Document:

fs12012a9ex10xi_chart.htm

Exhibit 10.11

 

ESCROW AGREEMENT

ESCROW AGREEMENT, dated as of
[  ], 2012 (“Agreement”), by and among Chart Acquisition Group, LLC (the “Representative”),
Joseph Wright (“Wright”), and Cowen Overseas Investment LP (“Cowen Overseas,” together with Wright and
the Representative, the “Warrant Purchasers”), Continental Stock Transfer & Trust Company, a New York corporation
(“Escrow Agent”)  and Deutsche Bank Securities, Inc. (“DB”) and Cowen and Company, LLC
(“Cowen”), with DB and Cowen acting as representatives of the several Underwriters (as defined below).

WHEREAS, the Warrant Purchasers have agreed to establish an escrow account to deposit certain funds with the Escrow Agent for the benefit of the holders of warrants (the “Beneficiaries”) issued by Chart Acquisition Corporation (the “Company”) in its initial public offering (the “IPO”) being underwritten by the underwriters in connection thereof , including DB and Cowen (the “Underwriters”) , in an amount of TWO MILLION TWO HUNDRED FIFTY THOUSAND and 00/100 ($2,250,000.00) U.S. Dollars (the “Escrow Asset”), which amount shall be distributed, from time to time in accordance with the procedures set forth below;

WHEREAS, the Warrant Purchasers have collectively committed to offer to purchase up to 3,750,000 of the Company’s issued and outstanding warrants offered in the IPO (the “Warrants”) at a purchase price of $0.60 per Warrant in a proposed tender offer  as described in the Registration Statement. The Beneficiaries that have tendered Warrants purchased by the Warrant Purchasers in such tender offer are hereinafter referred to as the “Tendering Beneficiaries.”)

WHEREAS, this Agreement is being entered into in connection with the IPO, as described in the Company’s Registration Statement on Form S-1, File No. 333-177280 (“Registration Statement”), to govern the distribution of the Escrow Asset.

WHEREAS, the Warrant Purchasers desire that the Escrow Agent accept the Escrow Asset in escrow, to be held and disbursed as hereinafter provided.

IT IS AGREED:

1.             Appointment of Escrow Agent and Representative.

1.1           The Warrant Purchasers hereby appoint the Escrow Agent to act in accordance with and subject to the terms of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance with and subject to such terms.

1.2           The Warrant Purchasers hereby appoint the Representative as their representative to act on behalf of the Warrant Purchasers as their duly authorized agent with respect to all matters governed by this Agreement and the Representative hereby accepts such appointment and agrees to act in accordance with and subject to the terms hereof.

2.             Deposit of Escrow Asset.  24 hours prior to the effective date of the Registration Statement (the “Effective Date”), the Warrant Purchasers shall deliver to the Escrow Agent the Escrow Asset in the amounts set forth in Schedule 1 hereto, to be held and deposited by Escrow Agent in an interest bearing account at J.P. Morgan Chase Bank N.A., maintained by the Escrow Agent, which shall be disbursed only in accordance with the terms and conditions of this Agreement.  The Escrow Asset will be invested only in United States treasuries with a maturity of 180 days or less or in money market funds that invest solely in United States treasuries.

 

  

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3.             Disbursement and Reduction of the Escrow Asset.

3.1          The Escrow Agent shall hold the Escrow Asset during the period (the “Escrow Period”) commencing on the date hereof and ending upon the earlier of (each a “Termination Event”) (i) the Company’s consummation of an initial business combination as described in the Registration Statement (“Business Combination”) or (ii) the Company’s failure to consummate a Business Combination within the required time period as described in the Registration Statement.  Upon completion of the Escrow Period, the Escrow Agent shall promptly commence the distribution of the Escrow Asset (excluding any interest earned thereon) to the Beneficiaries upon receipt of, and only in accordance with, the terms of a joint letter (the “Direction Letter”) in accordance with Sections 3.3 or 3.4, as applicable, hereof.  Notwithstanding the foregoing, during the Escrow Period, the Escrow Agent may distribute a certain portion of the Escrow Asset pursuant to Section 3.2 herein.

3.2          During the Escrow Period, upon written request from the Representative, which may be given from time to time pursuant to a letter (the “Interest Reduction Letter”) in a form substantially similar to that attached hereto as Exhibit A, the Escrow Agent shall reduce the amount of the Escrow Asset and distribute to the  Warrant Purchasers by wire transfer the income collected on the Escrow Asset

 

3.3          If the Termination Event is the Company’s consummation of a Business Combination, Escrow Agent shall distribute the Escrow Asset pro-rata to the Tendering Beneficiaries upon Escrow Agent’s receipt of a Direction Letter in a form substantially similar to that attached hereto as Exhibit B, stating that that the Company has consummated its initial business combination, as set forth in the Registration Statement and a concurrent tender offer has also been consummated for up to 3,750,000 of the  Company’s Warrants issued (but not private warrants), such that each Tendering Beneficiary will receive an amount equal to $0.60 per Warrant for each Warrant validly tendered and not properly withdrawn on a pro rata basis as applicable. The Escrow Agent will distribute all validly tendered and acquired Warrants to the Warrant Purchasers on a pro rata basis.

3.4          If the Termination Event is the Company’s failure to consummate a Business Combination, Escrow Agent shall distribute the Escrow Asset pro-rata to the Beneficiaries upon Escrow Agent’s receipt of a Direction Letter in a form substantially similar to that attached hereto as Exhibit C, stating that the Company did not consummate a proposed business combination within the time period set forth in the Registration Statement, and the Warrant Purchasers must distribute the Escrow Asset such that each Beneficiary receives a  pro rated amount of the Escrow Asset per Warrant for each Warrant then held by such Beneficiary.

4.             Concerning the Escrow Agent.

4.1           Good Faith Reliance.  The Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons.  The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall have given its prior written consent thereto.

 

  

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4.2           Indemnification.  The Escrow Agent shall be indemnified and held harmless by the Warrant Purchasers from and against any expenses, including counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, or the Escrow Asset held by it hereunder, other than expenses or losses arising from the gross negligence or willful misconduct of the Escrow Agent.  Promptly after the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent shall notify the other parties hereto in writing.  In the event of the receipt of such notice, the Escrow Agent, in its sole discretion, may commence an action in the nature of interpleader in an appropriate court to determine ownership or disposition of the Escrow Asset or it may deposit the Escrow Asset with the clerk of any appropriate court or it may retain the Escrow Asset pending receipt of a final, non appealable order of a court having jurisdiction over all of the parties hereto directing to whom and under what circumstances the Escrow Asset are to be disbursed and delivered.  The provisions of this Section 4.2 shall survive in the event the Escrow Agent resigns or is discharged pursuant to Sections 4.5 or 4.6 below.

4.3           Compensation.  The Escrow Agent shall be entitled to reasonable compensation from the Warrant Purchasers for all services rendered by it hereunder.  The Escrow Agent shall also be entitled to reimbursement from the Warrant Purchasers for all expenses paid or incurred by it in the administration of its duties hereunder including, but not limited to, all counsel, advisors’ and agents’ fees and disbursements and all taxes or other governmental charges.

4.4           Further Assurances.  From time to time on and after the date hereof, the Warrant Purchasers shall deliver or cause to be delivered to the Escrow Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall reasonably request to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

4.5           Resignation.  The Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto written notice and such resignation shall become effective as hereinafter provided.  Such resignation shall become effective at such time that the Escrow Agent shall turn over to a successor escrow agent appointed jointly by DB and Cowen, the Escrow Asset held hereunder.  If no new escrow agent is so appointed within the 60 day period following the giving of such notice of resignation, the Escrow Agent may deposit the Escrow Asset with any court it reasonably deems appropriate.

 

  

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4.6           Discharge of Escrow Agent.  The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing at any time by the other parties hereto, jointly, provided, however, that such resignation shall become effective only upon acceptance of appointment by a successor escrow agent as provided in Section 4.5.

4.7           Liability.  Notwithstanding anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder for its own gross negligence or its own willful misconduct.

 

5.             Miscellaneous.

5.1           Governing Law.  This Agreement shall for all purposes be deemed to be made under and shall be construed in accordance with the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction.

5.2           Third Party Beneficiaries.  Each of the Warrant Purchasers hereby acknowledges that the Beneficiaries are third party beneficiaries of this Agreement.

5.3           Entire Agreement.  This Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and, except as expressly provided herein, may not be changed or modified except by an instrument in writing signed by the party to the charged.

5.4           Headings.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation thereof.

5.5           Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors and assigns.

5.6           Notices.  Any notice or other communication required or which may be given hereunder shall be in writing and either be delivered personally or be mailed, certified or registered mail, or by private national courier service, return receipt requested, postage prepaid, and shall be deemed given when so delivered personally or, if mailed, two days after the date of mailing, as follows:

If to the Warrant Purchasers, to the Representative:

Chart Acquisition Corp.

c/a The Chart Group, LLC

75 Rockefeller Plaza, 14th Floor

Attn:  Christopher D. Brady

and if to the Escrow Agent, to:

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson, Chairman

 

  

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And if to DB, to:

Deutsche Bank Securities Inc.

60 Wall Street, 4th Floor

New York, New York 10005

And if to Cowen, to:

Cowen and Company, LLC

599 Lexington Avenue

New York, NY 10022

Attn:  [   ]

A copy of any notice sent hereunder shall be sent to:

 

DLA Piper LLP (US)

1251 Avenue of the Americas, 27th Floor

New York, New York 10020-1104

Attn:   Jack Kantrowitz, Esq.

 

and:

Ellenoff Grossman & Schole LLP

150 East 42nd Street

New York, New York 10017

Attn:  Douglas S. Ellenoff, Esq.

 

The parties may change the persons and addresses to which the notices or other communications are to be sent by giving written notice to any such change in the manner provided herein for giving notice.

[Signature Page Follows]

 

  

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WITNESS the execution of this Agreement as of the date first above written.

 

	 	 	
WARRANT PURCHASERS:

	 	 	 	 
	 	 	
CHART ACQUISITION GROUP, LLC

	 	 	 	 
	 	 	
(as a Warrant Purchaser and its capacity as Representative)

	 	 	 	 
	
 

	
By: 

	 	 
	 	 	
Name:

	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 
	 	 	Name:  Joseph Wright	 
	 	 	 	 
	 	 	 	 
	 	 	
COWEN OVERSEAS INVESTMENTS LP

	 

 

	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 

 

	 	 	 	 
	 	 	ESCROW AGENT:	 

 

	 	 	
CONTINENTAL STOCK TRANSFER & TRUST COMPANY

	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 

 

	 	 	
DEUTSCHE BANK SECURITIES INC.

	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 

 

	 	 	
COWEN AND COMPANY, LLC

	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 

 

  

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SCHEDULE 1

 

	
WARRANT PURCHASER

	 	
PERCENTAGE

	 	
AMOUNT

	  	 	  	 	  
	  	 	  	 	  
	  	 	  	 	  
	  	 	  	 	  
	  	 	  	 	  
	  	 	  	 	  
	  	 	  	 	  

 

  

7

  

 

 EXHIBIT A

 

[Letterhead of Company]

[Insert date]

 

Continental Stock Transfer

& Trust Company

17 Battery Place, 8th Floor

New York, New York 10004

Attn:  Steven Nelson and Frank DiPaolo

Re:          Escrow Account No.
[    ]   -       Interest Reduction Letter

Gentlemen:

Pursuant to Section 3.2 of the Escrow Agreement by and among Chart
Acquisition Group, LLC (the “Representative”), Joseph Wright, and Cowen Overseas Investment LP (“Cowen
Overseas,” and together with Joseph Wright and the Representative, the “Warrant Purchasers”), Continental Stock Transfer & Trust Company, a New York
corporation (“Escrow Agent”) and Deutsche Bank Securities, Inc. and Cowen and Company, LLC, dated as of ________, 2012
(the “Escrow Agreement”), the Representative hereby requests that you deliver to it $_______ of the interest income earned on the Escrow Asset as of the date hereof as
follows.

[LIST WARRANT PURCHASERS AND AMOUNTS]

 In accordance with the terms of the Escrow Agreement, you are hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of this letter to the Warrant Purchasers’ operating accounts at:

[WIRE INSTRUCTION INFORMATION]

	  	
Chart Acquisition Group, LLC

	  
	  	  	  	  
	  	
By:

	  	  
	  	
Name:

	  	  
	  	
Title:

	  	  

cc:           Deutsche Bank Securities, Inc.

                Cowen and Company, LLC

 

  

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EXHIBIT B

[Letterhead of Company]

[Insert date]

Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven Nelson and Frank Di Paolo

Re:          Escrow Account No. [    ]   -       Direction Letter

Gentlemen:

Pursuant to Section 3.3 of the Escrow Agreement between Chart Acquisition
Group, LLC (the “Representative”), Joseph Wright, and Cowen Overseas Investment LP (“Cowen Overseas,”
and together with Joseph Wright and the Representative, the “Warrant Purchasers”), Continental Stock Transfer & Trust Company, a New York corporation
(“Escrow Agent”) and Deutsche Bank Securities, Inc.  and Cowen and Company, LLC, dated as of ________, 2012
(the “Escrow Agreement”), this is to advise you that the Company has consummated a business combination with [       ]
(the “Target Businesses”) on [         ] (the “Consummation
Date”). Capitalized words used herein and not otherwise defined shall have the meanings ascribed to them in the Escrow Agreement.

 

Pursuant to Section 3.3 of the Escrow Agreement, you are hereby directed to distribute the Escrow Asset (less any interest earned thereon) pro-rata to the Tendering Beneficiaries because the Company has consummated its initial business combination, as set forth in the Registration Statement and a concurrent tender offer has also been consummated for up to 3,750,000 of the Company’s Warrants (but not private warrants) issued, such that each Tendering Beneficiary is entitled to receive an amount equal to $0.60 per Warrant for each Warrant validly tendered and not properly withdrawn (pro rated as applicable).  The balance of the Escrow Asset, if any, should be returned to the Warrant Purchasers’ operating accounts at: [WIRE INSTRUCTION INFORMATION]

Upon the distribution of all Escrow Asset pursuant to the terms hereof, the Escrow Agreement shall be terminated.

 

	  	
Very truly yours,

	  
	  	  	  
	  	
Chart Acquisition Group, LLC

	  
	  	  	  	  
	  	
By:

	  	  
	  	
Name:

	  	  
	  	
Title:

	  	  
	 	 	 	 
	 	
Deutsche
Bank Securities, Inc.

	 
	 	 	 	 
	 	

By:

	 	 
	  	
Name:

	  
	  	
Title:

	  
	  	  	  	  
	  	
Cowen and Company, LLC

	  
	  	  	  	  
	  	
By:

	  	  
	  	
Name:

	  	  
	  	
Title:

	  	  

 

  

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EXHIBIT C

 

[Letterhead of Company]

[Insert date]

 

Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven Nelson and Frank Di Paolo

Re:           Escrow Account No. [    ]   -       Direction Letter

Gentlemen:

Reference is made to the Escrow Agreement between Chart Acquisition Group,
LLC (the “Representative”), Joseph Wright, and Cowen Overseas Investment LP (“Cowen Overseas,” and
together with Joseph Wright and the Representative, the “Warrant Purchasers”), Continental Stock Transfer & Trust Company, a New York corporation
(“Escrow Agent”) and Deutsche Bank Securities, Inc.  and Cowen and Company, LLC, dated as of ________, 2012 (the
“Escrow Agreement”).  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Escrow Agreement.  Pursuant to
Section 3.4 of the Escrow Agreement, this is to advise you that the Company did not consummate a proposed business combination within the time period set forth in the Registration Statement, and the Warrant Purchasers must distribute the Escrow Asset
such that each Beneficiary receives a pro rated amount of the Escrow Asset per Warrant for each Warrant then held by such Beneficiary.

In accordance with the terms of the Escrow Agreement, you are hereby
directed to distribute the Escrow Asset on [      ] to the warrantholders. [       ] has been selected as the “record” date for the purpose of determining the warantholders
entitled to receive their pro rata share of the Escrow Asset (less interest earned thereon).  You agree to be the paying agent of record and in your separate capacity as paying agent to distribute said funds directly to the Company’s
warrantholders (other than with respect to the private warrants) in accordance with the terms of the Escrow Agreement.  Upon the distribution of all of the funds comprising the Escrow Asset, your obligations under the Escrow Agreement shall
be terminated.

	  	
Very truly yours,

	  
	  	  	  
	  	
Chart Acquisition Group, LLC

	  
	  	  	  	  
	  	
By:

	  	  
	  	
Name:

	  	  
	  	
Title:

	  	  
	  	  	  
	  	  	  

cc:           Deutsche Bank Securities, Inc.

                Cowen and Company, LLC

 

 

10f10q0912ex10i_keyuanpetro.htm

Exhibit 10.1

 

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

 

Inward Bills Contract

No.:

 

Party A (Applicant): Ningbo Keyuan Plastics 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.:LC1901312000442

Name of Bank Issuing Documents: ROYAL BANK OF SCOTLAND

No. of Issued Document: ________________________

 

 

1

 

 

Receipt amount: USD 22,725,000

 

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) Twenty Million Seven Hundred and Twenty-Five Thousand

(Numeric) USD 22,725,000.00

 

Article 4.  The Term of Inward Bills

 

The term of Inward Bills is /  months/ 117 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 + 80 for the latest 4 months 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.

 

 

2

 

 

	
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.

 

 

3

 

 

Financing with foreign currency,

 

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 80.

 

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.

 

 

4

 

 

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.

 

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

 

The guarantee methods of liability under this contract:

 

√ Ningbo Kewei Investment 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) CNY ; (Spell-Out) Fifteen Million;

 (Numeric) 15,000,000.

 

	
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:                               .

 

 

5

 

 

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;

 

	
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;

 

 

6

 

 

	
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 __first _ 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.

 

 

7

 

 

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.

 

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.

 

 

8

 

 

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.

 

 

9

 

 

	
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: Chunfeng Tao             The authorized person: 

 

September 27, 2012                                               September 27, 2012

 

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