Document:

Unassociated Document

Text No.: C-B-04

Version No.: 201202

Contract No.:

 

Hangzhou Bank Inc

 

Maximum Guarantee Contract

 

  

  

  

 

Guarantor (Party A): Ningbo Litong Petrochemicals Co.,Ltd

Address: ___________________________________________________________________________________________________________________________

Legal Representative:__________________________________________________________________________________________________________________

 

Tel: ________________________  Postcode:_____________________________________________________________________________________________

 

Guarantor (Party A): Ningbo Kewei Investment Co.,Ltd

Address: ___________________________________________________________________________________________________________________________

Legal Representative:__________________________________________________________________________________________________________________

Tel: __________________  Postcode:___________________________________________________________________________________________________

Guarantor (Party A): Chunfeng Tao                                                                                                                                                                                                                                                  

Address: ___________________________________________________________________________________________________________________________

Legal Representative:__________________________________________________________________________________________________________________

Tel: ________________________  Postcode:_____________________________________________________________________________________________

 

Loaner(Party B):Hangzhou Bank Inc                                                                                                                                                                                                                                      

Address:No.598-622 Jingjia Road, JiangDong Zone, Ningbo                                                                                                                                                                                                  

Principal: Weimin Shao                                                                                                                                                                                                                                                                      

 

Tel:    27991217               Postcode:  315040                                                                                                                                                                                                                                   

 

In order to completely execute loanee’s liability under the whole bank financing contract (refer to “main contract”), Party A is willing to provide irrevocable joint liability. Both parties entered into this contract through negotiation according to relevant laws and regulations.

 

  

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Note: “Determination Period of Claims”, “Loanee”, “Balance of Maximum Financing”, “Bank Financing Contract” are defined as followed.

	
1.  

	
Determination period of claims: Stipulated by Term 1 under Article 13.

	
2.  

	
Loanee: Refer to Term 2 under Article 13.

	
3.  

	
Balance of maximum financing: Refer to Term3 under Article 13.

	
4.  

	
Bank Financing Contract: Refers to the contracts regarding borrowing, bank acceptance, guarantee, bill discounting, loan commitment, L/C, factoring, International/Domestic trade financing, fund transaction between loanee and Party B in this contract.

Article 1 Party A’s Statement and Commitment

	
1.     

	
Guarantor is entitled to offer guarantee according to Chinese Law.

	
2.     

	
Guarantor is capability of undertaking guarantee responsibility and won’t decrease or except from guarantee responsibility as a result of any instructions, change of financial condition and any agreement.

	
3.     

	
In order to completely understand the financing purpose of loanee under main contract and provide guarantee, guarantor expresses truth intention under this contract.

	
4.     

	
When loanee failed to repay liability and corresponding fees, Party B has the right to request Party A to execute guarantee responsibility within guarantee scope.

Article 2 Type and Amount of Main Claims

Main claims under this contract is within stipulated periods and maximum amount, Party B is subject to the whole financing claims of main contract, balance of main claims defined by the total financing amount, eliminating margin providing by loanee.

Article 3 The Period to Execute Liability

 

Loan period stipulated by main contract or specified on the documents of clams and liability.

 

  

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Article 4 Guarantee Method

Guarantee Method under this contract is joint liability guarantee.

Article 5 The Scope of Guarantee

	
1.     

	
The scope of guarantee under this contract includes entire principal, interest, compound interest, default interest, liquidate damages, claims and other payable fees;

	
2.     

	
According to this contract, Party B has the right to repay following items according to different demand:

	
1)     

	
All fees regarding notarization, assessment, auctions and so on due to execution of mortgage.

	
2)     

	
All fees regarding proceedings, lawyers due to realization of claims;

	
3)     

	
Pay off interest (including compound interest) that loanee owed Party B;

	
4)     

	
Pay off main claims, liquidated damages, penalty and so on that loanee owed Party B;

Article 6 Guarantee Period

The guarantor’s guarantee period is 2 years since the termination of the loan execution specified in the main contract.

Article 7 Party A’s Rights and Obligations

	
1.     

	
Providing authentic, legal documents according to Party B’s request.

	
2.     

	
After receiving collection letters or other collection documents sent by Party B, Party A is obligated to delivery return receipt within 6 days.

	
3.     

	
Party A shall inform Party B with timely manner when occurred one of following conditions:

 

  

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1)     

	
Party A changed the business practice, including but not limited contract, leasing, joint operation, merge, spin-off, shareholding reform.

	
2)     

	
Financial position deteriorated or occurrence of material economic dispute;

	
3)     

	
Party A , its legal representative or actual controller has or is going to involve in material proceedings, arbitration or other legal dispute;

	
4)     

	
Party A was announced to bankrupt, shutdown, close, revoke license or remove;

	
5)     

	
Party A changes of its name, address, mail address, contact telephone, registered capital or legal representative;

	
6)     

	
Party A offer any guarantee to third party;

	
7)     

	
Party A has overdue outstanding debt;

	
8)     

	
Party A violate other covenants regarding the party’s rights and obligations stipulated by this contract or other contracts entered with other branches of Hangzhou Bank;

	
9)     

	
Party A has bad credit record in credit data base;

	
10)   

	
Others that may affect Party A’s repayment ability.

	
4.     

	
If occurrence of Item 1 and Item 6 listing Term 4, Party A shall inform Party B before 7 days; If occurrence of other conditions, Party A shall inform Party within 7 days.

	
5.     

	
If loanee violated main contract or happened other conditions allowed Party Party B to declare the loan expired acceleration during the period of executing main liability, Party A promises to undertake joint liability.

	
6.     

	
If loanee’s liability would be increased as a result of change of main contract, it shall be agreed by Party A; Party A shall undertake joint liability within original scope without obtaining Party A’s written consent.

	
7.      

	
If repayment original loan with new loan during the period of the contract, Party A still undertakes joint liability.

	
8.     

	
During period of this contract, Party B transferred the main claims to third party, Party A shall undertake joint liability within original guarantee scope;

	
9.     

	
Party A will never undertake guarantee liability after loanee paid off all loans under the main contract.

Article 8 Party B’s Rights and Obligations

	
1.     

	
Party B has the right to request Party A to provide related documents to poof his legality;

 

  

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2.     

	
Party B has the right to request Party A to provide actual financial statement and other documents;

	
3.     

	
Party B has the right to request Party A to undertake joint liability on the condition that Party B’s claims failed to partly or completely pay off;

	
4.     

	
If occurrence of any following conditions, Party B has the right of inform Party A to undertake joint liability in advance with written form, Party B shall execute guarantee liability within 10 days since received the note:

	
1)     

	
Party B terminate the main contract according to the law;

	
2)     

	
Party B request to realize the claims or request loanee to repay in advance according to covenants under the main contract.

	
5.     

	
During the period of this contract, Party B shall inform Party A with timely manner when transfer the main claims to third party.

Article 9 Violation Responsibility

	
1.     

	
Party A shall pay damages as a result of fault statement and declaration in Article 1.

	
2.     

	
After commencement of this contract, both parties shall completely execute covenants under this contract. Any party failed, he shall undertake corresponding violation responsibility and pay damages.

Article 10 Commencement, Modification, Remove and Termination of the Contract

	
1.     

	
The contract commenced since both parties’ legal representatives (authorized persons), principals signed and stamped with common seals.

	
2.     

	
This contract is independent from main contract and would be still in valid even main contract is invalid.

	
3.     

	
After commencement of this contract, both parties are not allowed to change or remove the covenants except from both parties agreed with written consent.

Article 11 Settlement

	
1.     

	
Any disputes caused by execution of this contract, both parties shall be settled by friendly negotiation, or file to Party B’s Local People’s Court.

 

  

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Article 12 Other Covenants

	
1.  

	
This contract has four or more copies, each one has equal legal validity, among: one for Party A, one for loanee, two for Party B, and one for notary organs (if have).

 

	
2.  

	
Party A is not allowed to transfer any rights and obligations under this contract to third party without Party B’s written consent.

	
3.  

	
Party B is entitled to entrust other branches of Hangzhou Bank to execute this contract or the rights and obligations under main contract.

	
4.  

	
Unless otherwise stipulated by other covenants, both parties indicate the address in this contract is the mail address and contact address, any written forms sending to this address shall be considered as validity. Party A shall inform Party B in timely manner if changed the mail address and contact address.

	
5.  

	
Other covenants refer to Term 4 in Article 13.

Article 13 Statement for this Contract and Related Covenants

	
1.  

	
Determination Period of Claims in this contract is from July 25, 2012 to July 25, 2014.

	
2.  

	
Loanee in this contract specially refers to Ningbo Keyuan Petrochemicals, Inc

	
3.  

	
Balance of Maximum Financing is RMB 105,000,000.

	
4.  

	
Statement for Article 13.

Party A (Common Seal): Ningbo Litong Petrochemicals Co.,Ltd

Legal Representative (Signature): Hongjiao Chen

 

Party A (Common Seal): Ningbo Kewei Investment Co., Ltd

Legal Representative (Signature): Rizhen Hu

 

Party A (Signature): Chunfeng Tao

 

Party B (Common Seal): Hangzhou Bank, Inc Ningbo Branch

Principal: Weimin Shao

 

 July 25, 2012

 

 

 7f10q0912ex10v_keyuanpetro.htm

Exhibit 10.5

 

AGRICULTURAL BANK OF CHINA

 

Series No. ABC(2012)2004

The Rights Pledge Contract of Agricultural 

Bank of China Inc .

 

ABC(2012)2004

 

  

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The Rights Plege Contract

 

Clients: In order to protect your legal right, please read carefully the Articles in the contract (especially the articles with blank), confirm your right and obligation before signing .Please consult handling bank if you have any questions.

Pledgee (full name): Agriculture Bank of China, Economic and Technical Development Zone Branch

Pledgor (full name):1) Ningbo Keyuan Plastics Co., Ltd

In view that the pledgor is willing to provide the pledge guarantee for claim formed according to a series of business contract (“main contract”) signed by pledgee and Ningbo Keyuan Plastics Co., Ltd.(Pledgor). The parties enter into this contract through negotiation according to relevant laws and regulations.

Article 1 The type of guaranteed main claims and amount

The type of guaranteed main claims is Inward bills, amount (currency and spell-out) is USD Four Million and Three Hundred and Seventy Thousand.

Article 2 The scope of pledge guarantee

The scope includes loan principal, interest, default interest, compound interest, liquidated damages, damages, arbitration fee and fees to realize claims, etc.

Article 3 Pledge rights

	
1.  

	
Pledgor agrees to pledge with certificate of deposit.

	
2.  

	
Above pledge right’s provisional price (currency and spell-out) USD Four Million and Six Hundred Thousand.

Article 4 Pledgor’s commitment

	
1.  

	
 Having got the authorization required by the contract guarantee according to relevant rules and procedures;

	
2.  

	
Having sufficient, unquestioned ownership rights or disposition rights to pledge rights;

	
3.  

	
Pledge rights can be transferred by law;

 

  

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4.  

	
Pledge rights would never be removed, revoked, dissented, sealed, freezed, supervised, suited, and so on;

	
5.  

	
Pledgor has obtained co-owners’ agreement regarding pledge under this contract;

	
6.  

	
The pledgor shall immediately notify the plegee with written form in any one of the following circumstances:

	
(1)  

	
Pledge right has been entered into following conditions, including but not limited application for remove, announcement for invalidity, seal up, freeze, supervision, proceedings, arbitration and other similar conditions.

	
(2)  

	
Business license has been revoked or removed, or pledgor is requested to close down and occurrence of other matters to dismiss.

	
(3)  

	
Occurrence of application for bankrupt, reorganization, restructuring and so on;

	
7.  

	
Pledge right has never other conditions that affect the realization of the right.

Article 5 Effectiveness of pledge right

Effectiveness of pledge right and assets and right on provision of right, yield and laws.

Article 6 Transfer and custody for documents of rights

	
1.  

	
If documents of right shall be delivered, pledgor shall deliver related documents of right to pledge within   days since entered into this contract. Pledgee shall take care of the documents.

	
2.  

	
Documents of right in the form of bills of exchange, promissory notes, checks, warehouse receipts, securities and other documents shall be endorsed with “Pledge”.

	
3.  

	
If the pledge shall be registered, pledgor shall register or handle other legal procedures within  days since entered into this contract, and pledge keeps the originals.

	
4.  

	
During the duration of pledge right, pledgor is not allowed to grant, transfer or promise others to use or handle with any other ways without pledgee’s written consent. On the condition of pledgee’s written consent, the proceeds related to grant, transfer, use or handle right shall be used for pay off claims in advance or safe.

 

  

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5.  

	
During the duration of pledge right, pledge has the right to request pledge to approve and decrease the value of guarantee on the condition of decrease of the value of pledge right.

Article 7 Transfer of pledge right

Pledgee has the right not to transfer corresponding pledge right even if transfer part of claims.

Article 8 Realization of pledge right

	
1.  

	
Pledgee has the right to execute pledge right if occurrence of any following conditions:

	
     1)  

	
Pledgee is not being paid off when the expiration of debt execution under the main contract. ”Expiration” includes the expiration of debt execution under the main contract and the condition of acceleration maturity on the ground of national laws and regulations.

	
     2)  

	
Business license has been revoked or removed, or pledgor is requested to close down and occurrence of other matters to dismiss.

	
     3)  

	
The People’s court has accepted loanee and pledgor’s application for bankrupt or decided to reconciliation.

	
    4)  

	
Loanee and pledgor are dead or being declared to disappear or die.

	
     5)  

	
Pledge right has been applied to remove, revoke, dissent, seale, freeze, supervise, suit, and so on;

	
     6)  

	
Pledgor fails to provide guarantee as requested by pledge;

	
     7)  

	
Pledgor violates obligations under this contract;

	
     8)  

	
Others.

	
2.  

	
If vesting date or delivery date of bills of exchange, promissory notes, checks, warehouse receipts, securities and other documents for pledge is earlier than claims expiration under this contract, pledge has the right to vest or delivery and corresponding proceeds shall be for pay off claims in advance or safe.

	
3.  

	
If Pledgor provide guarantee for several loans between loanee and pledge with pledge right and the proceeds as a result of vesting, cashing, discounting or auctioning pledge right are insufficient to pay off all due loans, pledge has the right to decide the order of repaid loans.

 

  

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Article 9 Return of documents of right

	
1.  

	
If loanee executes complete loans under main contract, or pledgor paid all guaranteed claims under main contract, pledge shall return documents of right in timely manner.

	
2.  

	
Pledgor shall receive the documents of right timely. Otherwise, pledgee has the right to withdraw and the corresponding fees shall be paid by pledgor.

Article 10 Breach of Contract

	
1.  

	
If pledgor occurs any one of following conditions, he shall pay 20% of principals of claims to pledge as liquidated damages, as well as pay corresponding loss of pledgee:

	
     1)  

	
Fails to receive legal authorization for this guarantee under this contract;

	
     2)  

	
Fails to inform that pledge right has been applied to remove, revoke, dissent, seale, freeze, supervise, suit, and so on;

	
      3)  

	
Fails to delivery documents of right, endorse or register on the provision of covenants under this contract;

	
      4)  

	
Handle pledge right without obtaining pledgor’s written consent;

	
      5)  

	
Fails to provide guarantee as requested by pledgee;

	
      6)  

	
Other actions violate covenants under this contract or affect realization of pledge right.

	
2.  

	
If pledgor caused loss as a result of pledgee’s any one of following actions, pledgee shall undertake corresponding liability:

	
     1)  

	
Documents of right are destroyed or dismissed due to pledgee’s improper safekeeping;

	
     2)  

	
After expiration, pledgee delays to execute pledge right when received pledgor’s written application.

  

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Article 11 Charge

Both parities shall negotiate to decide how to pay the charge of the third parties. Otherwise, both parties shall undertake on the provision of laws and regulations or equally.

Laws and regulations in this contract include People’s Republic of China Law, Administrative Regulations, Local Regulations, Rules, Judicial Interpretations and other legal provisions.

Article 12 Objection Period of Rescission Right

Pledgee executes the rescission right based on related laws and regulations or the contract, the objection period is 7 business days since the pledgor informed the pledgee with written, oral and other forms.

Article 13 Dispute Resolution

Dispute in the contract can be resolved through consultation by the parties or in the first way as following:

1. Litigation. Local People’s Court.

2. Arbitration. Submit  to / (Full name of arbitration) for arbitration according to corresponding regulations.

During the litigation or arbitration, the articles and the items not involved in dispute should be performed.

Article 14 Effectiveness of the contract

This contract becomes effective when each party signs or stamps.

Article 15 This contract is in duplicate, one for pledgee, one for pledgor. Each is in equal validity.

Pledgor Statement: Pledgee has prompted related clauses to us by law, and stated related concepts, content and legal effectiveness.

 

  

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Pledgee (stamp): Agriculture Bank of China, Economic and Technical Development Zone Branch

 

Principal or Authorized Agent: 

 

Pledgor (stamp): Ningbo Keyuan Plastics Co., Ltd

Legal Representative or Authorized Agent: Chunfeng Tao

 

Signed time: July 17, 2012

Signed site: Agriculture Bank of China , Economic and Technical Development Zone Branch

 

 

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