Irrevocable Standby Letter of Credit No. SDCNPH170334 between Successful Union Limited and Pioneer Forest, Inc.

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Summary

This agreement is an irrevocable standby letter of credit issued by The Hongkong and Shanghai Banking Corporation Limited on behalf of Successful Union Limited (the applicant) in favor of Pioneer Forest, Inc. (the beneficiary) for up to $2,000,000. The letter of credit guarantees payment to Pioneer Forest, Inc. if Successful Union Limited fails to pay under a specified promissory note dated May 28, 2002. The beneficiary must present required documents between May 29 and June 28, 2003, to claim payment. All documents must be originals and partial drawings are not allowed.

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EX-10.4 6 dex104.htm FORM OF LETTER OF CREDIT Prepared by R.R. Donnelley Financial -- FORM OF LETTER OF CREDIT
Exhibit 10.4
 
FORM OF LETTER OF CREDIT
 
TEXT
   
CONTENTS
 
Seq of Total
   
1/1
      
Form of DC:
   
Irrevocable
      
DC No:
   
SDCNPH170334
      
Date of Issue:
   
020524
      
Expiry Date and Place:
   
030628 at our counter
      
Applicant:
   
Successful Union Limited
    
Hong Kong
      
Beneficiary:
   
Pioneer Forest, Inc.
    
One Faneuil Hall Marketplace
    
Boston, MA 02109, USA
      
DC amt:
   
USD2000000
      
Max or Amt:
   
Not Exceeding
      
Available with/by:
   
Issuing Bank at sight by payment
      
Drafts at:
   
Sight
      
Drawee:
   
Issuing Bank
 
Additional Conditions:
 
We hereby issue this irrevocable standby documentary credit in your favour which is available upon presentation of your draft(s) at sight drawn on the issuing bank bearing the clause: “Drawn under Standby Documentary Credit No. SDCNPH170334 dated 23/5/2002 of The Hongkong and Shanghai Banking Corporation Limited” up to an aggregate amount of USD2,000,000.00 accompanied by:
 
1)  Beneficiary’s signed statement certifying: “The amount of the draft represents funds due to Beneficiary under a certain Promissory Note dated 28th May 2002 issued, signed and sealed by Successful Union Limited, demand for payment has been made and payment has not been received from Successful Union Limited or any other sources.”
 
2)  Original of the Promissory Note dated 28th May 2002, issued, signed and sealed by Successful Union Limited.
 
+  Presentation Period: 29th May 2003 to 28th June 2003.
 
+  Partial drawings not allowed.
 
+  All documents must be signed.
 
+  All documents called for under this credit are original and must be clearly marked on their face as “original”, except those which the credit specifically states can be “copy(ies)”.
 
+  All banking charges except DC opening commission are for account of beneficiary.
 
+  Documents must be presented through your banker within the validity of this standby DC.

 
+  We hereby engage with you that all draft(s) drawn in compliance with the terms of this standby documentary credit will be duly honoured if presented to the above mentioned drawee bank on or before the 28th June 2003. Except so far as otherwise stipulated, documentary credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce Publication No.500 except Articles 8, 23-39, 41, 43 and 46.
 
Info to Presenting Bk:
 
+  All drawings must be advised by telecommunication to the issuing office.
 
+  Documents must be dispatched by courier service in one lot after your advice of presentation to The Hongkong and Shanghai Banking Corporation Limited, ESD Div, 5/F HSBC Building Mong Kok, 673 Nathan Road, Mong Kok, Kowloon, Hong Kong.
 
Confirmation Instructions without