Contract
Exhibit
10.53
Contract
Party
A :
KIWA
BIO-TECH PRODUCTS GROUP LTD
Party
B :
UPB
INTERNATIONAL SOURCING LIMITED
Whereas
Party A entered into Urea Purchase Contract (Contract No.: (SELLER/SHENGKUI051/08/2006/UREA)
with
Shengkui
Technologies, Inc. (“Shengkui”) on July 31, 2006 and Urea Sales Contract
(Contract No.: SELLER/KIWA0085/07/2006/UREA)
with
China HuaYang Roneo Corporation (“Xxx
Xxxx”)
on
July
28, 2006, both parties agreed to enter into this contract in connection with
issuance of letter of credit (“L/C”) under such urea trade contracts.
I.
According to the Urea Purchase Contract, Party A, as the purchaser, should
issue
a revolving L/C with $38,500,000 credit line in total for the seller, Shengkui.
Party A hereby commissions Party B to issue this L/C to Shengkui on behalf
of
Party A. Party B agreed to issue such L/C.
II.
Party
A hereby promises to deliver directly transferable, non-revolving L/C from
Xxx
Xxxx to Party B as a guarantee; or to endorse Xxx Xxxx’x L/C to Party B; or to
dictate Xxx Xxxx to issue or endorse L/C with Party B as
beneficiary.
III.
Party A also promises, that 2% of the total credit line of L/C issued by Party
B
will be paid as Party B’s commission, of which 50% will be paid within a month
after this contract to be signed, the balance will be paid upon the close of
the
first shipment. The commission will be paid to Party B’s bank accounts
designated by Party B.
IV.
As
Party B promises, L/C shall be issued according to Party A’s Urea Purchase
Contract, which can be accepted by Seller, and shall be effective within the
effective period of Urea Purchase Contract. Party B also promises that, within
5
working days after Party B negotiates L/C issued or endorsed by Xxx Xxxx under
each shipment, it will remit Party A the price difference between negotiated
amount under LC from HUAYANG and the amount paid to Shengkui under LC issued
to
Shengkui. Party A shall have the right to charge interest at the rate of 1%
per
day times the number of overdue days.
V.
This
contract shall become effective upon its execution, and have binding force
to
both parties.
Party
A :
KIWA
BIO-TECH PRODUCTS GROUP LTD
Signature
:
Title
:
Date
:
August
8,
2006
Party
B :
UPB
INTERNATIONAL SOURCING LIMITED
Signature
:
Title
:
Date:
August
8,
2006