Document:

f10q0612ex10iv_keyuanpetro.htm

Exhibit 10.4

 

[TRANSLATION COPY]

 

Maximum Guarantee Contract

 

NO:

 

Guarantor :  Ningbo Kewei Fuels Co., Ltd

Business License No.:330206000041694

Legal Representative/ Principal: Rizhen Hu

Domicile: Qingshi Industrial Park, NingBo

Opening Financial Institution and Account No.:

Telephone No.:86232933  FAX: 315800

 

Creditor: Bank of China Inc Beilun Sub-branch

Legal Representative/Principal: Shuguang Sun

Domicile: HuaShan Road Beilun Zone   Postal Code: 315800

Telephone No.:86880639      FAX:

 

Guarantor is willing to provide the guaranty to creditor in order to guarantee the fulfillment of debts under the main contract included in Article1 of this contract. Both parties sign this contract by consultation on the basis of equality. The explanations of the words in this contract are confirmed according to the main contract except additional agreements in this contract.

Article1. Main Contract (Notes: please complete with factual information and delete improper clauses)

 

  

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The main contract of this contract is:

√< Agreement on Line of Credit >/ < General Agreement on Credit Business> and corresponding individual agreement and its amendment or supplement signed by the the creditor and the debtor <Ningbo Keyuan Plastics Co., Ltd>,which are considered as the main contract under this contract.

×The contracts (general terms “Single Contract”) of loans, trade financing, letter of guarantee, capital business and other credit business, and the amendment or supplement are signed between the creditor and the debtor from _ to _. which are considered as the main contract under this contract.

Article2. Principal Claims and the Time Period

Unless otherwise prescribed by laws regarding time period, factual claims under the main contract during the following period or before the effective date of this contract constitute the main claims of this contract: (Notes: Please complete with factual information and delete improper clauses)

×From the effective date of < Agreement on Line of Credit > referred in ArticleI to the expiration date of Line of Credit which is fixed by the agreement and the amendment or supplement

√From the effective date of < General Agreement on Credit Business> referred in Article3 to the last expiration date of business cooperation which is fixed by the agreement and the amendment or supplement.

√The provision under Article 1 of this contract from _to _.

Article3. The Guaranteed Maximum Amount

1. The guaranteed maximum amount of this contract is:

Currency: RMB

(Capital Letter): Seven hundred million yuan

(Lower Case) ¥700,000,000.

 

  

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2. During the expiration of the time period defined in Article 2 under this contract, the main claims are identified as the guaranteed main claims of this contract, and the interest based on principal (including legal interests, contract interests, compound interests, default interests), liquidated damages, damage penalty, expenses of realizing claims (including but not limiting legal cost, counsel fee, notarial fee, executory cost, etc.), losses caused for the creditor due to the debtor’s default and other all accrued expenses and so on, are also considered as guaranteed claims, and the specified amount is settled when paid off.

The sum of the above-mentioned claims is the guaranteed maximum amount of this contract.

Article4. The Way of Guarantee

Joint liability guarantee is the way of guarantee of this contract.

Article5. Guarantee Liability

 

When the debtor failed to pay off in normal due date or ahead due date as agreed in the main contract, the creditor has the right to request the guarantor to bear guarantee liability.

The normal due date is the date of principal payment, interest payment or the date the  debtor shall make any payment according to the provision of the contracts. The ahead due date is the ahead date proposed by debtor and agreed by the creditor, and the date request to receive claims principal and interest and /or other any payment on the provisions of the contract.

The principal debt has other security or guarantee except from this contract that wouldn’t affect any rights of creditor and the execution under this contract. And the guarantor shall bear agreed liability and shall not be allowed to demur for this reason.

Article6.Period of Guarantee

The period of guarantee under this contract is two years since the expiration date of the main claims referred in Article2.

In the period of guarantee, the creditor has the right to request the guarantor bear guarantee liability for entire or part, several or single, together or respective of the main claims.

Article7. Limitation of Actions for Guaranteed Debt

In case of the main claims are not paid off, the creditor has the right to request the guarantor to bear guarantee liability before the expiration date of the time period on the provision of Article 6 of this contract on the condition of joint liability guarantee. And the request date is the beginning date of guarantee obligation and limitation of actions shall apply.

 

  

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Generally, the creditor file an action or apply arbitration to the debtor on the provision of Article 6, the effective date of judgment or arbitration is the beginning date of the guarantee liability and limitation of action shall apply.

Article 8. The Relationship between this Contract and the Main Contract

If the main contract contains Agreement on Line of Credit /General Agreement on Credit Business, it needs to be agreed in written form to extend the period of L/C/the business cooperation. If it is unapproved or refused by the guarantor, the guarantor is only responsible for the main creditor’s rights during the period of L/C /the business cooperation and the guaranteed maximum amount on the provision of Article3 under this contract. And the time period is still the original one.

As for the amendment of other contents or items of Agreement on Line of Credit /General Agreement on Credit Business, and the amendment of its individual agreement or the amendment of the single main contract, it does not need to consented by the guarantor’s consent and the guarantor is still responsible for guarantee liability for amendment within the guaranteed maximum amount on the provision of Article3 of this contract.

It can be in written form to revise the guaranteed maximum amount on the provision of Article3 of this contract by consensus.

Article9.  The Statement and Commitment

The statement and commitment of the guarantor as follows:

1 The guarantor shall establish and survive by law, has full civil capacity to sign and fulfill this contract.

2 The guarantor fully comprehends the contents of the main contract, signs and fulfills this contract basing on his authentic intention, and obtains legal and effective authorization pursuant to requirement of the charters or other internal management documents.

The guarantor, being a company, provides the guarantee that has been approved by the board of directors, shareholder meeting or shareholder meeting decision; and if the charter has provision on the limitation of total amount and individual guarantee amount, this contract has not exceeded.

 

  

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Signature and execution of this contract will not incur any violation of any binding contract, agreement or other legal documents of the guarantor.

3 All documents and materials are provided to the creditor must be correct, authentic, complete and effective.

4 The guarantor shall accept monitoring and inspection of financial condition by the creditor, and render assistance and support.

5 The guarantor withholds information that he has suffered heavy debts before the last day of signing this contract.

6 If the situation that may affect the guarantor’s financial position and performance capability occurs, including but not limiting any kinds of reform on operation model like spin-off, merger, joint operation, co-work with foreign companies, cooperation, contractual operation, reconstruction, restructuring, planned listing, etc, reduction of registered capital, significant asset or option transfer, undertaking huge liability, dissolve, revoke, bankrupt, or involving action or arbitration, the guarantor shall inform the creditor in timely manner.

Article10.Event of Default and the Settlement

One of the following situations will constitute or deem to the violation of this contract for the guarantor:

1 Not performance of the guarantee liability in time on the provision of this contract;

2 The statement is unauthentic or violate the commitment under this contract;

3 The matters mentioned in item 6 of Article 9 happen and affect the guarantor’s financial position and performance capability;

4 The guarantor terminates its business operations or dissolves, revokes or bankrupts;

5 Violation of other agreements regarding the parties’ rights and obligations under this contract;

6 The guarantor has following default matters under the other contract with the creditor or other institutions of Bank of China Inc.

When happened above mentioned default matters, the creditor has the right to take the following measures respectively or concurrently according to the specified situations:

1 Request the guarantor to remediate his nonperformance in a limited time;

 

  

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2 Completely or partly decrease, discontinue or terminate the guarantor’s line of credit;

3 Completely or partly discontinue or terminate the guarantor’s business application in other contracts; all or partly discontinue or terminate issuing and handling the loan and trade financing which has not happened yet;

4 Announce unpaid-off principal and interest and other payables under loan/ trading financing completely or partly to become due immediately;

5 Revoke and terminate this contract, and completely or partly revoke and terminate other contracts between the guarantor and the creditor;

6 Request the guarantor to compensate the creditor due to the default;

7 Deduct money from the account of the creditor which is established by the guarantor in order to pay off all or part debts. The undue money in the account is considered acceleration of maturity. The currencies of the account differs from money of account, it will be calculated according to the exchange rate of plate price applicable to the loaner.

8 Other necessary measures

Article11.Reservation of Power

If one party has not executed part or all rights under this contract or requested the other party to execute or bear part or all obligations and responsibilities, this does not implicate this party abandons the rights or exempt from the obligations and responsibilities.

Any tolerance, extension or delay of executing rights of this contract are given by one party, and this action will not affect any rights shared according to this contract, laws and regulations and also not regard it as abandonment.

Article12. Alteration, Amendment and Termination

Alteration or amendment can be done in written form by consensus, and any alteration or amendment are the indivisible part of this contract.

Unless otherwise prescribed by laws and rules or agreed by the parties, this contract is not allowed to terminate before fulfillment of the whole rights and obligations.

Unless otherwise prescribed by laws and rules or agreed by the parties,ineffectiveness of any item does not affect legal validity of other items.

 

  

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Article13. Applicable Law and Settlement of Disputes

This contract applies to the laws of the People’s Republic of China.

All disputes and debates incurred by execution of this contract shall be settled by friendly negotiations first. If the negotiations are failed, both sides agree to apply to the same settlement as the main contract.

During the period of settlement, if this dispute does not affect fulfillment of other items in this contract, the other items shall continue to perform.

Article14.Attachments

Attachments by consensus constitute an integral part of this contract, and have the same legal effect with this contract.

Article 15.Other Covenants

1 The guarantor is not allowed to transfer any rights and obligations under this contract to the third party without written consent of the creditor.

2 The guarantor agrees that the creditor entrusts the other institutions of Bank of China Inc to execute rights and obligations of this contract due to the requirement of business. And this institution has the right to execute the whole rights under this contract and file action or submit to arbitrate the organization adjudicate on concerned the dispute under this contract.

3 On the condition that other covenants under this contract are unaffected, this contract has legal binding on both parties and their successors and assignees.

4 Unless otherwise agreement, the domicile in this contract is the address for communication and contact; and both parties agree to inform the other party with written form in time when the address has changed.

5 The headlines and business names in this contract just for convenience, shall not be allowed to explain the items and the parties’ rights and obligations.

Article 16.Validity of Contract

This contract is effective since the date the legal representatives, the principals and the authorized signers of two parties sign and seal.

 

  

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This contract is in three copies, the two parties and the loaner each hold one copy. All of them have the same effect.

 

	
The Guarantor: 

	The Creditor:
	

Ningbo Kewei Fuels Co., Ltd (Sealed)

	

Bank of China Inc Beilun Branch

	 	  
	
The Authorized Signer:

	
The Authorized Signer:

	  	  
	
May 14, 2012

	
May 14, 2012

 

 

 8f10q0612ex10v_keyuanpetro.htm

Exhibit 10.5

 

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

Inward Bills Contract

No.:

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

Business license No.:330200400023187

Legal representative/Principal: Chunfeng Tao

Address: Qingshi Industrial Park, Ningbo Postcode: 315803

Financial institution account and account No.: Bank of China Inc, Beilun Branch 361058330713

Tel: 0574-86232932 Fax: 0574-86232618

Party B: Bank of China Inc, Beilun Branch

Legal representative/ Principal: Shuguang Sun

Address: No.588, Huashan Road, Beilun Zone   Postcode: 315800

Tel: 0574-86869916 Fax: 0574-86880294

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

Article 1. Preconditions

Inward Bills under this contract shall meet the following requirements:

	
1.

	
This contract has already been effective;

	
2.

	
Party A obligates and signs the related documents, receipts, seal, related  person’s name lists and samples of signatures for party B, and also fills in relevant certificates;

	
3.

	
Party A opens the required account to fulfill this contract;

	
4.

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

	
5.

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

	
6.

	
Other conditions requested by Party B.

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

√Letter of Credit

Letter of Credit No.:LC1901312000004/AB1901312000160

Name of Bank Issuing Documents: BANK OF TOKYO – MITSUBISHI UFJ, SINGAPORE

No. of Issued Document: 3655-XPR-8496806

Receipt amount: USD 9,689,112.50

 

  

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Collection

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

Issuing documents No.: /  Receipt amount: /

Article 3.  Currency of Inward Bills and amount

Currency of Inward Bills: USD

Amount: (Spell-Out) Nine Million Six Hundred and Eighty Thousand

(Numeric)USD 9,680,000.00

Article 4.  The Term of Inward Bills

The term of Inward Bills is /  months/ 185 days, beginning to calculate since the date of Party B made foreign payment.

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

 

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

	
1.

	
Interest rate (annual interest rate)

	
  

	
(1)

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

	
  

	
(2)

	
Inward Bills in foreign currency:

 

	
  

	
A.

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

 

	
  

	
B.

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

 

	
  

	
C.

	
Benchmark of LIBOR/HIBOR + 255 for the latest 1 month published by Reuters till the prior working day of the Inward Bills date.

	
2.

	
Calculation of interest

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

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

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

 

  

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3.

	
Method of interest settlement

Interest settlement is according to the following _third_ way:

	
(1)

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

	
(2)

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

	
(3)

	
Same as expiration date of principal.

	
(4)

	
Receive the interest in advance and settle when expiration date.

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

	
4.

	
Default interest

	
  

	
(1)

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

	
  

	
(2)

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

	
  

	
(3)

	
Default interest rate

A. Default interest rate is a floating rate, the floating period is  / month/ /year. In every floating period, the default interest shall be re-priced on the default date. The re-pricing date is the corresponding date in the month of the default date. If there is no corresponding date in the same month, then the last date of the month is the re-pricing date.

 

B. Default interest rate equals to the benchmark interest rate in the item C below plus 20%.

C. In the first floating period, the benchmark interest rate is the financing interest rate item 1 of this Article. After each full floating period, the benchmark interest rate shall be calculated as below:

Financing in RMB, it floats upward/ floats downward according to the same level loan benchmark interest rate issued by the People’s Bank of China in the re-pricing day.

Financing with foreign currency,

 

  

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It is the loan interest rate within the same floating period of / years of the re-pricing day implemented by Bank of China, Inc.

√It equals to the latest floating period obtained from Reuters of the prior day of re-pricing day before 9:00 (Beijing time) pluses 255.

Article 6.  Fees

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

Party A pays the above fees through the __second__ method:

	
1.

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

	
2.

	
Party B is authorized to deduct from the Party A’s account (Account No.:361058330713)

	
3.

	
Other methods:____________________/_______________.

Article 7. Other Rights and Obligations of the Parties

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

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

 

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

 

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

 

  

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

The guarantee methods of liability under this contract:

√ Ningbo Kewei Fuels Co., Ltd and Ningbo Keyuan Petrochemicals Co., Ltd provide joint liability guarantee, ... , and sign corresponding guarantee contract.

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

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

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

	
1)

	
Margin Amount: (Currency) RMB ; (Spell-Out) Sixty-two Million;

(Numeric) 62,000,000.

	
2)

	
Party A pay for above margin with following method:

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

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

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

Others:  

	
3)

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

Return to the Party A’s account.

Return according to the deposit route.

Return according to the written instruction of Party A.

Others:                               .

 

  

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

 

Article 9.  Party A’s Statements and Commitment

Statements as follows:

	
1.

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

	
2.

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

	
3.

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

	
4.

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

	
5.

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

Commitments as follows:

	
  

	
1.

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

	
  

	
2.

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

 

  

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3.

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

	
  

	
4.

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

 

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

The __second _ item below is applicable to both parties:

	
1.

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

	
2.

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

Article 11. Default Events

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

	
1.

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

	
2.

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

	
3.

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

	
4.

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

	
5.

	
Party A defaults other covenants in this contract;

	
6.

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

	
7.

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

 

  

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

	
1.

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

 

	
2.

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

	
3.

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

	
4.

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

	
5.

	
Request Party B to compensate the liquidated damages;

	
6.

	
Deduct funds from Party A’s account to repay entirely or partly liability under this contract.

 

The undue funds in this account will be considered due in advance. If the account currency is different from the business currency of Party B, convert according to the applicable rate of Party B.

	
7.

	
Execute real guarantee;

	
8.

	
Request guarantor to bear guarantee liability;

	
9.

	
Other measures considered necessary by Party B.

Article 12. Reservation of the Rights

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

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

 

  

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Article 13. Amendment, Modification and Termination

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

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

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

Article 14. Applicable Laws and Settlement

 

This contract shall be governed by the laws of PRC.

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

	
1.

	
Submit to ___________________Arbitration Committee to arbitrate.

	
2.

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

	
3.

	
Prosecute the People's Courts with jurisdiction.

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

Article 15. Attachment

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

1,__________/_______;

2,__________/_______;

......

Article 16.  Other Covenants

	
1.

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

	
2.

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

	
3.

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

 

	
4.

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

 

  

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5.

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

	
6.

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

Article 18.  Conditions for effectiveness

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

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

 

	Party A: Ningbo Keyuan Plastic Co., Ltd	Party B: Bank of China, Inc Beilun Branch
	 	 
	The authorized person: 	The authorized person:
	 	 
	June 21, 2012 	June 21, 2012

 

 

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