Standby Letter of Credit No. 110LG1300050 between Shandong Taibang Biological Products Co., Ltd. and China Merchants Bank Co., Ltd.
This agreement is a standby letter of credit issued by China Merchants Bank Co., Ltd., New York Branch, at the request of Shandong Taibang Biological Products Co., Ltd. It guarantees payment up to $30,200,000 to the beneficiary, China Merchants Bank, if China Biologic Products, Inc. fails to pay its debts under certain credit facilities. The letter allows for partial and multiple draws, is non-transferable, and expires on February 7, 2015. Payment will be made within five business days of a valid demand, and all related charges are the applicant's responsibility.
STANDBY LETTER OF CREDIT
DATE OF ISSUE: August 7, 2013
ADVISING BANK: CHINA MERCHANTS BANK CO., LTD., NEW YORK BRANCH
STANDBY LETTER OF CREDIT REF.: 110LG1300050
DATE OF EXPIRY: February 7, 2015
BENEFICIARY (NAME AND ADDRESS): CHINA MERCHANTS BANK CO., LTD., NEW YORK BRANCH, NY
DEAR SIRS,
AT THE REQUEST OF SHANDONG TAIBANG BIOLOGICAL PRODUCTS CO., LTD. (APPLICANT), WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO.110LG1300050 IN YOUR FAVOUR UPTO THE AGGREGATE AMOUNT (INCLUSIVE OF ALL ACCRUED INTERESTS AND CHARGES) OF USD30,200,000.00 (SAY U.S. DOLLARS THIRTY MILLION AND TWO HUNDRED THOUSAND ONLY).
THIS STANDBY LETTER OF CREDIT IS AVAILABLE WITH US BY PAYMENT UPON OUR RECEIPT OF YOUR DEMAND BY AUTHENTICATED SWIFT STATING THAT THE AMOUNT DRAWN BY YOU REPRESENTS THE UNPAID INDEBTEDNESS (INCLUSIVE OF ACCRUED INTERESTS AND CHARGES) DUE TO YOU BY CHINA BIOLOGIC PRODUCTS, INC. (BORROWER) UNDER THE CREDIT FACILITIES GRANTED BY YOU TO THE BORROWER.
SPECIAL CONDITIONS:
PARTIAL DRAWING IS ALLOWED.
MULTIPLE DRAWINGS ARE ALLOWED.
ALL BANK CHARGES RELATING TO THIS STANDBY LETTER OF CREDIT ARE FOR APPLICANT’S ACCOUNT.
THIS STANDBY LETTER OF CREDIT IS NON-TRANSFERABLE.
THIS STANDBY LETTER OF CREDIT WILL EXPIRE ON FEBRUARY 7, 2015 (EXPIRY DATE). THE ABOVE-MENTIONED DEMAND MUST REACH US AT OUR SWIFT ON OR BEFORE THE EXPIRY DATE. PAYMENT WILL BE EFFECTED WITHIN 5 BUSINESS DAYS UPON OUR RECEIPT OF YOUR DEMAND BY SWIFT
WE HEREBY AGREE AND UNDERTAKE THAT YOUR DEMAND DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS CREDIT WILL BE DULY HONOURED UPON PRESENTATION
THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES (ISP 98).
