Document:

f10q0612ex10ii_keyuanpetro.htm

Exhibit 10.2

 

China Merchants Bank

 

 

 

 

 

Maximum Irrevocable Guarantee Contract

 

[TRANSLATION]

 

 

 

 

 

 

 

  

1

  

 

Maximum Irrevocable Guarantee Contract

 

No:

 

Atten: China Merchants bank Inc Ningbo Beilun Branch                        

WHEREBY:

 

Your Bank and    Ningbo Keyuan Plastics Co., Ltd    (hereinafter referred to as “Credit Applicant”) signed a No.  6299120402  “Credit Agreement” at  April 16. 2012 ( the “Credit Agreement”). During the credit period from April 16, 2012 to April 15, 2013 (hereinafter referred to as “Credit Period”), your bank will provide the Credit Applicant with 30 million US dollars as the line of credit (hereinafter referred to as the “Line of Credit”)

Per the Credit Applicant’s request, the guarantor agreed to enter into this guarantee contract, voluntarily take jointly responsibility for Credit Applicant’ all debts in the Credit Agreement. Specifically guarantee the following matters:

Article 1 This Guaranty is Guarantee of Maximum Line of Credit

1.1 In the Credit Period, your bank may make loans or other credits by several detailed contracts according to the credit agreement and/or this guaranty agreement . Circulation line of credit can be recycled, one-time line of credit shall not be recycling for applicant. Specifications of the loan such as amount of the loan or other credit, period, and the use of the fund, etc shall be decided by each detailed contract.

 

The specific business maturity date can be later than the expiration date of the Line of Credit specified in the Credit Agreement.

1.2 When the Credit Period expires, if there is still remaining Line of Credit for the loan , advance payments or other credits from your bank to applicant, the guarantor shall bear joint liability within the scope of certain guarantee identified in Article 2 of this Agreement; If before the expiration date of the Line of Credit,   your bank need to get the loan back from applicant in advance according to the Credit Agreement and/or the detailed contract, the guarantor shall bear joint guarantee responsibility within the scope in Article 2.

 

  

2

  

1.3 During the Credit Period, your bank to open the L/C, commercial bills acceptance (including entrust turn to open the L/C, similarly hereinafter), open a guarantee, delivery guarantee business and other credit business to applicant, even if your bank has not made advance payment before the Credit Period expires , but rather after the expiration of the period, the guarantor will take joint responsibility for all the debt by Credit Applicants within the scope in Article 2. 

 

1.4 During the process of performing any business under the Credit Agreement , your bank and the Credit Applicant need no approval from the guarantor or notify the guarantor to enter into extension agreement or alter the terms of this agreement regarding the term, line of credit, amount, etc.,  the guarantor shall agree to continuously be subject to the responsibility under the agreement.

 

1.5 If your bank received documents under Credit Agreement is not conformed after your bank’s inspection,  but the applicant accepts discrepancies, the guarantor will still take the joint responsibility under the guarantee agreement for the debt principal and interest from third party acceptance or payment of principal and interest, will not put forward any defense for bank accept discrepancies without getting consent or informing the guarantor.

 

1.6 The revisions of L/C, guarantee (or standby contract of credit) under  credit , the acceptance of usance L/C or promised payment after due or the extension for payment time limit, do not need to get the consent of the guarantor or inform the guarantor.

 

  

3

  

 

Article 2 Scope of Guaranty

2.1 The scope of guaranty includes the sum of loans and other credit principal balance (maximum amount US dollars 30 million    ), and interest, penalty, compound interest, liquidated, factoring expenses and other relevant expenses to realize creditor's rights provided by your bank according to the Credit Agreement, including but not limited to:

2.1.1 The specific loans principal balance and the corresponding interest, penalty, compound interest, and other related expenses for liquidated damages issued by your bank according to the Credit Agreement.

2.1.2 Your bank for its obligations to make the advance payment for the applicants for principal balance and interest, penalty, compound interest ,penalty and other related expenses, to perform commercial draft, contract of credit, guarantee, delivery and payment obligation under the <credit agreement>.

2.1.3 Under the factoring business item, your bank transferee for the applicant for the accounts receivable claim and the corresponding late penalty (fine for delaying payment), and/or your bank to credit the applicant to pay the acquisition of basic (basic acquisition fee) and related factoring cost;

2.1.4 Under the Credit Agreement ,your bank make advance payment and principal balance and interest, penalty, compound interest, penalty and other related expenses ,which was committed in the trading finance business.

 

  

4

  

2.1.5 After Your bank to open the L/C per request of the applicant, and entrust the other branch of CMBC to turn to open the L/C to the beneficiary, under the L/C, your bank make advance payment and import documentary credit for establish L/C and guarantee debt principal balance, penalty, compound interest, penalty and other related expenses to perform the issuing bank obligation.

√□2.1.6 The previously signed credit agreement no__6299110303___ between you bank and applicant, since the agreement takes effect, the outstanding balance in the detailed business of previous agreement (if this clause is applicable , pls tick “√” in □)

2.1.7 Your bank to claim the debt for applicants with the costs (including but not limited to legal cost, attorney fee, announcement fee, delivery fee, travel fee, etc)

2.2 If the credit is circulate, when the loan or other credit from bank to applicant is more than Line of Credit, the guarantor will not take responsibility for the balance, and only take the joint guarantee responsibility for which is not more than the sum of the line of credit loans or other credit principal balance of interest and penalties and interest, the complex, liquidated and relevant fees

Despite the previously agreed, the guarantor confirmed: even at a certain time point during the credit period, the loan or other credit amount provided by your bank is more than credit line amount, but once the guarantor is required to take guarantee responsibility at that time the sum of all credit did not exceed credit line, guarantor can not raise a plea for the previous agreements, and should take joint responsibility for all credit principal balance and its interest, penalty, compound interest, penalty and liquidated damages related expenses, etc, (specific to Article 2.1 of the scope).

 

  

5

  

Article 3 The Guaranty Method

The guarantor confirms within the scope defined in Article 2, the guarantor shall  take the economic and legal joint liability for applicant's debts. If the applicant fails to abide the “Credit Agreement” and/or the detailed contract to pay off the principal and interest of loans, advance payment and other credit debt and related fee, or breaches the “Credit Agreement” or other detailed contract in any aspect, your bank has the right to directly claim the loss against the guarantor and do not need to claim or sue the applicant first. , Even  all the debts under the Credit Agreement can be paid off in time, and is secured by additional pledge or mortgage or other assurance separately, your bank also has the right to choose claim directly against guarantor without first dealing with the mortgaged property, the pledged property or cargo under trade financing, documents, or claiming against other guarantor first.

 

The claim notice issued from your bank is conclusive and the guarantor has no right to object.  The guarantor agrees to pay all the applicant’s debt under the agreement in five days of receiving  your bank’s written claim and no additional documents will be needed from  your bank. The amount listed in the claim notice shall be the final number unless there is obvious and substantial mistake.

 

Your bank has the right to take the appropriate method, including but not limited to fax, mail and special service, in the public media and public announcement for collection to our guarantor.

 

  

6

  

Article 4 The Period of Guarantee Liability

The duration of guarantee period is form the effective date of this guarantee contract to the expiration date of each loan and other financing or accounts receivable under the Credit Agreement, ,or the due date for each advance payment plus 2 years. For any extended credit granting ‘the guarantee period will extend to two years after the expiration of the extended credit granting.

Article 5 The Independence of Guarantee Contract

This Guarantee Contract is independent, effective, irrevocable and unconditional. It shall not be  affected by either of the followings:

 

	
a.      

	
the Credit Agreement and the detailed contract,

	
b.      

	
any agreement or document that the applicant has entered into with any other company/person,

	
c.      

	
any change of the applicant cauised by any fraud, reorganization, closure, dissolution, bankruptcy, liquidation, merger, division, (merger) restructuring,

	
d.     

	
any extension or grace given by your bank to the applicant or any delay from your bank to exercise the rights of claims against the applicant pursuant to relevant contract.

 

Even if there is another pledge, mortgage or other guarantor on the Credit Agreement, and your bank waive, change or terminate the pledge, mortgage or other guaranty, the guarantor will still take the guarantee responsibility based on this guarantee contract.

Article 6 Special Statement and Guarantee from Guarantor

6.1The guarantor is established according to law, has the legal person qualification, or other entity qualified as a guarantor, or guarantor is a natural person having a complete civil capacity (id number is­­_____), and is willing to use his own property or possessed assets in accordance with law to guarantee and to perform the obligations specified in this guaranty;

 

  

7

  

6.2 The guarantee contract issued by the guarantor has obtained the full authorization or approval by the superior departments/the board of directors

6.3 The issuing of the guarantee contract is of the real intention of guarantor,, does not exist any fraud or intimidation factor;

6.4 Before the expiration of the guarantee contract, all total amount of the value of the guarantee (including RMB converted by foreign currency) shall not exceed the  total amount of the guarantor’s property;

6.5 The guarantor warrants to provide its financial statement per your bank’s request in a timely manner,  and promptly report to your bank the material changes and decisions in production, operation and management;

6.6 All financial statements and all other files provided by guarantor to your bank are real and legal, the guarantor’s legal representative or other director responsible should have inescapable responsibility over these;

6.7 Based on your bank’s request, to issue the certification;

6.8 If there is any change in the guarantor’s industry and commerce registration, organization structure, equity structure, operating style or financial status, or the occurrence of any material change in debt restructuring, and the related party transaction, and so no, it shall not affect the legal binding force for guarantor under the guarantee contract.  If any of  the above mentioned changes may affect the guarantor’s capability to perform its obligation under the guarantor contract,  the guarantor shall immediately notify your bank;

 

  

8

  

6.9 The heir or transferee of the guarantor shall be subject to the clauses of the the guarantor contract, unless the written permission of your bank, the guarantor will not transfer the above mentioned obligations.

6.10 If the guarantor fails to pay off the debt based on the agreement, your bank has the right to withdraw capital from the guarantor’s account at your bank or entrust other financial institutions to do so, until all the debts are paid off under the agreement.

Article 7 Not Considered to Be A Waiver

During the effective period of the guarantee, any tolerance, grace given by your bank for any breach or delay of applicant and guarantor, or for postponing performing of (credit agreement) and the right or interest your bank should have under the guarantee contract, will not damage, influence, or restrict your bank’s all right and interest as creditor based on law regulation and the guarantee contract, also cannot be regarded as your bank give up the right for the existing or future default actions.

Article 8 Dispute and Settlement

The law of the People's Republic is the governing law for this guarantee contract, for all controversy and disputes arising from this guarantee contract, the guarantor agrees to take dispute resolution in the credit agreement to resolve.

Article 9 Terms

All the terms used in the guarantee contract, unless otherwise specified, have the same meaning with the provisions in agreement

 

  

9

  

Article 10 Notification

The guarantee contract’s notification between your bank and guarantor must be sent in written form, and be delivered by specific man, the receiver’s sign for will be regarded as delivered,( if the receiver reject, the day of rejection is regarded as delivered), if the notification is delivered in postal mail, the 7 days after sent will be regarded as delivered, if in fax, the fax system in receiver received will be regarded as delivered

If your banks claim the payment in public media, the date of announcement will be regarded as delivered.

The guarantor’s address:

 

The change of guarantor’s address should be informed to your banks in time, otherwise the guarantor should take the potential risk.

Article 11 The Effectiveness of the Guarantee Contract.

11.1 If the guarantor is the legal person or other organizations, this guarantee contract will take effect when starting date of the legal representative of legal person / principal or the authorized agent signing/ stamp name seal and stamp the official seal /contract special seal ..

11.2 If the guarantor is natural person, the guarantee contract will take effect when the date of he/she to sign.

 

  

10

  

Article 12 The Transfer of the Creditor’s right and Secondary right

12.1 No matter if the creditor’s right for maximum amount guarantee is confirmed, in the event that your bank transfer the creditor’s right under the credit agreement to third party, the secondary right will be transferred accordingly to assignee.

12.2 When the creditor's rights of this guaranty contract is confirmed, if your bank transfer some parts of creditor’s right, the guarantor’s guarantee from the right will be also transferred , bank’s remaining part of creditor's rights and assignee’s some transferred right will share the guarantee of guarantor based on amount, before the creditor’s right of the guarantee is fixed,  your bank transfer part of creditor's rights, the security interest will also transfer accordingly, and the maximum amount of your main creditor’s right guaranteed by original maximum amount will be reduced accordingly, ( means maximum amount of your bank’s creditor’s right guaranteed by original maximum guarantee amount deduct the transferred some creditor’s right), when the main creditor’s right for un transferred creditor’s right is fixed,  your bank will share guarantor’s right and interests based on creditor's rights debt amount on the un transferred some creditor’s right and with some transferred right assignee. .

Article 13 Attachment

The guarantee contract has _3___copies, Your Bank, Credit Applicant and Guarantor and _____has each one copy, all share the equal legal effect.

 

  

11

  

Notes:

All of the guaranty clauses have been explained to the guarantor by your bank, and guaranty to confirm the understanding of terms is the same with your banks. At the same time, your bank has been reminded the guarantor to pay attention to the exclusion or limitation of your bank responsibility, your bank unilaterally has some rights, and has some clauses to increase the security responsibility or limit the guarantor’ right,  your bank has remind the guarantor has a comprehensive and accurate understanding for those clauses.

 

Guarantor is legal person or other organization:

Guarantor: Ningbo Litong Petrochemical (sealed)

Legal Representative/ Principal or Authorized Agent (Signatures or Seal)

Address:

 

Guarantor is a nature person:

Guarantor (Signature):

Address:

 

	
Guarantor’s Opening Bank:

	
Guarantor’s Balance Account:

	 	 
	
Tel:

	
Fax:

	 	 
	
    Date: April 16, 2012

	 

 

12f10q0612ex10iii_keyuanpetro.htm

Exhibit 10.3

 

[TRANSLATION COPY]

 

Maximum Guarantee Contract

 

NO:

Guarantor :  Ningbo Keyuan Petrochemicals Co., Ltd

Business License No.:330200400050388

Legal Representative/ Principal: Chunfeng Tao

Domicile: Paotai Mountain Development Zone, NingBo

Telephone No.:86232933  FAX: 315803

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)

 

  

1

  

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.

 

  

2

  

 

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.

 

  

3

  

 

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.

 

  

4

  

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;

 

  

5

  

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.

 

  

6

  

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.

 

  

7

  

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 Keyuan Plastics Co., Ltd  (Sealed)

	
Bank of China Beilun Branch (sealed)

	 	  
	
The Authorized Signer:

	
The Authorized Signer:

	  	  
	
May 14, 2012

	
May 14, 2012

 

 

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00207-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00207-of-00352.parquet"}]]