Document:

smsapal8kex1014082310.htm

Exhibit 10.14

 

Special Clauses

 

 

This Maximum-amount Mortgage Contract is numbered: (2009) Jian Ping Song Gao Di Zi No.1 (the “Contract”).

 

ARTICLE 13                                INFORMATION OF PARTIES TO THIS CONTRACT:

 

Mortgagor (Party A): Fujian Shengda Food Co., Ltd. (福建圣达食品开发有限公司)

Address: Shuinan Industrial Park, Songxi County (松溪县水南工业区)

Zip Code: 353500

Legal representative (person in charge): Zhan Youdai (詹有代)

Fax.: 2332598

Telephone: 2325688

 

Mortgagee (Party B): China Construction Bank Corporation Limited Songxi Sub-branch (中国建设银行股份有限公司松溪支行)

Address:No.121 Jiefang Street, Songyuan Town, Songxi County

Zip Code: 353500

Person in charge: Guo Rongbiao (郭荣标)

Fax: 0599-2322644

Telephone: 0599-2322670

 

(collectively, the “Parties”)

 

Whereas, for purpose of continually handling credit facilities (the following first item) for Fujian Shengda Food Development Co., Ltd. (hereinafter referred to as the “Debtor”), Party B will enter into (and/or has entered into) with the Debtor during the period from February 27, 2009 to February 27, 2012 (hereinafter referred to as the “Period for Determination of Creditor’s Rights”) the Renminbi Fund Facility Contract, Foreign Exchange Fund Facility Contract, Bank Acceptance Agreement, L/C Issuance Contract, L/G Issuance Agreement and/or other legal documents (the said contracts, agreements and/or other legal documents entered into during the Period for Determination of Creditor’s Rights are referred to as the “Master Contract” hereinafter).

 

(1) Granting Renminbi/foreign exchange facilities;

(2) Acceptance of commercial draft;

(3) Issuance of L/C;

(4) Issuance of L/G;

(5) Other credit facilities: Left blank.

 

Party A is willing to provide a maximum-amount mortgage to secure the debts of the Debtor under the Maser Contract.  Pursuant to relevant applicable laws, regulations and rules, and based upon mutual consultation, Party A and Party B hereby enter into this Contract with the intention to be bound hereby.

 

 

  

1

  

 

ARTICLE 14  AGREEMENT ON PARAGRAPH 2 OF ARTICLE 2

 

The maximum amount of the mortgage obligation under this Contract is (Type of Currency) RMB (amount in words) fifteen million one hundred and sixty thousand Yuan only. If Party A has implemented its mortgage obligations in accordance with this Contract, the maximum amount shall be deducted accordingly with the amount which has been implemented by Party A.

 

ARTICLE 15  AGREEMENT ON ARTICLE 3

 

Both Parties hereto shall, within five working days of execution of this Contract, proceed with mortgage registration procedures at relevant registration authority. Party A shall, on or before the day of completion of mortgage registration, submit to Party B for its custody the originals of Other Title Certificate, Mortgage Registration Certificate and other title certificates vesting with the mortgage property.

 

ARTICLE 16  AGREEMENT ON PARAGRAPH 4 OF ARTICLE 6

 

Party A shall, within five working days of execution of this Contract (or of the day of completion of renewal of insurance if the insurance of mortgage property is renewed), deliver to Party B the original of the insurance policy against the mortgage property and shall reserve and maintain relevant documents necessary for making any insurance claim or transferring of insurance interests at the place of Party B.

 

ARTICLE 17  OTHER AGREEMENTS

 

1. If Party A or the Debtor fails to comply with relevant laws, regulations or rules with respect to environmental protection, energy saving and emission reduction or reduction of contamination, or may cause any risk concerning energy consumption or pollution, Party B shall have the right to exercise its right to mortgage under this Contract, and may resort to any other remedy agreed under this Contract or permitted by the laws.

 

2. This field is left blank.

 

Article 18 Resolution of Dispute

 

Any dispute arising from or in connection with the implementation of this Contract may be settled through a consultation, and if such consultation fails, such dispute shall be settled through the first means listed in the following. During the proceeding of any litigation or arbitration, all provisions other than the provision (s) in dispute under this Contract shall remain enforceable.

 

(1) Institute legal proceedings to the people’s court at the domicile of Party B;

 

(2) Submit such dispute to (This field is left blank) arbitration commission for arbitration at (The place of arbitration is left blank). The arbitration shall be conducted in accordance with the applicable arbitration rules in effect at the time of application for arbitration. The award thus given shall be final and binding upon both Parties hereto.

 

 

  

2

  

 

ARTICLE 19  THIS CONTRACT IS MADE OUT IN QUINTUPLICATE.

 

ARTICLE 20  AGREEMENT ON ARTICLE 20

 

 

The collaterals under this Contract are listed as follows:

 

List of Mortgage Properties

 

	
Title of collateral

	 	
Number of title certificate and other certificates

	 	
Address

	 	
Area or quantity

	 	
Value of collateral (Ten thousand Yuan)

	 	
Amount that has been mortgaged to secure other liabilities (ten thousand Yuan)

	 	
Remarks

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Building or other right to use of land within the occupation area

	 	
Song Guo Yong (2002) No. 012, Song Guo Yong (2003) No. 023, Song Fang Quan Zheng Zi No. 020050294

	 	
Shuinan Industrial Park, Songxi County and Gongnongxi Road, Songxi County

	 	
Land area 26,000m2, Construction area 17,000m2

	 	
1890

	 	
This field is left blank

	 	
This field is left blank

	
Machinery and equipment

	 	
This field is left blank

	 	
Shuinan Industrial Park, Songxi County and South Gongnong Road, Songxi County

	 	
31 units

	 	
646

	 	
This field is left blank

	 	
This field is left blank

 

ARTICLE 21 REPRESENTATIONS AND WARRANTIES OF PARTY A

 

1. Party A knows clearly the business scope, power and authorization of Party B;

 

2. Party A has read this Contract and all articles of the Master Contract. Party B has made explanation on relevant articles of this Contract and the Master Contract as required by Party A. Party A has fully known and understood the meaning of all articles of this Contract and the Master Contract and the legal consequence thereon.

 

3. Party A has the legal qualification to act as Guarantor. Party A’s guarantee under the Contract conforms to the provisions of the laws, administrative rules and regulations, and Articles of Association or internal organizational documents of Party A, and has obtained approvals from the competent internal organizations of Party A or the competent Chinese authorities. Any and all liabilities resulting from Party A’s liabilities of disqualification for entering into the Contract shall be burdened by Party A, including, but not limited to, indemnifying Party B against all the losses sustained by Party B therefrom.

 

 

  

3

  

 

4. Party A confirms that it has fully understood the information concerning the assets, debts, business, creditworthiness, credit standing of the Debtor, whether the Debtor has the power and capacity to enter into the Master Contract and all the contents of the Master Contract.

 

5. Party A enjoys the ownership right or right to disposal of the collaterals as confirmed by the laws. The collaterals are not public facilities, or properties that are prohibited to be circulated or transferred according to the laws, and are not involved in any title dispute.

 

6. There are no other co-owners with respect to the collaterals, or although there are other co-owners, such mortgage or security has been approved in writing by such co-owners.

 

7. The collaterals have no defects or title encumbrance other than those have been disclosed in writing to Party B, including, but not limited to, that the collaterals belong to articles prohibited for circulation, being seized, detained, under custody, rented, or under lien, or articles on which any purchase payment, repair fee, construction price, tax, fee for granting of land use right or damage compensation is delayed or articles having been pledged to secure any other third party’s interests.

 

8. All the data and information relating to the collaterals provided by Party A for Party B are true, legal, complete and accurate.

 

9. The mortgage and guarantee provided by Party A will not infringe on any legal right and interest of any third party nor violate any legal obligation or any obligation set forth in this Contract.

 

	
Party A (company seal):

	  	
Party B (company seal):

	
Legal representative (person in charge)

	  	
Person in charge

	
Or authorized agent (signature)

	  	
Or authorized agent (signature)

	
February 27, 2009

	  	
February 27, 2009

 

 

  

4

  

 

 

List of Collaterals of Fixed Assets – Machinery and Equipment

 

 

 

 

Mortgagor(common seal): Fujian Shengda Food Co., Ltd         Mortgagee (common seal)

 

 

  

5smsapal8kex1015082310.htm

Exhibit 10.15

 

China Construction Bank

Entrusted RMB Loan Contract

(Text for Three Parties)

Contract No.: (2006) Jian Song Wei Zi No. 01

Type of Loan: Entrusted Loans by Local Finance Department

Borrower (Party A): Fujian Yada Food Co., Ltd.

Domicile: Shuinan Industrial Zone, Songxi County

Legal representative (Person-in-Charge): Zhan Youdai

Tel: 0599-2325688

Fax: 0599-2332598

Post code: 353500

Entrusting Lender (Party B): Finance Bureau of Songxi County

Domicile: 68 Main Street, Songxi County

Legal representative (Person-in-Charge): Chen Huibiao

Tel: 0599-2324451

Fax: 0599-2324451

Post code: 353500

Entrusted Lender (Party C): Songxi Sub-branch, China Construction Bank Corporation Limited

Domicile: 121 Jiefang Street, Songxi County

Person-in-Charge: Guo Rongbiao

Tel: 0599-2321482

Fax: 0599-2322644

Post code: 353500

Borrower (hereinafter referred to as "Party A"): Fujian Yada Food Co., Ltd.

Entrusting Lender (hereinafter referred to as "Party B"): Finance Bureau of Songxi County

Entrusted Lender (hereinafter referred to as "Party C"): Songxi Sub-branch, China Construction Bank Corporation Limited

In consideration of the business needs and loan request of Party A, Party B agrees to entrust Party C with granting the Entrusted Loans to Party A. To clarify the rights and obligations of each party, this contract is made and entered into by and among the three parties hereto through mutual consultation pursuant to the relevant laws and regulations of China, for the parties hereto to abide by and execute.

 

 

  

  

  

I. Loan Amount

Party A intends to borrow (in words) THREE MILLION EIGHT HUNDRED AND SEVENTY THOUSAND RENMINBI ONLY from Party B.

II. Loan Purposes

Party A will use the Loans for the purposes of the bamboo shoot product processing project of Fujian Yada Food Co., Ltd.

III. Loan Term

The Loan Term provided herein is fifty two months plus eighteen days, that is, from 6 June, 2006 to 24 October, 2010.

In case of any discrepancy in the Starting Date of the Loan Term hereunder and that provided in the Loan Redeposit Note, the latter shall prevail; the Loan Term shall be postponed accordingly. The Loan Redeposit Note which forms part of this Contract is equal with this Contract in legal force.

IV. Interest Rates, Interest Accrual and Interest Settlement of the Loan

	
1.  

	
The interests under the Contract will be accrued and settled by the first method as below.

1 The interests of the Loans shall be calculated monthly at the rate of 2‰ and settled on a quarterly basis, and the Interest Settlement Date is the 20th day of every quarter (month/last month in a quarter/last month in a year).

2 Left blank.

	
2.  

	
The interests of the Loans shall be calculated from the date when the Loans are re-deposited to Party A's account. If Party B needs to adjust the interest rates during the Term of the Contract, after negotiation with Party A, Party B shall notify Party C to adjust the interest rates in the form of a written notice signed and confirmed by Party A and Party B.

V. Loan Granting

	
1.  

	
Party C has the obligation to grant the Loans only if the following conditions are satisfied at once:

	
(1)  

	
The entrusted funds of Party B have been allocated to its Entrusted Loan Fund Account opened in Party C.

	
(2)  

	
Party C has received the Entrusted Loan Granting Notice from Party B.

	
2.  

	
Loan Granting Schedule

RMB 3,870,000.00 on 6 June, 2006; RMB           on             ;

[BLANK BELOW]

RMB     on                    ; RMB           on             ;

RMB     on                    ; RMB           on             ;

RMB     on                    ; RMB           on             ;

	
3.  

	
Party C will transfer the Loans to Party A's General Deposit Account with Party C. Account No.: 35001677607059568888.

 

 

 

  

  

  

VI. Loan Repayment

	
1.  

	
Repayment Order

Any repayment from Party A hereunder shall be made first to satisfy the interest accrued and then the balance of the principal. Any adjustment shall be subject to the written notice from Party B.

	
2.  

	
Interest Payment

Party A shall pay the interest due to Party B through Party C on the Interest Settlement Date. The first Interest Payment Date is the first Interest Settlement Date after the Loans are granted. When the last loan is paid off, the interest will be settled and paid together with the capital.

	
3.  

	
Capital Repayment

Party A shall repay the capital and interests of the Loans as per the following schedule:

RMB 1,940,000.00 on 24 October, 2009; RMB 1,930,000.00 on 24 October, 2010;

[BLANK BELOW]

RMB     on                    ; RMB           on             ;

RMB     on                    ; RMB           on             ;

RMB     on                    ; RMB           on             ;

	
4.  

	
Repayment Method

Party A shall deposit the full amount of the current payables into the account with Party C prior to the Repayment Date set out in the Contract and complete the repayment procedures in a timely manner.

	
5.  

	
Loan Prepayment

Upon written consent from Party B and notice to Party C, Party A can prepay part or all of the capital and interests of the Loans.

If Party A prepays the capital and interests of the Loans, the interests shall be calculated based on the actual use period of the funds and the loan interest rate as provided herein. If Party A repays the Loans by instalment and intends to prepay part of the capital and interest of the Loans, the payment shall be made in the reverse order on the Repayment Schedule. After the prepayment, the loan interest rates provided herein shall remain applicable for the unpaid Loans.

	
6.  

	
Tax Payment

Party B entrusts Party C with withholding and remitting the business tax at the rate of [BLANK HERE] when Party A repays the interests.

VII. Alteration & Termination of the Contract

	
1.  

	
Once the Contract comes into force, neither party shall alter or terminate the Contract without the other party's consent.

 

 

  

  

  

 

	
2.  

	
If Party A does not satisfy the preconditions for use of the funds as required by Party B before the funds are used, Party B has the right to unilaterally terminate the Contract and give written notice to Party A and Party C.

	
3.  

	
When the Loans are due to be repaid and by virtue of change in the objective conditions, Party A is still unable to repay the Loans despite its efforts, Party A may apply to Party B           days prior to the Due Date of the Loans for deferment. Once the application is approved by Party B and a written notice is given to Party C, Party A, Party B and Party C will sign an Agreement on Deferred payment as the enclosure to the Contract.

VIII. Rights and Obligations of Party A

	
1.  

	
Rights of Party A

	
(1)  

	
Party A has the right to request Party B and Party C to grant the Entrusted Loans in accordance with the Contract.

	
(2)  

	
Party A has the right to use the Loans in accordance with this Contract.

	
(3)  

	
Under the condition that it complies with the rules stipulated by Party B, Party A has the right to apply to Party B for loan deferment and with the approval from Party B, complete the deferment procedures with Party B and Party C in a timely manner.

	
(4)  

	
Party A has the right to request Party B and Party C to keep confidential the relevant materials provided by Party A.

	
2.  

	
Obligations of Party A

	
(1)  

	
Party A shall open a Primary Account or General Deposit Account with Party C and shall not relocate the account.

	
(2)  

	
Party A shall use the Loans for the purposes as provided in this Contract and shall not misuse or misappropriate the Loans.

	
(3)  

	
Party A shall provide Party B and Party C with information of the relevant conditions in accordance with the requirements of Party B, and assure that such information is true, complete and valid.

	
(4)  

	
Party A shall actively cooperate with Party B and Party C in the inspection and supervision of the use of the Loans hereunder.

	
(5)  

	
Party A shall repay the capital and interests of all the Loans on schedule in accordance with the Contract.

	
(6)  

	
Party A shall give written notice to Party B and Party C in a timely manner when there is any alteration of the name, Legal Representative, domicile and business scope of Party A.

	
(7)  

	
Party A shall bear the fees for lawyer's services, insurance, assessment, registration, escrow, identification and notarization which are associated with this Contract.

	
(8)  

	
Other obligations:  BLANK HERE

IX. Rights and Obligations of Party B and Party C

	
1.  

	
Rights of Party B and Party C

 

 

  

  

  

 

	
(1)  

	
Party B and Party C have the right to inspect and supervise Party A's use of the Loans.

	
(2)  

	
Party B and Party C have the right to know about the operation and financial activities of Party A.

	
(3)  

	
Party B has the right to entrust Party C with the recovery of the capital and interests of the Loans in accordance with the Contract. For any payables from Party A to Party B arising under the Contract, Party B has provided in writing that Party C has the right to deduct directly from Party A's account.

	
2.  

	
Obligations of Party B and Party C

	
(1)  

	
Party B shall pay the funds of the Entrusted Loans to Party C on schedule and to the full amount in accordance with the Contract. Party C shall grant the Entrusted Loans to the full amount in a timely manner, unless the delay of fund payment by Party B has caused Party C unable to do so.

	
(2)  

	
Party B and Party C shall keep confidential all the relevant materials of plans, statistics and financial and accounting statements from Party A.

X. Liabilities for Breach of Contract

	
1.  

	
If Party A misuses, misappropriates or delays the use of the Loans, then a fee for use of the Loans shall be charged monthly at the rate of 6‰ based on the amounts and days the Loans have been misused, misappropriated or delayed in use.

	
2.  

	
If Party A fails to pay the interests on schedule and fails to do so during the period when the Loans are misappropriated or delayed in use, then a fee for use of the Loans shall be charged monthly at the rate of 6‰ based on the amounts of the overdue interests.

	
3.  

	
During the Term of the Contract, Party C has the right to suspend the Loans which have not been paid and to dispose of them as per the written comments from Party B when one of the following conditions occur to Party A:

	
(1)  

	
Party A has not provided Party B and Party C with true, complete and valid information as required.

	
(2)  

	
Party A has not used the Loans in accordance with this Contract.

	
(3)  

	
Party A has not repaid the capital and interests of the Loans on schedule in accordance with the Contract.

	
(4)  

	
Party A has denied the supervision and inspection by Party B and Party C on its use of the Loans.

	
(5)  

	
Party A has shifted the assets and illegally withdraw the funds to evade the debts.

	
(6)  

	
Party A has involved in or is about to be involved in serious litigation or arbitration procedures and other legal disputes that Party B may deem to affect the security of the loan assets.

	
(7)  

	
Party A has violated the other obligation clauses related to Article 8 of the Contract, which Party B deems sufficient to impact Party A's ability to pay off debts.

	
(8)  

	
The other conditions:

 

 

 

  

  

 

 

	
4.  

	
In case that Party B fails to transfer the Entrusted Loans to the account specified by Party C in a timely manner and to the full amount, any loss caused by such impact on Party C's granting the Loans to Party A shall be compensated by Party B.

	
5.  

	
When the Entrusted Loans fail to be granted in accordance with the Contract by reason of Party B, Party B shall compensate for the corresponding losses caused to Party C.

	
6.  

	
When the funds from Party B has been transferred to the account specified by Party C, Party C has received the Entrusted Loan Granting Notice from Party B, and the Contract has come into force, if the Loans can not be granted in a timely manner and to the full amount by reason of Party C, a compensation equal to 0.6‰ of delayed amount multiplying days of delay should be paid to Party A.

	
7.  

	
When Party C has failed to grant the Loans in a timely manner and to the full amount as instructed by Party B, Party C shall assume the responsibilities for breach of the contract in accordance with the Entrusted Loans Agreement.

XI. Other Matters Agreed Upon

	
1.  

	
The guarantee involved in the Loans hereunder shall be otherwise agreed upon between Party A and Party B and shall be executed effectively in conjunction with the Contract. It can be sent to Party C by copy, but it is not related directly to the business of Party C as an agent.

	
2.  

	
BLANK HERE

XII. Dispute Settlement

Any dispute arising from the execution of the Contract shall be settled by Party A and Party B with the assistance of Party C. If the negotiations fail, Party B has the right pursue litigation directly.

During the negotiation, the clauses of this Contract which are not involved in the disputes shall be performed.

XIII. Effectiveness

The Contract shall become effective once the Legal Representatives (Persons-in-Charge or Authorised Agents) of Party A and Party B, and the Person-in-Charge (or Authorised Agent) of Party C, affix their signatures and official seals to it respectively.

XIV. The Contract is made out in three original counterparts, one to be held by each of Party A, Party B and Party C, and in duplicate.

Party A: (official Seal)

(Seal: Fujian Yada Food Co., Ltd.)

Legal Representative (Person-in-Charge/Authorised Representative): (signature)

Date:

 

 

 

  

  

  

 

 

Party B: (official Seal)

(Seal: Finance Bureau of Songxi County)

Legal Representative (Person-in-Charge/Authorised Representative): (signature)

6 June, 2006

Party C: (official Seal)

(Seal: China Construction Bank Corporation Limited, Songxi Branch,)

Person-in-Charge (or Authorised Representative): (signature)

6 June, 2006

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