performance Stock Units subject to all of the terms and conditions of the Plan and this Agreement.  In the event of a conflict between any term or provision contained in this Agreement and a term or provision of the Plan, the applicable term and provision of the Plan will govern and prevail.

[Signature page follows.]

8
WEIL:\96042770\6\63629.0006 REV 030118

IN WITNESS WHEREOF, the Company and the Participant have executed this Performance Stock Unit Award Agreement as of the Date of Grant. 

PARTICIPANT                    MILACRON HOLDINGS CORP.

_______________________________        By:_________________________________ 
Name:                            Name: Thomas J. Goeke  
                            Title: President and Chief Executive Officer

[Signature Page – Performance Stock Unit Award Agreement]

EXHIBIT A
Performance Stock Units Performance-Based Vesting Schedule
		
	I.
	Target Award.  The actual number of Performance Stock Units that are eligible to vest in accordance with Section 2(a) of the Agreement shall be based on the attainment level of the Performance Targets, in accordance with the following formula:

The sum of (a) the Target Award x 50% x Adjusted EBITDA Margin Attainment Factor (as set forth in the applicable table in Section II below), plus (b) the Target Award x 50% x Free Cash Flow Conversion Attainment Factor (as set forth in the applicable table in Section II below).   
		
	II.
	Performance Targets. The Performance Targets applicable to the Performance Stock Units consist of (A) Adjusted EBITDA Margin (as defined in Section III below) and (B) Free Cash Flow Conversion (as defined in Section III below), in each case measured for each year in the Performance Period and calculated on a straight-line average basis over such three years (i.e., 2018, 2019 and 2020).  

Adjusted EBITDA Margin Performance Target
	
		
	Adjusted EBITDA Margin (Three-Year Average over Performance Period)
	Adjusted EBITDA Margin Attainment Factor

	Threshold  Performance:   18.6% 
	50%

	Target  Performance:         19.6%
	100%

	Stretch Performance:         20.6%
	200%

Free Cash Flow Conversion Performance Target
	
		
	Free Cash Flow Conversion (Three-Year Average over Performance Period)
	Free Cash Flow Conversion Attainment Factor

	Threshold  Performance:   38.3% 
	50%

	Target  Performance:         43.3%
	100%

	Stretch Performance:         47.3%
	200%

Attainment between Threshold and Target Performance and between Target and Stretch Performance (for each Performance Target) shall be subject to straight-line interpolation.  

For avoidance of doubt, if the Adjusted EBITDA Margin Threshold Performance or the Free Cash Flow Conversion Threshold Performance is not attained, the 50% of the Target Award that vests based on Adjusted EBITDA Margin or, as applicable, Free Cash Flow Conversion, shall be forfeited.
		
	III.
	Performance Criteria. 

“Adjusted EBITDA Margin”  shall mean Adjusted EBITDA for the applicable Company fiscal year divided by Sales for the same period.  For the avoidance of doubt, Adjusted EBITDA, Sales and Adjusted EBITDA Margin are as calculated in the corresponding Milacron Earnings Release Presentation (unless the Compensation Committee should decide to modify the calculation to adjust for any changes in the business (e.g., acquisitions, divestitures, or other).
“Free Cash Flow Conversion” shall mean Free Cash Flow for the applicable Company fiscal year divided by Adjusted EBITDA for the same period.  For the avoidance of doubt, Free Cash Flow and Adjusted EBITDA are as calculated in the corresponding Milacron Earnings Release Presentation (unless the Compensation Committee should decide to modify the calculation to adjust for any changes in the business (e.g., acquisitions, divestitures, debt refinancing, other unplanned uses of cash that impacted the normal calculation methodology).  

EXHIBIT B

RESTRICTIVE COVENANT AGREEMENT

THIS AGREEMENT (this “Restrictive Covenant Agreement”) is made effective as of the Date of Grant by and between the Company and the Participant. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Performance Stock Unit Award Agreement to which this Restrictive Covenant Agreement is attached as Exhibit “B” (the “Award Agreement”).
R E C I T A L S:
WHEREAS, the Company and the Participant have entered into the Award Agreement; 
AND WHEREAS the Award Agreement is conditional on the Participant entering into this Restrictive Covenant Agreement;
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:
1.    Definitions. For purposes of this Restrictive Covenant Agreement:
a.    “Business” means manufacturing, designing, distributing, marketing or selling plastics manufacturing equipment, plastics manufacturing equipment components including hot runner systems, mold components or aftermarket parts or services, or industrial machining chemicals, or any other business engaged in by the Company or any if its Subsidiaries within twelve (12) months prior to the Participant’s termination of employment by or other service to the Company or any of its Subsidiaries.
b.    “Confidential Information” means the business and financial records, customer and supplier lists, business contacts, contracts, trade secrets, confidential methods of operations of the Company and its affiliates and other related information, as such exists from time to time during the Participant’s employment by or other service to the Company or any of its Subsidiaries.
c.    “Customer” means any Person who:
i.    has been a customer of the Company at any time during the one year period prior to the termination of the Participant’s employment or service; or
ii.    has evidenced an intention in writing to purchase Products from the Company at any time during the one year period prior to the termination of the Participant’s employment or service,

and with whom the Participant had any dealings, directly or indirectly, or about whom the Participant had confidential information, during the Participant’s employment or service. 
d.    “Person” means any natural person, corporation, division of a corporation, partnership, trust, joint venture, association, firm, company, estate or unincorporated organization.
e.    “Products” means the products of the Business (i) manufactured by the Company within the one year period immediately preceding the date of this Restrictive Covenant Agreement (ii) manufactured by the Company during the Participant’s employment or service (iii) manufactured by the Company in the twelve (12) months following the termination of the Participant’s employment or service in the normal course of operating, maintaining and expanding the business and (iv) any products that are substitutes for or competitive with the products referred to in clauses (i), (ii) and (iii).
2.    Confidentiality. The Participant recognizes and acknowledges that the Confidential Information constitutes valuable, special and unique assets of the Company and its affiliates, access to and knowledge of which are essential to the performance of the duties of the Participant hereunder.  The Participant acknowledges that such Confidential Information is not generally known in the trade and that such Confidential Information provides the Company and its affiliates with a competitive edge in its industry. In that regard, the Participant acknowledges and agrees that the Company and its affiliates have taken and are taking reasonable steps to protect the confidentiality of, and legitimate interest in, the Confidential Information.  The Participant therefore agrees that he will not, during his employment or other service, or after termination of his employment or service, disclose any of such Confidential Information to any Person for any reason or purpose whatsoever except in connection with the performance of his duties to the Company and its affiliates, nor shall he make use of any such Confidential Information for his own purposes or for the benefit of any Person except the Company and its affiliates.  Confidential Information shall not include any information which is or becomes publicly known through no action or inaction of the Participant.  Notwithstanding the foregoing, in the event that the Participant is requested or required, in connection with any proceeding by or before a governmental authority, to disclose Confidential Information, the Participant will give the Company prompt written notice of such request or requirement so that the Company or its affiliates may seek a protective order or other appropriate relief.  In the event that such protective order or other remedy is not obtained or the Company waives the right to seek such an order or other remedy, the Participant may, without liability hereunder furnish only that portion of the Confidential Information which the Participant is legally required to disclose.  Notwithstanding anything herein to the contrary, nothing in this Restrictive Covenant Agreement shall (a) prohibit the Participant from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation, or (b) require notification or prior approval by the Company of any reporting described in clause (a).  Participant acknowledges that Participant is hereby notified, in accordance with the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b), that: (i) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official, 

either directly or indirectly, or to an attorney, in each case solely for the purpose of reporting or investigating a suspected violation of law; (ii) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (iii) an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal and (B) does not disclose the trade secret except pursuant to court order.  
3.    Non-Competition. While employed or rendering services or at any time during the eighteen (18) months following termination of the Participant’s employment or service, for whatever reason, and whether with or without cause, the Participant shall not in any manner whatsoever (other than a holding of less than two percent (2%) of the shares of a company listed on a public stock exchange in Canada or the United States of America) within North America, either individually or in partnership or jointly or in conjunction with any other Person:
a.    directly, or indirectly, carry on, engage in or be concerned with or interested in any business that manufactures, sells or distributes the Products;
b.    directly, or indirectly, assist (as principal, beneficiary, director, shareholder, partner, nominee, executor, trustee, agent, servant, employee, independent contractor, supplier, consultant, lender, guarantor, financier or in any other capacity whatever) any Person to carry on, engage in or be concerned with or interested in any business that manufactures, sells or distributes the Products; or
c.    have any direct or indirect interest or concern (as principal, beneficiary, director, shareholder, partner, nominee, executor, trustee, agent, servant, employee, consultant, independent contractor or in any other capacity whatever) in or with any Person, if any part of the activities of such Person consists of any business that manufactures, sells or distributes the Products.
4.    Non-Solicitation of Customers. While the Participant is employed or rendering services or at any time during the eighteen (18) months following termination of the Participant’s employment or service, for whatever reason, and whether with or without cause, the Participant shall not for competitive purposes, either individually or in partnership or jointly or in conjunction with any other Person:
a.    directly, or indirectly solicit any Customer;
b.    directly, or indirectly assist (be it as principal, beneficiary, servant, director, shareholder, partner, nominee, executor, trustee, agent, employee, independent contractor, supplier, consultant, lender, financier or in any other capacity whatever) any Person directly or indirectly to solicit any Customer; or
c.    have any direct or indirect interest or concern (be it as principal, beneficiary, director, shareholder, partner, nominee, executor, trustee, agent, servant, employee, consultant, independent contractor, supplier, creditor or in any other capacity whatever, other than a holding 

of less than two percent (2%) of the shares of a company listed on a public exchange in Canada or the United States) in or with any Person if any of the activities of which Person consists of soliciting any Customer, if such solicitation is, directly or indirectly, intended to result in a sale of any Products to such Customer within North America.
5.    Non-Solicitation of Employees. While the Participant is employed or rendering services or at any time during the eighteen (18) months following termination of the Participant’s employment or service, for whatever reason, the Participant shall not, directly or indirectly, hire, solicit or induce to perform services, or attempt to solicit or induce to perform services (as an employee, consultant or otherwise) any individuals who are employees of the Company or take any actions which are intended to persuade any such employee to leave the employ of the Company, without the prior written consent of the Company. This section shall not apply to solicitations made generally to individuals through public media and which are not specifically targeted at employees of the Company.
6.    Non-Disparagement.  The Participant shall not at any time, directly or indirectly, orally, in writing or through any medium, disparage, defame or assail the reputation, integrity or professionalism of the Company or any of its affiliates, officers, directors, employees or shareholders.  Notwithstanding the foregoing, this prohibition does not apply to statements made in the course of sworn testimony in administrative, judicial or arbitral proceedings.
7.    Return of Documents and Property.  Upon the termination of his employment or service or at such other time that the Company may request, the Participant shall forthwith return and deliver to the Company, and shall not retain, any originals or copies of, any books, papers or price lists of the Company, customer lists, files, books of account, notes and other documents and data or other writings, tapes or records of the Company maintained by or in the possession of the Participant (and all of the same are hereby acknowledged and agreed to be the property of the Company).
8.    Inventions and Patents.  The Participant hereby assigns to the Company all right, title and interest to all patents and patent applications, all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (in each case whether or not patentable), all copyrights and copyrightable works, all trade secrets, confidential information and know-how, and all other intellectual property rights that both (a) are conceived, reduced to practice, developed or made by the Participant while employed by the Company or any of its Subsidiaries and (b) either (i) relate to the Company’s or any of its Subsidiaries’ actual or anticipated business, research and development or existing or future products or services, or (ii) are conceived, reduced to practice, developed or made using any equipment, supplies, facilities, assets or resources of the Company or any of its Subsidiaries’ (including but not limited to, any intellectual property rights) (“Work Product”).  The Participant shall promptly disclose such Work Product to the Company and, at the Company’s expense, perform all actions reasonably requested by the Company (whether during or after the period of employment) to establish and confirm the Company’s ownership thereof (including, without limitation, assignments, consents, powers of attorney, applications and other instruments).
9.    Covenants Reasonable.

a.    The Participant acknowledges and agrees with the Company that:
i.    the covenants in this Agreement are reasonable in the circumstances and are necessary to protect the Company;
ii.    the Participant is being provided with the opportunity to receive a substantial financial benefit as a result of the Award Agreement;
iii.    the covenants of the Participant contained in this Restrictive Covenant Agreement were a material inducement for the Company to enter into the Award Agreement and the execution and delivery of this Restrictive Covenant Agreement is a condition to the Company’s obligation pursuant to the Award Agreement; and
iv.    the breach by such Participant of any of the provisions of this Restrictive Covenant Agreement would cause serious and irreparable harm to the Company which could not adequately be compensated for in damages.
b.    The Participant agrees that the Company shall be entitled to obtain and the Participant agrees not to oppose a request for, interim, interlocutory and permanent injunctive relief and other equitable relief to prevent a breach or continued breach of the provisions of this Restrictive Covenant Agreement, as well as an accounting of all profits and benefits that arise out of such violation, which rights and remedies shall be cumulative in addition to any other rights or remedies to which the Company may be entitled in law. The provisions of this section shall not derogate from any other remedy which the Company may have in the event of such a breach.
10.    Severability. In the event that a court of competent jurisdiction determines that any term or provision of this Restrictive Covenant Agreement is illegal, invalid or unenforceable in any jurisdiction, such illegality, invalidity or unenforceability of that term or provision will not affect: (a) the legality, validity or enforceability of the remaining terms and provisions of this Restrictive Covenant Agreement; and (b) the legality, validity or enforceability of such term or provision in any other jurisdiction. Further, to the extent that any provision hereof is deemed unenforceable by virtue of its scope in terms of territory, length of time, scope of activities or otherwise, but may be made enforceable by limitations or revisions thereon, the parties agree that such limitations or revisions may be made so that the same shall, nevertheless, be enforceable to the fullest extent permitted by law.
11.    Notices. Any notice or other communication provided for herein or given hereunder to a party hereto must be in writing and shall be deemed to have been given (a) when personally delivered or delivered by facsimile transmission with confirmation of delivery or (b) upon delivery after deposit with Federal Express or similar overnight courier service. A notice shall be addressed to the Company at its principal executive office, attention General Counsel, and to the Participant at the address that he/she most recently provided to the Company.
12.    Entire Agreement. This Restrictive Covenant Agreement constitutes the entire agreement and understanding among the parties hereto in respect of the subject matter hereof and supersedes all prior and contemporaneous arrangements, agreements and understandings, whether 

oral or written and whether express or implied, and whether in term sheets, presentations or otherwise, among the parties hereto, or between any of them, with respect to the subject matter hereof.
13.    Amendment; Waiver. No amendment or modification of any term of this Restrictive Covenant Agreement shall be effective unless signed in writing by or on behalf of the Company and the Participant. No waiver of any breach or condition of this Restrictive Covenant Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature.
14.    Successors and Assigns; No Third-Party Beneficiaries. The provisions of this Restrictive Covenant Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns.
15.    Signature in Counterparts. This Restrictive Covenant Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Restrictive Covenant Agreement.

	
		
	Milacron Holdings Corp.

	

By:
	 

	Name:
	Thomas J. Goeke

	Title:
	President and Chief Executive Officer

Agreed and acknowledged as 
of the date first above written:
	
		
	

Signature:
	 

	Name:
	 

WEIL:\96042770\6\63629.0006Exhibit

The following exhibit is a translation of the original foreign language document, filed pursuant to Regulation S-T, Rule 306(a):
Exhibit 10.38

General Contract of Factoring Financing

 (Edition 2013031)

Ningbo Bank

General Contract of Factoring Financing
Standard Provisions
 (Edition 2013031)

For the names of factoring bank (Party A) and factoring applicant (Party B), please refer to the subsidiary provisions.

Party B applies for handling the factoring business to Party A with the accounts receivable formed with the purchaser. According to relevant laws and regulations, Party A and Party B have signed this contract through consultation.

Article I Definition
1.1 Unless otherwise stipulated in this contract, the relevant terms in this contract shall be interpreted in accordance with the definition of this article.
1.2 Factoring business: it refers to the accounts receivable financing and relevant comprehensive financial service provided to Party B by Party A because Party B transfers the account receivables caused for sales of commodities to the purchaser, provision of service or other reasons to Party A. among them, if the purchaser fails to pay the accounts receivable financing in full, Party A has the right to pursue the unpaid financing fund in accordance with the agreement of this contract to Party B, which is the factoring business with the right of recourse; if the purchaser fails to pay for the accounts receivable financing in full on time only for the financial or credit reasons (not including the reasons of the commercial disputes between the purchaser and Party B), Party A has no right to pursue the unpaid financing fund, which is the factoring business without the right of recourse.
1.3 purchase and sale or service contract: it refers to the corresponding contract of accounts receivable arising under this contract signed by Party B and the purchaser.
1.4 accounts receivable: it refers to the only, concrete, specific and exclusive legal undisputed creditor’s right arising on the basis of the real, legal transaction and debtor-creditor relationship between Party B and the purchaser which Party B has transferred to Party A.
1.5 The actual amount of accounts receivable invoice: it refers to the amount of the invoice value deducted from the balance after Party B has withdrawn the goods fund.
1.6 Factoring financing: it refers to accounts receivable financing provided by Party A to Party B under this contract.
1.7 Factoring financing quota: it refers to the maximum unliquidated financing balance which Party B is allowed to circulate and use within the agreed period of this contract and Party A agrees to give Party B after inspection.
1.8 Factoring account: it refers to the special account under the supervision of Party A which is opened by Party A according to this contract and used for collecting the accounts receivable, deducting the factoring financing principal and interest (including but not limited to the financing principal, financing interest, default interest, etc., the same below) and all the expenses payable by Party B and the sole legal account receiving the accounts receivable under this contract.
1.9 Balance of factoring: it refers to the remaining funds after the corresponding single factoring financing principal, financing interest, default interest and relevant expenses are deducted from each of accounts receivable deposited in factoring account.

Article II  Amount, Duration, Interest Rate and Expenses of Factoring Financing Quota and Single Factoring Financing.

2.1 Party B transfers the creditor’s rights and a related right to Party A. Party A agrees to grant Party B a certain amount of factoring financing. The specific factoring financing currency and amount are detailed in the Annex.
2.2 The term of factoring financing granted by Party A to Party B shall be specified in the Annex. In the performance of the agreement, if a certain loan date and the expiration date are non-bank working days, the agreement shall be extended to the next working day of the bank. The details of the accounts receivable transferred by Party B to Party A are detailed in the Annex.
2.3 If the currency of factoring financing is RMB, please refer to the Annex for the specific method of determining the yearly interest rate of factoring financing. The details are as follows: 
2.3.1 The factoring financing annual interest rate is a fixed rate and no adjustment is made during the factoring period.
2.3.2 The factoring financing interest is floating according to above actual factoring days’ related PBOC basic loaning rates. Interest rate conversion formula: daily interest rate = annual interest rate /360.
Specific floating ratio and factoring financing annual interest rate are detailed in the Annex.
Party A shall have the right to adjust the factoring financing interest rate at any time according to the needs of the actual operation without prior notice to Party B. The factoring financing interest rate shall be based on the interest rate provided by Party A when issuing. But for the issued factoring financing, if the currency of factoring financing is RMB, the interest rate of factoring financing is subject to the corresponding receipt for a loan, and it is adjusted as follows only when People's Bank of China adjusts the interest rate and it applies to the factoring financing under this contract:
2.3.2.1 Before the factoring financing is issued, the interest rate is adjusted and applied to the factoring business under this contract. The new factoring financing interest rate is redefined and implemented according to the adjusted interest rate and the corresponding floating proportion base on 2.3.2.
2.3.2.2 After the factoring financing is issued, the interest rate is adjusted and applies to the factoring business under this contract. The interest rate adjustment method of the factoring financing is subject to the corresponding receipt for a loan. The details are as follows:

༈1༉Fixed interest rate: c the original factoring financing interest rate continues to be implemented and interest is not calculated by segmenting;
༈2༉Immediate adjustment: each factoring financing interest rate is adjusted on the day when People's Bank of China newly establishes benchmark interest rate of loan, and is determined according to the benchmark interest rate adjusted this time and the interest rate floating proportion as agreed in Article 2.3, and the new factoring financing interest rate is implemented on the same day, and the interest is calculated by segmenting;
༈3༉Monthly / quarterly / semi-annually / annually adjustment: it refers to the monthly / quarterly / semi-annually / annually adjustment of the corresponding date (if there is no corresponding day, it is the last day of the month / quarter / half a year / year) and the new factoring financing interest rate is determined and executed according to the loan benchmark interest rate when this adjustment is being made (if the benchmark interest rate is adjusted twice or more than twice within the period agreed in this clause, it shall be subject to the benchmark interest rate adjusted in the last time during the period) and the interest floating proportion stipulated in Article 2.3 above; (“monthly / quarterly / semi-annually / annually” in this article are collectively referred to as “period”).
༈4༉Adjustment on January 1 next year: from the beginning of January 1 next year after the date of each loan benchmark interest rate adjustment, the new factoring financing interest rate is determined and executed according to the loan benchmark interest rate after this adjustment (if the benchmark interest rate is adjusted twice or more than twice within one calendar year, it shall be subject to the benchmark interest rate adjusted in the last time during the calendar year) and the interest floating proportion stipulated in Article 2.3 above;
2.4 If the currency of factoring financing is foreign currency, please refer to the subsidiary provisions for the factoring financing interest rate adjustment method.

2.5 Factoring financing interest is calculated from the number of actual days of financing since the date when the financing fund is transferred to the account designated by Party B. Before the date of interest settlement, Party B shall deposit the interest payable into the factoring account and it shall be directly withdrawn from the account by Party A. The payment method of financing principal and interest under this contract shall be subject to the corresponding receipt for a loan. The specific circumstances are as follows:
2.5.1 Equal Principal Plus Interest Prepayment Based on Period is Adopted
2.5.1.1 If the repayment date of each period is the corresponding date of the whole period from the issuing date of factoring financing (if there is no corresponding date, the repayment date is the last date of the end month), the principal and interest of factoring financing should be repaid according to equal amount in each period from the same month of factoring financing issuance, and the calculation formula is: 
The amount of principal and interest repaid for each period in equal amount = the principal balance of the factoring financing X interest rate of period* (1+ factoring period interest rate) number of repayment periods / [(1+ interest rate of factoring financing period) number of repayment periods -1]
2.5.1.2 If repayment date of each period is not the corresponding date of the whole period from the issuing date of factoring financing, the calculation formula for the amount of repaid principal and interest of other each period except for the first period and the end period is the same above, and the calculation formula of the amount of repaid principal and interest of the first period and the end period is:
Repayment principal of the first period = the principal balance of the factoring financing X interest rate of period * (1+ factoring period interest rate) number of repayment periods / [(1+ interest rate of factoring financing period) number of repayment periods -1] - the principal balance of the factoring financing X interest rate of period
Repayment interest of the first period= factoring financing principal balance X number of actual days of the first period X daily interest rate
The amount of repayment principal and interest of the first period = the repayment principal of the first period + the repayment interest of the first period.
Repayment principal of the end period = the factoring financing principal balance
Repayment interest of the end period= factoring financing principal balance X the number of actual days of the end period X daily interest rate
Amount of repayment principal and interest of the end period = repayment principal of the end period + repayment interest of the end period.
2.5.2 Equal Principal Repayment Based on Period is Adopted
2.5.2.1 If repayment date of each period is the corresponding date of the whole period from the issuing date of factoring financing (if there is no corresponding date, the repayment date is the last date of the end month), the principal of factoring financing is repaid in equal amount in each period from the same month of factoring financing issuance and the interest of factoring financing is reducing with the principal by periods. The calculation formula is:
Repayment principal per period = factoring financing principal / total number of repayment periods
Repayment interest per period = (factoring financing principal – accumulative paid principal) X interest rate of period
Amount of repayment principal and interest per period = repayment principal per period + repayment interest per period
2.5.2.2 If repayment date of each period is not the corresponding date of the whole period from the issuing date of factoring financing, the calculation formula for the amount of repayment principal and interest of the other periods except for the first and the end periods is the same, and the calculation formula for the amount of factoring financing principal and interest repaid for the first and end periods is:
Repayment principal of the first period = factoring financing principal / total number of repayment periods
Repayment interest of the first period = factoring financing principal balance X number of actual days of the first period X daily interest rate

The amount of repayment principal and interest of the first period = the repayment principal of the first period + the repayment interest of the first period.
Repayment principal of the end period = the factoring financing principal balance
Repayment interest of the end period = factoring financing principal balance X the number of actual days of the end period X daily interest rate
Amount of repayment principal and interest of the end period = the repayment principal of the end period + repayment interest of the end period.
2.5.3 The monthly / quarterly / semi-yearly / yearly interest settlement is adopted, and if the principal is repaid by installment, the interest settlement date is the twentieth day of the month / end month of quarter/ end month of half a year / end month of year. The interest payment day is the next calendar day of the interest settlement date, and the principal of factoring financing is repaid by installment, the number of repayment periods of the factoring financing principal, the amount of the repayment of each period and the date of the repayment shall be subject to the appendix of receipt for a loan.
2.5.4 If the interest is settled monthly / quarterly / semi-yearly / yearly, and the principal and interest are repaid at the expiration, the interest settlement day is the twentieth day of the month / end month of quarter/ end month of half a year / end month of year, the interest payment date is the next calendar day of the interest settlement date, and the principal and interest are repaid at the expiration of factoring financing and the interest is settled with the principal;
2.5.5 If the interest being settled with the principal is adopted, the factoring financing expires and the principal and interest are repaid in one time;
2.6 The specific amount of each factoring financing, the actual date of issuance and the maturity date under this contract shall be subject to the receipt for a loan. Receipt for a loan is an integral part of this contract and has the same legal effect as this contract. When the receipt for a loan is inconsistent with the amount of factoring financing and the term of financing as recorded in the Notice of the Transfer of Accounts Receivable, the receipt for a loan shall prevail.
2.7 For the factoring financing purpose under this contract, please refer to the subsidiary provisions. Without Party A's written consent, Party B shall not make use of the factoring financing funds for other purposes.
2.8 For the factoring financing service charges and its payment method, please refer to the subsidiary provisions.
2.9 When dealing with a single factoring financing business specifically, a List of Accounts Receivable Transfer should be provided.
2.10 Party A has the right to draw from any account opened by Party B in Ningbo Bank and all of its branches the corresponding amount in any currency at any time and notify Party B of the payment of the principal and interest of the factoring financing and any other expenses due under this agreement.
2.11 The "period" in this article is the month or integer multiple of the month, and the corresponding "interest rate of period" is an integer multiple of the annual interest rate /12* months. "End month of quarter" is March, June, September or December; "end month of half a year" refers to June or December; "end month of year" refers to December.

Article III    Recovery, Repurchase and Repayment of the Accounts Receivable
3.1 Party B shall open a factoring account at any branch of Party A or Bank of Ningbo, which is specially used for the recovery of accounts receivable, the deduction of the principal and interest of factoring financing, and the payment of the factoring balance. The specific account information is detailed in the subsidiary provisions. The account is supervised by Party A.
3.2 The recovery method of accounts receivable under this contract is detailed in the subsidiary provisions.
3.3 Repurchase of Accounts Receivable

3.3.1 For the factoring business with right of recourse in accordance with any case as follows, Party B shall repurchase all or part of the accounts receivable under all unliquidated factoring financing of this contract upon the request of Party A:
3.3.1.1 Objection, refusal or underpayment is put forward for accounts receivable under this contract by the purchaser for the goods or any other reason;
3.3.1.2 Party A does not receive the payment from the purchaser on the maturity date of any factoring financing, or the amount of payment by the purchaser is not sufficient to pay off the financing principal, financing interest, default interest and related expenses;
3.3.1.3 Party A exercises its rights in accordance with Article 4.3.
3.3.2 For the factoring business without right of recourse in accordance with any case as follows, Party B should repurchase according to the requirement of Party A:
3.3.2.1 Objection, refusal or underpayment is put forward for the repayment of accounts receivable under this contract by the purchaser for goods or other reasons which are not limited to the finance or credit reasons;
3.3.2.2 Occurrence of trade dispute (including but not limited to disputes in aspect of quality, technology and service), debt dispute and debt recourse between Party B and the purchaser or between Party B and debtor results in the failure of the purchaser to pay to Party A within the period stipulated in the purchase and sale contract or the service contract;
3.3.2.3 Party B makes false statements or fails to perform any promises, warranties or obligations under this contract.
3.3.3 Within 3 days after Party B receives the written notice of Party A's request for repurchase of accounts receivable, Party B repurchases the uncollected accounts receivable upon Party A’s request. The repurchase amount should not be lower than all unliquidated factoring financing principal and interest of Party B and all expenses payable by Party B. the repurchase fund is directly used to repay the factoring financing principal and interest owed by Party B. 
3.4 Party A has the right to deduct the funds from the factoring account and directly use it to repay the factoring financing fund that Party B owed. If there is a factoring balance, Party A shall pay the factoring balance to Party B.

Article IV     Rights and Obligations of Party A
4.1 From the date of the entry into force of this contract, the creditor's right of the account receivable is transferred to Party A, and Party A enjoys the ownership related to the account receivable and has the right to obtain the original invoice of accounts receivable under this contract, and has the right to handle the registration procedures of the transfer of the account receivable in the relevant registration institution. Party B shall cooperate with it.
4.2 Party A has the right to understand Party B's production and operation, financial activities, and has the right to require Party B to provide financial and accounting information and production and operation information.
4.3 If Party B violates Article 5.1 to make the statement and guarantee for Party A (no matter whether it has the right of recourse) or one or several cases as follows occur in the factoring business with right of recourse, Party A has the right to identify all the credit of Party B in Party A, including but not limited to the factoring financial, loan, discount, bank acceptance, and draft acceptance, international trade financing, bank’s letter of guarantee and others, to expire in advance, and has the right to adopt, including but not limited to the following methods:(1) reducing, freezing or canceling factoring financing quota, stopping issuing factoring financing; (2) requiring Party B to repurchase the corresponding accounts receivable; (3) declaring that all unpaid factoring financing is immediately due, in which Party B should immediately repay; (4) having the right to draw any money from any account of Party B opened at Bank of Ningbo Co., Ltd. and its branches at any time and using it to repay for the factoring financing principal and interest owed by Party B and all expenses payable by Party B and notifying Party B; (5)terminating this contract and other contracts signed 

by other parties in advance, refusing to continue to provide factoring financing services for Party B; (6) requiring to add guarantee measures approved by Party A; (7) filing a lawsuit to the people's court and applying for judicial preservation measures, such as sealing up, freezing and deduction, and other asset preservation measures. Meanwhile, Bank of Ningbo Co., Ltd. and its branches also enjoy the above rights against Party B.
༈1༉Party B ceases production, is closed down, is disbanded, is taken over, is declared bankrupt, is shut down for rectification, is cancelled in registration, and the business license is revoked or cancelled;
༈2༉Party B makes false statements or guarantees, or purposely conceals the important facts relating to this contract or provides false materials, information or untrue statements or the provided materials have false information or false statement, vouchers, documents and other materials are provided to Party A within the validity period of this contract;
༈3༉Party B does not repay the factoring financing principal and interest, expenses or any other due debt (including the declared maturity in advance) according to this contract and corresponding receipt for a loan or does not perform other contractual or statutory obligations;
༈4༉Party B fails to make use of factoring financing in accordance with the purpose as stipulated in this contract and the corresponding receipt for a loan;
༈5༉Party B’s disposal of any assets (including but not limited to donation, deliver, transfer, sale at low price) may or have already affected its debt paying ability before repaying the debt;
༈6༉Party B's credit rating has declined, business activities have been difficult and financial conditions have deteriorated;
༈7༉Party B is involved in economic disputes or litigation, or preservation measures are taken for any other assets of Party B, such as being sealed up, frozen or deducted;
༈8༉Party B is prosecuted for alleged offenses or fined, or the legal representative or the main responsible person of Party A is detained, arrested, taken coercive measures, prosecuted, sentenced to a sentence or being fined due to suspected crime;
༈9༉The purchaser fails to perform other contractual or statutory obligations or has other misconducts;
༈10༉Party B’s bad debt rate of the accounts receivable from the purchaser is increasing for accumulative 2 months;
༈11༉Party B’s accounts receivable from the purchaser which have expired and have not yet been recovered account for more than 5% of the balance of the accounts receivable from the purchaser;
༈12༉Party B fails to repurchase accounts receivable in full and on time;
༈13༉The failure of the guarantee contract under this contract, the decrease of the guarantor’s guarantee ability, and the decrease of the value of the collateral and others affect the security of the creditor’s rights under this contract;
༈14༉The guarantor violates the agreement of the guarantee contract;
༈15༉Party B’s affiliated parties and actual controllers have encountered the events listed in (1), (6), (7) and (8) of this clause and have any changes which are not conducive to the realization of the creditor’s right of Party A, and Party B fails to provide guarantee approved by Party A according to Party A’s request separately; (for the definition of the affiliated party, refer to Accounting Criteria for Enterprises No. 36 – Disclosure of Affiliated Parties and its revised version; for the definition of the actual controller, refer to the company Law of the People’s Republic of China and its revised version.
༈16༉Any other event that has a threat to its normal operation of Party B or any other adverse effects on the performance of the repayment obligation of the overdraft capital principal and interest under this contract occur in Party B, in addition to the above events.
4.4 Under the following circumstances, Party A has the right to directly deduct the corresponding fund from the account stipulated in Article 3.1 for the purpose of repaying the factoring financing principal and interest and all expenses payable by Party B. If the balance of the account is insufficient, Party A shall have the right 

to deduct the corresponding amount from any account opened by Party B in Bank of Ningbo and its branches and shall notify Party B of it (except for the factoring business without the right of recourse):
4.4.1 Party B fails to repay the interest payable in full on the interest settlement date stipulated in this contract;
4.4.2 On the maturity date of factoring financing (including the declared maturity in advance), Party B fails to pay the factoring financing principal and interest payable and all the expenses payable by Party B in full;
4.4.3 The accounts receivable corresponding to factoring financing arrive into the account in advance;
4.4.4 Other circumstances as stipulated in this contract.
4.5 if Party A requires Party B to repurchase in accordance with Article 3.3 of this contract and Party B does not repurchase, Party A shall have the right to exercise the set-off and recourse rights. Party A shall directly deduct the repurchase fund from any account of Party B opened in Bank of Ningbo Co., Ltd. and its branches for the purpose of repaying the owed factoring financing principal and interest of Party B and all expenses payable by Party B and shall notify Party B or exercise the right of recourse. 
4.6 Under the factoring business with right of recourse, if the accounts receivable received by Party A are not sufficient to pay the factoring financing principal and interest and all the expenses payable by Party B on the maturity date of factoring financing, Party A has the right to decide whether to exercise the right of recourse against the purchaser or not. If Party A exercises the right of recourse against the purchaser, it shall not affect Party A’s exercise of the right of recourse against Party B, nor shall it affect Party B's performance of the obligation to repurchase.
4.7 If the purchaser fails to repay the accounts receivable on time for more than two consecutive deals (included), Party A shall have the right to stop handling the factoring business for Party B with the accounts receivable under this contract between Party A and the purchaser.
4.8 Party A shall have the right to inform the relevant departments or units for Party B’s illegal behaviors, such as delaying in repayment for overdraft capital principal and interest, avoiding Party A’s supervision, concealing important fact related to the conclusion of this contract or providing false materials and information, and shall have the right to collect through the news media announcement, and Party B shall irrevocably authorize Party A to provide the name of Party B and contact way and other relevant information to the collection institution for the purpose of collection or collect through the news media announcement, and the collection institution and the news media shall have the obligation to keep secrete for the information of Party B, and shall not use Party B’s information beyond the purpose of collection, and at the same time, Party A has the right to investigate the liabilities for the breach of contract against Party B in accordance with the laws, regulations and this contract.
4.9 Without Party A's written consent, Party B shall not repay in advance, repay in several times or delay in repayment.
4.10 Party A shall provide Party B with financing issuance and other services in accordance with this contract. Party A has the right to entrust the Bank of Ningbo Head Office and its other branches, any paying banks and agent banks of the Bank of Ningbo to provide Party B with financing issuance and other services in accordance with this contract. Party B has no objection to this, and promises that the performance of Bank of Ningbo Head Office and its other branches, any paying banks and agent banks shall be deemed to be the performance of Party A. All payment obligations under this contract shall be performed by Party B to Party A, and all rights shall be enjoyed by Party A. If Party B breaks the contract, Party A shall have the right to claim for the credit’s right against Party B.

Article V    Rights and Obligations of Party B
5.1 Party B shall make the following statements and guarantees to Party A:
5.1.1 Party B is a legal person established according to law (or a branch authorized by legal person legally). It has an effective business license and owns its assets in accordance with the law and legally operates its business. It has the right to sign and perform this contract.

5.1.2 All statements and information provided by Party B to Party A are true, accurate and complete without any concealment;
5.1.3 The purchase and sale contract and its corresponding debtor-creditor relationship which the accounts receivable transferred by Party B to Party A are based on are true, legal and effective, without any dispute;
5.1.4 The purchase and sale contract or service contract concluded between Party B and the purchaser does not contain any provisions restricting the transfer of accounts receivable;
5.1.5 The ownership of accounts receivable transferred by Party B to Party A is clear, without any defects, and Party B has not transferred it to any third party, nor has it set any right of pledge for any third party and other right of priority on it;
5.1.6 Without the consent of Party A, Party B does not withdraw, transfer, and pay any fund from the factoring account agreed in Article 3.1, nor does it send orders to withdraw, transfer and pay any fund from the account.
5.2 Party B has the right to require Party A to provide factoring financing in accordance with this contract.
5.3 Party B shall pay the factoring business service charges, the factoring financing principal and interest and all the expenses payable by Party B in accordance with provisions of this contract and the corresponding receipt for a loan, and shall perform the repurchase obligation according to the provisions of this contract.
5.4 Party B shall agree with the purchaser that the returned money of accounts receivable shall be directly transferred into the factoring account by the purchaser by remittance or other methods. For other settlement methods such as the use of bills, if it shall not be directly transferred into the factoring account, Party B shall ensure that it shall be promptly transferred into the factoring account after the receipt of the money.
5.5 Party B should actively cooperate with Party A's investigation and understanding for its production and operation and financial situations, and provide accounting and financial statements and other materials according to Party A's requirements timely.
5.6 Party B shall provide necessary assistance in Party A's collection measures or litigation against the purchaser.
5.7 If the purchaser or any third party provides any form of guarantee to the accounts receivable of Party B and it can be transferred, Party B shall transfer it to Party A; if it cannot be transferred, Party B shall assist Party A to recover the debt when the Party A needs it;
5.8 In addition to the assignment of accounts receivable and related rights to Party A, Party B shall continue to perform all other obligations under the purchase and sale or service contract;
5.9 After the entry into force of this contract, Party B shall not sign any agreement or document which is sufficient to damage the interests of Party A under this contract, or to be engaged in any matter that is sufficient to damage the interests of Party A.
5.10 Party B is responsible for the final repayment of the financing under the factoring business with the right of recourse. No matter what causes Party B to fail to recover the accounts receivable in time and in full, It does not affect Party A to exercise the right of recourse against Party B.
5.11 If Party B takes measures, such as contract, lease, joint stock reform, joint operation, merger, acquisition, separation, joint venture, capital reduction, asset transfer, application for suspension for rectification, application for liquidation, bankruptcy and others which are sufficient to change the debtor-creditor relationship of this contract or affects Party A’s action to realize the creditor’s right of Party A before the completion of redemption of debt under this contract, Party B should notify Party A in writing in 30 days before the above actions are taken. At the same time, Party B should implement the redemption of debt or redeem the debt in advance. Without the written consent of Party A, the above action shall not be taken.
5.12 Except for the above events, in case of occurrence of any other event, including but not limited to any of the circumstances stipulated in Article 4.3 of this contract, which constitutes a threat to the normal operation of Party B or has a negative impact on the performance of the repayment obligation under this contract in Party B, Party B shall notify Party A in writing within 3 days after the occurrence of the above events and situations, and repay or provide guarantee measures approved by Party A. Whether the events and situations stated in this article occur in Party B shall be determined by Party A.

5.13 If Party B’s name, legal representative, legal address, business scope, communication address, contact telephone and other items are changed, Party B should send the written notice and relevant change certificates issued by administration for industry and commerce and other competent departments to Party A within 5 days after the change. Otherwise, all responsibilities and consequences arising from it shall be borne by Party B.
5.14 Party B is obliged to cooperate with Party A's reconciliation work. The collection letter or collecting document delivered directly by Party A to Party B or by mail, etc. shall be immediately received by Party B and the receipt shall be delivered to Party A or sent to Party A within 3 days after the receipt.
5.15 Party B shall complete the registration and / or insurance and other legal procedures in accordance with the law upon Party A’s request, and the guarantee and insurance shall continue to be effective.
5.16 Party B shall bear the related expenses of lawyer service, insurance, transportation, evaluation, registration, safekeeping, appraisal, notarization and deposit, etc. related to this contract and the guarantee under this contract in accordance with the provisions of laws and regulations.

Article VI    Liability for Breach of Contract
6.1 After the entry into force of the contract, Party A and Party B shall perform the obligations stipulated in this contract. Any party who fails to perform or fails to fully perform the agreed obligations or has a breach of contract shall bear the corresponding liability for breach of contract and compensate for the loss to the other party.
6.2 If Party B fails to repay according to the agreement at the expiration of financing of factoring business with the right of recourse (including the declared expiration in advance)and the factoring financing currency is RMB, Party A shall additionally charge a certain proportion of overdue default interest on the level of financing interest rate as agreed in this contract and corresponding receipt for a loan for the overdue financing principal and interest since the overdue day. For the additionally charging proportion of overdue default interest, refer to the subsidiary provisions. If the factoring financing currency is foreign currency, Party A should collect a certain amount of default interest for the overdue financing principal and interest since the overdue day. For the collected default interest, please refer to subsidiary provisions.
6.3 If Party B does not use factoring financing as prescribed in this contract, Party A shall have the right to additionally charge a certain proportion of the misappropriation default interest for misappropriated financing on the level of financing interest rate as stipulated in this contract and the corresponding receipt for a loan since the date of misappropriating the financing fund of Party B. For the additionally charging proportion of the misappropriation default interest, please refer to subsidiary provisions.
6.4 Party A shall have the right to collect compound interest from Party B for Party B’s unpaid interest payable. The compound interest shall be collected for Party B’s unpaid interest payable within the financing time limit according to the rate of corresponding default interest and interest settlement methods stipulated in this contract; for the overdue or misappropriated financing, the compound interest shall be collected for its unpaid interest payables according to the rate of corresponding default interest and interest settlement methods stipulated in this contract.
6.5 If Party B's breach of contract causes Party A to realize the creditor’s right in the way of litigation, Party B shall bear the litigation fee, preservation fee, execution fee, lawyer fee, traveling expense and other expenses to realize the creditor’s right paid by Party A.
6.6 If Party B violates the statements and guarantees in Article 5.1 or fails to perform the obligations as agreed in this contract, besides Party B should bear the default liabilities as agreed in this article above, Party A has the right to take all measures as stipulated in Article 4.3 of this contract at any time.
6.7 Party B shall bear the corresponding liability for breach of contract in violation of any contractual obligations or warranties or promises made in this contract and compensate for the loss of Party A thereto. The scope of compensation includes, but is not limited to, the factoring financing principal, interest, default interest and all expenses of Party A arising from it.

6.8 When the interest rate of factoring financing under the contract is adjusted, the penalty interest rate shall be adjusted automatically on the basis of the adjusted financing interest rate according to the proportion stipulated in Article 6.2 and Article 6.3 of this contract, and it shall be applied with the financing interest rate at the same time and calculated by segments.

Article 7  Validation, Alteration, Rescission and Termination of Contract
7.1 This Contract shall take effect upon both parties’ signing and sealing and shall remain effective until all of Party B’s obligations hereunder are completely performed.
7.2 After this Contract comes into effect, unless otherwise specified in this Contract or any relevant law or regulations, neither party shall alter or rescind this Contract without the other party’s consent. Both parties shall reach written agreement through consultations for the aforesaid purpose. The terms and conditions hereof shall remain effective before the aforementioned written agreement is reached.
7.3 Party A shall have the right to transfer its rights and obligations hereunder without Party B’s consent. Party A’s notice of rights transfer may be issued in writing, published at Party A’s official website , announced on public media, or in any other form approved by the regulatory authority. Notice shall be deemed to have been served once it is announced. Party B shall, after Party A performs the obligation of issuing notice, perform the obligation of benign cooperation with respect to transfer of creditor’s rights, including but not limited to signing relevant contract documents, etc.
In case Party A transfers its creditor’s rights hereunder to any third party, if Party B has corresponding right of defense or set-off against Party A, it shall claim for such right within five working days after the day when notice is served, or else such right shall be deemed null and void.
7.4 Without Party A’s written consent, Party B shall not transfer any of its obligations hereunder to any third party.

Article 8  Application of Law and Dispute Settlement
8.1 The conclusion, effectiveness, interpretation and performance of this Contract as well as dispute settlement shall be governed by the law of the People’s Republic of China (not including the laws of Hong Kong, Macao and Taiwan for the purposes of this Contract). 
8.2 Any dispute arising out of the performance of this Contract shall be settled by both parties through consultations. If consultations fail, please refer to the Collateral Terms for the specific methods for dispute settlement.
8.3 During consultations, lawsuit or arbitration, the terms and conditions hereof as not involved in dispute shall still be performed by both parties. Neither party shall refuse to perform any obligation hereunder for the reason that the procedure for dispute settlement is under way. 

Article 9  Miscellaneous
9.1 Where either party requests notarization of this Contract, both parties shall jointly apply for notarization to the notary authority and definitely grant this Contract the effect of enforcement. Party B shall bear the notary fee.
9.2 The titles of terms and conditions shall be deemed as references only and shall not constitute an integral part of this Contract. Neither of the terms and conditions hereof shall be interpreted and understood by reference to the title thereof, or be affected or restricted by the title thereof in any form.
9.3 Unless otherwise provided herein or in relevant laws or regulations, if the delinquent party violates or fails to perform any provisions hereof or obligations hereunder at any time, except that the observant party definitely acknowledges in writing, the observant party’s any act, negative act, delay in taking actions or any other measures shall not be deemed as waiving of any of its rights hereunder.
9.4 Service

༈1༉Party B confirms the following address as the address and contact information for the service of Party A’s notice and legal documents on debt collection and lawsuit (arbitration). Such address and contact information shall apply to each and every phase of lawsuit and execution.
༈2༉Party A, the trial court and arbitration authority shall issue notice and legal documents to the following address and contact information. Where there’s no receiver or the mail is rejected, such notice or legal documents shall be deemed to have been served on the day when they are sent back. If a mail is rejected when it is directly served, the process server may record the service process by taking photo or videoing and take into custody the notice or legal documents, which shall be deemed to have been served in this case.
༈3༉Party B acknowledges that Party A, the trial court and arbitration authority may serve documents by text message, fax, e-mail or in any other modern communication forms via the following designated mobile number, fax number or e-mail address. Legal documents shall be deemed to have been served as long as Party A, the trial court or arbitration authority confirms that it has sent the legal documents to the following designated number or address. Any legal documents sent by Party A, the trial court or arbitration authority to the following address for service shall be deemed to have been served three days after the day of delivery.
༈4༉Where Party B provides wrong contact information or fails to timely provide the altered contact information, which results in the failure in serving or sending back notice or legal documents, such notice or legal documents shall be deemed to have been served on the day when they are sent back.
༈5༉Please refer to the Collateral Terms for details on Party B’s contact information.
9.5 Both parties agree to confirm the legal force of phone-call recording and faxes and commit that they may be submitted as evidence to the court, arbitration committee or any other dispute settlement authority. The force of fax shall equal to the force of the original during the transit of the original. The fax number designated by Party B in this Contract shall not be changed at will. If the fax number is changed, Party B shall timely make corresponding written explanations to Party A , or else Party B shall assume any and all liabilities hereby incurred. Any fax sent by Party B shall be the same as the original, or else Party B shall assume the corresponding liabilities.
9.6 Any matter not provided herein shall be settled in accordance with relevant laws and regulations.

Article 10  Hints and Statement
10.1 Party A has asked Party B to get a complete and accurate understanding of the terms and conditions hereof, especially the ones in bold, and has explained corresponding terms and conditions at Party B’s request. Both parties hereto have thoroughly acknowledged and fully comprehended the meanings and legal consequences of the terms and conditions hereof.
10.2 Party B has acknowledged that if the interest rate rises during the financing period, the interest expense will increase if it chooses floating interest rate; if the interest rate drops during the financing period, the interest expense will increase if it chooses fixed interest rate.
10.3 Party B’s special statement: It has paid special attention to the terms and conditions involved in its obligations and those against it, and has confirmed and accepted such terms and conditions.
 (The above part is the Standard Terms of this Contract, while the following part is the Collateral Terms of this Contract.)

Collateral Terms of General Factoring Financing Contract
 (Edition 2013031)

No.  07500GL20188001

Factoring Bank (Party A): Suzhou Branch of Bank of Ningbo Co., Ltd.  
Factoring Applicant (Party B): Mold-Masters (Kunshan) Co., Ltd.

Article 1 Party B applies for Without recourse and Undisclosed Factoring from Party A. 

Article 2 Party A grants Party B factoring financing amount is (currency; amount in words) RMB 5,071,484.01; the period is from Nov 30, 2018 (day/month/year) to Feb 4, 2019 (day/month/year).

Article 3 If the factoring financing currency is RMB. The term of factoring financing shall be implemented by fixed interest rate: the yearly rate is 5.0025%
Article 4 The purpose of factoring financing hereunder is purchasing raw material.
Article 5 Party B shall pay service charge for the factoring financing hereunder to Party A in the following Form 1 of RMB 25,357.42.
༈1༉The factoring financing amount hereunder shall be paid to Party A all at once when it is granted.
༈2༉________________________
Article 6 Party B’s factoring account number: 75200122000095578
The receivables hereunder shall be collected in the following Form 2:
 (1) Party B shall assist Party A in urging purchasers to timely deposit the receivables into the factoring account provided in Section 3.1 of the Standard Terms.
 (2) Party B shall urge purchasers to timely deposit the receivables into the factoring account provided in Section 3.1 of the Standard Terms.
Article 7 If the factoring financing currency is RMB, the charge proportion of overdue fine shall be 50 (in words) percent. If the factoring financing currency is a foreign currency, Party A will charge overdue fine for the overdue principal and interest; the charge proportion of misappropriated overdue fine shall be 80% (in words).
Article 8 Where both parties fail to settle a dispute arising out of performance of this Contract through consultations, such dispute may be settled in the following Form 2:
༈1༉ Institute legal proceedings to the people’s court in the place where Party A is located.
༈2༉Institute legal proceedings to the people’s court in the contract signing place.
Contract signing place: #749 East Ganjiang Rd, Gusu District, Suzhou City 
༈3༉Submit dispute to ______________Arbitration Commission for arbitration in accordance with the promulgated effective arbitration rules.
Article 9 Party B’s Contact Information:
Address for mail service: #2 Zhaotian Rd Jingyang Rd, Hefeng, Lujia Town,Kunshan City
Addressee (or receiver): Michael Lu, Finance Director
Tel: 15995601578                                                
Fax No.:                                                         
Mobile No.:                                                         

E-mail address:                                                     
Article 9 This Contract shall be executed in 2 with equal legal effect, 1 for Party A, 1 for Party B, and ______ for the notary authority / registration authority. 

Supplementary Terms:
                                                
                                                

The Standard Terms and Collateral Terms hereof shall constitute an entire contract.

 (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

Party A(official seal)                                    Party B(official seal)
(or special seal for contract)

Legal representative (responsible person)                    Legal representative 
or entrusted agent                                        or entrusted agent

Signing date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}]]