Document:

Exhibit
10.25

     

    Facilities
Lease Agreement

     

    This
Commercial Lease Agreement ("Lease") is made and effective
December 11, 2009, by and between

     

    (1)
AgFeed Industries, Inc. (“AgFeed”) ("Landlord"); and

     

    (2) Hypor
Agfeed Breeding Company Inc. ("Tenant").

     

    The
Landlord has obtained a valid lease in respect of the collectively-owned land
(having an area of about 217.6 Mou (145139.2 square meters)) located in Futian
Village, Futian Township, China, and has built a pig breeding facility on such
land (“Leased
Premises”).

     

    The
Landlord desires to lease the Leased Premises to the Tenant for the purposes of
operating a pig breeding facility and the Tenant desires to lease the Leased
Premises from Landlord for the term, at the rental and upon the covenants,
conditions and provisions herein set forth.

     

    THEREFORE,
in consideration of the mutual promises contained herein, and for other good and
valuable consideration, it is agreed:

     

    
      	
              1.

            	
              Term.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      initial term (“Initial
      Term”) of the Lease shall be ten (10) years, beginning on the date
      of registration of the Tenant as a Wholly-Owned Foreign Entity with the
      appropriate Chinese authorities and ending on the tenth
      (10th) anniversary of such date of
registration.

            

    

     

    
      	
               
      

            	
              l

            	
              Tenant
      may renew the Lease:

            

    

     

    
      	
               
      

            	
              o

            	
              Term
      and rent of the extended lease shall be determined at the time of
      renewal.

            

    

     

    
      	
               
      

            	
              o

            	
              Tenant
      shall exercise such renewal option, if at all, by providing written notice
      to Landlord not less than three (3) months prior to the expiration of the
      Initial Term.

            

    

     

    
      	
               
      

            	
              o

            	
              Unless
      otherwise agreed to by Landlord and Tenant at renewal, all other
      covenants, conditions and provisions as contained in this Lease will not
      change.

            

    

     

    
      	
              2.

            	
              Rent
      and Other Payments.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Tenant shall pay to Landlord:  (1) a rental payment of 1,950,648
      RMB per year, payable in instalments of 162,554 RMB per month, such rental
      payment subject to increase or decrease upon determination of Landlord’s
      final project cost to construct and deliver the Leased Premises to Tenant;
      and (2) any such additional amounts due and owing pursuant to Article 7 of
      this Lease for Tenant’s portion of any lease and general real estate taxes
      and fees billed by Landlord.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              l

            	
              Each
      rental instalment payment shall be due in advance on the first day of the
      calendar month for each quarter during the Lease term to Landlord at the
      following address:

            

    

     

    
      	
               
      

            	
              o

            	
              Rm.
      A1001-1002, Tower 16, Hengmao Int’l
Center

            

    

     

    
      	
               
      

            	
                333
      S. Guangchang Rd.

            

    

     

    
      	
               
      

            	
                Nanchang,
      Jiangxi Province

            

    

     

    
      	
               
      

            	
                PRC
      330003

            

    

     

    
      	
               
      

            	
              l

            	
              Late
      payment of the Lease is subject to an interest rate of 0.5% per
      month.

            

    

     

    
      	
               
      

            	
              l

            	
              Appendix
      1 of this Lease is a site map illustrating the buildings and layout of the
      Leased Premises at the time of signing of this Lease, as well as an
      associated description of the buildings of the Leased Premises with key
      contents.

            

    

     

    
      	
               
      

            	
              l

            	
              Appendix
      2 of this Lease is a full list of all equipment included in this
      Lease.

            

    

     

    
      	
              3.

            	
              Termination

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Landlord and the Tenant may mutually agree in writing to terminate the
      lease agreement.

            

    

     

    
      	
               
      

            	
              l

            	
              Unless
      there is early termination, the lease agreement shall terminate upon the
      date of expiration.

            

    

     

    
      	
               
      

            	
              l

            	
              Not
      due to the reasons attributable to the Landlord (except for occurrence of
      a force majeure event), for early termination of this lease agreement by
      the Tenant, the Tenant shall provide 1 (one) year written notice and 1
      (one) quarter penalty payment.

            

    

     

    
      	
               
      

            	
              l

            	
              Not
      due to the reasons attributable to the Tenant (except for occurrence of a
      force majeure event), for early termination of this lease agreement by the
      Landlord, the Landlord shall provide 1 (one) year written notice to the
      Tenant, and the Landlord will be subject to a penalty payment equal to all
      losses incurred by the Tenant caused by such early termination in addition
      to all reasonable actual costs and expenses incurred thereby arising out
      of transfer of its business to new location. Reconciliation and payment
      shall be made upon receipts of the
move.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              l

            	
              Both
      Landlord and Tenant may be excused from further performance under this
      Lease in the event of any of the
following:

            

    

     

    
      	
               
      

            	
              o

            	
              The
      Leased Premises and/or the underlying land are so seriously damaged due to
      an event of force majeure that further performance of this Lease is
      practically impossible;

            

    

     

    
      	
               
      

            	
              o

            	
              The
      underlying land is expropriated by governmental authorities;
      or

            

    

     

    
      	
               
      

            	
              o

            	
              The
      Leased Premises is dismantled pursuant to an order by competent government
      authorities or any restrictions on the rights and title in respect of the
      Leased Premises or right to use the underlying land are imposed by any
      judicial or administrative bodies according to
  law.

            

    

     

    
      	
               
      

            	
              l

            	
              At
      the time of early termination or termination upon expiry, all buildings
      and equipment should be left in working order except for normal wear and
      tear.

            

    

     

    
      	
              4.

            	
              Maintenance
      and Repairs

            

    

     

    
      	
               
      

            	
              l

            	
              During
      the term of this Lease, the Landlord shall be responsible for all major or
      structural maintenance and repairs (“Repairs”).  Major
      or structural Repairs means deficiencies caused by faulty design and/or
      poor construction, including subsidence due to insufficient compaction of
      fill dirt.

            

    

     

    
      	
               
      

            	
              l

            	
              If
      the Landlord fails to make such Repairs within fifteen (15) days of
      receipt of a Repair notice from the Tenant, the Tenant shall have the
      right to make or have made the necessary repairs for the account of the
      landlord and/or the right to terminate this Lease by issuing a termination
      notice to the Landlord.

            

    

     

    
      	
               
      

            	
              l

            	
              Damage
      caused by intention or neglect shall be repaired at the expense of the
      responsible party

            

    

     

    
      	
               
      

            	
              l

            	
              Unless
      otherwise provided under this Lease, minor Repairs shall be carried out by
      the Tenant at its own expense. Minor Repairs mean routine maintenance and
      repair of buildings and equipment as well as anything that can be
      maintained or repaired by the Tenant’s
staff.

            

    

     

    
      	
              5.

            	
              Technology
      Updates

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Tenant shall have the right, upon obtaining Landlord's consent in writing,
      such consent not unreasonably withheld, to remodel and make additions,
      improvements and replacements to all or any part of the Leased Premises
      from time to time as Tenant may deem
desirable.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              l

            	
              The
      Tenant and the Landlord shall to come to an agreement in writing regarding
      who is responsible for any technology updates, costs and construction and
      a re-negotiation of the relevant terms and provisions of this Lease, if
      necessary for such purpose.

            

    

     

    
      	
               
      

            	
              l

            	
              If
      during the term of the Lease the Tenant wishes to expand or increase the
      size of the farm, the parties shall re-negotiate the relevant terms and
      provisions of the Lease for such
purpose.

            

    

     

    
      	
              6.

            	
              Representations
      and Warranties of AgFeed:

            

    

     

    
      	
               
      

            	
              l

            	
              AgFeed
      has a valid lease interest in the Leased Premises during the entire term
      of this Lease, including any extension of this
  Lease.

            

    

     

    
      	
               
      

            	
              l

            	
              AgFeed
      has obtained or completed all necessary approval, registration or filing
      with the competent land authorities in respect of its lease with the
      relevant land owner.

            

    

     

    
      	
               
      

            	
              l

            	
              AgFeed
      has obtained all necessary permission or consent from the relevant land
      owner to sublease the entire Leased Premises to the Tenant for pig
      breeding and farming business.

            

    

     

    
      	
               
      

            	
              l

            	
              AgFeed
      has obtained all necessary governmental permission or consent regarding
      the Leased Premises being used for operating a pig breeding business,
      including but not limited to any environmental approval and/or farming
      construction and operation permit.

            

    

     

    
      	
               
      

            	
              l

            	
              AgFeed
      has obtained the ownership to all its farm buildings and creates no
      mortgage or any other security interest or restriction over such buildings
      in favour of any entities or
individuals.

            

    

     

    
      	
               
      

            	
              l

            	
              AgFeed’s
      right to use the land on which the Leased Premises is constructed is free
      and clear of any mortgage, security interest, other third party’s rights
      or restrictions in favour of any entities or
  individuals.

            

    

     

    
      	
              7.

            	
              Lease
      and General Real Estate Taxes.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Landlord shall pay, prior to delinquency, any and all lease and general
      real estate taxes and fees levied by the competent government authorities
      in connection with use of the Leased Premises (including owning and use of
      all the farm buildings thereon), whether required or not at the signing of
      this lease and newly instituted or coming due during the term of this
      Lease on the Leased Premises. On an annual basis, at Landlord’s billing,
      Tenant shall promptly remit to Landlord Tenant’s share of such lease and
      general real estate taxes and fees related to the farm buildings
      thereon.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
              Insurance.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Landlord shall maintain Leasehold insurance covering all buildings and all
      equipment for fire and natural disaster and any extended insurance
      coverage on the building and any equipment in the Leased Premises in such
      amount as the Landlord shall deem
appropriate.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Tenant shall be responsible, at its expense, for fire and extended
      coverage insurance on all of its personal property, including the movable
      devices for business located in the Leased
  Premises.

            

    

     

    
      	
               
      

            	
              l

            	
              Tenant
      shall, at its own expense, maintain a policy or policies of comprehensive
      general liability insurance with respect to the particular activities at
      the Leased Premises, with the premiums thereon fully paid on or before due
      date. Such insurance policy shall be issued by and binding upon an
      insurance company approved by Landlord, and shall afford minimum
      protection of not less than US$  500,000 for single limit
      coverage of bodily injury, property damage or combination
      thereof.

            

    

     

    
      	
              9.

            	
              Utilities.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Tenant shall pay all charges for coal, electricity, telephone and other
      services and utilities used by the Tenant on the Leased Premises during
      the term of this Lease, unless otherwise expressly agreed to in writing by
      Landlord.

            

    

     

    
      	
               
      

            	
              l

            	
              At
      commencement of the Lease, Landlord shall deliver the Leased Premises to
      Tenant with back-up electric generator, back-up water supply, and waste
      treatment/disposal systems in place that are commercially reasonable for
      Tenant’s activities on the Leased Premises that are contemplated by this
      Lease.

            

    

     

    
      	
               
      

            	
              l

            	
              As
      part of the Wuning farm’s waste management program, Tenant shall receive
      the economic benefit of any methane energy produced, if any, by any
      Digester system fuelled by farm hog
effluent.

            

    

     

    
      	
              10.

            	
              Signs.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Tenant shall have the right to place on the Leased Premises, at locations
      selected by the Tenant, any signs which are permitted by applicable zoning
      ordinances and private
restrictions.

            

    

     

    
      	
              11.

            	
              Entry.

            

    

     

    
      	
               
      

            	
              l

            	
              Upon
      the prior written notice, the Landlord shall have the right to enter upon
      the Leased Premises at reasonable hours to inspect the same, provided the
      Landlord shall not thereby unreasonably interfere with the Tenant's
      business on the Leased Premises.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              l

            	
              The
      Landlord must adhere to the Tenants Bio Security Protocols regarding Pig
      Freedom.  See Appendix 4 of this Lease–Bio Security Protocols of
      the Tenant.

            

    

     

    
      	
              12.

            	
              Damage
      and Destruction.

            

    

     

    
      	
               
      

            	
              l

            	
              If
      the Leased Premises or any part thereof is damaged by fire, casualty or
      structural defects, such damage or defects not being the result of any act
      of negligence by the Tenant or by any of the Tenant's agents, employees or
      invitees, and the same cannot be used for the Tenant's purposes, then the
      Tenant shall have the right within twenty four (24) hours following such
      damage to elect by notice to Landlord to terminate this Lease as of the
      date of such damage, without any surviving obligations to Tenant
      .

            

    

     

    
      	
               
      

            	
              l

            	
              In
      the event of minor damage caused by fire, casualty or structural defects,
      such damage or defects not being the result of any act of negligence by
      the Tenant or by any of the Tenant's agents, employees or invitees, to any
      part of the Leased Premises, and if such damage does not render the Leased
      Premises unusable for the Tenant's purposes, the Landlord shall promptly
      repair such damage at the cost of the Landlord. The Landlord shall act
      within fifteen (15) days following the repair request made by the Tenant.
      If the Landlord fails to act within fifteen (15) days of the request by
      the Tenant, the Tenant may conduct such repair but the cost of the repair
      shall be borne by the Landlord in accordance with the provisions of
      Article 20 of this Lease.

            

    

     

    
      	
               
      

            	
              l

            	
              If
      during the term of this Lease the Leased Premises become inoperable for
      the Tenants purposes, caused by the same as above, in whole or in part,
      then the Tenant shall be relieved from paying all the rents and other
      charges during the period that the Leased property is
      inoperable.

            

    

     

    
      	
               
      

            	
              l

            	
              Lease
      payments paid in advance for any such periods that the Lease property is
      inoperable shall be credited on the next ensuing payments, if
      any.  If no further payments are to be made, any such advance
      payments shall be refunded to
Tenant.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      provisions of this paragraph extend not only to the matters aforesaid, but
      also to any occurrence which is beyond the Tenant's reasonable control and
      which renders the Leased Premises inoperable in whole or in part, for the
      Tenant's purposes.

            

    

     

    
      	
              13.

            	
              Tenant’s
      Default.

            

    

     

    
      	
               
      

            	
              l

            	
              In
      the event of a default made by the Tenant in the payment of rent due to
      Landlord, the Tenant shall have thirty (30) days after receipt of written
      notice thereof to cure such
default.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              l

            	
              In
      the event of a default made by the Tenant in any of the other covenants or
      conditions to be kept, observed and performed by the Tenant, the Tenant
      shall have forty-five (45) days after receipt of written notice thereof to
      cure such default.

            

    

     

    
      	
               
      

            	
              l

            	
              In
      the event that the Tenant fails to cure any default within the time
      allowed under this paragraph, the Landlord may declare the term of this
      Lease ended and terminated by giving the Tenant written notice of such
      intention.

            

    

     

    
      	
              14.

            	
              Quiet
      Possession.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Landlord covenants and warrants that upon performance by the Tenant of its
      obligations hereunder, the Landlord will keep and maintain the Tenant in
      exclusive, quiet, peaceable and undisturbed and uninterrupted possession
      of the Leased Premises during the term of this
  Lease.

            

    

     

    
      	
              15.

            	
              Notice.

            

    

     

    
      	
               
      

            	
              

                l

              

            	
              Any
      notice required or permitted under this Lease shall be deemed sufficiently
      given or served if:

            

    

     

    (1)          sent
by certified mail, return receipt requested, addressed as follows:

     

    
      	
               
      

            	
              Landlord:

            

    

     

    
      	
               
      

            	
              Rm.
      A1001-1002, Tower 16, Hengmao Int’l
Center

            

    

     

    
      	
               
      

            	
              333
      S. Guangchang Rd.

            

    

     

    
      	
               
      

            	
              Nanchang,
      Jiangxi Province

            

    

     

    
      	
               
      

            	
              PRC
      330003

            

    

     

    
      	
               
      

            	
              Tenant:  Rm.
      A1001-1002, Tower 16, Hengmao Int’l
Center

            

    

     

    
      	
               
      

            	
              333
      S. Guangchang Rd.

            

    

     

    
      	
               
      

            	
              Nanchang,
      Jiangxi Province

            

    

     

    
      	
               
      

            	
              PRC
      330003

            

    

     

    (2)          sent
by courier, three (3) business days after posting it, to the above
address,

     

    (3)          sent
by fax, when a confirmation report of transmission is recorded by the sender's
facsimile machine.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              

                l

              

            	
              The
      Landlord and the Tenant shall each have the right from time to time to
      change the place where notice is to be given under this paragraph by
      written notice thereof to the other
party.

            

    

     

    
      	
              16.

            	
              Waiver.

            

    

     

    
      	
               
      

            	
              l

            	
              No
      waiver of any default of the Landlord or the Tenant hereunder shall be
      implied from any omission to take any action on account of such default if
      such default persists or is repeated, and no express waiver shall affect
      any default other than the default specified in the express waiver and
      that only for the time and to the extent therein stated. One or more
      waivers by the Landlord or the Tenant shall not be construed as a waiver
      of a subsequent breach of the same covenant, term or
      condition.

            

    

     

    
      	
              17.

            	
              Successors.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      provisions of this Lease shall extend to and be binding upon the Landlord
      and the Tenant and their respective legal representatives, successors and
      assigns.

            

    

     

    
      	
              18.

            	
              Consent.

            

    

     

    
      	
               
      

            	
              l

            	
              The
      Landlord shall not unreasonably withhold or delay its consent with respect
      to any matter for which the Landlord's consent is required or desirable
      under this Lease.

            

    

     

    19.
Return of the Farm and assets on termination

     

    
      	
               
      

            	
              ·

            	
              The
      tenant agrees to return the farm and all leased assets to the Landlord
      within 15 days of the termination date and in normal operating
      condition.

            

    

     

    20.
Landlord’s Default.

     

    
      	
               
      

            	
              l

            	
              Unless
      otherwise provided under this Lease, if there is a default with respect to
      any of the Landlord's covenants, warranties or representations under this
      Lease, and if the default continues more than forty-five (45) days after
      notice in writing from the Tenant to the Landlord specifying the default,
      the Tenant may, at its option and without affecting any other remedy
      hereunder, cure such default and deduct the cost thereof from the next
      accruing instalment or instalments of rent payable hereunder until the
      Tenant shall have been fully reimbursed for such expenditures, together
      with interest thereon at a rate equal to the lesser of six percent (6%)
      per annum or the then highest lawful rate. If this
      Lease terminates prior to the Tenant's receiving full reimbursement, the
      Landlord shall pay the un-reimbursed balance plus accrued interest to the
      Tenant on demand. Otherwise, the Tenant may, at its option, terminate the
      agreement and the Landlord shall bear the liabilities for breach of this
      Lease.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    21.  Compliance
with Law.

     

    
      	
               
      

            	
              l

            	
              The
      Tenant and the Landlord each shall comply with all laws, orders,
      ordinances and other public requirements now or hereafter affecting the
      Leased Premises.

            

    

     

    
      	
               
      

            	
              l

            	
              Landlord
      shall be responsible for any cleanup costs, penalties and legal costs
      associated with a violation of any environmental laws, ordinances, rules,
      requirements or regulations relating to the preservation or regulation of
      the public health, welfare or environment or the regulation or control of
      toxic or hazardous substances or materials directly caused by the
      condition of the Leased Premises as delivered to the Tenant or the
      improper installation of any systems by the Landlord on or in the Leased
      Premises; provided
      however, Landlord shall not be responsible in the event Tenant
      fails to comply with any effluent handling procedures or any waste
      management system operation procedures prescribed by the
      Landlord.

            

    

     

    22. Final
Agreement.

     

    
      	
               
      

            	
              l

            	
              This
      Lease terminates and supersedes all prior understandings or agreements on
      the subject matter hereof. This Lease may be modified only by a further
      writing that is duly executed by both
parties.

            

    

     

    
      23. This
Lease conforms to all relevant clauses in the Shareholders Agreement of Hypor
Agfeed Breeding Company Inc. that will
affect the performance of this Lease by both parties.

    

     

    24.  Registration

     

    
      	
               
      

            	
              l

            	
              Landlord
      shall complete the relevant registration or filing procedures in respect
      of this Lease within thirty (30) days of execution of this
      Lease.

            

    

     

    25.
Counterparts and Language

     

    
      	
               
      

            	
              l

            	
              This
      agreement shall be signed in two (2) counterparts in both Chinese and
      English languages.  Each party will hold one (1)
      copy.  In case of any dispute, the English version will be
      followed.

            

    

     

    [signature
page follows]

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    This
Lease is entered into by the duly authorised representatives of the parties on
the date stated on the first page of this Lease.

    
      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Landlord: AgFeed
      Industries, Inc.

                                          
	 	 
	
                                            By:

                                          	
                                            /s/ Li Songyan

                                          
	 	 
	
                                            Name:

                                          	
                                            Li
      Songyan

                                          
	 	 
	
                                            Title:

                                          	
                                            Chairman

                                          
	 	 
	
                                            Date:

                                          	
                                            December
      11, 2009

                                          
	 
      
	
                                            Tenant: Hypor Agfeed
      Breeding Company Inc.

                                          
	 	 
	
                                            By:

                                          	
                                            /s/ Li Songyan

                                          
	 	 
	
                                            Name:

                                          	
                                            Li
      Songyan

                                          
	 	 
	
                                            Title:

                                          	
                                            Authorized
      Signatory

                                          
	 	 
	
                                            Date:

                                          	
                                            December
      11,
2009

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          10Exhibit
10.26

    INTRA
GROUP LOAN AGREEMENT

    

    
      	
              1.

            	
              Date of
      Agreement as of December 11, 2009 (the "Agreement
      Date")

            

    

    

    
      	
              2.

            	
              Parties:

            

    

    

    
      (a)         
AGFEED
INDUSTRIES, INC., a company formed under the laws of the British Virgin Islands
and having its registered office at Akara Bldg., 24 De Castro Street, Wickhams
Cay 1, Road Town, Tortola, British Virgin Islands (“AgFeed”).

    

    

    
      (b)         
HYPOR
AGFEED BREEDING COMPANY INC. an equity joint venture corporation existing under
the laws of PRC and having its registered office at [address, address,] China (the
“Affiliate”)

    

    

    
      	
              3.

            	
              Definitions

            

    

    
      
         

        In this
Agreement the following words and phrases shall bear the following
meanings:

        

        Acceleration Event
means an event declared by a Party to be an Acceleration Event in accordance
with Clause 11.1 hereof;

        

        Agreement means this
document, stating the terms and conditions agreed to by the Parties, including
and forming an integral part thereof, the Schedules attached
hereto;

        

        Amount means the Loan
as the same may be reduced or increased from time to time in accordance with the
terms hereof;

        

        Business Day means
any day other than a Saturday or Sunday on which banks are open for business in
the country of AgFeed and in the country of the Affiliate;

        

        Currency means the
currency in which the Loan is made, being the Euro (€);

        

        Drawdown Date means
the date of the advance of the Loan;

        

        Default Interest Rate
has the meaning set out in Part I of the Schedule;

        

        Group  means
the group of companies consisting of AgFeed and all its direct and indirect
subsidiaries from time to time;

        

        Loan means the amount
advanced to the Affiliate by AgFeed as specified in Part II of the
Schedule;

        

        Interest Margin means
the margin charged over and above the base rate (one month’s Euribor) by the
finance provider(s) to AgFeed;

        

        Interest Period means
each period by reference to which interest is credited or debited to the Account
as indicated in Clause 6.2;

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

         

        Interest Rate has the
meaning set out in Part I of the Schedule;

        

        Parties means the
parties to this Agreement (and "Party" shall be construed accordingly) as
mentioned in Clause 2 of this Agreement;

        

        SAFE means the State
Administration of Foreign Exchange or its local counterpart;

        

        Schedule means the
Schedule attached to this Agreement;

        

        Termination Date
means the date on which this Agreement is terminated pursuant to Clause 11 or
Clause 14.1;

        

        Withholding Tax means
fees, taxes, charges or deductions of whatever nature imposed by the fiscal
authorities in the country of tax residence of the paying Party on any sum
payable under this Agreement.

      

    

    

    
      	
              4.

            	
              Loan/Purpose

            

    

    

    
      	
              4.1

            	
              Subject
      to the term of this Agreement, AgFeed agrees to make the Loan as set out
      in the Schedule to the Affiliate for the sole purpose to settlement of
      accounts, purchase of capital equipment and running of the business, and
      for other purposes as directed by its board of directors shall at no time
      serve to finance financial assets, repayment of RMB loan, domestic equity
      investment or other purposes restricted by SAFE. The Loan will be governed
      by the terms of this Agreement.

            

    

    

    
      	
              4.2

            	
              Subject
      to the satisfaction of conditions precedent set out in Clause 13, the Loan
      shall be advanced by AgFeed to the Affiliate in one instalment on such
      date as may be requested by the
Affiliate.

            

    

    

    
      	
              5.

            	
              (P)repayment

            

    

    

    
      	
              5.1

            	
              The
      Affiliate will repay the Loan (together with all accrued unpaid interest)
      on the Termination Date.

            

    

    

    
      	
              5.2

            	
              Notwithstanding
      anything else to the contrary contained in this Agreement, the consent of
      AgFeed shall be required for any prepayment of Loan hereunder should the
      Affiliate decide to propose a (partial) prepayment on the basis of
      sufficient free cash flow derived from Affiliate’s
    operations.

            

    

    

    
      	
              5.3

            	
              In
      the situation of any prepayment the Affiliate shall pay the Net Present
      Value of the interest liability calculated for the period of the date of
      prepayment of any amount and the Termination Date of this Loan
      agreement.

            

    

    

    
      	
              6. 

            	
              Interest

            

    

    

    
      	
              6.1

            	
              The
      interest rate applicable to the Loan for each Interest Period shall be the
      rate as set out in Schedule I, or other rates agreed upon between the
      Affiliate and AgFeed in writing from time to time, subject to approval by
      SAFE, and is payable by the Affiliate to AgFeed in arrears on the last day
      of each Interest Period.  Interest accrues from day to day
      commencing on the date of the advance of the Loan and is calculated on the
      basis of the actual number of days elapsed and a 360 day
    year.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              6.2

            	
              Each
      Interest Period for the Loan shall be a period of 3 months.  The
      first Interest Period in relation to the Loan shall commence on the
      Drawdown Date of the Loan.

            

    

    

    
      	
              6.2

            	
              Interest
      not paid on the Loan at the end of an Interest Period (with the prior
      agreement of AgFeed) will be added to the Loan and itself bear
      interest.

            

    

    

    
      	
              7.

            	
              Payments

            

    

    

    
      	
              7.1

            	
              All
      payments under this Agreement shall be made to AgFeed's bank
      account.

            

    

    

    
      	
              7.2

            	
              If
      any payment whether of principal, interest or otherwise falls due on, or
      the last day of any Interest Period is, a day which is not a Business Day,
      the date for payment, or such last day of an Interest Period, shall be the
      next following Business Day or, if such next following Business Day falls
      in the next following calendar month or after the Termination Date, the
      immediately preceding Business Day.

            

    

    

    
      	
              7.3

            	
              In
      the event that the Affiliate fails to make a payment under this Agreement
      on its due date, interest shall be payable on such overdue sum at the
      Default Interest Rate set out in Part I of the Schedule as from the due
      date and without notification in writing from AgFeed that such interest
      has become due.

            

    

    

    
      	
              8.

            	
              Withholding
      Tax

            

    

    

    
      	
              8.1

            	
              If
      and to the extent any applicable double taxation treaty or any provision
      of law provides for a reduced (or as the case may be zero) rate of
      Withholding Tax, AgFeed will use all reasonable endeavours to assist the
      receiving Party to obtain permission at the earliest opportunity to make
      payment hereunder at such reduced (or as the case may be zero)
      rate.

            

    

    

    
      	
              8.2

            	
              Either
      Party required to make a deduction or withholding will deliver tax
      receipts to the other Party within thirty (30) Business Days after
      Withholding Tax has been paid and will further provide all other available
      documents and information reasonably necessary or appropriate to permit
      the other Party to substantiate its claim for credit for foreign tax
      purposes with respect to the withheld amount.  The Parties agree
      to submit any such claims to the appropriate revenue authorities
      expeditiously.

            

    

    

    
      	
              9.

            	
              Costs and
      Expenses

            

    

    

    
      	
              9.1

            	
              AgFeed
      may charge the Affiliate for the provision of the Loan and related
      services in such a way as to reimburse all of AgFeed’s costs and expenses
      actually incurred, including a profit of 0.7% interest
    margin.

            

    

    

    
      	
              10.

            	
              Representation and
      Warranties

            

    

    

    
      	
              A.

            	
              Each
      Party represents and warrants that:

            

    

    

    
      	
              10.1

            	
              It
      is a duly incorporated validly existing corporation under the laws of the
      place of its incorporation;

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              10.2

            	
              It
      has the power to enter into this Agreement and to exercise its rights and
      fulfil its obligations granted hereunder and has taken all necessary
      actions to authorise the execution, delivery and performance of this
      Agreement which constitutes its valid and legally binding obligation
      enforceable in accordance with its
terms;

            

    

    

    
      	
              10.3

            	
              The
      execution, delivery and performance of this Agreement does not violate any
      provision of any applicable existing law or regulation by which it is
      bound or its statutes or any mortgage, contract or other undertaking to
      which it is a party or which is binding upon it;
  and

            

    

    

    
      
        	
                10.4

              	
                All
      relevant consents, approvals or authorisations of any governmental
      authority or agency required in connection with the execution, validity or
      enforceability of this Agreement have been obtained and are valid and
      subsisting.

              

      

    

    

    
      	
              B.

            	
              Affiliate
      represents and warrants that:

            

    

    

    
      	
              10.5

            	
              In
      the event AgFeed’s interest in the Affiliate is changed due to any sale of
      shares in the Affiliate or capital change of the Affiliate, any Amount (to
      be) made available under this Agreement by AgFeed shall be adjusted to
      reflect the interest held by AgFeed in the Affiliate and the shareholders
      indebtedness of the Affiliate. Additionally in such circumstances, the
      Loan shall be subject to a contribution held by the other co-owner(s) of
      the Affiliate, on a pro rata basis reflecting the respective interest of
      such co-owner(s).

            

    

    

    
      	
              10.6

            	
              Any
      amount made available by the co-owner(s) to the Affiliate under a
      shareholders loan agreement shall solely be accepted by Affiliate if such
      amount is made available under same/similar conditions and such conditions
      are not more favourable to the co-owner than the conditions as stated in
      this Agreement.

            

    

    

    
      	
              11.

            	
              Acceleration and
      Termination

            

    

    

    
      	
              11.1

            	
              If
      any of the following events shall occur in respect of one Party (the
      "Affected Party"), the other Party may at its discretion by notice to the
      Affected Party declare such event to be an Acceleration
    Event:

            

    

    

    
      
        (i)          
failure
by the Affected Party to pay principal, interest or any other sum due for
payment by the Affected Party under this Agreement within ten (10) Business Days
of the due date; or

      

    

    

    
      
        (ii)         
the
Affected Party committing any other material breach or omitting to observe in
any material respect any other of the obligations accepted or undertakings given
by it under this Agreement and such breach or omission continuing for more than
ten (10) Business Days after the date of receipt by the Affected Party of
written notice requiring such breach or omission to be remedied;
or

      

    

    

    
      
        (iii)        
any
material debt of the Affected Party:

      

    

    

    
      
        	
              	
                (A)

              	
                being
      validly declared to be due and repayable prior to the stated date of
      maturity thereof as a result of any material default on the part of the
      Affected Party (other than a default arising out of liability being
      contested in good faith) under the terms of the Agreement or other
      documents evidencing or constituting such debt and such debt not being
      repaid or such default not being remedied or such declaration not being
      otherwise rescinded within ten (10) Business Days after the Affected Party
      has received notice of such declaration;
or

              

      

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                (B)

              	
                being
      not repaid within ten (10) Business Days after the date of the maturity
      thereof plus any applicable period of
grace

              

      

    

    

    
      PROVIDED
THAT for the purposes of this sub-paragraph 11.1(iii), material debt means a
borrowing which represents more than ten per cent (10%) of the aggregate amount
of the net interest bearing debts of the Affected Party and no failure to pay or
repay or other default resulting from circumstances outside the control of the
Affected Party shall be taken into account; or

    

    

    
      (iv)          a final
judgement being made by a court of competent jurisdiction, or an effective
resolution being passed for the winding-up of the Affected Party (save for a
voluntary winding-up for the purpose of an amalgamation or reconstruction) or
the occurrence of any similar event in any appropriate jurisdiction;
or

    

    

    
      (v)          
a
receiver being appointed or an encumbrancer taking possession of all or a major
part of the undertaking, property or assets of the Affected Party and not being
paid out or discharged within forty (40) Business Days (excluding any period
during which such appointment or taking possession is being contested in good
faith) after such appointment or taking possession or the occurrence of any
similar event in any appropriate jurisdiction; or

    

    

    
      (vi)         
the
Affected Party ceasing to be controlled by the Group meaning that the Group will
directly or indirectly cease to own more than fifty per cent of the shares
carrying rights to vote at a general meeting of shareholders of the Affected
Party or ordinary shares carrying a majority of votes at a general meeting of
shareholders of the Affected Party.

    

    

    
      	
              11.2

            	
              The
      Loan amount shall be fully reimbursed at the third anniversary of the
      Drawdown Date, without prejudice to the application of Clause 11.1. On
      that date, the Amount together with any interest accrued thereon less any
      interest to be deducted from the Amount shall become immediately due and
      repayable by or to the other Party.

            

    

    

    
      	
              11.3

            	
              If
      an Acceleration Event shall occur, the other Party shall have the right,
      subject to notification within eight (8) Business Days, to terminate this
      Agreement with the same result and under the same conditions as a
      termination pursuant to clause
11.2.

            

    

    

    
      	
              11.4

            	
              If
      the Amount shall become immediately due and payable pursuant to Clause
      11.3, the Affected Party will promptly reimburse to the other Party any
      losses, costs and expenses whatsoever incurred or suffered by the other
      Party as a consequence of the early termination of this Agreement in
      application of the said Clause
11.3.

            

    

    

    
      	
              12.

            	
              Undertakings

            

    

    

    The
undertakings in this clause remain in force from the date of this Agreement for
so long as the Amount is outstanding under this Loan Agreement.

    

    
      	
              12.1.

            	
              The
      Affiliate’s payment obligations under this Loan Agreement shall rank pari
      passu with all business and/or financial creditors of the
      Affiliate.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              12.2.

            	
              The
      Affiliate is in compliance with all applicable laws and regulations and no
      litigation, arbitration or administrative proceedings, which are likely to
      have a Material Adverse Effect have been started or threatened against the
      Affiliate.

            

    

    

    
      	
              12.3.

            	
              The
      Affiliate is in compliance in all material respects with all environmental
      laws and environmental permits and no environmental claims have been
      commenced or are threatened against the
  Affiliate.

            

    

    

    
      	
              12.4.

            	
              The
      Affiliate shall not create or permit to subsist any security over any of
      its assets other than:

            

    

    
      	
              12.4.1 

            	
              Any
      security which has been permitted by
AgFeed;

            

    

    
      	
              12.4.2

            	
              Any
      security arising pursuant to any netting, set-off, cash pooling, cash
      management or other arrangement entered into in the ordinary course of the
      Affiliate’s banking arrangements;

            

    

    
      	
              12.4.3

            	
              Any
      lien arising by operation of law (including Tax laws) or resulting from
      judicial proceedings, in the ordinary course of
  business;

            

    

    
      	
              12.4.4

            	
              Any
      security over or affecting any asset acquired by the Affiliate after the
      date of this Agreement, provided such security is discharged within three
      months of the acquisition of such
assets;

            

    

    
      	
              12.4.5

            	
              Pledges
      of goods, the related documents of title or other related documents
      arising in the ordinary course of
trading.

            

    

    

    
      	
              12.5

            	
              The
      Affiliate shall not dispose of any asset other
  than:

            

    

    
      	
              12.5.1

            	
              Any
      disposal which has been authorised by
AgFeed;

            

    

    
      	
              12.5.2

            	
              Sales,
      transfers or other disposals made in the ordinary course of trading at
      arms length and on normal commercial terms,
or

            

    

    
      	
              12.5.3

            	
              The
      payment of dividends.

            

    

    

    
      	
              12.6

            	
              The
      Affiliate shall not merge or acquire any other legal entity, whether an
      entity being part of the Group, or a third party, without the prior
      written consent of AgFeed.

            

    

    

    
      	
              12.7

            	
              The
      Affiliate shall maintain insurances in relation to its business and assets
      in accordance with the insurance policy set out by, or on behalf of,
      AgFeed.

            

    

    

    
      	
              12.8

            	
              Other
      than in the ordinary course of business, the Affiliate shall not grant any
      loan or credit or give any guarantee or indemnity to a third
      party.

            

    

    

    
      	
              13.

            	
              Conditions
      Precedent

            

    

    

    
      The Loan
amount shall become available to the Affiliate on receipt by AgFeed
of:

    

    

    
      	
              13.1

            	
              a
      duly executed copy of this
Agreement;

            

    

    

    
      	
              13.2

            	
              the
      foreign debt registration document in respect of the Loan issued by SAFE
      in accordance with relevant PRC laws, regulations and rules;
      and

            

    

    

    
      	
              13.3

            	
              where
      the Affiliate is required to obtain any statutory, regulatory or other
      consents or authorisations for the making or performance of this
      Agreement, a certificate signed on behalf of the Affiliate confirming that
      such consents or authorisations have been
  obtained.

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              14.

            	
              New
      Circumstances

            

    

    

    
      	
              14.1

            	
              Save
      as otherwise provided in Clause 8 hereof,
if:

            

    

    

    
      
        	
              	
                (A)

              	
                there
      is any change in applicable law, regulation or regulatory requirement or
      in the interpretation or application thereof;
or

              

      

    

    

    
      
        	
              	
                (B)

              	
                compliance
      by either Party (the "Relevant Party") with any applicable direction or
      requirement of any competent authority shall impose, modify or deem
      applicable any reserve requirements or require the making of any special
      deposits against or in respect of any assets or liability of, deposit with
      or for the account of, or loans by, the Relevant
  Party;

              

      

    

    

    
      and the
result thereof is either to increase the costs to the Relevant Party of making
available or maintaining the Amount or any part thereof or to reduce the amount
of any payment received or receivable by the Relevant Party under this Agreement
then:

    

    

    
      (a) the
Relevant Party shall notify the other Party as soon as possible of the happening
of such event;

    

    

    
      (b) the
other Party shall pay to the Relevant Party on demand such amount as may be
necessary to compensate the Relevant Party (as set out in any explanatory
certificate provided by the Relevant Party) for such additional costs or such
reduction; and

    

    

    
      (c) so
long as such additional costs continue or as the case may be so long as the
circumstances giving rise to such reduction continue the other Party shall have
the right:

    

    

    
      
        	
              	
                (A)

              	
                on
      giving not less that (10) Business Days' notice to the Relevant Party to
      terminate this Agreement with the result that the Amount together with any
      interest accrued thereon or less any interest to be deducted therefrom
      shall become immediately due and repayable;
or

              

      

    

    

    
      
        	
              	
                (B)

              	
                at
      any time without premium penalty or other charge to reduce the maximum
      amounts available for deposits and/or borrowings hereunder to any amounts
      being not more than (whilst any sums are outstanding under the Agreement
      and not repaid) the Amount.

              

      

    

    

    
      	
              14.2

            	
              In
      the event that it becomes unlawful in any relevant jurisdiction for either
      Party (the "Relevant Party") to comply with its obligations or maintain
      the Loan Amount under this Agreement, this Agreement shall immediately
      terminate and the Amount (if any), together with all accrued interest
      thereon and all other such sums then outstanding under this Agreement less
      any interest to be deducted from the Amount shall become immediately due
      and repayable upon receipt by the other Party of a notice from the
      Relevant Party.

            

    

    

    
      	
              15.

            	
              Notices

            

    

    

    
      	
              15.1

            	
              All
      notices and other communications in connection with this Agreement shall
      be given or confirmed in writing or by e-mail, telex or fax by one Party
      to the other at the address specified in Clause 2 or such other addresses
      as may from time to time be substituted therefore by written notice by one
      Party to the other.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              15.2

            	
              Notices
      sent by e-mail, telex or fax shall be deemed to be received on the
      Business Day following the day they are transmitted and if sent by post
      shall be deemed to be received three (3) Business Days after they are put
      in the post by airmail, postage prepaid and properly addressed to the
      addressee.

            

    

    

    
      	
              16.

            	
              Assignment

            

    

    

    Neither
Party may assign its rights or transfer its obligations under this Agreement
without the prior written consent of the other party.

    

    
      	
              17.

            	
              Currency
      Indemnity

            

    

    

    
      The
obligation of either Party to make payments in the Currency shall not be
discharged or satisfied by tender or recovery pursuant to any judgement
expressed in or converted into any other currency except to the extent to which
such tender or recovery shall result in the effective receipt by the receiving
Party of the full amount of the Currency payable under this Agreement and
accordingly the primary obligation of both Parties shall be enforceable as an
alternative or additional cause of action for the purpose of recovery in the
Currency of the amount (if any) by which such effective receipt shall fall short
of the full amount of the Currency payable hereunder and shall not be affected
by judgement being obtained for any other sum due under this
Agreement.

    

    

    
      	
              18.

            	
              Governing Law and
      Jurisdiction

            

    

    

    
      	
              18.1

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of the PRC.

            

    

    

    
      	
              18.2

            	
              Any
      dispute, controversy or claim arising out of or in connection with this
      Agreement, or the breach, termination or invalidity thereof, shall be
      settled by arbitration.  The appointing authority shall be the
      China International Economic and Trade Arbitration Commission (the
      “Commission”).  The place of arbitration shall be in Beijing at
      Commission. There shall be only one arbitrator, and the arbitration shall
      be conducted in English and Chinese.  The arbitration shall be
      administered by the Commission in accordance with the procedural rules of
      the Commission in force at the date of this
  Agreement.

            

    

    

    
      	
              19.

            	
              Government
      Registration

            

    

    

    
      The
Affiliate shall:

    

     

    
      
        	
              	
                (a)

              	
                within
      fifteen (15) days after the Agreement Date, effect foreign debt
      registration formalities with SAFE in accordance with relevant PRC laws,
      regulations and rules;

              

      

    

     

    
      
        	
              	
                (b)

              	
                effect
      formalities in respect of foreign debt principal and interest repayment in
      accordance with relevant PRC laws, regulations and rules;
    and

              

      

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                (c)

              	
                use
      its best endeavour to obtain such additional government or other approvals
      as may be necessary from time to time in connection with the execution,
      delivery and performance of this
Agreement.

              

      

    

    

    IN
WITNESS WHEREOF each of the Parties has caused this Agreement to be signed on
its behalf

    

    SIGNED
by:  /s/ Li
Songyan; Title:  Chairman

    for and
on behalf of AgFeed Industries, Inc.

    

    SIGNED
by:  /s/ Li
Songyan; Title:  Authorized
Signatory

    for and
on behalf of Hypor Agfeed Breeding Company INC.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    THE
SCHEDULE

    

    PART I

    

    Interest

    

    Interest
Calculation: on the basis of 360 days per year and the actual number of
days.

    

    
      	
              Interest
      Rate

            	
              :

            	
              One
      month’s Euribor at the date prior to the date interest shall be due plus
      the Interest Margin charged by Company’s finance provider and a margin of
      0.7% for administrative and treasury
services

            

    

    

    
      	
              Default
      Interest Rate

            	
              :

            	
              3%
      over the Interest Rate

            

    

    

    
      	
              Basis
      of debiting of Interest

            	
              :

            	
              at
      the end of each calendar month

            

    

    

    
      	
              Early
      repayment

            	
              :

            	
              NPV
      on interest liability

            

    

     

    PART II

    

    Loan

    
      

      
        
          	
                  Loan 

                	
                  :

                	
                  Euro
      amount of € 1,541,984 (in words: One-Million, Five-Hundred Forty-One
      Thousand, Nine-Hundred Eighty-Four Euro) [Said amount is based on an
      exchange rate of 1 RMB: 0.0980594€ on November 24. 2009. Final amount to
      be calculated on the date of signing this Loan
      agreement]

                
	 	 	 
	Term 	: 	NB
      (__) year 

        

      

    

    

    
      	
              Maturity

            	
              :

            	
              the
      third anniversary of the Drawdown
Date

            

    

    

    
      	
              Special
      condition

            	
              :

            	
              none

            

    

     

    
      
        
        

      

      
        10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]