11. Related Parties and Connected Transaction.

1.Space Rent

  ---------------------- ------------------------ ------------------------
  Company                Company                  Connected Transaction

  1.Pato Chemical        1.1 Kentex Chemical      Pato rents office space
  Industry Plc.          Industy Co,Ltd           in Pato Building, which
                                                  belongs to Kentex
                                                  Chemical Co.,Ltd.

  2.Acron Plastic        2.1 Kentex Chemical      Acron rents office space
  Industry Co.,Ltd       Industry Co,Ltd          in Pato Building, which
                                                  belongs to Kentex
                                                  Chemical Co.,Ltd.
  ---------------------- ------------------------ ------------------------

+--------------+---+----------------------------------------------------+
| Location     | : | Pato Building, 3388 New Petchburi Road Bangkapi,   |
|              |   | Huay Kwang, Bangkok 10320                          |
+--------------+---+----------------------------------------------------+
| Building     | : | Kentex Chemical Co Ltd (a related company)         |
| ownership    |   |                                                    |
+--------------+---+----------------------------------------------------+
| Significant  | : | : - Pato Chemical Industry Plc rents the first     |
| Content of   |   | floor of the building with usable space of 230     |
| the rent     |   | sq.metre Monthly rental fee is baht 30,000. The    |
| contract     |   | contract begins from 1 June 1991 to 31 May 2021.   |
|              |   | Rental fees is adjustable every 2 years. Each      |
|              |   | adjustment shall not exceed 25% of the prevailing  |
|              |   | rental rate.                                       |
|              |   |                                                    |
|              |   | : - Acron Plastic Industry Co Ltd has rented the   |
|              |   | area on third floor of the building with usable    |
|              |   | space of 40 sq.metre. The rental fee is Baht       |
|              |   | 10,000 per month. The contract runs from 1 October |
|              |   | 1993 and 30 July 2021. Rental fee will be adjusted |
|              |   | every 2 years with the maximum adjustment not      |
|              |   | exceeding 15% of the prevailing rate. The first    |
|              |   | adjustment in 1985 was to Baht 11,500 per month.   |
+--------------+---+----------------------------------------------------+

Note: Both rent contracts indicate that landlord will be responsible for
the household and property taxes based on the actual rental fee
received. Any other tax and duty including utilities expenses will be
responsible by the renter only.

  Opinion of Independent Directors

1 March 2001

I have audited the contract between Pato Chemical Industry Plc and Acron
Plastic Industry Co Ltd and Kentex Chemical Co Ltd to rent office space.
However, Pato Chemical Industry Plc has been using the space on the
first, second floor totalling 334 sq.metres. Acron Plastic Industry Co
Ltd has been using the space on the third floor totalling 190 sq.metres.
Apart from this, Pato and Acron share the space used for meeting room on
the third floor totalling 40 sq.metres. At present, the rent contracts
have not yet been amended according to the space utilized. As for the
rental fee adjustment in every 2 years, the latest adjustment was made
in 1985 for the Acron Plastic Industry Co Ltd’s contract from Baht
10,000 to Baht 11,500 per month. Since then, adjustments have never been
made in any of the contract.

For your information, rental fee of the office building around New
Petchburi Road area at present ranges from Baht 150-450 per square meter
per month.

Yours sincerely

......................................................................................................

(Mr Lertchai Leelayonkul) (Dr Chongrak Prichanont)

2. Bank Guarantee

The board of directors meeting of Pato Chemical Industry Public Co.,Ltd.
No. 1/1999 on 5 January 1999 has pass the resolution to provide bank
guarantee to subsidiary company , Acron Plastic Industry Co.,Ltd. on a
pro rata shareholding basis.

+----------+--------+-----------+--------------+---------------------+
| Bank     | Type   | Credit    | Balance as   | Collateral          |
|          | of     | Line      | at December  |                     |
|          | Loan   |           | 31, 2000     |                     |
|          |        | (Million  |              |                     |
|          |        | Baht)     |              |                     |
+----------+--------+-----------+--------------+---------------------+
| Bangkok  | L/G    | 15        | 18.5         | Pato Chemical Ind.  |
| Bank     |        |           |              | Plc                 |
| Public   | L/C    | }30       | 43.3         |                     |
| Co.,Ltd. |        |           |              | with other          |
|          | T/R    |           |              | shareholders of     |
| (Head    |        |           |              | Acron.              |
| Office)  |        |           |              |                     |
+----------+--------+-----------+--------------+---------------------+
| Thai     | Long   | 75.58     | 60           | Land and Machinery  |
| Farmers  | term   |           |              |                     |
| Bank     | Loan   | 10        | 0.9          | Land deed No.90191  |
| Public   |        |           |              | Praksa, Muang,      |
| Co.,Ltd. | OD     | }65       | 46.3         | Samutprakarn        |
|          |        |           |              |                     |
| (        | L/C    | 10        | 10           | Value 50 Million    |
| Klongton |        |           |              | Baht                |
| Branch)  | T/R    | 15        | 15.5         |                     |
|          |        |           |              | with other          |
|          | PN     |           |              | shareholders of     |
|          |        |           |              | Acron.              |
|          | BG     |           |              |                     |
+----------+--------+-----------+--------------+---------------------+

Pato is to provide a corporate guarantee on a pro rata basis for the
175.58 million baht (total credit line) credit facilities with TFB for
Acron. In this regard, Pato's portion, according to 47.41 percent
interest in Acron, totals a maximum of 83.24 million baht.

Pato is to provide a corporate guarantee on a pro rata basis for the 45
million baht credit facilities with BBL. In this regard, Pato's portion,
according to 47.41 percent interest in Acron, totals a maximum of 21.33
million baht.

The size of the total transactions is 104.57 million baht.

Note : All shareholders appear on the list below are responsible
proportionally for the rest of the guarantee except for the IFCT.
However, Mr.Metha Trillit will be responsible for the proportion of the
IFCT.

 Shareholders of Acron Plastic Industry Co.,Ltd.

+------------------------------------+-------------------+------------+
| Name                               | Number of Share   | Persentage |
+------------------------------------+-------------------+------------+
| 1.Pato Chemical Indsutry Public    | 5,120,000         | 47.41      |
| Co.,Ltd.                           |                   |            |
+------------------------------------+-------------------+------------+
| 2.The Industrial Finance           | 600,000           | 5.56       |
| Corporation of Thailand            |                   |            |
+------------------------------------+-------------------+------------+
| 3.Ms.Ratchanee Trillit             | 600,000           | 5.56       |
+------------------------------------+-------------------+------------+
| 4.Mr.Chaovuth Pojanalai            | 600,000           | 5.56       |
+------------------------------------+-------------------+------------+
| 5. Mr.Bancha Choengvivatkit        | 300,000           | 2.77       |
+------------------------------------+-------------------+------------+
| 6.Mr.Takeo Nakahara                | 180,000           | 1.67       |
+------------------------------------+-------------------+------------+
| 7.Mr.Ho Te Fu                      | 120,000           | 1.11       |
+------------------------------------+-------------------+------------+
| 8.Mr.Lin Fan Hsiung                | 180,000           | 1.67       |
+------------------------------------+-------------------+------------+
| 9. Mr.Lee Ji Zong                  | 180,000           | 1.67       |
+------------------------------------+-------------------+------------+
| 10.Mr.Joseph Ng.                   | 120,000           | 1.11       |
+------------------------------------+-------------------+------------+
| 11.Itochu Fine Chemical Co.,Ltd.   | 306,000           | 2.83       |
+------------------------------------+-------------------+------------+
| 12.Itochu Asia Ltd.                | 2,494,000         | 23.09      |
+------------------------------------+-------------------+------------+

3. Corporate Facilities

The board of directors meeting of Pato Chemical Industry Public Co.,Ltd.
No. 9/2000 on 25 August 2000 has pass the resolution to have corporate
facilities from Standard Chartered Nakornthon Bank Public Co.,Ltd. as
follows :

+----------+--------+-----------+--------------+---------------------+
| Bank     | Type   | Credit    | Balance as   | Collateral          |
|          | of     | Line      | at December  |                     |
|          | Loan   |           | 31, 2000     |                     |
|          |        | (Million  |              |                     |
|          |        | Baht)     |              |                     |
+----------+--------+-----------+--------------+---------------------+
| Standard | PN     | 15        | 15           | Land and building   |
| C        |        |           |              | of Pato Chemical    |
| hartered | L/C    | } 60      | 14.7         | Industry Public     |
| Na       |        |           |              | Co.,Ltd. Land deed  |
| kornthon | T/R    | 10        | 1.4          | No. 4557            |
| Bank     |        |           |              |                     |
|          | BG     |           |              | Tambon Sansab,      |
|          |        |           |              | Amphur Minburi,     |
|          |        |           |              |                     |
|          |        |           |              | Bangkok             |
|          |        |           |              |                     |
|          |        |           |              | Value 90 Million    |
|          |        |           |              | Baht                |
+----------+--------+-----------+--------------+---------------------+

4. Loan to Affiliated Company

The board of Director of Pato Chemical Industry Public Co.,Ltd. No.
16/2001 on the 4^(th) December 2000 has passed a resolution to provide a
1 month short term loan to Acron Plastic Industry Co.,Ltd. to liquidate
cash flow of the company at the amount of 9.26 million baht or equal to
2.72% of net asset value of consolidated financial statements.

9.Other Factors affected investment decision

9.1 Legal Cases

- None -

9.2 Policy on Dividend Payment

1. Pato Chemical Industry Plc. expects to pay dividend to shareholders
not less than 40% of net profit

2. Acron Plastic Industry expects to pay dividend to shareholders not
less than 50% of net profit.

9.3 Other factors

- None -