Document:

posama3ex10lxi_keyuan.htm

Exhibit 10.61

 

Agreement on Inward Bills

 

To: Ningbo Ximen Branch/Sub-branch of Shanghai Pudong Development Bank

 

                                                                                                          NO.: 94052012280029

 

	
Name of Client

	
Ningbo Keyuan Plastics Co., Ltd.

	
Date of Application

	
January 31, 2012

	
Address

	
Bei Lun

	
Liaison for Client

	
Dongyi Liang

	
Tel.

	
0574-86232932

	
SPD Bank Liaison(filled up by bank)

	
	
Fax:

	
0574-86232618

	  
	
This company hereby irrevocably applies to SPD bank for import pay on other’s behalf service in accordance with following provisions of This Agreement due to in need of financing.

	
I.   Prime Articles

	
o This Agreement is entered into as affiliated financing documents of Financing Limit Agreement with ref. No. of ( ) (hereinafter “Financing Limit Agreement”). After This Agreement comes into effect, all articles of it will merge to Financing Limit Agreement and be regarded as an integral part of it (The client should check this item and indicate ref. No. of Financing Limit Agreement if the client has signed Financing Limit Agreement with SPD bank. );

þ This Agreement is an independent credit document entered into by and between applicant and SPD Bank  (the client should check this item if the client has not signed Financing Limit Agreement with SPD bank );

	
II.  Document Description and Condition of Payment on Other’s Behalf

	
(If there is discrepancy between Financing Limit Agreement signed by the client and This Agreement on interest rate of financing and penalty interest rate, provisions of This Agreement shall prevail.)

	
No. of L/C

	
LC940511000049A1

	
Amount of L/C Draft/ Invoice Amount(Currency)

	
USD 15,537,836.60

	
Record of Document Examination

	
o Inconsistent

 

o Consistent

	
No. of Import Trading Contract

	
KAO-20101230-045

	
Percent of Margin

	
10%

	
Documentation

	
Release

	

Inward Bills Amounts

	

USD 15,537,836,60

	

Terms

	

90 Days

	

Interest Rate

	

7.04685%

	

Default Interest Rate

	 
	
Notes: RMB interest rate is annual interest rate, floating interest rate shall indicate floating term.

	  
	
III.   Confirmation of Guarantor

	
About the (                ) agreement with ref. No. of (        ) where This Company be the guarantor and SPD bank be the secured creditor.

This Company, as the guarantor between the client and SPD bank to skip opening deposit L/C, has already signed abovementioned guarantee documents along with SPD bank. This Company hereby agrees that: once SPD bank releases aforesaid amount for import pay on other’s behalf, This Company shall keep taking joint and several liability for the principal and interest of the amount released by SPD bank to pay on other’s behalf; and creditor’s rights enjoyed by SPD bank against the client belong to the range of creditor’s rights secured by guarantee agreement. This Confirmation shall be irrevocable.

	
Guarantor (Seal)

Legal Representative or Authorized Agent (Signature or Seal)

 

  

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IV.    Newly-Added  Guarantee

	
Guarantor:

	
Form of Security :

o mortgage; o impawn; o guarantee

	
V    General   Provisions

	
The client hereby confirms that the client has read and agrees with general provisions of  following Inward Bills agreement:

1.     SPD bank shall release bills after signing the agreement, otherwise, can revoke the financial promise basing on this agreement.

2.     Bills under this agreement only used for making up Margin gap under related L/C. Value date is the real issuance date, which shall not later the last repayment date of L/C.

3.     Interest Payment method  Unless otherwise noted, interest shall be settled per day, profits with this clear.

4.     Document submission

	
 

	

Client promises to submit following documents to SPD bank or meet corresponding conditions, yet SPD bank shall take no responsibility to verify authenticity of these documents.

	
      (1)

	
Copy of the latest Articles of Association and business license of the client;

	
     (2)

	
Resolution made by board of directors which authorizes the client to sign This Agreement and relevant affiliated financing documents (if there is restrictions on the mandate of the legal representative to enter into agreement in Articles of Association of the client);

	
     (3)

	
The authorization letter made by the client to the authorized agent and signature sample of the authorized agent;

	
     (4)

	
This Agreement which has been legally signed by the client;

	
     (5)

	
The client refers business day of SPD bank as the withdrawal day.

	
     (6)

	
If the pay on other’s behalf business under This Agreement is secured, then this security document shall have been signed prior to pay on other’s behalf and this guarantee shall have come into effect;

	
      (7)

	
Other documents and/or conditions SPD bank might ask at any time.

	

5.     Skip the inconsistence

The client hereby confirms that SPD bank handles the pay on other’s behalf and the use of it just based on client’s application. Therefore, once the client submits This Agreement which has been effectively signed, an irrevocable application for pay on other’s behalf has then been established, and the client has irrevocably agreed to waive counter-argument right of refusing payment on the grounds of documents inconsistence under relevant L/C.

	
6.

	
If the expiry date of period to pay on other’s behalf designated shall not be a working day of SPD bank, then the expiry date of financing period designated shall be put off to next working day of SPD bank, and interest shall be collected for this put-off period;

	

7.     Reporting balance of international payments

After make import pay on other’s behalf, the client shall carry out relevant procedure according to requirement from foreign exchange control policies as soon as possible.

	

8.     Prepayment and expiration ahead of time

	

Client can conduct a prepayment on condition that SPD bank agrees in writing and the client fully compensates SPD bank in terms of any costs and losses arising from prepayment, and this kind of prepayment shall be immediately regarded as expiration ahead of time. SPD bank shall have the right to inform the client at any time of expiration ahead of time of import pay on other’s behalf under This Agreement, without having to give any explanation. And the client shall immediately repay any amount related to pay on other’s behalf.

	

9.     The client hereby confirms that:

	

(8)  In case that the client presents trust receipt to SPD bank, and before the debt under This Agreement gets fully paid, SPD bank shall have the ownership of the goods under import pay on other’s behalf.

 

	

(9)  When the client has any payment due against SPD bank, SPD bank shall have the right to dispose the goods under import pay on other’s behalf, and the processed, mixed and composite of the goods as well. Any amount acquired from these disposals shall first of all be used to repay the debt under This Agreement. And SPD bank shall still have the right to further claim against the client on the part of debt which can not be repaid due to inadequate amount. The client though, doesn’t raise objection about this.

(10)   The client confirms that the deposit paid at application to SPD bank for import pay on other’s behalf and its interest shall be the mortgage to guarantee the performance of This Agreement, and authorizes SPD bank to directly deduct from this deposit and its interest when SPD bank needs to make external payment due to This Agreement.

	

10.  Tax

	

The client shall repay full amount under This Agreement and shall not make deduction in any form from it, unless client shall, according to law, deduct relevant taxes at repayment of amount of pay on other’s behalf. In this case, the client shall pay SPD bank extra amount which shall be equal to the amount deducted.

	

11.  Declaration and Guarantee

	

The client hereby makes following declaration and guarantee which will be viewed as repeatedly made each time SPD bank provides pay on other’s behalf service to the client according to provisions of This Agreement:

	

(11)   The client shall be companies etc. which is established according to Chinese law (HK, Macau and Taiwan excluded, similarly hereinafter),  which have the right to sign This Agreement and any documents related to This Agreement, and have adopted any necessary corporation action to make This Agreement and any documents related to This Agreement legal, effective and enforceable;

(12)  The client doesn’t and will not violate any other contracts or documents already signed by it, nor articles of association, any applicable laws, regulations or ordinance, relevant documents, rules and arbitration rules made by competent department, nor conflict with any other obligations or agreement borne by the client by signing This Agreement and implementing obligations under This Agreement;

(13)   The client and its any shareholders, affiliates don’t be involved in any liquidation, bankruptcy, reconstruction, merger, consolidation, division,  reorganization, dissolve, close down, discontinuation  or similar legal procedure, nor is there any situation happening which could result in these legal proceedings;

(14)   The client isn’t involved in any economic, civil, criminal, administrative procedure or similar arbitration proceedings which could have major adverse impact on it, nor is there any situation happening which could result in the client being involved in these legal proceedings or similar arbitration proceedings;

(15)   Legal representative, director, supervisor or other senior management of the client and any vital assets of the client isn’t involved in any enforcement, close down, seizure, freeze, lien and supervisory measures, nor is there any situation happening which could result in the client being involved in these measures;

(16)   The client guarantees that all financial statements (if any ) presented by it are in line with provisions of Chinese laws, and are a true, complete and fair reflection of its financial status; and all data, documents and information etc. about the client itself and the guarantor etc. provided by the client to SPD bank during the process of signing and implementing This Agreement is true, effective, accurate, complete and no any hidden facts or omission;

(17)   The client strictly abides by provisions of laws and regulations during its operational activities, carries out businesses exactly according to business scope approved by its business license or verified by laws, and handles annual inspection of registration procedure in a timely manner;

 

  

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(18)   The client guarantees that there shall not be any other situations or events which have or could have major adverse impact on contractual capacity of the client;

(19)   For the financing under this import pay on other’s behalf agreement provided by SPD bank, the client guarantees that repay all principal refinanced, interest (including compound interest and penalty interest ),  commission charge, postage/cable charge and all relevant charges once and for all before expiration of import pay on other’s behalf according to requirement from SPD bank.

	

12.  Items Promised 

The client hereby makes promises as follow:

	

(1)     The client shall strictly abide by and implement each item of obligations under This Agreement;

(2)     The client shall, according to provisions of This Agreement, repay the principal and interest of pay on other’s behalf and related charges in a timely manner; the client shall carry out, acquire and conform to all approval, authorization, registration and licensing procedure required by applicable laws and keep its effectiveness, to make it able to legally sign and perform obligations under This Agreement and any documents related to  This Agreement; the client shall be able to present prove accordingly at SPD bank’s request.;

(3)      If the client shall be informed of its involvement of any economic, civil, criminal, administrative procedure or similar arbitration proceedings, or any enforcement, close down, seizure, freeze, lien and supervisory measures which could have a major adverse impact on it, the client shall, within 5 working days, inform SPD bank in writing and give a detailed explanation about the impact and what remedial measures it has taken or plans to take;

(4)     The client shall in no case repay any third party other than SPD bank any debt of a large amount or perform any guarantee obligation without written approval from SPD bank;

(5)     The client shall not incur any other liability or contingent liability with large amount, nor shall it set up or provide guarantee in any form with a nature of priority for itself or any third party without written approval from SPD bank. The client shall, since the signing of This Agreement, and before paid-up of pay on other’s behalf under This Agreement, without written approval from SPD bank, not

	

A.   carry out any liquidation, bankruptcy, reconstruction, merger, consolidation, division,  reorganization, dissolve, close down, discontinuation  or similar legal procedure;

B.    sell, lease, bestow, transfer or dispose any of its vital assets in any other ways except for daily operation purposes;

C.    incur any alternation of its stockholders’ rights structure;

D.   sign any contract/agreement which could have major adverse impact on contractual capacity of the client under This Agreement, or take on obligations which could do the same impact.

	

(1)    As for the guarantee under This Agreement, if it incurs certain change under certain circumstances, the client shall, according to SPD bank’s requirement, provide other guarantees in time that SPD bank permits. These certain circumstances or certain changes include but not limited to guarantor suspension of production, close down, dissolve, suspension and correction, revocation or cancellation of business license, apply or be applied for reorganization, bankruptcy, substantive change in its operation or financial status, be involved in major litigation or arbitration cases, its legal representative, director, supervisor or senior management be involved in law suit, reduction or would-be reduction of value of collateral, or property preservation measures such as closing down be adopted on collaterals, breach of guarantee contract and demand to cancel guarantee contract etc.;

(2)     The client shall also carry out enforceable public notary in public notary office designated by SPD bank at SPD bank’s request, and the client shall bear the cost and willingly accept the enforcement;

 

  

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(3)      If there shall be any events happening which could have an impact on client’s capability of performing obligations under This Agreement or any documents related to This Agreement, the client shall at any time keep SPD bank informed;

(4)     The client guarantees that there shall be no restriction articles on the client’s acquiring the ownership of the goods in the basic trading contract about financing under This Agreement, including but not limited to the articles speculating the seller keeps ownership of the goods etc.;

(5)      If the client imports to sell to domestic markets, the client shall provide domestic trading (sales) contract, and designates in this contract a certain bank account opened in SPD bank as the only bank account for collection of the payment of the goods. And the client further confirms that after payment of the goods is credited to this bank account, SPD bank shall have the right to proactively deduct amount from it to repay the financing amount under This Agreement.

	

13.  Costs and expenses

	

The client shall pay any stamp duties and other taxes and charges on This Agreement and any documents related to This Agreement, except for those as law stipulates shall be paid by SPD bank.

	

14.  Penalty interests

	
If the client shall have any payment due of pay on other’s behalf, the client shall pay SPD bank penalty interests for the period starting from expiration date of this payment to the actual payment date with the due amount (including due penalty interests) as the base. The penalty interests shall be settled monthly and compound interest shall be collected also monthly.

	

15.  Authorization of repayment and its offset

	
The client hereby gives authorization to SPD bank, shall the client have any payment due in SPD bank, whether this payment due is under This Agreement or not, SPD bank shall have the right to, on the client’s behalf, directly deduct this amount from any bank account (whatever currency) opened in any branch administered by Head Office of SPD bank to pay up this payment due. This authorization shall be irrevocable. As for foreign exchange conversion, SPD bank shall do it according to its own foreign exchange rate, and the risk of foreign exchange rate shall be taken by the client.

	
16.  Liability prove

	
SPD bank will, according to its consistent business operation principle, keep one set of account books and vouchers on its account for business activities This Agreement involves. The client admits that this record of account books and vouchers shall be the effective evidence of its liability except for obvious mistakes.

	

17.  Transfer

	
The client shall not transfer any rights or obligations under This Agreement. SPD bank can at any time, transfer its rights or obligations under This Agreement to any third party, and disclose any information related to This Agreement, including those provided by the client and its guarantor to SPD bank for This Agreement.

	

18.  Breach of the contract

	

Any statements and guarantee from the client which violates  This Agreement, or these statements and guarantee is proved to be incorrect, untrue, incomplete, misleading or has been violated,  and/or the client violates or doesn’t fulfill any items promised in This Agreement, or the client violates any provision of  This Agreement,  and/or there is any situation happening on the client which could affect the security of the loan of SPD bank, and/or guarantor violates provisions of any guarantee documents etc, shall constitute breach of This Agreement by each of them. SPD bank shall have the right to declare expiration ahead of time, and demand the client to immediately repay the principal and interest (including penalty interest) of pay on other’s behalf, and compensate all losses incurred by SPD bank including legal costs, and take measures agreed on This Agreement to further claim against the client and the guarantor.

 

  

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19.  Special agreement for group client

	

If the client under This Agreement shall be group client, it agrees as follow:

	
    (1)

	
The client shall in time report the situation of affiliate transaction of 10% and above the net assets of actual fiduciary, including a.) affiliate relation between parties involved in the transaction; b.) transaction project and nature of the transaction; c.) amount of transaction or proportion; d.) pricing policy (including transactions where there isn’t an amount or there is only a symbolic amount)

	
    (2)

	
actual fiduciary having following situations will be regarded as breach under This Agreement by the client, and SPD bank shall have the right to unilaterally cancel the credit line the client has not used, and withdraw the credit line which has partly or wholly been used, or give the client a margin call up to 100%: a.) provide false material or hide substantive operational or financial facts; b.) unilaterally change the designated usage of credit line,  misappropriate credit line or engage in illegal transaction using credit line without permission from SPD bank; c.) using unreal contract with affiliate, to discount the creditor’s rights such as notes receivable and amounts receivable or mortgage to extract bank capital or credit line; d.) reject supervision and examination by SPD bank on usage of its credit and relevant operation and financial situation; e.) SPD bank thinks security of credit line could be affected due to substantive merger, acquisition and reorganization etc. emerging; f.) intentionally evade creditor’s rights of the bank by affiliate transaction.

	
20.  Other agreements__________

	

21.  Applicable laws and jurisdiction

	
This Agreement shall be governed by law of the People’s Republic of China (HK, Macau and Taiwan is not included here for the purpose of This Agreement), and interpreted by law of the People’s Republic of China. Any disputes related to This Agreement, shall be submitted to the People’s Court where SPD bank locates.

	

22.  Place to serve litigation bills

	
The client confirms that if any law suits happen under This Agreement, legal papers such as summons, notice etc. issued against it during the process of litigation can be regarded as served only by delivering to the address listed at the head of This Agreement. Alternation of this address will not have legal effect until SPD bank is informed in advance.

	

  

23.  Severability of articles

Any articles going void, illegal or unenforceable under This Agreement shall not affect effectiveness, validity and enforceability of other articles herein.

24.  During the period of validity of This Agreement, if SPD bank grants extension or defers to take action against any breaching or other activities of the client, it shall not damage, impact or restrict all rights or benefits that SPD bank enjoys as the creditor according to laws or This Agreement, nor shall it be regarded as permission for activities of breaching This Agreement of the client given by SPD bank, nor even be regarded as SPD bank waiving its rights to take action against existing or future breaching activities of the client.

25.  Consistency of financing limit agreement

If there is discrepancy between financing limit agreement (if any, and including effective alternation made at any time) and This Agreement, the latter shall prevail.

	
26.

	
This Agreement comes in 6 copies of the same content with equal legal effect, with the client holding one copy, the guarantor holding one copy, and SPD bank holding four copies. and it shall not be established until both parties affix stamp, or their legal representative/person in charge or authorized agent sign or affix stamp. This Agreement shall come into force since the bank to pay on other’s behalf completes import pay on other’s behalf.

	 
	
Signature column

Both parties confirm that by the time of signing This Agreement, both parties have carefully read and discussed about all articles, and don’t raise any objections on any articles of This Agreement, and have correct understanding of rights and obligations of the involved parties and the legal definition of liability restrictions or exemption clause as well.

	
Client: (Seal: Ningbo Keyuan Plastics Co., Ltd.)

Legal representative or authorized agent (signature or seal) : Tao Chunfeng

	
 

SPD bank (Seal : Special stamp for business contract of Ningbo Ximen Branch of Shanghai Pudong Development  Bank )

person in charge or authorized agent( signature or seal) :  

	
Signing date:

 

 

5posama3ex10lxii_keyuan.htm

Exhibit 10.62

 

AGRICULTURAL BANK OF CHINA

 

 

 

Series No. ABC(2010)2005

 

The Maximum Guarantee Contract of 

Agricultural Bank of China Inc .

 

 

 

Contract No.:82100520110005399

 

 

 

 

Date: November 23, 2011

 

  

 

  

 

ABC(2010)2005

 

The Maximum Guarantee Contract

 

Contract No.:82100520110005399

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.

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

 

	Guarantor (full name):	
1) Ningbo Pacific Shipping Co., Ltd 

2) Jicun Wang, Sumei Chen

                                 

In view that the guarantor is willing to provide the maximum guarantee for claim formed according to a series of business contract (“main contract”) signed in Article 1 of the contract signed by loaner and Ningbo Keyuan Plastic Co., Ltd.(Loaner). The parties enter into this contract through negotiation according to relevant laws and regulations.

Article 1 The guaranteed creditor’s rights and the maximum amount

1. Guarantor is willing to offer guarantee of the following creditor’s rights formed by the loaner and loanee. The maximum balance of guaranteed creditor’s rights is equal to RMB200,000,000. Foreign currency business shall be calculated according to the selling price of business stipulated in the (1).

(1) From November 23, 2011 to November 23, 2012, is the period of determination of the secured claims. Claims are formed by agreed businesses between the loaner and the loanee. Businesses including: (√ is included)

 

	
√ RMB/foreign currency loans

√ Discounted commercial bills

√ Commercial acceptance bill

	
√ Margin relief for issuing

√ Import bill

   Export bill

	
Export packing loan

Bank guarantee

	
√ Other businesses    Domestic letter of credit and debt

	 

 

(2) The loan principal, interest, default interest, compound interest and cost which are not be paid in master contract signed by loaner and loanee should be counted from agreed date to real pay date:

  

2

  

 

	
Contract Name

	
Contract Number

	
Unpaid Debt Principal

	
Currency

	  	  	  	  
	  	  	  	  
	  	  	  	  

 

(Another table may be attached if the columns are not enough, and it is a part of the contract.)

2. The guaranteed business types, amount, interest rate, term etc. in this contract shall be based on related legal instruments or certificates.

3. The loaner doesn’t need to handle security procedures individually when making loans or provide other bank credit within the agreed time limit and maximum balance.

4. The businesses which happen in the period stipulated in the contract and within the maximum balance, the guarantor will assume guarantee responsibility on a voluntary basis.

Article 2 Guaranty of Scope

The guaranty scope includes loan principal, interest rate, default interest, compound interest, liquidated damages, damages, arbitration fee, counsel fee etc. which can realize loaner’s right.

The guarantor will assume guarantee responsibility on a voluntary basis for the part beyond beyond maximum balance due to the exchange rate change.

Article 3 Guarantee method

The guarantee method is joint liability. If there are many guarantors under the contract, each guarantor shall assume joint responsibility to the loaner.

Article 4 Guarantee period

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

2. The guarantee period under the commercial bills acceptance, waiving and issuing bond certificate and bond letter is 2 years since the payment is paid by the loaner;

3. The guarantee period of the commercial bills discounting is 2 years since the expiration of discounted bills;

 

  

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4. If the loaner and loanee reach agreement with regard to the time period of loan execution of the main contract, the guarantor continues to assume guarantee responsibility.

5. If the loaner declares the financial claim acceleration of maturity due to laws and regulations happened and items of main contract ,guarantee period is 2 years since the date of acceleration of maturity .

Article 5 Guarantor Commitment

1. Having got the authorization required by the contract guarantee according to relevant rules and procedure;

2. Providing the loaner with authentic, complete, effective financial statement, articles of association and other relevant materials or information. The guarantor should also accepting loaner’s supervision and inspection of guarantor’s product operation and financial condition.

3. When the loanee fails to fulfill contractual obligations, the guarantor promises to fulfill the responsibility voluntarily.

4. When guarantor fails to perform the contract responsibility, the loaner is entitled to directly withdraw the related payments from guarantor’s account opened at loaner.

5. The guarantor immediately notifies the loaners in written form in any one of the following circumstances:

(1) Guarantor changes the name, domicile, legal representative, contact information and other matters;

(2) Affiliation changes, high-level personnel changes, corporate charter changes, and organizational restructuring happen to the guarantor;

(3) Guarantor’s financial conditions deteriorates, serious difficulties arise in production and operation, or other significant litigation and arbitration emerge;

(4) Guarantor is discontinued, has its business suspended or are filed for bankruptcy, reorganization, restructuring and so on;

(5) Guarantor’ business license is revoked or suspended or other dissolution event;

(6) Other matters unbeneficial to the realization of loaner’s debt happen to guarantor.

 

  

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6. When guarantors implement any one the following actions, they shall inform the loaner within 15 days and obtain written consent from the loaner;

(1) Guarantor change operating system, capital structure, including but not limited to

contracting, leasing, joint-stock business, merger, division, joint ventures, capital reduction, asset transfer, application re-engineering, application reconciliation, application to bankruptcy.

(2) Guarantor provide the third person’s debt with assurance guarantee or set pledge or pledge guarantee, with their own assets, for their own or the third person’s debts and this may affect the guarantee responsibility under the contract;

Article 6 Determination of guaranteed creditor’s rights

The maximum amount under the contract to ensure the security of claims should be determined if any one of the following circumstances happened.

1. The determination period of creditor’s right expires. This expiration includes that the determination period of the creditor’s right stipulated in Article 1 of the contract expires as well as the situations that the loaner declares the creditor’s rights’ determination period expires in advance according to national laws, regulations or the main contract.

2. The new claim can not happen.

3. The loanee or the guarantor is declared bankrupt or has been revoked.

4. Other circumstances confirmed by creditor’s right according to the law.

Article 7 Guarantee Responsibility Assuming

1. If one of the following circumstances occurs, the loaner has the right to request the guarantor to performance guarantee liability. When guarantor’s payment is not sufficient to pay off the secured claim settled in the contract, the loaner can choose to repay the principal, interest, penalty interest, compound interest or fees, etc with this sum;

(1) The loan execution period expires under any main contract and the loaner fails to pay off. “Period expiration” includes the loan execution period expiration specified in the main contract as well as the conditions that the loaner declares the creditor’s rights under the main contract expire in advance according to national laws, stipulations and matters stipulated in the main contract;

(2) The loanee and guarantor are ordered to apply for bankruptcy by people’s court or arbitrated for reconciliation.

 

(3) The loanee and guarantor’ business license is revoked , ordered to close down or have other dissolution event.

 

  

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(4) The loanee and guarantor have died or proclaimed to go missing or have died;

(5) Guarantor breaches the obligations under this contract.

(6) Other serious situations which affect the realization of financing claim;

2. Debt assumed by the contract exists in the loaner to provide security and ensure the property. The loaner may request the guarantor before the guarantee responsibility of guarantee property. If guarantee or assurance guarantee happen to the creditor’s rights guaranteed in the contract, the loaner is entitled to require to the guarantor to assume the assurance responsibility of the object.

3. If the loaner offers object guarantee, the loaner shall abandon this guaranteed object right, guaranteed object’s position or change the guarantee object rights, the guarantor agree to assume joint liability assurance for the creditor’s right under the main contract. This guaranteed object right refers to the right that the loaner forms due to the guarantee of the object provided for the creditor’s right under the main contract.

4. Guarantors provide guarantee for the entire several debts , included but limited several under the contract between loaner and loanee ,and the guarantor’s payment is unsufficient to pay the whole due debt ,the loaner could decide the paid debt and filing order.

5. According to related laws and regulations or the contract ,loaner executes counteracting right and decides the paid debt and filing order ;loaner executes subrogation right and decide paid debt form sub-loanees and filing order.

Article 8 Breach of Contract

1. If loaners do not fulfill a contractual obligation and result in loss of guarantor after the contract takes effect, they shall bear the corresponding liability.

2. Guarantor should pay % of the maximum amount of liquidated damages to loaners according to the contract with any one of the following actions; if the guarantor cause losses to the loaners, a full compensation shall be given;

(1) Fails to obtain lawful and effective authorization required by the contract guarantee;

(2) Fails to provide authentic, complete and effective financial statements, articles of association or other related data, information

 

(3) Fails to immediately notify the loaner when the matter in item 5 of Article 5 happened.

 

  

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(4) Fails to obtain consent of loaner in advance when executed the action in item 6 of Article 5;

(5) Other actions which breach the contract or effect the claim realization of loaner.

Article 9 Objection Period of Counteracting Right and the Rescission Right

Loaner executes the counteracting right and rescission right based on related laws and regulations or the contract, the objection period is 7 business days since the loaner inform the guarantors with written, oral and other forms.

Article 10 Dispute Resolution

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

1. Litigation. Ruled by local People’s Court.

2. Arbitration. Submit ____ to / (Full name of arbitration) for arbitration according to rules.

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

Article 11 Other Items

	
1.  

	
Guarantor should understand the loanee's business condition or the various of business and operation under the contract .The main contract, related law documents or voucher of various businesses under the contract shall not be delivered to the guarantor;

Article 12 Effectiveness of the contract

This contract becomes effective when each party signs or stamps.

Article 13 This contract is triplicate, one for loaner, one for guarantor, one for loanee, Each is equal validity.

Claim: Loaner has asked guarantor to have a comprehensive and accurate understanding of the contract. The loaner has made corresponding explanation to the above clauses upon the guarantor’s requirements. Contracting parties have the same understanding of the meaning of the contract.

  

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Loaner (stamp):        Loaner (stamp):

Principal or authorized agent: Legal representative or authorized agent:

 

 

Guarantor (stamp):

Principal or authorized agent: Principal or authorized agent:

 

 

Guarantor (stamp):

Principal or authorized agent: Principal or authorized agent:

 

 

Guarantor (stamp):

Principal or authorized agent: Principal or authorized agent:

 

Signed time: November 23, 2011

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

Loanee’s claim: Having obtained the above The Maximum Guarantee Contract, without any dissents to all clauses.

 

 

Loanee (stamp):  Ningbo Keyuan Plastic Co., Ltd

 

 

Principal or authorized agent:

 

Receipted time: November 23, 2011

 

 

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